Shivashrit Foods Limited is an Aligarh-based manufacturer and exporter of premium-grade **potato flakes**, serving as a critical ingredient supplier to the global food processing and snack industries. Established in **2017**, the company has transitioned from a pure-play industrial supplier to a diversified food enterprise with a growing retail presence. Following its successful listing on the **NSE Emerge** platform in **September 2025**, the company is currently executing an aggressive expansion strategy to capitalize on the growing global demand for processed potato products. --- ### **Dual-Channel Revenue Model & Market Positioning** The company operates a diversified business model that balances high-volume industrial contracts with high-margin consumer retail products. * **B2B Segment (Industrial Supply):** This remains the core revenue driver. Shivashrit supplies bulk potato flakes under its flagship brand to major food processors, the **HoReCa** (Hotel/Restaurant/Cafe) segment, and snack manufacturers. Its marquee client list includes industry leaders such as **Haldiram’s, Bikanervala, and Bikaji**. * **B2C Segment (Retail - "Shree Aahar"):** Launched in **December 2024**, this brand targets urban households with ready-to-cook products and traditional snacks. The company is leveraging an omnichannel strategy, distributing via **Amazon, Flipkart, and Meesho**, while targeting physical retail expansion in **Delhi NCR**, Aligarh, Agra, and Mathura. * **Global Export Operations:** Commencing in **2022**, the company has rapidly expanded its international footprint to **14 countries**, including the **USA, UK, Europe, UAE (Dubai), Switzerland, Australia, and Bangladesh**. Export revenue has seen significant growth, rising from **₹12.6 Cr in FY23** to **₹23.29 Cr in FY25**. --- ### **Product Portfolio: From Industrial Ingredients to Consumer Snacks** Shivashrit’s product range is designed to serve both the technical requirements of food scientists and the taste preferences of retail consumers. | Category | Product Details & Applications | | :--- | :--- | | **Premium Potato Flakes** | Used in **extruded snacks**, bakery products, **frozen foods**, soup premixes, and **baby food**. | | **Retail Staples** | Branded potato flakes packaged for household culinary use. | | **Traditional Namkeens** | **Aaloo Bhujia**, **Moong Dal**, **Navratan Mix**, **Punjabi Tadka**, and **All Rounder Mix**. | | **Kids & Contemporary** | **Chatkare**, **Crunchy Katori**, and **Masala Puffs**. | --- ### **Manufacturing Infrastructure & The "Madrak" Expansion** The company operates a state-of-the-art, fully automated facility in **Aligarh, Uttar Pradesh**, equipped with **European machinery**. To meet the demand-supply gap in India—where imports reached **USD 1.81 Million in 2025**—the company is nearly tripling its capacity. * **Current Capacity:** **28.8 MT/Day** (**8,640 MTPA**) with a high utilization rate of **81.24%** as of November 2025. * **The Madrak Project:** A new **6,300 sq. meter** unit located **10 km** from the existing site. This facility is funded by **₹54.48 crore** in net IPO proceeds. * **Target Capacity:** Post-expansion, total capacity will reach **24,480 MTPA** (**82.0 MT/Day**). * **Compliance:** The facilities hold **FSSAI, ISO 22000:2018, USFDA, BRCGS, and HALAL** certifications, ensuring eligibility for premium global markets. --- ### **Supply Chain Integration & Raw Material Security** Shivashrit leverages its location in India’s primary potato belt to ensure cost-efficiency and quality control. * **Backward Integration:** Maintains a direct network of **200+ farmers** within a **200 km radius**. * **Procurement Strategy:** The company procures **80-90%** of its raw potatoes directly from farmers during harvest seasons. This minimizes open-market price volatility. * **Storage Infrastructure:** Utilizes specialized cold storage (including leased premises from **M/s. Nishant Cold Storage**) to maintain a consistent year-round supply and a **12-month shelf life** for finished flakes. --- ### **Financial Performance & IPO Metrics** The company has demonstrated robust growth and high capital efficiency. In **August 2025**, it issued **49,32,000 equity shares** at **₹142 per share**. **Annual Growth Trends (FY23–FY25):** | Metric | FY23 | FY24 | FY25 | | :--- | :--- | :--- | :--- | | **Revenue from Operations** | - | **₹76.22 Cr** | **₹104.69 Cr** | | **Profit After Tax (PAT)** | - | **₹11.61 Cr** | **₹12.06 Cr** | | **EBITDA Margin** | - | - | **22.06%** | | **ROCE** | - | - | **42.73%** | | **Return on Net Worth** | - | - | **34.85%** | **Recent Half-Yearly Performance (H1 FY26 vs H1 FY25):** * **Revenue:** Increased **20%** to **61.18 Cr**. * **EBITDA:** Increased **18%** to **13.12 Cr**. * **PAT:** Increased **22%** to **7.51 Cr**. * **Net Profit Margin:** Stable at **12.28%**. --- ### **Strategic Growth Drivers** 1. **Import Substitution:** India’s potato flake market is projected to reach **USD 1,046.7 Million by 2032**. Shivashrit is positioned to replace expensive imports with domestic production. 2. **Geopolitical Advantage:** The company is actively capturing global market share vacated by competitors due to supply disruptions from the **Russia-Ukraine conflict**. 3. **FMCG Transition:** Moving into the **₹46,500 crore** Indian snack market via the **Shree Aahar** brand provides a higher margin profile than bulk B2B sales. 4. **Incentives:** The new Madrak unit is eligible for benefits under the **UP Industrial Investment & Employment Promotion Policy, 2022**. --- ### **Risk Factors & Mitigation** Investors should note the following operational and regulatory challenges: * **Raw Material Volatility:** High dependency on seasonal potato yields and prices. The company mitigates this through **direct farmer tie-ups** and bulk seasonal procurement. * **Litigation:** A pending income tax demand of **₹91,83,210** for **FY 2019-20** is currently under appeal. * **Working Capital Intensity:** Significant capital is tied up in inventories (**₹57.91 Cr in FY25**) and trade receivables (**₹12.45 Cr in FY25**) due to the seasonal nature of the business. * **Competition:** Faces pressure from alternative starch substitutes and regional low-cost snack producers. * **Execution Risk:** As of **December 31, 2025**, **₹34.54 crore (63.40%)** of IPO proceeds remain to be deployed for the completion of the Madrak expansion. Success depends on the timely operationalization of this unit.