### **Overview** Shree Ram Proteins Ltd. is an Indian agro-processing company engaged primarily in the **processing of cotton seeds** to extract **cottonseed oil** and produce high-demand co-products such as **de-oiled cake, hulls/husks, cotton linter, and pre-refined oils**. The company has been operational since **2008** and has established a strong footprint in **Western India**, particularly in Gujarat. It serves both **domestic and international markets**, leveraging its strategic location, experienced management, and vertical integration across key stages of cottonseed processing. --- ### **Core Business Operations** The company follows a **three-stage manufacturing process**: 1. **De-linting & De-hulling**: - Produces **cotton linter** (used in paper, cellulose, medical, and cosmetic industries) and **de-linted cotton seeds**. 2. **Oil Extraction (Expeller Pressing)**: - Generates **pre-refined cotton seed oil** (supplied to refineries for edible oil production) and **oil cake**. 3. **Solvent Extraction**: - Recovers residual oil from oil cake to produce **pre-refined wash oil** and **de-oiled cake**, enhancing yield and efficiency. Key byproducts are used in: - **Animal feed**: De-oiled cake, oil cake, and cotton hulls. - **Industrial applications**: Cotton linter in specialty paper, pharmaceuticals, and cosmetics. --- ### **Raw Material Sourcing & Supply Chain** - **Primary raw material**: Cotton seeds, sourced from **ginning units** in **Gujarat, Maharashtra, and other parts of India**. - **Strategic advantage**: Plant located in **Gondal, Gujarat**, near over 100 ginning units — enabling **direct sourcing**, reduced **logistics costs**, and consistent supply. - Gujarat, being India’s top cotton-producing state, ensures favorable access to raw material in terms of **availability, quality, and pricing**. --- ### **Business Model** - **High-volume, low-margin model**: Profitability depends on: - Scaling turnover - Tight control over **procurement** - Efficient **order execution** - Minimization of **non-core expenses** - **Seasonal nature**: Operations peak from **October onwards**, aligning with the cotton harvesting and ginning season in India. - **Revenue model**: Primarily based on **purchase orders**; no long-term contracts with customers, distributors, or retail chains. - **Sales network**: Relies on a decentralized structure of **dealers, retailers, and distributors**, with limited direct market reach. --- ### **Management & Governance** - **Promoters**: Have over **a decade of industry experience** and actively lead strategic and operational decisions. - **Management team**: Comprises professionals with expertise in **sales, marketing, finance, and strategy**. - **Operational discipline**: Emphasis on quality control; any lapse can significantly impact reputation and profitability. --- ### **Recent Strategic Diversification & Expansion Initiatives** #### 1. **Entry into Sunflower Oil Processing** - **Project**: Established a **sunflower oil processing plant** in **Kotovsk, Tambov Region, Russia**, with capacity of **500 tons/day** of raw material. - **Output**: 200 tons/day of sunflower oil, 200 tons/day of sunflower meal, and 100 tons/day of husk. - **Capex**: ₹150 crores (funded via internal accruals). - **Timeline**: Operational by **December 2024**. - **Market**: Initially targeting **Russia and other international markets**. - **Launch**: Sunflower oil launched for export in **December 2022**. > *Strategic Rationale*: Aligns with core competencies in oilseed processing; creates operational synergy and geographic diversification. --- #### 2. **Diversification into Tea Business** - **Asset Acquisition**: Leased a **496-hectare tea garden** in **Silchar, Assam**, for **25 years**. - **Commercial Launch**: Achieved by **June 2023**, after installing tea processing machinery. - **Branding**: Products marketed under the **“Bhagyalaxmi”™** brand. - **Products**: Tea leaves and branded tea packings. - **Target Markets**: Domestic (India) and international exports to **Russia, Europe, Iran, and the UK**. - **Launch**: “Tea Packings” product line introduced in **June 2022**. --- #### 3. **Entry into Consumer Edible Oil Market** - **New Refinery Project**: Setting up an **edible oil refinery in Gujarat**. - **Capex**: ₹22–24 crores (internal accruals). - **Timeline**: Operational within 8–10 months of March 2022 (i.e., by early 2023). - **Output**: Refining of **cottonseed and sunflower oil** for retail. - **Brand Launch**: “Bhagyalaxmi”™ for packaged edible oils in the **Indian consumer market**. - **Expected Impact**: - Increase annual turnover by **₹150–200 crores**. - Boost annual profits by **₹15–20 crores**. > *Significance*: Marks a shift from B2B commodity supplier to **branded consumer product player** in edible oils. --- ### **Other Ventures & Investments** The company has exposure to non-core businesses through: - **Ambassador Education Hub LLP** - **Atlantis Multibizz LLP** - **Lalitkumar Chandulal Vasoya HUF** - **Raghuvir Residency** > These indicate early-stage **diversification into education, real estate, and multi-business ventures**, though their scale relative to core operations remains unclear.