#### **Company Background** Srivari Spices & Foods Limited is a rapidly growing Indian FMCG company founded in **January 2019** in **Hyderabad, Telangana**. The company began operations with a state-of-the-art spice manufacturing facility in Jalpally, Ranga Reddy District, initially producing turmeric, chilli, and coriander powders. In December 2022, it transitioned from a private to a **public limited company**. The company is promoted by **Mrs. Neihaa Rathi (Chairperson & Whole-Time Director)** and **Mr. Narayan Das Rathi (Managing Director & Whole-Time Director)**, who bring decades of combined expertise in nutrition, food processing, and grain/spice trading. Their vision combines traditional culinary values with modern FMCG practices to deliver pure, healthy, and affordable food products. In 2021, the company expanded its footprint by establishing a second manufacturing unit in Raikal Village, Telangana, dedicated to **chakki atta (whole wheat flour)** and **Sharbati Atta**, marking a key diversification from its core spice business. Srivari made industry headlines in **2023–24** by launching a **highly oversubscribed SME IPO**, followed by a **rights issue on October 10, 2024**, aimed at strengthening its capital base and funding expansion into the edible oil segment. --- #### **Product Portfolio & Key Offerings** As of November 2025, Srivari offers **over 88 SKUs** across major food categories under the **Srivari brand**: - **Spices & Masalas** (e.g., turmeric, chilli, coriander, garam masala, sambar masala) - **Atta** – Chakki-ground whole wheat flour and premium Sharbati Atta - **Edible Oils** – Launched officially in **May 2025**, with a dedicated oil plant in Hyderabad - **Blended Spices** – Introduced in FY25, including Egg Masala, Fish Masala, Pav Bhaji Masala, Shahi Biryani, and Peri Peri Masala - **New Health-Focused Product**: **Soya Chunks**, launched **November 20, 2025**, to tap into India’s growing plant-based protein market. With **51% protein by weight**, the product addresses the nutrition gap—over 70% of Indians fall short of recommended daily protein intake. A wholly-owned subsidiary, **SSCPL**, operates **Poushtik**, a D2C e-commerce platform targeting health-conscious consumers. Poushtik offers over **500 SKUs**, including Srivari-branded products, repackaged groceries, and premium healthy snacks—all curated, quality-tested, and delivered under a “**Serving Purity with Nutrition**” philosophy. --- #### **Sourcing & Manufacturing Excellence** Srivari emphasizes **origin-based sourcing** to ensure authenticity, quality, and consistent taste: - **Chillies**: Guntur, Khammam, Warangal (Telangana), Raichur, Byadgi (Karnataka), Malakpet, Hyderabad - **Wheat (for atta)**: Premium Sharbati wheat from Sehore, Vidisha, and Sironj (Madhya Pradesh) - **Turmeric & Coriander**: Western and Central India respectively All products are processed in **fully automated, 100% stainless steel facilities**—one of the first of its kind in Telangana and Andhra Pradesh—ensuring hygiene and consistency. The company uses the **Choyal automatic grinding system** and implements **zero human contact packaging technology** to maintain product integrity and extend shelf life. --- #### **Distribution & Market Presence** Srivari has built a robust pan-South India distribution network and is expanding into national markets: - **Retail Footprint**: - Over **18,000 retail outlets** for spices and masalas - **15,000+ outlets** for atta across **Telangana and Andhra Pradesh** - **Sales Channels**: - **General Trade (GT)**: 80% of revenue (core strength) - **Modern Trade**: 10% (via 40 KPN Stores and 72 Vijetha Supermarkets) - **E-commerce & D2C**: 10% (via BigBasket, DMart Online, Blinkit, Swiggy Instamart, Jumbotail) - **Strategic Partnerships**: - B2B platforms: **Jumbotail, Udaan, SOLV** (for MSME reach) - Modern retail chains: **DMart, BigBasket, Vijetha, Balaji Grand Bazaar, Ushodaya** - E-commerce visibility boosted via bundled listings with major oil brands - **Geographic Expansion**: - Launched in **Mumbai on July 28, 2025** - Plans to enter **Bangalore, Chennai, Delhi**, with long-term **global export goals** (UAE, US, UK markets targeted) --- #### **Operations & Capacity** - **Manufacturing Units**: 3 units in Hyderabad, all equipped with in-house labs for quality testing - **Installed Annual Capacity** (as of Jun 2025): - **Spices & Masalas**: 3,600 MT (73% utilized) - **Atta**: 14,400 MT (88% utilized) - **Edible Oil**: 7,200 MT (newly commissioned, initial focus on groundnut oil) The oil plant, built at an investment of **INR 17.5 crores**, is export-oriented and capable of producing **double-filtered** and **cold-pressed oils**, with future plans to include **sesame** and **safflower oils**. --- #### **Poushtik: D2C E-commerce Venture & Strategic Review** Launched **in April 2025**, **Poushtik** is a premium, nutrition-first e-commerce platform serving **Hyderabad** initially, with plans to scale across metro cities. **Key Features**: - Curated **500+ SKUs**, 35% of which are in-house (flour, spices, oil) - Targets **average cart value of INR 800–1,000** and **monthly consumer spend of INR 4,000–5,000** - Operates on **second-day delivery model**, minimizing multiple warehouses and overheads - Delivery via **electric two-wheelers** from a **single 6,000 sq. ft. warehouse** **Differentiation**: - Avoids discount-driven competition like Blinkit or Zepto - Focuses on **quality, freshness, and consumer trust** via a **quality certification sticker** - Sells **preservative-free, chemical-free** products with **reusable cloth packaging** **Marketing & Acquisition**: - Targeted at **female consumers aged 25–50**; advertising timed for high engagement (afternoon/evening on YouTube, Instagram) - Initial marketing budget: **INR 25 lakhs**; strategy to become **profitable in the first year** - Unique promo: Spend INR 999, get 10kg free atta (margin-positive at ~INR 350/gross profit per order) Despite potential, **management views Poushtik as misaligned with the core FMCG business** due to: - High capital intensity - Technology and logistics demands - Elevated customer acquisition costs As of **October 2025**, Srivari plans to **divest its entire stake in SSCPL (Poushtik's parent)** to focus on **profitable, asset-light FMCG operations**. --- #### **Financial & Growth Performance** - **FY24 Revenue & Profit**: Over **100% growth YoY**, driven by new product launches and wider distribution - **Revenue Mix (Jun 2025)**: - Atta: **55%** - Masalas: **49%** (cumulative with atta; total may exceed 100% due to overlap) - Oil: Launched commercially in May 2025, targeting **INR 60 crores annual revenue** in Year 1 - **Gross Margins**: - Spices: **35–40%** - Atta & Pulses: **30–35%** - Oil: **18–22%** - **Market Opportunity**: - Organized spice market: >**INR 2 lakh crores**, with 70% still unorganized—providing major white-space for branded players - Edible oil: Targeting **7–8% market share in groundnut oil**, the highest-consumption segment in South India - Soya Protein: Projected **6% CAGR (2024–2029)** driven by rising protein demand --- #### **Competitive Advantages** 1. **Origin-Based Sourcing**: Ensures consistent quality and authentic taste. 2. **Vertical Integration & Automation**: Fully automated grinding and packaging reduce contamination risks. 3. **Quality Focus**: 100% stainless steel plant, in-house R&D lab, and proprietary quality certification. 4. **Cost Efficiency**: Direct-to-farmer sourcing, lean operations, and low-ad spend targeted marketing. 5. **Strong B2B Relationships**: Supplies institutional clients like **Amara Raja (15,000 meals/day)** and **Pista House (40 outlets)**, with BHEL in pipeline. 6. **Eco-Friendly Logistics**: Fleet of **200 electric delivery vehicles** reduces cost and carbon footprint.