About Jeyyam Global Foods Limited

Jeyyam is a brand with a legacy spanning over 40 years in the Chana industry. Their experience in setting up and operating one of Asia's largest chana product manufacturing units has helped them understand & build a thriving supply chain ecosystem. They are proud to be pioneers in a model of forward and backward integration in the chana value chain, driving value for every player in the ecosystem.

They are committed to innovation, and their team of experts is continuously researching and developing new products to offer their customers. Their focus on quality ensures that every step of the process, from procurement, processing to packaging, is carried out to the highest standards. Their state-of-the-art manufacturing facility, coupled with a robust supply chain, enables them to deliver products that meet the evolving needs of their customers. At Jeyyam, they understand the importance of reachingtheir customers wherever they are. That's why they have embraced new-age channels and innovations like B2C and B2B e-commerce, social commerce, and omnichannel capabilities.

Jeyyam is a brand that is synonymous with quality, trust, and innovation. Their dedication to the chana industry is unmatched, and they are committed to driving growth and transformation in this sector. With deep expertise in chana, a strong team and leverage to anchor and establish the entire chana value chain, Jeyyam is on its way to become a pan-India Chana brand. 

Indian food processing sector
The Indian food processing industry is among the largest in the nation in terms of growth, production, consumption and exports. The industry produces several food products such as meat, poultry, fisheries, fruits, vegetables, spices, milk and milk products, alcoholic beverages, plantations and grains. It also manufactures cocoa products and chocolates, confectionery, mineral water, soya-based items and high-protein foods. Since the liberalisation in August 1991, the government proposed and accepted multiple projects, for instance, creating foreign collaborations, joint ventures, 100% export-oriented units and industrial licenses to encourage growth and investment in the food processing industry. Foreign direct investment (FDI) in India was estimated at Rs. 2,934.1 crore (US$ 368.8 million) in FY21. 

India is a major producer of food in the world, with a large and growing market. The food and grocery retail market, valued at US$ 11.3 trillion in 2021, is also among the largest in the global economy. 

India's food processing sector is a sunrise sector that has gained prominence in recent years. Major processed food products exported from India include processed fruits and juices, pulses, guar gum, groundnuts, milled products, cereals preparations, oil meals and alcoholic beverages. India created history in agriculture and processed food exports by exporting products worth US$ 25.6 billion in FY22. Export of APEDA products stood at US$ 7.4 billion as of April-June 2022, up 31% compared with US$ 5.7 billion over the same period last fiscal, according to the Directorate General of Commercial Intelligence and Statistics. Furthermore, exports of processed fruits and vegetables grew by 59.1%; cereals and miscellaneous processed items grew by 37.66%; meat, dairy and poultry products grew by 9.5%; basmati rice grew by 25.5%; non-basmati rice grew by 5%; and miscellaneous products grew by 50%. 

The food sector is currently undergoing a transition in India. The Agricultural and Processed Food Products Export Development Authority (APEDA) forecasts that the sector will grow at a compounded annual growth rate (CAGR) of 3% between 2022 and 2030.

India has great potential to become a global processed food export powerhouse as it includes a rich agricultural resource base, strategic geographic location and proximity to food-importing nations, and an extensive network of food processing training, academic, and research facilities. The Indian food processing industry has grown rapidly with an average annual growth rate of 8.3% in the past 5 years. With a market size of US$ 866 billion in 2022, the food industry will play a vital role in the economy's growth. The domestic food market is projected to grow by over 47% between 2022 and 2027, reaching US$ 1,274 billion. In 2023, the food market will generate US$ 963 billion in revenue and the market is anticipated to expand at a CAGR of 7.23% between 2023-27. 

India's agricultural exports surged by nearly one-fifth (19.92%), crossing the US$ 50 billion milestone, covering 50% of the world’s rice market in FY22. Exports of processed food climbed from US$ 8.56 billion in 2020-21 to US$ 10.42 billion in 2021-22. Furthermore, in 2021-22, processed food exports accounted for 22.6% of the overall agri-food exports. The Indian food processing sector has attracted more than US$ 6 billion worth of foreign direct investment (FDI) since 2014-15. Moreover, the food processing industry has attracted FDI equity worth US$ 709.72 million during 2021-22. The total FDI received in the food processing sector is US$ 11.79 billion from April 2000 till December 2022.

India is the world's largest dairy producer, but it ranks 46th in terms of export. Similarly, India is the secondlargest producer of vegetables but ranks 15th in the global industry. 

In terms of worldwide exports, the processed food category is increasing far faster than the unprocessed food category - secondary and higher processed foods are growing at 5-6% CAGR, while unprocessed and primary foods are growing at 1-3% CAGR.

The demand for processed food products is being driven by increased urbanisation, higher disposable incomes, the growth of nuclear families, and a preference for convenience food goods. Furthermore, selling food in processed form allows you to charge a greater price and hence capture a larger economic value. For instance, according to an estimate by the RBI, manufacturing prepared meals adds 30% value to the product whereas processing meat adds 12.7%. 

As depicted in the below table, India has a solid position in terms of production, but its position deteriorates in terms of food product export, particularly in processed form across all categories. Hence, it is imperative that the industry, along with all stakeholders throughout the value chain, unite and make concentrated efforts in order to establish a strong position in global processed food exports.

Due to social media and digital knowledge, the Covid-19 pandemic has expanded the acceptability of processed foods, and customer demand for more ethical and environmentally friendly products is expanding. Agriculture and allied activities are the backbone of the Indian economy. More than half of the Indian population depends on it for a living. Thus, increasing the gross value addition in the agricultural industry will be a critical lever in improving the country's socioeconomic conditions. India has the potential to become the global food supply hub and boost its export share in the post-Covid-19 future. For the sector to remain competitive, it is essential to have scale, quality, and cost-effective export capabilities that meet international certification criteria.

Exports in the Indian Food Processing Industry
The export goal for agricultural and processed food products for the fiscal years 2022–23 was set at US$ 23.6 billion, of which US$ 19.694 billion i.e., 84%, had been accomplished by December 2022. 

During 2011-12 to 2020-21, the export of goods under the Ready to Eat (RTE), Ready to Cook (RTC), and Ready to Serve (RTS) divisions saw a CAGR of 10.4%. India exported finished food goods worth more than US$ 2.14 billion in 2020-21. The United States, the United Arab Emirates, and Nepal are the top three RTE export destinations in 2020-21. In 2020-21, the primary exporting destinations for RTC are the United States of America, Malaysia, and the United Arab Emirates. 

As depicted in the below graph, there is a 39.79% increase in the processed fruits and vegetables segments followed by a 33.39% increase in the other processed foods, and a 6.4% rise in the livestock products from April December 2022-23 to April-December 2021-22.

JEYYAM GLOBAL FOODS LIMITED COMPETITIVE STRENGTHS
1. Chana focused Manufacturing
2. Distribution Channel
3. Wide range of Customers in B2B segment
4. Research & Development
5. Value proposition
6. Manufacturing facility
7. Ready to enter into Full Kitchen Essentials
8. Diverse Product Portfolio and Distribution

JEYYAM GLOBAL FOODS LIMITED STRATEGIES
1. Short and medium term growth strategies
2. Commencing export operations
3. Strategic Marketing and Distribution
4. Future Expansion and Deployment of Funds
5. Procurement Network and Future Outlook

JEYYAM GLOBAL FOODS LIMITED RISK FACTORS & CONCERNS
1. They are significantly dependent on the sale of their products namely, chana, and related products.
2. The sale of their products is concentrated in their core market of Tamil Nadu and Karnataka.
3. The Company has not done registration for transfer of property owned by Jeyyam Food Park LLP (‘JFP LLP’) in the name of their Company after amalgamation of JFP LLP with their Company.
4. The business is dependent on their distribution network.
5. Their manufacturing facilities are concentrated in the state of Tamil Nadu and Andhra Pradesh.
6. The Trading the securities of one of their promoter company i.e. Shanti Guru Industries Limited has been suspended by BSE Limited in the past for non-compliance with the requirements of SEBI (LODR) Regulations, 2015 as amended from time to time.
7. They have not yet placed orders in relation to the funding Capital expenditures for the Civil Construction and Procurement of the plant and machinery which is proposed to be financed from the Issue proceeds of the IPO.