About Regaal Resources Limited

BUSINESS OVERVIEW

According to the F&S Report, Regaal Resources is among the largest manufacturers of maize-based specialty products in India, based on an installed crushing capacity of 750 tonnes per day (TPD). The product portfolio includes:

• Native and modified maize starch

• Co-products such as gluten, germ, enriched fiber, and fiber

• Value-added products like maize flour, icing sugar, custard powder, and baking powder

The company is headquartered in Kolkata, with a Zero Liquid Discharge (ZLD) manufacturing facility located on 54.03 acres in Kishanganj, Bihar. The plant is strategically located in a key maize cultivation belt, which experienced a sharp increase in maize production from 91,680 MT in FY23 to 417,511 MT in FY24. This location also provides logistical proximity to East and North India and key export markets such as Nepal (24 km) and Bangladesh (235 km).

Operations serve a wide base of domestic and international customers across industries including food products, paper, animal feed, and adhesives. The customer base spans manufacturers of end products, intermediate goods, and wholesale distributors. Notable clients include Emami Paper Mills, Century Pulp & Paper, Kush Proteins, Krishna Tissues, and others.

Regaal Resources began operations in 2018 with a capacity of 180 TPD, which has grown significantly over time through multiple expansions, including the installation of a starch dryer in FY25. As of May 31, 2025, the total installed capacity stood at 750 TPD.

The facility also includes large warehouses and four humidity-controlled silos, each with a capacity of 10,000 MT, supporting an aggregate maize storage of 65,000 tonnes. It is one of the few maize wet milling units in India with ZLD capability, as per F&S Report.

Maize is sourced directly from cultivators, through aggregators, and from traders in Bihar and West Bengal. This diversified procurement strategy ensures cost efficiency, quality assurance, and supply chain resilience. Regaal Resources is also noted as the only maize milling plant in Bihar, offering a distinct competitive edge.

Native maize starch forms the base for various specialty ingredient solutions used in:

• Food (as thickeners, stabilizers, sweeteners, emulsifiers, etc.)

• Animal nutrition (as nutritional ingredients)

• Paper manufacturing (to improve bonding strength)

• Industrial products (as excipients, disintegrants, binders, finishing agents, etc.)

Products are marketed across multiple Indian states, both directly and via distributors, and are exported to Bangladesh, Nepal, and Malaysia. The company also holds an FSSAI license for its food-grade products.

As of May 31, 2025, the company had 491 permanent employees. The Bankers to the company are Bandhan Bank Limited, ICICI Bank Limited, IndusInd Bank Limited, SBM Bank India Limited, Kotak Mahindra Bank, Axis Bank Limited, Punjab National Bank, HDFC Bank Limited and IDFC First Bank Limited.

INDUSTRY ANALYSIS

Overview of Agriculture Statistics and Performance

India's agricultural and allied sectors have demonstrated a resilient performance over the years. As per the "Statistical Report on Value of Output from Agriculture and Allied Sectors 2011-12 to 2023-24," FY2023 witnessed a 9.1% increase in total crop production at current prices, rising from INR 30.8 lakh crore to INR 33.6 lakh crore. However, at constant 2011-12 prices, the growth was 1.3%, moving from INR 15.7 lakh crore to INR 15.9 lakh crore. FY2024 saw a 1.1% increase in maize production value at current prices, despite unfavorable monsoon conditions.

In FY2023, agricultural production surged due to robust supply and demand drivers including good climatic conditions, infrastructure support, export growth, and government schemes like Krishi Nivesh, PMGSY, PKVY, and Krishi Udaan. Poor rainfall during FY2024 caused a dip in maize output, while FY2025 recorded a 12.2% growth in maize production, driven by better seed availability, infrastructure, and farmer preference shifts.

Maize Production and Global Standing

Maize employs over 650 million farmers and is a key crop for India. India ranks as the 6th largest maize producer globally. Between FY2020 and FY2025, maize production grew at a CAGR of 7.3%, increasing from 28.8 million tonnes to 42.3 million tonnes. The crop saw a decline in FY2024 to 37.7 million tonnes due to El Nino effects, but rebounded in FY2025.

India's global maize production share rose from 2.6% in FY2020 to 3.5% in FY2025, before slightly falling to 3.0% in FY2024. There's potential to reach 50 million tonnes by 2030 through better yields (target: 5 tons/ha), infrastructure, and value chain investments.

Maize Starch and Its Applications

Starch is a natural polymer composed of amylose and amylopectin, extracted mainly from maize, wheat, rice, potato, and tapioca. It is classified as:

• Native starch (unmodified)

• Modified starch (chemically or physically altered)

• Derivatives (e.g., glucose syrup)

Applications include:

• Food & Beverage: Thickeners in gravies, sauces

• Paper: Adhesives, dry strength enhancers

• Textile: Fabric stiffeners

• Pharmaceuticals: Tablet disintegrants

• Bioplastics: Source for biodegradable PLA

• Industrial chemicals: Feedstock for ethanol

Maize Consumption Trends in India

Driven by rising demand from feed and silage industries, maize consumption is expected to grow steadily. According to OECD 2023-32, feed usage will rise from 54% (2023-24) to 58% (2032-33). Climate change, reduced arable land, and rising demand necessitate mechanization and adoption of single cross hybrids to enhance productivity.

Maize Cultivation in India

Maize is grown in both Kharif (80-83%) and Rabi (17-20%) seasons. It's the third most important cereal crop in India. Used for food, animal feed, and industrial raw materials, maize has seen expanding cultivation in both traditional and non-traditional regions.

Price Trends of Maize in India

Maize prices have risen from below INR 2,000/quintal (2022-23) to INR 2,400/quintal in 2025-26. Bihar has become a maize hub, especially in Seemanchal and Koshi regions. In Indore, new maize from Bihar fetched INR 2,300 - 2,400/quintal in 2025. Wholesale prices peaked at INR 2,333/quintal in January 2025.

State-wise Maize Production and Yield (2024-25)

Top states by production:

• Madhya Pradesh (15.87%)

• Karnataka (14.57%)

• Bihar (11.58%)

• Maharashtra (11.52%)

• Others: Telangana, West Bengal, Rajasthan, Tamil Nadu

Madhya Pradesh leads in area (2.31 Mn ha) but lags in yield (2.9 t/ha) compared to Tamil Nadu (5.48 t/ha) and West Bengal (6.94 t/ha). Bihar’s Rabi maize offers an exclusive availability window, aiding supply chain continuity.

Maize Starch Manufacturing Geography

Maize starch mills are concentrated in:

• West Zone: Gujarat (7), Maharashtra (5), MP (3)

• South Zone: Karnataka (5), AP (4), Telangana (3), TN (1-2)

• North Zone: UP (2), Uttarakhand (2), Haryana, Punjab, HP

• East Zone: West Bengal (3), Bihar (1), Chhattisgarh (1)

These plants support local employment and reduce logistics inefficiencies.

Indian Native Maize Starch Market

Valued at USD 1,991 million (2024), the native maize starch market grew at a CAGR of 3.6% (2019–2024). India holds 17.4% of the global native starch export market. Major clients include Mondelez, Nestle, Britannia, ITC, Dabur, and JK Paper.

End-use sectors:

• Food & Beverage (30%)

• Paper

• Textile

• Pharma

Maize Co-Products Market

Valued at USD 570 million in 2024, expected to reach 1.65 million tons by 2029 (CAGR 4.72%).

Key Co-Products:

• Maize Gluten: High protein feed, used by Godrej Agrovet, Venky’s, Avanti Foods

• Maize Fiber: Improves milk yield, ethanol feedstock

• Maize Steep Liquor: Used in animal feed and pharma

• Maize Oil: Strong antioxidant, healthy fat source

Key Players in Maize Processing

• Large Players: GAEL, Roquette, Sukhjit Starch, Bluecraft Agro

• Medium Players: Sayaji Maize, Gulshan Polyols, Sahyadri Starch

Industry utilization is 85-90%. Credit terms have extended post-COVID to 45-90 days.

Modified Maize Starch Market

Valued at USD 1,310 million (2024), with CAGR of 5.87% (2024–2029). Main sectors:

• Paper (55.8%)

• Food & Beverage (10.1%)

• Textile and Pharma

Used in sauces, snacks, dairy, RTE foods, and pharmaceuticals (disintegrants and binders).

Indian Starch Derivatives Market

Liquid Glucose

• Market Size: USD 195.2 million (2024)

• CAGR: 3.9% till 2029

• Applications: Confectionery, pharma, canned fruits, shoe polish, tanning

Maltodextrin

• Market Size: USD 151.5 million (2024), growing at 6.84% CAGR

• Applications: Nutraceuticals, infant formula, snacks, dairy, oil drilling fluids

• Key Players: Bluecraft Agro, Cargill, Roquette, GAEL, Gulshan Polyols

Dextrose

• Monohydrate Market: USD 103.78 million (2024), CAGR 5.74%

• Anhydrous Market: USD 78 million (2024), CAGR 3.64%

• Applications: Bakery, confectionery, canned food, industrial adhesives, alcoholic beverages

• Key Players: GAEL, Sayaji, Roquette, Sukhjit

This comprehensive overview highlights India's robust maize and starch ecosystem, its future growth prospects, and the evolving demand-supply dynamics across multiple industrial sectors.

BUSINESS STRENGTHS

1. Strategic Location Near Raw Material and Consumption Markets
The manufacturing facility is located in Kishanganj, Bihar, one of India's largest maize cultivation hubs. It is situated 21 km from the West Bengal border and 209 km from the Assam border, offering close proximity to major maize-growing regions. As per the F&S Report (2024–2025), Bihar and West Bengal are traditional maize-producing states, with the Seemanchal and Koshi regions emerging as key maize farming zones. The location provides direct access to both raw material and high-demand markets across eastern and northern India.

2. Diversified and Efficient Raw Material Procurement Strategy
Maize is sourced through a well-established procurement network comprising:

• Direct procurement from farmers via aggregators

• Local traders in Bihar and West Bengal

• Established agri-distribution companies

This multi-channel approach ensures consistent supply and cost efficiency.

3. Sustainability-Focused Manufacturing with High Capacity Utilization
The wet milling facility has undergone continuous upgrades to improve sustainability and process efficiency. The focus on technology and process optimization is reflected in consistently high levels of capacity utilization.

4. Established Sales and Distribution Network
Products are marketed across pan-India and exported to multiple countries including Bangladesh, Nepal, and Malaysia, supported by a strong distribution infrastructure.

5. Experienced Promoters and Management Team
Led by Anil Kishorepuria (Chairman and Managing Director) and Karan Kishorepuria (Executive Director), the leadership team brings deep industry experience. The board includes seasoned independent directors, supported by a skilled senior management team including Saikat Chatterjee (CFO), Harish Kumar Singh (DGM – Plant Operations), Vivek Lilha (DGM – Procurement), and Rohan Kishorepuria (VP – Sales and Services).

6. Strong Financial Growth Track Record
Revenue from operations grew at a CAGR of 36.95%, rising from ₹4,879.55 million in FY 2023 to ₹9,151.61 million in FY 2025. EBITDA increased at a CAGR of 66.53%, from ₹406.73 million to ₹1,127.90 million over the same period, indicating robust operational and financial performance.

BUSINESS STRATEGIES

1. Capacity Expansion through Brownfield Development
An application has been submitted to the Bihar State Pollution Control Board to enhance the installed crushing capacity from 750 TPD to 1,650 TPD. The existing 54.03-acre facility in Kishanganj, Bihar, has ample unused land to support this expansion, aimed at meeting anticipated demand from end-user industries.

2. Balance Sheet Deleveraging
A strategic focus is placed on reducing outstanding borrowings, which stood at ₹5,611.53 million as of June 30, 2025. This initiative targets improved financial health by lowering finance costs incurred over recent fiscals.

3. Product Diversification with Derivatives and Modified Starches
The product portfolio has grown to 14 offerings as of May 31, 2025, including native maize starch, dextrins, oxidized and edible starches, and other value-added derivatives, marking significant progress within six years.

4. Expanding Geographic Footprint
Efforts are underway to strengthen market presence in domestic regions, including South Indian states like Andhra Pradesh and Telangana, along with furthering exports.

5. Growth in White Labelling Segment
White labelling operations commenced in Fiscal 2025 with products such as maize flour and baking ingredients, manufactured to client specifications. Expansion plans and focus on process standardization are expected to scale up this business vertical.

BUSINESS RISK FACTORS & CONCERNS

1. High Dependency on Select Vendors for Maize Procurement
Over 83% of maize purchases are sourced from the top 10 vendors, without long-term contracts. This heavy reliance on a few vendors or aggregators, including direct cultivator sourcing, poses supply chain and pricing risks.

2. Single Manufacturing Facility Risk
Operations are concentrated in a single zero liquid discharge (ZLD) plant in Kishanganj, Bihar. Any operational disruption due to equipment failure, power issues, labour unrest, natural disasters, or accidents could significantly affect financial and operational performance.

3. Seasonal Nature and Price Volatility of Maize
Maize, the key raw material, is seasonal and largely grown during the kharif season. Supply interruptions or price volatility may impact product pricing, operational stability, and cash flows.

4. Geographic Concentration of Sales
Sales are heavily concentrated in select Indian states and neighboring countries like Bangladesh, Nepal, and Malaysia. Any disruption or underperformance in these regions could adversely impact revenues and growth prospects.

5. Exposure to Export Duties and Restrictions
Although the majority of revenue is domestic, exports to international markets may face high import duties or trade restrictions, potentially affecting international sales margins and competitiveness.

Summary :
Regaal Resources faces key operational risks due to reliance on a few maize suppliers, a single manufacturing unit, and seasonal raw material availability. Additionally, geographic sales concentration and potential export barriers could pose challenges to revenue stability and business continuity.