About Sawaliya Food Products Limited

BUSINESS OVERVIEW

Founded in 2014, Sawaliya Food Products is a manufacturer and processor of dehydrated vegetables, catering primarily to institutional manufacturers in the branded packaged food industry, along with traders and international importers. In FY25, institutional sales accounted for 66.15% of total revenue. The company’s products are widely used in FMCG offerings such as cup noodles, ready-to-eat meals, pasta, and soups, with a product portfolio comprising dehydrated carrot, cabbage, and ring beans/beans.

Operating with a sustainable and integrated business model, the company sources raw materials directly from farmers, primarily located near its manufacturing unit in District Dhar, Madhya Pradesh. This proximity ensures cost-effective procurement, lower logistics costs, and supports a unique pricing strategy that offers competitive rates in the market. The ability to store raw materials like carrots and capitalize on price fluctuations provides an additional revenue stream.

The diversified customer base is segmented into:

• Institutional manufacturers (supplying to leading FMCG brands),

• Domestic and international traders (based in Madhya Pradesh and the USA), and

• International customers, including pet food manufacturers using products not meeting internal quality criteria.

Production is carried out at two manufacturing units with a total capacity of 1,500 MT, allowing tight control over quality and consistency. Over the years, the company has expanded its infrastructure—automating lines, adding a meyer color sorter, and installing additional processing lines and in-house cold storage. Plans are in place to further expand capacity using ₹748.66 lakhs from net proceeds for new machinery and an on-grid rooftop solar PV system (149.04KWp).

The company operates with a zero-wastage policy by selling unutilized raw materials at favorable prices and exporting sub-standard products for pet food manufacturing. FDA approval from the United States validates the company’s commitment to high product standards.

A dedicated Quality Control and Assurance Division oversees quality checks at all stages—conducting sensory, chemical, and microbiological tests to meet both customer specifications and FSSAI standards. Periodic third-party lab tests ensure additional quality assurance.

Backed by experienced promoters Raghav Somani and Priya Somani, the company has consistently grown by focusing on superior product quality, process efficiency, and customer satisfaction. As of June 30, 2025, the company have total 25 Employees. The Banker to the company is State Bank of India.

INDUSTRY ANALYSIS

Food Processing Industry in India: A High-Growth Sector Anchored in Opportunity

India, one of the most populous and youngest countries in the world, is poised for continued robust growth in its food processing industry, driven by a dynamic shift in food habits, rising urbanization, increasing disposable income, and a booming population. The sector is currently witnessing unprecedented expansion, with its market size expected to more than double from Rs. 26.49 lakh crore (US$ 307 billion) in 2023 to Rs. 60.40 lakh crore (US$ 700 billion) by 2030, according to PHDCCI.

This momentum is further supported by India’s strong macroeconomic fundamentals. With a GDP growth projection of 6.3% in 2024 and its expected position as the fastest-growing economy among major G20 nations, India offers a fertile ground for sustained investment in food processing.

The sector has recorded an Average Annual Growth Rate (AAGR) of 5.35% from 2015 to 2023, and its future looks even brighter. By 2027, the market is expected to touch US$ 1.274 trillion, growing from US$ 866 billion in 2022, and is projected to reach US$ 2.15 trillion by 2047, as per the Viksit Bharat@2047 report.

India is already a global agricultural powerhouse—the largest producer of milk and spices and among the top producers of fruits, vegetables, poultry, meat, and seafood. This natural advantage, along with a diverse agro-climatic landscape, provides a strong raw material base for the industry.

Strong Government Support & Policy Initiatives

The Government of India has played a pivotal role in driving sectoral growth through favourable policies and financial incentives. Key among them are:

• The Production Linked Incentive Scheme (PLISFPI), launched in 2021, with an outlay of Rs. 10,900 crore (US$ 1.3 billion) to modernize infrastructure and promote competitive manufacturing, innovation, and international branding.

• The Pradhan Mantri Kisan Sampada Yojana (PMKSY) has been instrumental since 2017-18, creating 86.06 lakh metric tonnes (LMT) of processing and 22.63 LMT of preservation capacities through 540 approved projects, 399 of which are complete.

• The PM Formalization of Micro Food Processing Enterprises (PMFME) Scheme, with an outlay of Rs. 10,000 crore (US$ 1.2 billion), supports 2 lakh micro food enterprises with financial and technical aid.

In the Union Budget 2025-26, the Ministry of Food Processing Industries (MoFPI) received an allocation of Rs. 4,364 crore (US$ 505.70 million). Of this, Rs. 729 crore was earmarked for PMKSY, Rs. 1,444 crore for the PLI scheme, and Rs. 2,000 crore for PMFME.

Additionally, foreign direct investment (FDI) is permitted up to 100% under the automatic route, which has attracted a cumulative Rs. 85,343 crore (US$ 12.96 billion) between April 2000 and September 2024. The recent UAE commitment of Rs. 17,258 crore (US$ 2 billion) to set up food processing facilities in India further underlines global investor confidence.

Rising Export Potential and Global Positioning

India is rapidly becoming a major global exporter of processed food. In 2022-23, exports reached US$ 50 billion, contributing 22.6% to overall agri-food exports. Between April and December 2024, exports of processed food products grew over 11% year-on-year, totaling Rs. 1,53,337 crore (US$ 17.77 billion).

Segment-wise, Ready-To-Eat (RTE) products exports stood at US$ 1.11 billion, Ready-To-Cook (RTC) at US$ 497.87 million, and Ready-To-Serve (RTS) at US$ 537.84 million. Key markets include the U.S.A., UAE, Canada, Bangladesh, and Nepal.

Expanding Infrastructure and Cold Chain Development

Significant investment is being made to boost infrastructure, which remains a backbone for the sector. Under PMKSY and related schemes:

• 41 Mega Food Parks have been approved, with 24 operational as of December 2023.

• 372 cold chain projects completed till October 2023 have created 10.3 lakh MT of storage, 335 MT/hour of IQF capacity, 175.8 LLPD of milk processing/storage, and 1,860 reefer vehicles.

Additionally, 948 cold storages with 18.16 lakh MT capacity have been established, supporting both farm-level storage and food processing industries.

Employment and GVA Contribution

The food processing sector is one of the largest employers in organized manufacturing, accounting for 12.41% of total employment as of 2024-25. Employment has risen from 17.73 lakh in 2014-15 to 20.68 lakh in 2021-22.

Its contribution to the economy is also significant. As of 2024, the sector contributed approximately 8.80% to Manufacturing GVA and 8.39% to Agriculture GVA, while attracting 6% of total industrial investment and contributing 13% to India's total exports.

Startup & Innovation Ecosystem

India’s food processing sector is increasingly driven by innovation, supported by over 3,300 recognized startups across 425 districts, employing over 33,000 people. Programs like Startup India Seed Fund and tax exemptions support these ventures, many of which are in the value-added, organic, and health-focused segments.

The launch of the PLI Scheme for Millet-Based Products (PLISMBP) with an outlay of Rs. 800 crore (US$ 96 million) in FY23, along with India's millet production reaching 17.32 million tonnes in 2022-23, highlights the focus on promoting Shree Anna (millets) globally.

India's hosting of World Food India 2023 in New Delhi further positioned it as a global hub, attracting stakeholders across the food value chain—from processors to logistics and technology providers.

Future Outlook

India’s food processing industry is on a firm trajectory of becoming a US$ 2.15 trillion sector by 2047. This growth will be catalyzed by strong policy support, increasing investments, expanding exports, rural economy boost, and modernization of infrastructure.

With India continuing to leverage its natural resource base, youthful population, supportive policies, and global demand, the sector stands as one of the most promising engines for economic growth, employment generation, and global leadership in food manufacturing and exports.

BUSINESS STRENGTHS

1. Premier Customer Base Driving Operational Stability
Established infrastructure, processes, and teams support a strong customer base, including leading FMCG manufacturers who use dehydrated vegetables in ready-to-eat meals, noodles, pasta, and soups under renowned brands.

2. Flexible and Diversified Product Portfolio
A scalable and adaptive product model enables rapid development and customization of products based on client demand. Alongside standard offerings like dehydrated carrots, cabbage, and French beans, the portfolio is expanding to include dehydrated pumpkin and beetroot on a custom order basis.

3. Sustainable Business Operations
Adheres to ethical and socially responsible practices with direct sourcing from farmers in Madhya Pradesh and Amritsar, along with procurement through APMCs. Long-standing relationships with carrot farmers ensure priority access to quality raw materials and uninterrupted supply.

4. Strong Quality Assurance and Control Systems
A dedicated in-house Quality Division, led by experts including Chairman and MD Raghav Somani, ensures that all products meet FSSAI standards and customer specifications. Equipped with advanced infrastructure, the team conducts quality checks across all stages and engages FSSAI-approved labs periodically for sample testing.

5. Strategic Manufacturing Location with Integrated Facilities
The multi-product manufacturing facility in District Dhar, Madhya Pradesh is strategically located near suppliers, enabling cost-effective production and integrated operations under one roof for enhanced efficiency and competitiveness.

6. Cost-Efficient Sourcing and Supply Chain
Proximity to raw material sources, combined with procurement expertise, results in significant reductions in operational costs related to raw materials, manufacturing, and labor.

7. Experienced Management with Strong Execution Capability
Led by industry-experienced promoters, the management team brings expertise in project execution, operations, business development, and strategic planning. The team’s stability and domain knowledge continue to support expansion into new markets and growth opportunities.

BUSINESS STRATEGIES

1. Expansion of Manufacturing Capacity
Since inception in 2014, production capabilities have steadily increased through automation and infrastructure upgrades. Key milestones include the installation of an automatic processing line in 2019, additional dehydration units in 2022, and an in-house cold storage facility. Future plans include enhancing existing lines with new machinery and solar rooftops, aiming to boost capacity, product quality, and cost efficiency through economies of scale.

2. Product Portfolio Diversification
The company plans to introduce new products—dried papaya, dried beetroot, and dried pumpkin—targeted at institutional buyers. This expansion aligns with the strategy to tap into high-growth, high-margin categories while reinforcing existing offerings through quality manufacturing and reliable delivery.

3. Market Penetration and Geographic Expansion
Growth initiatives include entering international markets, particularly Europe, by leveraging product applications in various FMCG segments. The focus remains on sub-geographic expansion and diversification across products and markets to increase global market share.

4. Strengthening Marketing and Distribution
To support business growth, the company aims to broaden its institutional customer base both domestically and internationally. Plans include expanding the marketing team with experienced professionals to enhance customer engagement, align with sustainable practices, and drive brand loyalty through superior product quality.

BUSINESS RISK FACTORS & CONCERNS

1. High Revenue Dependence on Limited Products
A significant portion of revenue is derived from dehydrated carrots and ring beans. Any decline in their sales volume or price, or the inability to market these products effectively, could adversely affect financial performance. Limited product diversification may further restrict growth and profitability.

2. Reliance on the FMCG Industry
Revenue is largely dependent on demand from FMCG manufacturers that use dehydrated vegetables in ready-to-eat foods like noodles, pasta, and soups. Any slowdown in the FMCG sector or the loss of major clients could negatively impact business operations and financial outcomes.

3. Geographic Concentration of Manufacturing Operations
All manufacturing activities are centered in District Dhar, Madhya Pradesh, making operations vulnerable to regional economic, regulatory, and political risks, including natural disasters, civil unrest, or policy changes, which may lead to operational disruptions.

4. Regional Sales Concentration
Major revenue is generated from Karnataka, Maharashtra, and Madhya Pradesh. This concentration increases exposure to economic shifts, competitive pressures, and demographic changes in these regions, which may negatively influence business performance.

Summary of Risk Factors :
Sawaliya Food Products faces risks related to product concentration, dependence on the FMCG sector, geographic concentration of operations, and regional exposure to key markets. These factors could potentially impact revenue, profitability, and business continuity if unfavorable conditions arise.