About Shivashrit Foods Limited

BUSINESS OVERVIEW

Shivashrit Foods Limited (SFL) is a leading manufacturer, supplier, and exporter of premium-grade potato flakes, operating from a dedicated processing facility in Aligarh, Western Uttar Pradesh, India. Established in 2018, the company began with an installed capacity of 14.4 MT/day, later expanding in July 2023 to 28.8 MT/day. The facility spans 2,225 sq. meters (0.55 acres) and is certified by FSSAI, ISO 22000:2018, HALAL, BRCGS (Intertek UKAS), and USFDA.

Potatoes, the primary raw material, are procured from farmers, traders, and suppliers within a 200 km radius of the unit, ensuring high-quality supply during the peak harvest season (December–March). About 80–90% of annual potato requirements are secured during this period, supported by an integrated cold storage arrangement through Nishant Cold Storage, ensuring year-round production.

The production process is fully automated, covering washing, peeling, slicing, blanching, cooking, mashing, drum drying, and flaking, followed by strict in-house quality testing for moisture content, texture, particle size, rehydration, nutrition, and microbiological safety. Finished goods are packed in HDPE vacuum-sealed bags to preserve freshness and shelf life.

SFL’s flagship product, Potato Flakes, is a versatile ingredient widely used in instant mashed potatoes, snack foods, soups, gravies, sauces, and bakery applications. The company also supplies potato flour based on customer demand.

The business operates under a B2B model, supplying industrial clients domestically and internationally under its brands Shivashrit and Flaker’s. In December 2024, SFL diversified into the B2C retail segment with its new consumer brand, marketed initially across Delhi NCR and metropolitan cities through its own website (www.shreeaahar.com) and major e-commerce platforms like Amazon, Flipkart, and Meesho.

Backed by a robust procurement network, advanced processing technology, strong quality assurance, and a balanced domestic-international revenue mix, Shivashrit Foods Limited is positioned on a high-growth trajectory, with the newly launched B2C segment expected to drive future expansion.

As on June 30, 2025, the Company has in aggregate 68 personnel (including 18 contract employees) in our manufacturing facility and Registered Office. The Bankers to the company is ICICI Bank Limited and HDFC BANK LTD.

INDUSTRY ANALYSIS

Industry Overview and Market Analysis: Food Processing

Introduction

India, the fifth largest economy in the world, is expected to be the fastest-growing economy among major G20 nations, with GDP growth estimated at around 8% in FY24. Within this growth story, the food processing sector has emerged as a vital contributor, supported by progressive policy measures introduced by the Ministry of Food Processing Industries (MoFPI). Between 2015 and 2022, the sector recorded an impressive average annual growth rate of 7.3%, making it one of the strongest pillars of India’s manufacturing and agricultural landscape.

The sector accounted for 10.54% of Gross Value Added (GVA) in manufacturing and 11.57% in agriculture in 2020-21. Its GVA rose from ₹1.61 lakh crore (US$ 24.60 billion) in 2015-16 to ₹1.92 lakh crore (US$ 24.43 billion) in 2022-23, according to government estimates.

India’s diverse agro-climatic conditions provide abundant production of cereals, pulses, fruits, and vegetables, making it one of the leading producers of agricultural commodities globally. The country is the world’s largest producer of milk, contributing around 25% of global production in 2022-23, and ranks second in vegetables, fruits, and egg production, while holding the fifth position in meat production. India also dominates in spices, producing 11.26 million tonnes in 2022-23 as per the Spices Board.

Despite these strengths, the level of processing remains relatively low. According to a Deloitte study, only 2.7% of vegetables, 4.5% of fruits, 15.4% of fishery products, 21.1% of milk, and 34.2% of meat were processed in 2020-21. Strengthening this sector is crucial to addressing food and nutritional security while also offering farmers better price realization and wider market access.

Market Size

The Indian food processing sector is projected to reach US$ 1,274 billion by 2027, up from US$ 866 billion in 2022, driven by rising population, higher disposable incomes, urbanization, and changing food habits. By 2025-26, food consumption is expected to touch US$ 1.2 trillion, with strong growth anticipated in processed food categories, particularly ready-to-eat (RTE), ready-to-cook (RTC), dairy, and fruits & vegetables.

The Viksit Bharat@2047 report forecasts further expansion, projecting the sector to reach US$ 1,100 billion by FY35, US$ 1,500 billion by FY40, US$ 1,900 billion by FY45, and US$ 2,150 billion by FY47.

India’s food and grocery market is the sixth largest in the world, with food processing accounting for 32% of this market, while contributing 13% to exports and 6% to industrial investment. The industry directly employs about 1.93 million people in the registered sector and an additional 5.1 million in the unregistered sector, with overall employment rising from 17.73 lakh in 2014-15 to 20.68 lakh in 2021-22.

Recent Developments and Investments

The sector has witnessed significant momentum through investments, policy support, and global recognition. Amul was ranked the world’s strongest food and dairy brand in 2024, securing a AAA+ rating with a Brand Strength Index (BSI) of 91.0.

The government, under schemes like the Pradhan Mantri Kisan Sampada Yojana (PMKSY) and PMFME, has approved 41 Mega Food Parks, 399 Cold Chain projects, 588 Food Processing Units, and 76 Agro-processing clusters. By June 2024, more than 92,000 micro food enterprises had received support under PMFME.

The Union Budget 2024-25 allocated ₹3,290 crore (~US$ 396 million) to MoFPI, a 13% increase over FY24, with significant outlay towards PLI schemes for food processing and millet-based products.

India has also promoted its food industry globally, hosting World Food India 2023 in New Delhi and the Global Millets Conference in March 2023, as part of the UNGA-declared International Year of Millets. The Indian Institute of Millets Research, Hyderabad, was recognized as a Centre of Excellence.

Foreign investment in this sector remains strong, with 100% FDI allowed under the automatic route, attracting a cumulative US$ 12.81 billion between April 2000–June 2024, placing it among the top 15 FDI-attracting sectors.

Road Ahead

The food processing sector is a priority industry under the “Make in India” initiative, with the government focusing on building modern infrastructure, integrating farmers into the value chain, and encouraging private participation. Investment opportunities worth US$ 2.36 billion have been identified across 31 projects under common infrastructure for industrial parks, covering specialized processing units, warehouses, testing labs, and logistics facilities.

With favorable policies, a vast consumer base, and increasing global demand, India’s food processing sector offers enormous scope for both domestic and foreign investors, positioning the country as a future global hub in processed foods.

Potato Production in India 2024-25

According to the government’s first advance estimates for 2024-25, production of the TOP (tomato, onion, potato) trinity is expected to rise, offering relief against food inflation.

• Potato production is projected at 59.57 million tonnes, a 4.4% increase over last year.

• Tomato production is estimated at 21.54 million tonnes, up by 1%.

• Onion production is expected to surge by 19% to 28.87 million tonnes in 2024-25.

Overall, total vegetable output is projected at 2,145.63 lakh tonnes, compared to 2,072.08 lakh tonnes in 2023-24.

Global Imports of Potatoes

In 2023, the largest importers of fresh or chilled potatoes were:

• Belgium (US$ 956.42 million)

• Netherlands (US$ 458.62 million; 1.8 billion kg)

• Spain (US$ 454.59 million)

• United States (US$ 408.33 million; 559.56 million kg)

• European Union (US$ 380.03 million; 720.25 million kg)

BUSINESS STRENGTHS

1. Experienced Promoters and Management Team
The company is led by Promoters and Directors, Mr. Prashant Singhal and Mr. Nishant Singhal, who possess over 15 years of collective experience in potato flakes production since incorporation.

2. Efficient Supply Chain and Strong Customer Relationships
An integrated supply chain ensures smooth operations from raw material procurement, cold storage, production, testing, and packaging to final delivery. This efficiency has enabled the company to maintain long-standing and deep customer relationships across B2B and retail markets.

3. Advanced Manufacturing Facility
The facility at Khasra No. 635, Mathura Road, Village Mahua, Iglas, Aligarh spans over half an acre and is equipped with modern technology and international machinery for evaporation, drying, and packing.

• Automation and monitoring systems ensure precision, consistency, and compliance with international quality standards.

• Environmental compliance maintained through Boiler Chimney, air pollution control systems, and Effluent Treatment Plant (ETP), as per State Pollution Control Board regulations.

4. Strategic Location and Government Support
The Aligarh-based facility offers strong logistical and cost advantages, being located close to potato-producing farmers and near major urban centers like Delhi and Agra.

• Location ensures year-round supply of high-quality potatoes, reduced transportation costs, and better control over raw material quality.

• The company has also benefitted from Central and State government incentives and subsidies for setting up a food processing unit in Aligarh.

BUSINESS STRATEGIES

1. Capacity Expansion with New Plant Setup
A new plant is planned within the existing facility to increase production capacity by an additional 52.8 MT/day, taking the total installed capacity to ~82 MT/day. This expansion will help meet rising demand, reduce bottlenecks, and ensure a steady supply of potato flakes to both existing and new customers.

2. Entry into B2C Segment & Brand Enhancement
In December 2024, SFL launched its B2C retail brand, initially focusing on Delhi NCR and major metropolitan cities. The initiative strengthens brand visibility, diversifies sales channels, and captures a larger share of the retail market by directly reaching end consumers.

3. Strengthening Customer Relationships & Global Presence
The strategy emphasizes building strong customer loyalty through engagement, service excellence, and brand trust. Long-term customer relationships will support both B2B and B2C growth, enhance global footprint, and drive sustained revenue expansion.

4. Long-Term Supplier Partnerships & Procurement Efficiency
The company is focusing on establishing stable supplier relationships with farmers, traders, and third-party suppliers to reduce dependence on open-market purchases. Direct farmer engagement ensures quality control, predictable pricing, and protection from seasonal fluctuations, thereby strengthening the supply chain.

5. Leveraging Growth in Ready-to-Eat (RTE) Segment
With India’s RTE food market expanding rapidly due to urbanization, higher disposable incomes, and demand for convenience, SFL aims to capitalize on these trends. Potato flakes, with their wide range of applications, position the company to capture domestic retail growth and tap into untapped international markets.

BUSINESS RISK FACTORS & CONCERNS

1. Customer Concentration Risk
Revenue is derived from a large customer base, with significant dependence on key customers. Any loss, reduction, or decision by major customers to cease business may materially impact revenue, operations, cash flows, and financial condition.

2. Supplier Dependency Risk
The company depends on a limited number of suppliers for raw materials, without long-term supply agreements. Any disruption, delay, or price increase from these suppliers, especially in the supply of potatoes, may adversely affect operations and profitability.

3. Product Concentration Risk
The entire revenue is dependent on a single product, potato flakes. Lack of diversification exposes the business to risks such as raw material fluctuations, adverse weather conditions, regulatory changes, consumer preference shifts, or rising competition, which may significantly affect financial performance and stability.

Summary : 
Shivashrit Foods faces high business risks due to reliance on a few key customers, limited suppliers without long-term contracts, and complete dependence on a single product line—potato flakes. This concentration makes the company highly vulnerable to market, supply chain, and regulatory disruptions.