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Salient features of the IPO:

* Sawaliya Food Products Ltd. (SFPL) is a Madhya Pradesh-based company specializing in dehydrated vegetables for institutional and export markets. Founded in 2014, it has evolved into a key B2B supplier of dried carrots, cabbage, beans, and other specialty produce used by FMCG and ready-to-eat food brands. Operating a fully integrated facility in Dhar, SFPL sources directly from farmers and uses advanced dehydration technology to ensure quality and shelf life. With over 80 institutional clients and a growing product range, the company is expanding capacity and adopting solar energy through its NSE SME IPO to support its next phase of scalable, sustainable growth. SFPL is coming up with an IPO to raise approximately Rs.34.83cr, opening on 7th Aug 2025 and closing on 11th Aug 2025, with a price band of Rs.114–Rs.120 per share.

* The IPO includes a fresh issue of Rs.31.23 cr and an OFS of Rs.3.6 cr, with no proceeds from the OFS going to the company. From the fresh issue, Rs.7.49 cr will be used for machinery purchase and solar plant setup, Rs.10 cr for working capital, Rs.4.61 cr for debt repayment, and the rest for general corporate purposes.

* Promoters Raghav Somani, Priya Somani are offloading 0.015cr, 0.015cr shares respectively. Post-IPO, the P&PG and public shareholders will have 67.78% and 32.22% stake in the company, respectively.

Key competitive strengths:

* Strong customer base provides business stability.

* Diversified and flexible product portfolio.

* Operations built on sustainable practices.

* Robust quality assurance and control systems.

* Strategically located, integrated modern facility.

* Cost-efficient sourcing with locational benefits.

* Experienced management with proven execution skills.

Risk and concerns:

* The company’s business is seasonal and depends on the availability of fresh vegetables, which may impact operations during periods of shortage.

* Sales are geographically concentrated, and any adverse developments in these specific regions could affect revenue generation.

* Disruptions in the FMCG sector, especially due to health or food handling concerns, may directly impact the company’s operations and financial performance.

* Under-utilization of production capacity could have a negative impact on the company’s overall business and financial results.

* Competition

Below are the key highlights of the company:

* The Indian processed food industry is witnessing strong growth, driven by rising demand for ready-to-eat meals, packaged ingredients, and longer shelflife food products. Within this, the dehydrated vegetable segment is gaining momentum due to its use in instant foods, seasonings, and global FMCG supply chains. Government initiatives like Atmanirbhar Bharat and support for agroprocessing further enhance opportunities for domestic players.

* SFPL, established in 2014, manufactures dehydrated vegetables such as carrot, cabbage, beans, beetroot, and pumpkin, catering to B2B clients in India and export markets. Its customer base includes over 80 institutional buyers across ready-to-eat food brands, FMCG companies, and exporters. The company operates a fully integrated manufacturing facility in Dhar, Madhya Pradesh, with direct farm sourcing and advanced dehydration technology.

* With a focus on quality, hygiene, and efficiency, SFPL has demonstrated strong revenue growth and improving profitability between FY22–FY24. It is now investing in capacity expansion, solar power, and automation through its NSE SME IPO to meet rising demand. Backed by a hands-on promoter team and a scalable asset-light model, Sawaliya is well-positioned to grow as a trusted supplier in India’s evolving food processing landscape.

* Sawaliya Food Products Ltd., incorporated in 2014, is a rapidly growing manufacturer of dehydrated food products with a specialized focus on processed vegetables. Over the years, the company has evolved from a small-scale player into a structured B2B supplier, catering primarily to institutional buyers in India and export markets. Sawaliya operates in a niche but expanding segment within the processed food industry, supplying dehydrated carrot, cabbage, and ring beans to clients in the ready-to-eat, FMCG, and seasoning industries. This product portfolio has steadily diversified to include high-margin segments such as papaya, beetroot, and pumpkin. The company has also developed strong backward integration by sourcing fresh produce directly from farmers in Madhya Pradesh and Punjab, which not only ensures quality but also optimizes input costs and supply reliability.

* The company’s manufacturing facility is located in Dhar, Madhya Pradesh, with advanced dehydration and drying technologies that enable scalable production without requiring significant capital expansion. This asset-light operational model supports the company’s growth in newer dehydrated product lines and institutional packaging without compromising margins. Sawaliya’s product line is wellaligned with demand from large institutional food processors and exporters, including manufacturers of instant soups, noodles, seasoning blends, and pre-mixed food solutions. Over FY22–FY24, the company grew its customer base from 11 to over 80 clients, signaling strong demand traction and growing trust in product quality.

* Sawaliya Food Products has delivered a strong financial performance over FY22 to FY24. Revenue increased from Rs.13.56 crore in FY22 to Rs.23.39 crore in FY24, representing a compounded annual growth rate (CAGR) of over 30%. Profitability also improved sharply, with profit after tax growing from Rs.0.73 crore in FY22 to Rs.3.29 crore in FY24. EBITDA margins expanded to ~25.5%, and PAT margins reached ~14%, reflecting operational efficiency and cost control benefits from scale and backward integration. The company’s earnings per share (EPS) improved to Rs.4.50 in FY24, while the debt profile remained moderate, with access to institutional credit from the State Bank of India and other lenders. The business maintains adequate working capital management and has steadily improved its creditworthiness.

* To fund its next phase of expansion, Sawaliya Food Products is launching an Initial Public Offering (IPO) on the NSE SME Emerge platform. The issue comprises a fresh issue of approximately 26 lakh equity shares and an offer for sale of around 3 lakh shares by existing shareholders. At the upper price band of Rs.120 per share, the total issue size is estimated at Rs.33–35 crore. The proceeds will be utilized for expanding manufacturing capabilities by acquiring and upgrading machinery, installing a rooftop solar power plant of ~149 KWp capacity to reduce long-term energy costs, meeting working capital needs, repaying certain borrowings, and for general corporate purposes. These investments are expected to further strengthen operational efficiency, reduce production costs, and support higher throughput to cater to the rising demand from export and FMCG clients.

* Sawaliya is led by a promoter group with deep operational involvement and domain experience. The board includes Mr. Raghav Somani (Chairman and Managing Director), Mrs. Priya Somani, and Mr. Ravikant Gupta. The promoters are actively involved in daily business operations, ensuring close alignment between execution and strategic planning. Their experience in food processing and supply chain management has been critical to building long-standing client relationships and consistently improving profitability.

* The industry landscape for dehydrated food ingredients in India is supported by favorable structural tailwinds such as rising demand for processed foods, convenience cooking, and ready-to-eat formats. Additionally, import substitution, government initiatives like Make in India and Atmanirbhar Bharat, and growing export demand provide a long-term growth runway. As hygiene standards rise and food processing becomes increasingly industrialized, companies like Sawaliya Food Products are well-positioned to benefit from the shift toward reliable, institutional-grade ingredient suppliers.

* With its scalable operations, consistent financial performance, strong sourcing ecosystem, and customer-centric approach, Sawaliya Food Products Ltd. offers a compelling investment opportunity in a high-growth segment of India’s food processing industry. The company’s IPO presents an opportunity for investors to participate in a capital-efficient, B2B-driven platform that is well-positioned to deliver long-term shareholder value.

* As of FY24, the company had a total installed processing capacity of approximately 1,500 metric tons per annum, with plans to enhance throughput by over 30% post-IPO through machinery upgrades and process automation. Sawaliya’s operational infrastructure includes sorting, dehydration, packing, and cold storage systems, allowing the company to maintain product shelf life and meet exportgrade hygiene and safety requirements. A portion of the IPO proceeds is also earmarked for enhancing its solar infrastructure, which is expected to reduce energy costs and support environmentally sustainable operations—an increasingly important metric for large institutional clients, especially in Europe and North America.

* The company’s revenue mix is predominantly B2B and skewed toward repeat institutional clients, contributing to improved cash flow stability and lower marketing overheads. Moreover, Sawaliya’s direct procurement model from farming clusters in Madhya Pradesh and Punjab reduces its dependence on intermediaries and helps ensure consistency in raw material quality. With over a decade of focused operations, an expanding client base, and rising profit margins, the company is now aiming to tap into higher-margin specialty food categories and international markets. These growth levers, combined with prudent capital allocation and strong promoter skin-inthe-game, position Sawaliya Food Products Ltd. as a credible small-cap investment in India’s value-added agri-processing sector.

Peer comparison and valuation:

Sawaliya Food Products Ltd. is a fast-growing food processing company specializing in the manufacturing of dehydrated vegetables for institutional and export markets. Founded in 2014, the company operates a fully integrated manufacturing facility in Dhar, Madhya Pradesh, with modern dehydration technology and direct farm sourcing. Its product portfolio includes dried carrot, cabbage, beans, beetroot, and other value-added vegetables used in ready-to-eat meals, instant soups, and seasoning blends. With a B2B-focused model and over 80 institutional clients, SFPL serves FMCG brands, food processors, and global exporters, positioning itself as a reliable supplier in the processed food value chain. SFPL has delivered strong growth over FY22–25, with revenue rising from Rs.13.56 crore to Rs.28.07 crore and PAT increasing from Rs.0.73 crore to Rs.6.49 crore. EBITDA margins expanded from 10.3% to 27.3%, while RoCE and RoE improved to 41.3% and 42.7%, respectively, in FY25. Asset-light operations and steady customer additions have driven healthy profitability. At the upper end of the Rs.120 IPO price band, the company is valued at a P/E of 26.7x (FY24), reflecting optimism around high-margin agro-processing firms. With upcoming investments in machinery, solar infrastructure, and working capital, SFPL is well-positioned to tap into the rising demand for value-added dehydrated food products. We recommend a “Subscribe” rating for this IPO.

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