Sawaliya Foods Products IPO

Incorporated in July 2014, Sawaliya Food Products Limited is engaged in the manufacturing and processing of dehydrated vegetables, primarily catering to the branded packaged food industry and international importers. The company sources raw materials directly from farmers and specializes in dehydrated carrots, cabbage, and string beans. These products are widely used in fast-moving consumer goods (FMCG) applications such as cup noodles, ready-to-eat noodles, pasta, and soups. Its manufacturing operations are based in Dhar, Madhya Pradesh, with two facilities that have a combined production capacity of approximately 1,500 metric tons.

The company exports to international markets, including the United States, while also serving domestic clients in India. Committed to sustainability, Sawaliya Food Products has implemented a zero-wastage policy, making efficient use of all raw materials. Surplus or unused produce is sold based on market demand, and sub-standard output is redirected to the pet food export segment. As of June 30, 2025, the company employed 25 individuals across various departments.

Sawaliya Foods Products IPO Strengths

• The company offers a variety of dehydrated vegetables like carrots, cabbage, ring beans, green peas, onions, and is expanding into new segments such as dried papaya, beetroot, and pumpkin, making its product basket flexible and adaptable to evolving industry needs.
• Sawaliya Foods supplies to leading institutional manufacturers, FMCG companies, traders, and exports to international customers, including the United States, which diversifies revenue and lowers reliance on any single segment.
• The company sources raw materials directly from farmers in close proximity to its plant, and also procures via APMC, allowing it to maintain cost competitiveness, secure consistent supply, and ensure natural quality in ingredients.
• Its multi-product manufacturing units in District Dhar are strategically located near raw material sources, and equipped with modern, automatic heat generation machinery, improving productivity and quality while reducing transportation and operational costs.
• By sourcing organic vegetables and investing in upgrading to solar PV systems and efficient dehydration technology, Sawaliya Foods demonstrates a commitment to sustainability and environmentally friendly operations.

Sawaliya Foods Products IPO Risks

• A significant portion (about 66%) of revenue comes from supplying dehydrated vegetables to the packaged food industry. Adverse developments or demand changes in this sector could impact growth and earnings.
• Raw material procurement is heavily dependent on agricultural cycles and weather patterns. Droughts, floods, or shifts in crop output can disrupt supply, increase costs, and affect production schedules.
• The business model involves high working capital due to the need for inventory storage and managing receivables from large institutional and export customers. Delays or inefficiencies could strain liquidity and necessitate additional borrowings.
• Fluctuations in prices of vegetables and fruits can directly influence profitability, as passing on cost increases to bulk buyers or export customers is not always possible.
• Loss of any significant institutional or export client, or delays in their payments, may materially impact earnings due to revenue concentration.
• Operating in the food processing and exports industry requires strict compliance with food safety, packaging, and export regulations. Any lapses or new norms can result in penalties, recalls, or export bans.