Shivashrit Foods IPO

Shivashrit Foods Limited, incorporated in August 2017, is a manufacturer, supplier, and exporter of premium potato flakes used in ready-to-eat meals, snacks, and processed foods. The company operates a certified potato processing facility in Aligarh, Uttar Pradesh, and maintains high-quality standards with certifications including FSSAI, ISO 22000:2018, HALAL, BRCGS (Intertek/UKAS), and USFDA. Its products are marketed under the brand names “Shivashrit,” “Shreeaahar,” and “Flaker’s,” catering to both domestic and international food manufacturers.

Domestically, Shivashrit Foods sells its products across several Indian states including Uttar Pradesh, Maharashtra, Delhi, and West Bengal, among others. Internationally, the company exports to regions such as North and South America, the Middle East, and Southeast Asia, with key markets including the USA, Brazil, Mexico, Israel, and Indonesia. The company’s focus on quality and long shelf life positions it as a reliable player in the global processed food ingredients sector.

Shivashrit Foods IPO Strengths

• Shivashrit Foods is a leading player in the processed potato products segment, especially known for dehydrated potato flakes, which have a growing demand in the food processing industry.
• The company has demonstrated steady revenue growth over recent years, driven by expanding product demand and increasing domestic and export market penetration.
• Offering a range of processed potato products including flakes, powder, and related derivatives, Shivashrit Foods addresses varied customer requirements and different market segments.
• The company exports to multiple countries, creating diversified revenue streams and mitigating dependence on the domestic market.
• Shivashrit Foods employs modern processing plants with automated technology, ensuring consistent product quality, efficiency, and scalable production capacity.
• The company maintains long-term relationships with potato growers and suppliers, stabilizing raw material availability and cost management.
• A well-established distribution system supports timely delivery and broad market reach, enhancing customer service and satisfaction.

Shivashrit Foods IPO Risks

• The company relies heavily on potato procurement, with 80% – 90% purchased during the peak harvesting season. Any price volatility or shortage in raw material supply could impact production costs and margins.
• Shivashrit Foods depends on a limited number of major customers. Losing any significant client or reduced orders from key customers could severely affect revenue.
• Since raw materials are agricultural products, adverse weather conditions or poor harvest seasons can affect availability, quality, and pricing of potatoes.
• The company sources potatoes mainly within a 200-kilometer radius around its manufacturing facility. Any disruption in this local supply chain could postpone production.
• The processed food and dehydrated potato products market is competitive, with both domestic and international players. Pricing pressures and evolving consumer preferences may impact market share.
• Revenue from exports introduces risks related to foreign exchange fluctuations, regulatory changes in importing countries, and international trade policies.
• Shivashrit Foods operates in the food processing industry which has strict quality and safety regulations. Non-compliance or changes in regulatory framework could lead to fines or product recalls.