Shreeji Global FMCG IPO

Shreeji Global FMCG is a food company that offers a wide variety of spices and blends under its brand name “SHETHJI.” Its product range includes ground and whole spices, seeds, grains, pulses, flours, and other food items. Some of its key offerings are channa, cumin seeds, coriander seeds, sesame seeds, groundnut, kalonji seeds, fennel seeds, coriander powder, red chilli powder, and turmeric powder. The company caters to a diverse customer base that includes individual traders, small businesses, and large corporates, with packaging options ranging from 20 grams to 40 kilograms.

In addition to domestic products, Shreeji Global FMCG imports select agro commodities from international markets. These include Madagascar cloves and coriander seeds from the UAE, reduced fat desiccated coconut from Sri Lanka, and a range of spices such as autumn star anise, cigar cassia, broken cassia, and split cassia from Vietnam. It also imports non-GMO milling wheat (Crop 2023) from Singapore. These imported items are processed at the company’s own facilities located in Rajkot and Morbi, ensuring quality control and efficient distribution.

Shreeji Global FMCG IPO Strengths

• The company’s revenue grew from ₹257.82 crore in FY22 to ₹588.23 crore in FY24, driven by consistent expansion in product lines and distribution.
• Shreeji Global FMCG processes and markets a wide range of products including whole and ground spices, oilseeds, grains, pulses, and flours under its flagship brand “Shethji”.
• Two modern processing facilities in Rajkot and Morbi enable the company to maintain quality, control costs, and ensure efficient production.
• Apart from its own brand, the company leverages white-label partnerships with institutional buyers, enhancing market reach and stability.
• Imports from countries like Madagascar, Vietnam, and Sri Lanka diversify raw material sources and enhance supply chain resilience.
• Setting up a new plant with large-scale spice and multigrain processing capacity, along with a solar power unit, shows long-term scalability.
• Packaging from 20 grams to 50 kilograms allows catering to household consumers, distributors, and large institutional clients.

Shreeji Global FMCG IPO Risks

• A large amount of funds are tied in inventory and receivables, which can affect liquidity during slower sales cycles.
• Fluctuations in input prices of spices, grains, or imported commodities can compress profit margins significantly.
• Depends on foreign suppliers exposes the company to exchange rate volatility and supply chain disruptions.
• Both manufacturing units are located in Gujarat, creating potential location-specific operational risks.
• In the fragmented FMCG market, competition from established brands could limit pricing power and consumer loyalty.
• Planned capacity additions and solar power projects require significant investment and may face implementation delays.
• Changing food safety, environmental, or export regulations could affect operations and margins.