About the Company:
Sarveshwar Foods Ltd is primarily engaged in the business of processing and marketing of branded and un-branded basmati and non-basmati rice in the domestic and international markets. Company’s operations are based out of the Jammu Region in the State of Jammu and Kashmir.
Company is one of the few Indian companies with a presence across the entire rice value chain, which includes procurement, storage, milling, sorting, packaging, branding and distribution.
Company’s product portfolio comprises of Basmati and non-Basmati rice of various kinds including white raw rice, steam rice, broken rice, brown rice and parboiled rice.
Along with the varied variety of conventional Basmati and non-Basmati rice, Company’s product portfolio also includes organic Basmati and non-Basmati rice including range of other organic products.
Besides conventional Basmati and non-Basmati rice, Company has also forayed into procurement, storage, milling, sorting, packaging, branding and distribution of “Organic” Basmati and non-Basmati rice.
The “Organic” business also includes organic food products such as dry fruits and nuts, pulses, lentin, flours, porridge, spices, garam masalas and super foods like chia seeds, flax seeds, quinoa seeds, etc.
Company markets and distributes these organic food products under its brand “Nimbark”.Company has recently in May, 2017 launched its flagship retail store in the name of “Nimbark – Living the Satvik Way” for organic products at Channi Himmat, Jammu.
Company has various warehouses with the ability to store approximately 50,577 MT of Basmati and non-Basmati paddy at Unit I (Seora) and Unit II (SIDCO) as of June 30, 2017.They also have godowns for storage of 31,809 MT of finished rice.
In the international markets, Company’s products are sold and distributed in the USA, Europe and Middle East. Most of the exports are bulk exports or sold under third party labels.
In addition to selling Basmati and non-Basmati rice in Europe and USA under third party labels, They also export basmati and non-basmati rice (both organic and conventional) under our their brand “Sarveshwar” and “Nimbark“.
Export & Domestic Sales Contribution:
Company’s Distribution Network:
Company has an extensive distribution network which enables our products reach states in India like J&K, Delhi, Telangana, Andhra Pradesh and cities like Chennai, Pune.
In addition, they intend to increase their presence in the Indian market by distributing their branded rice,both conventional and organic rice, in states such as Maharashtra, Gujarat, Rajasthan, Karnataka, Madhya Pradesh and Goa.
The sale and distribution of the products is undertaken in the following ways:
Distributors: Company has associated with various distributors in the Jammu Region and Rest of India.
Wholesalers/Retailers: Some areas that are not covered by a distributor and there are wholesaler or direct retailers who are available for supply of their products, They have also entered into arrangements with such wholesalers and retailers for the effective distribution of the products in such areas.
Hypermarkets: Company has entered into arrangements for supply of Basmati and non-Basmati rice under our brand with hypermarkets like Wal-Mart, Big-Bazaar, Easyday having their stores at Jammu.
HORECA: In the Jammu Region, they also supply their products directly to hotels, restaurants and caterers. Company believes that they are are one of the largest suppliers of basmati and non-basmati rice to hotels and restaurants in State of Jammu and Kashmir. They also supply their products to canteens of major famous highway dhabas of J&K.
Institutions: Apart from above mentioned distribution channels,Company also caters to the requirements of various institutions and organisations in the State of
Shri Mata Vaishno Devi Shrine Board, Katra: Company has been associated with the Shri Mata Vaishno Devi Shrine Board for the past ten (10) years for the supply of basmati and non-basmati rice. Shri Mata Vaishno Devi Shrine Board governs the Hindu pilgrimage temple of Mata Vaishnodevi situated in Katra, Jammu at the Trikuta Mountains. They supply more than 8,600 MT of Basmati and non-Basmati rice to them on an annual basis.
Indian Army and Paramilitary: Company supplies its products to the Indian Armed and Paramilitary Forces based in the State of J&K like Army Wives Welfare Association (AWWA), Air Force Wives Welfare Association (AFWWA), BSF Wives Welfare Association (BWWA), CRPF Wives Welfare Association (CWWA) and Mess of BSF/CRPF
deployed in J&K.
Wholesale/Retail outlets of the Company: Company currently operates five (5) outlets located at prime locations in Jammu.
Overseas & Domestic Distribution Channels:
Overseas Distribution Channels. Company has strong relationships with many of the world’s largest buyers of basmati rice, including those in key export destinations such as USA, Europe and Middle East. While most of their export products are unbranded, they have recently launched company’s own brands for export distribution in the USA.
Domestic Distribution Channels. In India, basmati rice is primarily sold by distributors to retail outlets that are located in residential areas.Company’s domestic distribution network consists of 64 distributors across 30 districts who in turn have access to 1,843 retailers. In addition, they have also entered into agreements with retail chains to distribute their branded products, including with the Future Group and Wal-Mart.
Brand Names used by the Company to Sell Products:
Company sells whole grain basmati rice in the export market either under company’s own brand or under third party brands.
Major brands in which they sell whole grain Basmati rice include Sarveshwar; Himalayan Pride; Shimla Road; Roland; Bombay Pavilion; Indian Hills; Lazzat Star; Al-Ghamdi; Reshme; Aruj; Ayiti; Chef Pride; Silsila; Golden Star; Swami; Twenty One.
Projected Capacity Utilization:
Positives for the Company:
- They plan to increase their domestic market penetration by increasing distribution of their products in Maharashtra, Gujarat, Rajasthan, Karnataka, Madhya Pradesh and Goa.
- Company has recently launched their own brands for export distribution in certain countries in USA under the brand “Nimbark”.
- The above factors will increase the sales volume in the coming years and could be the next growth driver for the company.
- Mr. Suraj Parkash Gupta (Designation: Honarary Chairman)
- Mr. Rohit Gupta (Designation: Managing Director)
- Mr. Anil Kumar (Designation: Executive Director)
Promoters Stake Pre & Post Issue:
|Shareholder Name||Pre Issue Stake (%)||Post Issue Stake|
|Mr. Rohit Gupta||99.94%||73.64%|
|Mr. Suraj Parkash Gupta||0.06%||0.04%|
|Promoter Group Entities||Negligible||Negligible|
Objectives of the Issue:
- Part finance long term working capital requirement.
- Invest in subsidiary.
- General Corporate Purpose.
- Meet the expenses of the issue.
|Particulars||Amount (Rs. in Lakhs/Crores)|
|Part Finance of Long term working Capital||30.00|
|Investment in subsidiary Himalayan Bio Organics Pvt. Ltd||15.00|
|General Corporate Expenses||9.97|
|Net Proceeds||54.97 cr|
Financials of the Company:
|(in Crores)||FY 13||FY 14||FY 15||FY 16||FY 17||30th Sept 17|
Valuation of Peer Group Companies:
|Company Name||Face Value||EPS||PE Ratio||RoNW||NAV|
|Sarveshwar Foods Ltd||10||7.16||11.87||18.48%||38.76|
|LT Foods Limited||1||4.40||20.52||19.61%||24.61|
|Chaman Lal Setia Exports Limited||2||7.44||21.96||26.52%||28.07|
|Issue Opens on||5th March 2018|
|Issue Closes on:.||7th March 2018|
|Issue Price||Rs.83 – 85|
|Issue Size||Rs.54.97 cr|
|Market Cap||Rs.208.80 cr|
|Listing at||NSE SME|
|Equity Shares Offered (Fresh)||64,67,200|
|Equity Shares Prior to the Issue||1,81,00,000|
|Equity Shares after the Issue||2,45,65,600|
|Finalization of Basis of Allotment||on or Before 12th March 2018|
|Initiation of Refunds||on or Before 13th March 2018|
|Credit of Equity Shares:||on or Before 14th March 2018|
|Listing Date:||on or Before 15th March 2018|
IPO Valuation Parameters:
|Earnings Per Share (EPS)||Price To Earnings ratio (PE)||Return on Net Worth (RoNW)||Net Asset Value (NAV)|
Markets Guruji Opinion:
|IPO View||Apply For:||Expected listing Gain:|
|(Subscription-Category-Wise (no. of times) Till time : 06:00 PM)||Shares Offered||Day-1||Day-2||Day-3|
|Check IPO Allotment Status:|
Bigshare Website (Click on the below Link)
|Company Contact Info:|
|Sarveshwar Foods Limited
Sarveshwar House, below Gummat
Jammu 180 001, Jammu and Kashmir, India.
Telephone: +91 191 2547391
Email id: email@example.com
|IPO Registrar Info:|
|BIGSHARE SERVICES PRIVATE LIMITED
1st Floor, Bharat Tin Works Building
Opp. Vasant Oasis, Makwana Road
Marol, Andheri (East) Mumbai 400059, India.
Telephone: +91 22 6263 8200
Grievance email: firstname.lastname@example.org