Incorporated in 2004, Sarveshwar Foods Ltd (Sarveshwar), based at Jammu region, 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.

Sarveshwar is one of the few domestic companies, which has a presence across the entire rice value chain, which includes procurement, storage, milling, sorting, packaging, branding and distribution. Along with the varied variety of conventional basmati and non-basmati rice, the company’s product portfolio also includes organic basmati and non-basmati rice including range of other organic products like dry fruits & nuts, pulses, lentils, spices, garam masala etc.

The company currently operates through two rice milling and processing facilities with a cumulative processing capacity of 84,240 mtpa. It has three wholly owned subsidiaries, two in India, and one in Dubai. The company has 132 procurement agents across 5 states for procuring basmati and non-basmati paddy from “mandis”, except J&K, where they procure basmati and non-basmati paddy directly from farmers due to non-existence of the mandis system.

Sarveshwar is headed by visionary Promoter Mr. Rohit Gupta, who is actively involved in the operations, marketing, exports and customer relationship & has 20 years of experience in the field of rice business.

Issue Highlights

Issue opens

March 5, 2018

Issue closes

March 7, 2018

Issue Size

Rs. 55 cr

Price Band

Rs. 83/- to Rs. 85/- per share

Bid Lot

1600 Equity Shares and in multiples thereafter

Face Value

Rs. 10/- per share


NSE Emerge


Bigshare services Pvt Ltd


Compulsorily ASBA Mode

Issue Details

The company through the IPO offers 64,67,200 a fresh equity shares of face value of Rs.10 each. The net issue to public is up to 61,42,400 equity shares and up to 3,24,800 equity shares will be reserved for subscription by Market Maker. The Issue comprises 26.32% of the post issue paid up equity share capital.

Issue Objectives

The company intends to utilize the net proceeds towards funding the following objects:

Particular Amount (Rs Mns)
Long term working capital 300
nvestment in subsidiary i.e. Himalayan Bio Organic Pvt Ltd 150
General Corporate expenses -


Investment rationale

Favorable geographical location & suitable climatic conditions

The geographical location & climatic conditions of the State are ideal not only for conventional farming but also for organic farming. The state of Jammu & Kashmir has diverse physiographic features, agro-climatic variations and existence of cold arid temperature, intermediate and sub-tropical zones. Rice paddy and other crops are easily cultivated in the plateau regions of J&K and the plains near River Chenab flowing with snow melted water. Most farmers use ancient techniques to grow Basmati rice and use natural organic fertilizers. While they procure basmati and non-basmati paddy from Punjab, Haryana, Himachal Pradesh, Uttar Pradesh and Delhi, they primarily procure their organic Basmati and non-Basmati paddy from the State of Jammu and Kashmir.

Well Integrated Operations

A vertically integrated process allows company to utilize the entire basmati paddy to increase their revenue & simultaneously reduce cost. During operation, company processed paddy into basmati rice, bran & husk. While husk gets utilize into steam process for reducing power cost, company sells basmati rice & bran to retail as well as industrial customer & thus increase its turnover. Company believes that they are one of the few local companies with a presence across the entire basmati rice value chain, which includes procurement, storage, milling, sorting, packaging, branding and distribution. We believe such integration aid with several competitive advantages and thus allow them to benefit from economies of scale, maintaining greater control on the quality, ensure smooth supply chain and inventory management. Also, company’s in-house research team assist in conducting laboratory test to determine the yield of the paddy & and after-cooking characteristics of the basmati rice

Modern Equipment & Technology coupled with process innovations

Company has invested in modern technology viz. SKADA and equipment imported from recognized suppliers i.e. Buhler, Germany. Company’s processing technology offers high operational efficiency resulting into lower percentage of broken rice and provides higher yield to their Company. Company believes that their milling and processing technology gives them a competitive edge over most of their competitors It operates through two modern rice milling and processing facilities i.e. at Seora (Unit I) and SIDCO (Unit II). Unit II at SIDCO comprises of two plants i.e. (i) milling and processing of Basmati and Non-Basmati paddy to finished rice; and (ii) cleaning, polishing, grading and sorting facility for processing of Basmati rice from raw paddy. Further, such technology ensure minimal requirement of labor workforce, facilitates quick turnaround time to ensure production of a quality product with lower breakages and better sorting and grading of rice. We believe these results into high level of productivity.

Robust procurement capabilities

Over the years, company has developed strong procurement capabilities through the long-standing association of their promoter and management with the basmati rice business, resulting into widespread geographic reach and healthy relationships with procurement agents and farmers. As of Sept 30, 2017, it has relationships with approximately 132 procurement agents present across 5-6 states. Company procure basmati paddy from J&K, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh and Delhi. Company believes that such extensive network aid in procuring basmati paddy at lower prices from those mandis in villages in which many of their smaller competitors are not present.

Successful in converting more than 9000 hectares for organic farming & thus ensures access to easy procurement

Over the years, company has facilitated and conducted various training programmes for the farmers to educate them the benefits of organic farming on the lands owned by them. Due to this, company has been successful in converting more than 9000 hectares of conventional agricultural land into “Organic Farming” situated in the states of Jammu and Kashmir, Himachal Pradesh and Uttar Pradesh. Company’s “Organic” business activities are undertaken under their wholly owned subsidiary, Himalayan Bio Organic Foods Private Limited under their brand name “Nimbark”. Further, company has developed strong relationships with Basmati paddy farmers including the farmers from whom they procure their organic Basmati paddy, for development and growth of their organic business, by using advanced payments, upfront payments and consistent purchases to inspire the faith and confidence of these farmers. Company believes that this helps in maintaining healthy relationship their farmers & thus enables them to procure consistent supply of quality organic basmati paddy at low prices during procurement season. Company also organizes the willing farmers to form clusters; enrol them with APEDA; and train them in nutrient and disease management adherence by the farmers of the standards of organic agricultural methods that are internationally set and regulated by the International Federation of Organic Agriculture Movements (IFOAM), an international umbrella organization for organic farming organizations.

Well established focus on Processing and Quality Control

Company’s processing facilities are located on approximately 16.27 acres of land, being 6.11 acres at Seora (Unit I) and 11.11 acres at SIDCO (Unit II), in Jammu and Kashmir. Their processing facility at Seora operates under a food safety management system which complies with the requirements of ISO 22000:2005. Company is also registered with the U.S. foods and Drug Administration, United States (“USFDA”). Further, both of their processing facilities have received the British Retail Consortium (“BRC”) certification for food safety. In addition, their processing facilities are also Hazard Analysis and Critical Control Point (“HACCP”) accredited by the British Standards Institution. Company has a well-established quality control system that spans the procurement, processing and delivery of conventional as well as organic basmati rice. Company conducts pre-harvest surveys through visual tests, and quality checks. Also, there in Process Quality Control (IPQC) laboratory keeps a check throughout the rice production process. Company conduct various quality control procedures, including internal tests and tests conducted by reputable Government and non-Government laboratories, such as container and lorry fumigation, complete testing at the port before loading and fumigation after loading, before their rice is exported to ensure that the customer’s consignment meets the required quality standards.

Experienced & Skill Management Team

Over the years, company has benefit from the experience of their Promoter who is actively involved in business operations and has been instrumental in implementing company’s growth strategies. Company’s promoter, together with their management team, has significant experience in the Basmati rice industry across the entire basmati rice value chain. Sarveshwar Promoter is the third (3rd) generation in the family to be in the rice business. Mr. Suraj Parkash Gupta, who is also the Chairman, has over forty years of rich experience in the basmati rice industry. He has been instrumental in shaping the company and the source of inspiration behind company’s goals and ideals. Also, Dr. Gayatri Tandon, who is the Executive Director of the company, has contributed to the development and growth of their organic farming and development of organic products.

Improving financial prospects

In last five years i.e. FY13-FY17, company’s revenue & profit has grown at a CAGR of 42% & 24% respectively. Also, company’s export business realization is higher than domestic business. However, company’s export business has degrowth in last three years due to several macro factors like rising of import duty etc. However, going forward, we expect the exports to pick up as the demand in the export market is showing signs of improvement. During April-August 2017, the export volumes for Basmati rice stepped by 4% and by 27% in value terms. On the other hand, exports of the non-basmati type increased by 8.5% in volume terms and about 20% in value terms. Further, Iran started importing from India again from March 2017 re- opening the export market for India. Further, company looking to established its own brand in export in coming quarters, which will drive export revenue. Also in last five years, company’s marketing & branding spend has been in the range of 1-2% of net sales. Moreover, in FY17, company’s operating margin improved by 50bps to 8.9% from 8.4%.