Papadmalji Agro Foods IPO

Papadmalji Agro Foods IPO is a book build issue of ₹20.18 crores. The issue is a combination of fresh issue of 25.73 lakh shares aggregating to ₹18.52 crores and offer for sale of 2.30 lakh shares aggregating to ₹1.66 crores.

Kreo Capital Private Limited is the book running lead manager, and MAS Services Limited is the registrar of the issue.

About Papadmalji Agro Foods Limited

Papadmalji Agro Foods Limited was incorporated as Papadmalji Agro Foods Private Limited on December 19, 2017, under the Companies Act, 2013. It was subsequently converted into a public limited company pursuant to resolutions passed in October and November 2024, and its name was changed to Papadmalji Agro Foods Limited, with a fresh certificate of incorporation issued on January 28, 2025. The company is headquartered in Bikaner, Rajasthan, and is promoted by Mr. Jai Agarwal and Mrs. Prem Lata Agarwal.

The company is an ISO 22000:2018 certified agro-food processing and manufacturing enterprise engaged in the in-house manufacture of hand-made papads, machine-made papads, rice papads (Khichiya), vrat special papads, and Moongodi. It also undertakes white-label manufacturing of handmade papads for clients and trades in cereal pellets under its own brand. Its manufacturing facilities use a combination of traditional and mechanized processes, with semi-automated and automated machinery for dough preparation, sheeting, rolling, cutting, drying, and packaging.

The company operates through a portfolio of brands including “Zhakaas,” “Vishal,” “Rozana,” “Diamond,” and “Papadmalji,” catering to different product categories and consumer segments. Its products are distributed through general trade, modern trade, quick commerce, and its direct-to-consumer platform, while selected products are also supplied to Middle Eastern markets through a merchant exporter. As of June 30, 2025, its products were sold across 20 states and 2 Union Territories in India.

The company's operations are supported by two FSSAI-licensed manufacturing units in Bikaner, with the Gharsisar unit additionally certified under ISO 22000:2018. Handmade papad production follows the Batara–Batari model, under which contractors supervise women workers engaged in home-based hand rolling of papads, while machine-based production supports scalability, standardization, and hygiene. Raw materials such as urad dal, moong dal, spices, and edible oils are sourced from domestic markets, primarily within Rajasthan.

The company's business traces its origins to 2012, when promoter Jai Agarwal established “Vishal Namkeen Bhandar,” a sole proprietorship in Bikaner focused on handmade papads. Papadmalji Agro Foods subsequently acquired this business in 2018 through a Business Transfer Agreement, forming the foundation of its present operations.

Industry Outlook

India’s food processing industry is witnessing strong structural growth. The sector reached US$336.4 billion in 2023 and is projected to reach US$735.5 billion by 2032, implying a CAGR of 8.8%. The sector has also recorded an average annual growth rate of around 7.26% over the preceding seven years, supported by rising consumption and value addition to agricultural products.

The Indian snacks market is expanding on the back of urbanization, changing lifestyles, and demand for convenient foods. The DRHP estimates the India snacks market to grow from US$5.34 billion in 2024 to US$10.92 billion by 2033, registering a CAGR of 8.26% during 2025–33. Rising disposable incomes, a growing young population, and increasing preference for ready-to-eat products are identified as key growth drivers.

Growing organized retail, e-commerce, and quick-commerce channels are expanding the addressable market for packaged snacks. The DRHP notes that India added 125 million online buyers in the preceding three years, with another 80 million expected by 2025. India's e-commerce market was projected to reach US$111 billion by 2024 and US$200 billion by 2026, supporting wider distribution of packaged food products.

Changing consumer preferences are creating opportunities for healthier and more diversified snack offerings. The DRHP highlights rising demand for natural, organic, vegan, low-calorie, and gluten-free snacks, alongside greater emphasis on convenience and packaging. It notes that 38% of Indians were reported to be committed vegetarians in 2023, supporting demand for plant-based and vegetarian snack categories.

Technology, government support, and export demand are expected to support further formalization of the food-processing sector. The DRHP highlights increasing adoption of automation and AI in food processing, government initiatives such as PMKSY, PMFME, and PLI, and growing international demand for Indian ethnic foods. It also notes that processed food accounted for only 16% of India's agri-exports, compared with 25% for the US and 49% for China, indicating scope for greater value addition and exports.

Papadmalji Agro Foods IPO Objectives

The company proposes to utilize the net proceeds from the IPO for the following objectives:

• Towards working capital requirements.
• Towards repayment or prepayment, in full or in part, of borrowings availed by the Company.
• Towards general corporate expenses.

Financial Performance of Papadmalji Agro Foods Limited

Papadmalji Agro Foods Limited Peer Details Comparison

The DRHP states that there are no listed Indian companies of comparable size/business segment to Papadmalji Agro Foods.

Strengths and Opportunities of Papadmalji Agro Foods IPO

1. The business traces its roots to 2012, while the company was incorporated in 2017. Promoter Jai Agarwal and Whole-time Director Prem Lata Agarwal each have more than a decade of experience in the papad industry, providing established industry knowledge and operating experience.
2. The company manufactures hand-made papads, machine-made papads, rice papads (Khichiya), vrat-special papads, and Moongodi, while operating brands including Zhakaas, Vishal, Rozana, Diamond, and Papadmalji. This allows it to address different consumer preferences and product segments.
3. Its products are distributed through general trade, distributors and wholesalers, modern trade, quick-commerce platforms, and its own D2C website. As of June 30, 2025, the company's products were sold across 20 states and 2 Union Territories, while it also had access to selected Middle Eastern markets through a merchant exporter.
4. The company operates two FSSAI-licensed manufacturing units in Bikaner, with the Garsisar unit certified under ISO 22000:2018. Its machine-based production is intended to support scalability, standardization, and hygiene, while the Batara–Batari model enables large-scale handmade papad production.
5. The DRHP estimates India's snacks market to grow from US$5.34 billion in 2024 to US$10.92 billion by 2033, implying a CAGR of 8.26%. India's food-processing industry was valued at US$336.4 billion in 2023 and is projected to reach US$735.5 billion by 2032, at a CAGR of 8.8%. This provides a favorable industry backdrop for packaged papad and snack products.
6. The DRHP highlights rapid growth in online consumption channels: India added 125 million online buyers in the preceding three years, with another 80 million anticipated by 2025. India's e-commerce sector was projected to reach US$111 billion in 2024 and US$200 billion by 2026, creating opportunities for the company's quick-commerce and D2C channels.
7. The sector benefits from schemes such as PMFME, ODOP, PMKSY, and PLI, while food-processing units can access various fiscal and financing benefits; the DRHP also notes 100% FDI under the automatic route. Additionally, Indian food exports were expected to reach US$61 billion by 2024, with processed food exports having grown at a 15% CAGR over the preceding five years, supporting the opportunity for further international expansion.

Risks and Threats of Papadmalji Agro Foods IPO

1. The company derives a significant share of revenue from a limited number of customers. As of June 30, 2025, the top 10 customers contributed 73.09% of revenue from operations, while the top customer alone contributed 18.43%. Loss, reduction, or cancellation of orders from key customers could materially affect revenue and profitability.
2. The Indian papad industry is highly fragmented and competitive, with organized players such as Shri Mahila Griha Udyog Lijjat Papad, Agrawal Papad, ARS Foods, Sunil Grah Udyog, and Mahaganapathi Foods, along with numerous regional and unorganized manufacturers. Local players may benefit from lower compliance costs and cost-efficient distribution, creating pricing and market-share pressure.
3. The company's products are exposed to risks arising from improper storage, handling, labeling errors, pest infestation, and deviations from food-safety standards. Any contamination or perceived contamination could result in product recalls, regulatory action, loss of customer trust, and reputational damage.
4. Raw materials such as spices and edible oils are influenced by agricultural cycles, weather conditions, and monsoons. Poor rainfall, excessive rainfall, or drought could cause supply shortages, quality issues, and higher input prices, affecting production costs, margins, and cash flows.
5. Operations depend on the continued functioning of its manufacturing facilities. Machinery breakdowns, power outages, labor shortages, supply-chain interruptions, or regulatory inspections could disrupt production. Conversely, weak demand or seasonal fluctuations could result in under-utilization of capacity and higher per-unit manufacturing costs.

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