Sanstar Limited, a major Indian manufacturer of plant-based speciality products and ingredient solutions. The company's expansive product line includes liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native and modified maize starches, and co-products such as germs, gluten, fiber, and enriched protein.
These products serve a variety of purposes, acting as ingredients, thickening agents, stabilizers, sweeteners, emulsifiers, and additives in the food industry, nutritional ingredients in animal nutrition, and functional agents in industrial applications.
With an installed capacity of 363,000 tons annually, Sanstar Limited stands as the third-largest producer of maize-based speciality products in India. The company attributes its competitive edge to over five decades of industry presence, advanced manufacturing facilities, a diverse product portfolio, and a strong market presence both domestically and internationally.
Sanstar Limited operates two manufacturing sites spanning approximately 245 acres in Dhule, Maharashtra, and Kutch, Gujarat. These facilities are strategically located near key maize harvesting belts and major seaports, enhancing the company's export capabilities.
The Dhule facility, noted for its sustainability and advanced automation, has received multiple certifications including FSSAI, FSSC 22000:2018, Kosher, HALAL, and ISO 9001:2015. The Kutch unit also boasts similar accolades and is registered with the United States Food and Drug Administration (USFDA).
During the fiscal year 2023, Sanstar Limited achieved significant export revenues, constituting over 30% of its gross revenue, with products reaching 49 countries across various continents.
Industry Outlook:
- The Indian Maize Starch market is set to expand at a 3.6% CAGR, reaching 9.5 million tons by 2029, driven by its accessibility and broad use across multiple industries.
- The Modified Maize Starch market in India, worth USD 1,222.1 Million in 2023, is projected to grow to USD 1,717.9 Million by 2029, influenced by price sensitivity and cost-related supplier choices.
Sanstar Limited IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Funding the capital expenditure requirement for expansion of the Dhule facility;
- Repayment and/or pre-payment, in part or full, of certain borrowings availed by the company and;
- General corporate purposes
Peer Details
The companies considered by Sanstar as its peers include:
- Gujarat Ambuja Exports Limited
- Gulshan Polyols Limited
- Sukhjit Starch and Chemicals Limited
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Contact Details of Sanstar Limited IPO
- Registered office: Sanstar House, near Parimal Under Bridge, opposite Suvidha Shopping Centre, Paldi, Ahmedabad – 380 007, Gujarat, India
- Phone:+91 79 26651819
- E-mail:cs@sanstar.in
IPO Financials
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Total Revenue (in ₹ million) | 10,816.83 | 12,096.68 |
| Profit After Tax (PAT) (in ₹ million) | 667.67 | 418.05 |
| Cash & Cash Equivalents (in ₹ million) | 31.75 | 62.70 |
| Net Worth (in ₹ million) | 2,159.12 | 1,492.81 |
| Debt to Equity Ratio(x) | 0.50 | 0.60 |
| Return on Equity (%) | 30.92% | 28.00% |
| Return on Capital Employed (RoCE) (%) | 25.43% | 23.82% |
| Earning Per Share (EPS)-in absolute ₹ | 4.75 | 2.98 |
Know before investing
Strengths
7Revenue CAGR of 57% (FY21-FY23) demonstrates exceptional growth.
PAT CAGR of 71% (FY21-FY23) reflects strong profitability.
Two major facilities with 3,63,000 tons annual capacity.
Exported to 49 countries in H1 FY23, showing global reach.
State-of-the-art automation at the Dhule facility boosts efficiency.
SCADA and PLC systems minimise production costs and errors.
Risks
7Extensive industry experience of 30+ years in maize processing.
Strong R&D capabilities driving innovative product development and improvement.
Diversified product portfolio catering to various industries and applications.
The strategic location of manufacturing facilities near major maize-growing regions.
Robust distribution network ensuring timely delivery to domestic and international markets.
Consistent revenue growth with ₹1,000+ million annual turnover.
Established relationships with key suppliers and long-term customers.
