Ganesh Consumer Products
- Ganesh Consumer Products is coming out with a 100% book building; initial public offering (IPO) of 1,29,10,250 shares of 10 each in a price band Rs 306-322 per equity share.
- Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
- The issue will open for subscription on September 22, 2025 and will close on September 24, 2025.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 10 and is priced 30.60 times of its face value on the lower side and 32.20 times on the higher side.
- Book running lead managers to the issue are DAM Capital Advisors, IIFL Capital Services and Motilal Oswal Investment Advisors.
- Compliance Officer for the issue is Narendra Mishra.
Profile of the company
Ganesh Consumer Products is a FMCG company headquartered in Kolkata, West Bengal and in terms of value sold in Fiscal 2025, it is the third largest brand of packaged whole wheat flour (atta) and largest brand in wheat-based derivatives (maida, sooji, dalia) in East India. In East India, in terms of value for Fiscal 2025, the company is also one of the top two players for packaged sattu and besan (which are gram-based flour products) with a share 43.4% (sattu) and 4.9% (besan) in East India market for respective products, with a growing presence in various consumer staple categories such as spices and ethnic snacks. In West Bengal the company has a share of approximately 40.5% by value sold in Fiscal 2025 for wheat-based products including wheat flour, maida, sooji and dalia. Omni-channel presence through its general trade channels, modern trade channels and e-commerce channels. As on March 31,2025, it services its general trade channel with over 28 C&F agents, 9 super stockists and 972 distributors. As on March 31, 2025, its product portfolio comprises of 42 products with 232 SKUs across its various product categories.
The company offers a range of consumer staples comprising of (i) whole wheat flour (atta), (ii) wheat and gram-based value added flour products (including, refined wheat flour (maida), semolina flour (sooji), roasted gram flour (sattu), gram flour (besan), cracked wheat (dalia) amongst others) and (iii) other emerging food products including packaged instant food mixes (such as khaman dhokla and bela kachori), spices (whole, CTC powder (chilli, turmeric and coriander) and blended), ethnic snacks (such as (including bhujia and chanachur) and ethnic flours such as singhara flour, pearl millet (bajri) flour, etc. Its products are sold under its flagship brand “Ganesh”, which serves as its primary identity in the market. In order to meet a varied range of consumer needs in the market, the brand has been expanded through multiple brand extensions, offering a variety of products with unique attributes tailored to specific market segments.
The company’s business is centered around its B2C operations, wherein its products directly reach its consumers through its extensive distribution network. The company has one of the largest distribution networks in East India. The company has developed an omni-channel presence through its general trade channels, modern trade channels and e-commerce channels. As on March 31, 2025, it services its general trade channel with over 28 C&F agents, 9 super stockists and 972 distributors, catering to over 70,000 retail outlets. Its network in the general trade channel is spread over the states of West Bengal, Jharkhand, Bihar, Odisha and Assam. Considering the trust and legacy of its brand built over the years, over 95% of its sales in its general trade channel are undertaken on a ‘cash and carry’ basis, i.e. its products are dispatched to distributors and wholesalers only following receipt of payment in advance.
Proceed is being used for:
- Prepayment and/or repayment of all or a portion of certain outstanding borrowings availed by the company
- Funding capital expenditure for the setting up of a roasted gram flour and gram flour manufacturing unit in Darjeeling, West Bengal
- General corporate purposes
Industry Overview
India is the second largest producer of wheat with a reported production of 1153 lakh tonnes in FY2025. Out of the total production, almost 33% is retained by the farmer and 23% is procured by the Government for the central pool through Food Corporation of India. The balance 44% is available in the market that is converted into wheat flour and wheat-based derivatives/ products like maida, sooji and dalia. Wheat grain milled to flour form at chakkis and sold in unpackaged/loose form either directly through local chakkis, or through grocery stores, or the wheat grain milled in home chakkis is referred to as unpackaged form or loose form of wheat flour. The unpackaged/loose form of wheat flour dominates the consumption in rural and semi-urban areas and forms the major share of the overall market for wheat flour. The packaged form of wheat flour and derivatives, however, is growing at a higher rate of 15.7% from FY2025 to FY2030 as compared to 3.8% for unpackaged form for the same period, indicative of the industry transitioning from unpackaged to packaged form. The total wheat flour and derivate market was estimated at Rs 1,85,149 crore in FY2025 and is expected to reach Rs 2,53,671 crore by FY2030, growing at a CAGR of 6.5%.
Besan and Sattu are referred as the gram-based flours, which are derived by grinding Bengal gram (chana), Sattu is derived from roasted gram, while besan directly from gram. The total market of gram-based products was estimated to be Rs 47,396 crore in FY2025 and is expected to reach Rs 63,504 by FY2030. Besan is widely used in Indian cooking in various forms across states, while Sattu is largely consumed in the eastern states of India. Besan total market was estimated at Rs 40,858 crore in FY2025. Almost 40-50% of gram is milled into the flour form. While the market is dominated largely by sale of loose or unpackaged form, however, the growth of packaged form is higher, growing at a CAGR 15.0% from FY2025 to FY2030, as compared to the unpackaged form, growing at 3.2% for the same period. Increase in disposable income, shift towards used of packaged food items, growth in modern retail etc. are some factors that are driving the growth of the packaged gram flour category.
The packaged snacks market includes both western and traditional snacks, estimated at Rs 82,262 crore for FY2025, and it is projected to grow at a CAGR of 13.0% to reach a value of Rs 1,51,563 crore by FY2030. General trade sales channels constitute 78% of the market share while modern retail channels including modern retail stores (15% share) and e-commerce (7% share) accounts for 22% of the market share in FY2025 and is expected to reach 25% by FY2030. Eastern India accounts for 31.0% of the total packaged snacks market size. Growing at a rate of 13.0% from FY2025 to FY2030, the market is projected to reach a value of Rs 47,136 crore in FY2030.
Pros and strengths
Largest brand of packaged flour in East India: In terms of value sold, the company is one of the largest brand of wheat-based and gram-based derivatives in East India in Fiscal 2025 accounting for approximately 12.6% of the East India market share for packaged wheat and gram-based products. In addition, the company is the third largest brand in terms of value sold in Fiscal 2025, of packaged wheat flour in East India, with a share of around 8%. Further, in terms of market share by value sold in Fiscal 2025, it is the largest player for packaged sooji, dalia, and maida (which are wheat-based flour products) in East India with a market share of 31.2% (sooji and dalia), 16.4% (maida) in East India market for respective products.
Diversified and continuously expanding product portfolio: The company’s product portfolio currently comprises (i) whole wheat flour (atta), (ii) wheat and gram-based value-added flour products (including, refined wheat flour (maida), semolina flour (sooji), roasted gram flour (sattu), gram flour (besan), cracked wheat (dalia) amongst others) and (iii) other emerging food products including packaged instant food mixes, spices (whole, CTC powder (chilli, turmeric and coriander) and blended), ethnic snacks (such as bhujia and chanachur) and ethnic flours such as singhara flour, pearl millet (bajri) flour. The company’s ability to identify market trends and develop quality products are significant factors that have contributed to the growth of its business. As on March 31, 2025, its product portfolio comprised of 42 products with 232 SKUs across its product categories, to address the requirements of a large consumer base. The number of SKUs offered by the company has increased from 150 as on March 31, 2023 to 232 as on March 31, 2025.
Strategically located advanced manufacturing facilities: The company operates from seven manufacturing facilities located at Kolkata (West Bengal), Varanasi (Uttar Pradesh), Agra (Uttar Pradesh) and Hyderabad (Telangana). Its manufacturing facilities are strategically located in proximity to optimise the sourcing of its raw materials and to enable efficient logistics management. For instance, its facilities in Varanasi, Agra and Hyderabad, provide easy access to wheat, which is the primary raw material for its whole wheat flour (atta), refined wheat flour (maida), semolina flour (sooji), cracked wheat (dalia) products. Further, its facilities in Kolkata, are strategically located within its core markets which helps it to reduce logistic costs.
Well experienced Promoter assisted with an experienced management team: The company is led by the guidance of its Managing Director, Manish Mimani, who has been intimately involved in the business since 2000. Under his leadership, the company transformed from a family-owned business to what it is today. He pioneered the launch of value-added flour products in the company. His experience has enabled the company to implement efficient manufacturing processes and build an extensive distribution network coupled with a diversified product portfolio. The company has an experienced Board of Directors, comprising Manish Mimani, Madhu Mimani and Rohit Mantri. It also has oversight from the Independent Directors on its Board of Directors which include Sunil Rewachand Chandiramani, Ganesh Shenoy Basavanagudi and Richa Manoj Goyal.
Risks and concerns
Substantial revenue comes from limited SKUs: The company has derived a substantial portion of its B2C revenue from a) whole wheat flour (atta); and b) wheat and gram-based value-added flour products. Under its whole wheat flour and wheat and gram-based value added flour products, the company derives substantial revenue from the sale of its top 5 stock keeping units (SKUs). The company has garnered 50.52%, 33.87% and 54.74% of its total revenue from top 5 SKUs in FY25, FY24 and FY23 respectively. Any decrease in demand for these SKUs can have an adverse impact on its business, results of operations, financial conditions and cash flows.
Dependent on limited suppliers for significant amount of raw material supply: The company has procured 34.40%, 30.09% and 35.03% of its raw material from top 10 suppliers in FY25, FY24 and FY23 respectively. The company does not have long-term or continuing contractual arrangements with such suppliers and do not generally have firm commitments for the supply of raw materials. It faces a risk that one or more of its existing suppliers may discontinue their supplies to it, and any acceptable terms, may adversely affect its operations. Moreover, it mainly procures wheat grains from Uttar Pradesh, Bihar, Madhya Pradesh, Rajasthan and West Bengal, from traders and institutional suppliers. There can be no assurance that its will be able to procure all of its future raw material requirements at commercially viable prices. Further, unfavourable weather patterns, including extremes such as drought, floods and natural disasters, change in global demand and global production may have an adverse effect on the availability of raw materials.
Geographical constrain: The sale of its products is concentrated in its core market of East India, specifically in West Bengal. The company has garnered 71.33%, 67.63% and 71.16% of its total revenue in B2C segment from West Bengal in FY25, FY24 and FY23 respectively. Moreover, in B2B segment, the company has garnered 12.94%, 14.82% and 12.36% of its total revenue in B2B segment from West Bengal in FY25, FY24 and FY23 respectively. Any significant social, political or economic disruption, or natural calamities or civil disruptions in this region, or changes in policies of the state or local governments or the government of India or adverse developments related to competition in West Bengal, may adversely affect its business, results of operations, financial condition and cash flows.
Dependent on its distribution network: The company’s business is significantly dependent on its distribution network who distribute its products to end retailers. As on June 30, 2025, it services its general trade channel over 30 C&F agents, 8 super stockists and 981 distributors, catering to over 70,000 retail outlets. Such C&F agents, super stockists and distributors are its distribution network partners. Any disputes in relation to its distribution network partners, including disputes regarding pricing or services, could adversely affect its ability to supply products to the end retailers and consequently its consumers and could adversely affect its business, results of operations, financial condition and cash flows.
Outlook
Ganesh Consumer Products is a FMCG company. The company is the brand of wheat-based derivatives (maida, sooji, dalia) in East India. The company has diversified and continuously expanding product portfolio. It also has well-established and widespread multichannel distributor network and customer reach. On the concern side, the company derives a substantial portion of its B2C revenue from a) whole wheat flour (atta); and b) wheat and gram-based value-added flour products and any reduction in demand or in the production of such products could have an adverse effect on its business, results of operations and financial condition. Moreover, the sale of the company’s products is concentrated in its core market of East India, specifically in West Bengal. Any adverse developments affecting its operations in such region, could have an adverse impact on its business, financial condition, results of operations and cash flows.
The issue has been offering 1,29,10,250 shares in a price band of Rs 306-322 per equity share. The aggregate size of the offer is around Rs 395.05 crore to Rs 415.71 crore based on lower and upper price band respectively. Minimum application is to be made for 46 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased by 12.04% to Rs 8,504.62 million for Fiscal 2025 from Rs 7,590.73 million for Fiscal 2024. Moreover, the company has reported 31.27% rise in net profit at Rs 354.32 million in FY25 as compared to RS 269.92 million in FY24.
The company intends to deepen penetration in these markets by leveraging its eight decades of experience, enhancing its brand awareness and strengthening its distribution network by growing the number of distribution partners within such markets. Further, the company has consistently sought to diversify its portfolio of products which could cater to customers across segments and geographies. The company has developed its product portfolio to address varying needs of its consumers at various price points based on its market research and understanding of consumer tastes and trends. It typically evaluates new products based on a set of criteria, including its ability to create a differentiated offering, competitive intensity, go-to-market capability, back-end product fitment, category, scale and profitability of the new products.
