Mother Nutri Foods
- Mother Nutri Foods is coming out with an initial public offering (IPO) of 33,84,000 equity shares in a price band of Rs 111-117 per equity share.
- The issue will open on November 26, 2025 and will close on November 28, 2025.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 11.10 times of its face value on the lower side and 11.70 times on the higher side.
- Book running lead manager to the issue is Marwadi Chandarana Intermediaries Broker.
- Compliance Officer for the issue is Richa Kachhawaha.
Profile of the company
Mother Nutri Foods is a B2B peanut butter manufacturing company offering 10 flavours and 12 ranges of peanut butter. It also offers the peanut butter under own brand “Spread & Eat” in countries like Libya and Dubai. Further, it has recently started selling the peanut butter in Japan under its own brand. It also engages in private labelling, manufacturing peanut butter for domestic and international customers, including hypermarkets, supermarkets, and retail chains. Its private label clients are based in countries such as the United Kingdom, Canada, South Africa, Mauritius, Russia, the British Virgin Islands, Spain, the United Arab Emirates, Saudi Arabia, Nepal, Bangladesh, the Philippines, Mexico, Kuwait, Israel, the United States, Oman, Kenya, Germany, and Portugal. Its private labelling services allows its customers to offer peanut butter under their own brand name, while it manages the production, supply and quality control.
The company offers peanut products, consisting of peanut butter and roasted peanuts of which peanut butter is the major contributor towards the revenue from operations. The company offers peanut butter in various packaging form to cater to diverse customer requirements, ranging from sachets (20 grams to 100 grams), jars (100 grams to 1,000 grams) and bulk packaging (1 kilogram to 250 kilograms). The shelf life of peanut butter ranges 12 to 24 months. The company also offers bulk pack options to its customers. The company offers peanut butter in flavours like chocolate, honey, coconut, cinnamon, pineapple, strawberry, etc of which Chocolate is the major contributor. Further, its peanut butter offering range includes natural, creamy, crunchy, less fat, whole nut, high protein and no added sugar & salt.
The company has its sole manufacturing facility at Otha, Mahuva, Bhavnagar, Gujarat. It leverages its capabilities in procurement of the raw materials. As a peanut butter manufacturer, it sources its key raw material i.e. peanuts from Gujarat. After procuring, it processes these peanuts in its factory, transforming them into quality peanut butter. This finished product is then sold in Indian markets or exported to international markets. The company holds certifications that reflect its commitment to quality and compliance in the Food Processing Industry. It has obtained the BRCGS Food Safety Certificate, Food Safety System Certification 22000 from Foodchain, the Kosher Certificate from Orthodox Kosher Supervision, Halal Registration by Jamiat Ulama-Hind Halal Trust, “ISO 22000:2018” certification for Food Safety Management Systems by the International Certification Council. The company is also registered with the Agricultural and Processed Food Products Export Development Authority (APEDA) through a Registration cum Membership Certificate.
Proceed is being used for:
- Setting up a new manufacturing facility at Mahuva, Bhavnagar in Gujarat
- General corporate purposes
Industry Overview
India is the fourth largest economy in the world and expected to be the fastest-growing economy among major G20 countries, with GDP growth estimated to be around 6.9% in FY26. The food processing sector has become a key contributor to India’s economy over the past few years, thanks to progressive policy measures by the Ministry of Food Processing Industries (MoFPI). It has significantly contributed to Gross Domestic Product (GDP), employment, and investment. As of 2024, it contributes around 8.80% and 8.39% of Gross Value Added (GVA) in Manufacturing and Agriculture, respectively, 13% of India’s exports and 6% of total industrial investment. GVA in Food Processing sector has increased from Rs. 1.61 lakh crore ($24.60 billion) in 2015-16 to Rs. 1.92 lakh crore ($24.43 billion) in 2022-23 (as per First Revised Estimates of Ministry of Statistics and Programme Implementation).
India is one of the largest populated countries in the world and is expected to continue having one of youngest populations in the world till 2030. The growing consumption of food is expected to reach $1.2 trillion by 2025-26, owing to urbanization and changing consumption patterns. The processed fruits and vegetables industry was valued at $15.4 billion in 2019. With heightened consumer awareness during lockdowns, there’s increased demand for processed foods, especially in RTE/RTC, dairy, and fruit and vegetable segments. The Indian food processing market reached Rs 30,49,800 crore ($354.5 billion) in 2024 and is expected to grow to Rs 4,584,415 crore ($535 billion) by the end of FY26. In the long term, the food processing sector is expected to reach Rs 60,22,100 crore ($700 billion) by 2030. The market size will further increase to Rs 94,63,300 crore ($1,100 billion) by 2035, Rs 1,29,04,500 crore ($1,500 billion) by 2040, Rs 1,63,45,700 crore ($1,900 billion) in 2045 and Rs 1,84,96,450 crore ($2,150 billion) by 2047.
The Indian food processing sector offers a promising growth journey ahead and presents several opportunities with the sector being as a key priority industry under the “Make in India” initiative. The MoFPI has undertaken several initiatives aimed at enhancing infrastructure and fostering food processing industries to stimulate investment in this domain. The Indian Government has sought to involve multiple stakeholders to improve interactions between farmers, processors, distributors, and retailers to establish strong supply chains linking farmers to processing and marketing to empower them with nearby grading and storage facilities which will enhance the value of their products. There are substantial investment prospects totaling $2.36 billion across 31 projects under Common Infrastructure for Industrial Parks which includes facilities such as specialized processing units, effluent treatment plants, testing laboratories, common warehouses, and logistics support. Foreign investment opportunities in India’s food processing sector are also promising due to favourable policies, a vast consumer market, and government initiatives focused on improving the sector’s competitiveness and sustainability.
Pros and strengths
Strong quality control with diverse range of products: The company offers 10+ flavours like chocolate, honey, coconut, cinnamon, pineapple, strawberry and 5+ range includes natural, creamy, crunchy, less fat, whole nut, high protein and no added sugar & salt. It offers peanut butter in various packaging form to cater to diverse customer requirements, ranging from sachets (20 grams to 100 grams), jars (100 grams to 1,000 grams) and bulk packaging (1 kilogram to 250 kilograms). The shelf life of peanut butter ranges 12 to 24 months. The company also offers bulk pack options to its customers. The company is dedicated towards quality of its products, processes and input raw material. The company is accredited with “ISO 22000:2018” - Certification for Food Safety Management System. It adheres to quality standards for the procurement of raw materials which involves sampling check through “Elisa” method to test aflatoxin levels, moisture levels, colour, odour, taste, appearance and nutrients of the raw materials to ensure the standards and specifications as per the customers’ requirements.
Strategically located manufacturing facility: The company’s manufacturing facility is situated in Otha, Mahuva, Bhavnagar, Gujarat, admeasuring 4,047 square meter. Its primary raw material is raw peanut which are procured by it locally i.e. from the state of Gujarat which reduces time, effort and transport cost, thereby giving it a competitive advantage. Its manufacturing facility is equipped with technology abled semi-automated production processes, with specialized custom-made manufacturing equipment obtained from national and international suppliers. Its manufacturing facility is well connected with major roads and ports located at Pipavav and Mundra for shipping its finished products to its international customers, which facilitates easy transportation of raw material and finished goods.
Long standing relationship with customers: The company is a B2B peanut butter manufacturing player having customers who are typically hypermarkets, supermarkets, retail chains, etc based in countries like the United Kingdom, Canada, South Africa, Mauritius, Russia, British Virgin Islands, Spain, United Arab Emirates (UAE), Saudi Arabia, Nepal, Bangladesh, Philippines, Mexico and Portugal. The company has built relationship and has made continuous efforts to ensure customer satisfaction by taking steps for meeting customer specific requirements, timely delivery of orders as well as maintaining consistency in quality which has yielded in maintain long standing relationship along with repeat orders from its customers. In order to improve its product delivery and facilitate repeat business, it constantly seeks their feedback through regular interactions in trade fairs and exhibitions which are important for it to ensure a high level of customer satisfaction.
Risks and concerns
Vulnerability due to supplier concentration and price volatility: The company is dependent on external suppliers for its major raw material, Peanuts. The company has procured 80.75%, 71.88% and 67.49% of its raw material from top 10 suppliers in FY25, FY24 and FY23 respectively. It has not entered into long term supply arrangements for its raw materials. Absence of such long-term contracts exposes it to the price volatility of raw materials. If any of the key suppliers of its raw materials fail for any reason to deliver raw materials in a timely manner or at all, it may affect its ability to manage its inventory levels, manufacture, process, pack and supply its products.
Health awareness and regulatory changes impacting profitability: There is growing concern among consumers, public health professionals and government agencies about the health problems associated with nutritional values of packaged products. Increasing public concern about nutritional value of packaged products and obesity; additional governmental regulations concerning the marketing, labelling, packaging or sale of its products; and negative publicity resulting from actual or threatened legal actions against it or other companies in its industry relating to the marketing, labelling or sale of its products could adversely affect its profitability.
Dependence on key customers without long-term contracts: The company’s business is dependent on its continuing relationships with its customers. The company neither has any long-term contract with any of customers nor has any marketing tie up for its products. Any change in the buying pattern of its customers can adversely affect the business of the company. The loss of or interruption of work by, a significant customer or a number of significant customers or the inability to procure new orders on a regular basis or at all may have an adverse effect on its revenues, cash flows and operations. Its business depends on the continuity of its relationship with its customers. There can be no assurance that it will be successful in maintaining such relationships or increasing the number of such relationships. If it is not able to maintain existing relationships with its current customers or if it is not able to develop new relationships, including if it is not able to provide services on a timely basis or offer services that meet the needs of the customers, the number of customers could decline in the future and as a result, its business, prospects, results of operations and financial condition could be adversely affected in the future.
Outlook
Mother Nutri Foods is a B2B peanut butter manufacturer offering more than 10 flavours and over 5 variants of peanut butter. The company markets its products under the brand “Spread & Eat”, which is sold in international markets such as Libya, Dubai, and more recently in Japan. Alongside its own brand, the company undertakes private labelling for domestic and international clients, supplying hypermarkets, supermarkets, and retail chains. On the concern side, the company is dependent on external suppliers for its major raw material, Peanuts. Any fluctuations in the price of its major raw materials could have an adverse effect on its business, results of operations and financial condition. Moreover, the company generally does business with its customers on purchase order basis and do not enter into long term contracts with most of them. Its inability to maintain relationships with its customers could have an adverse effect on its business, prospects, results of operations and financial condition.
The company is coming out with a maiden IPO of 33,84,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 111-117 per equity share. The aggregate size of the offer is around Rs 37.56 crore to Rs 39.59 crore based on lower and upper price band respectively. On performance front, the company has reported 11.53% rise in revenue from operations to Rs 9,024.31 lakh in FY25 as compared to Rs 8,091.60 lakh in FY24. The company net profit surged 35.43% to Rs 646.42 lakh in FY25 as compared to Rs 477.30 lakh in FY24.
The company’s brand “Spread & Eat” has presence in countries like Libya, Japan and Dubai for its peanut butter products, it intends to leverage its brand and enable its presence in the other countries as well as other regions of India. It intends to expand its product reach geographically by leveraging its already established customer relationships. Over the years, through its consistent focus on maintaining stringent quality standards and expanding its manufacturing capabilities, it seeks to increase its presence in export markets by targeting to serve in developed and emerging countries through reputed retail chains and distributors in order to access a more diversified customer base across geographies. It plans to increase its penetration in select export markets, such as Europe, Canada, Dubai, Saudi Arabia, Kuwait, Nepal and United Kingdom. It also participates in trade fairs globally to enhance its products reach in these export markets extensively to strengthen its presence in these markets. It can expand its product reach by further enhancing its product portfolio in its existing markets and increasing its distribution network in new domestic as well as international markets.
