Pajson Agro India
- Pajson Agro India is coming out with an initial public offering (IPO) of 63,09,600 shares in a price band of Rs 112-118 per equity share.
- The issue will open on December 11, 2025 and will close on December 15, 2025.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 11.20 times of its face value on the lower side and 11.80 times on the higher side.
- Book running lead manager to the issue is Smart Horizon Capital Advisors.
- Compliance Officer for the issue is Roopal Saxena.
Profile of the company
The company is into processing of raw cashew nuts into cashew kernels and supplies to domestic and international markets. The company’s product portfolio primarily comprises various grades of cashew nuts, which are processed and packaged in bulk as well as consumer-oriented retail packs. Additionally, it markets select dry fruits under its white-label brand “Royal Mewa” through a combination of e-commerce platforms and offline distribution channels. In addition, the cashew husk and cashew nut shells which are the by-products after processing of Raw Cashews are also supplied which are utilized in agricultural and industrial applications, hence offering additional value from its processing operations.
It operates through a multi-channel sales and distribution structure comprising four key verticals: Wholesale Mandis, Institutional Sales, Exports, and the B2C brand, Royal Mewa. The wholesale mandi segment contributes significantly to domestic distribution. The company is operational in 18 states and 3 Union Territories. It works with mandi traders who possess established networks and handle both whole and broken cashew grades. It also supplies its products to a range of institutional customers, including entities such as Bikanervala, More Retail, Nutraj, Farmley, Reliance Retail, and Haldiram, among others. It also exported to UAE in FY 2024-2025.
The company has its dedicated packaging unit at first and second floor, part of property bearing no. GI-50, Lawrence Road Industrial Area, Delhi-110035, India for all retail packaging and white labeling activities. The “Royal Mewa” brand is designed to deliver premium-quality dry fruits through customizable white labeling framework. It has entered into leave and license agreements with Sonal Bhutani (Noida) and Singhkheri Hospitality Pvt. Ltd. (Gurugram) for virtual spaces, enabling it to market and sell its brand Royal Mewa across online platforms.
Proceed is being used for:
- Capital expenditure towards establishment of a second cashew processing facility at Vizianagaram, Andhra Pradesh.
- General corporate purposes
Industry Overview
India is among the largest cashew-producing countries in the world. The cashew industry has large economic significance as it employs more than 10 lakh people on farms and factories in rural areas. The cultivation of cashews in India covers a total of 0.7 million hectares of land, and the country produces over 0.8 million tonnes (MT) annually. Between FY20 and FY22, India's cashew nut production grew from 0.70 million tonnes (MT) to 0.77 million tonnes (MT). In India, cashew cultivation is spread along the coastal regions of the peninsula. Cashew is mainly grown in states like Maharashtra, Kerala, Karnataka, Tamil Nadu, Andhra Pradesh, Goa, Orissa, West Bengal, and some parts of the North-Eastern region. According to data published by the National Horticulture Board (NHB), Maharashtra stands first in annual cashew nut production during FY22 at 0.20 million tonnes (MT), growing from 0.19 million tonnes cashew nut produced in FY21.
India is the largest cashew exporter, with more than 15% of the world's export share. India primarily exports Cashew Kernels and very small quantities of Cashewnut shell liquid. In FY24, the cashew exports by value stood at $339.21 million as against US$ 356.32 million in FY23, registering a decline of 4.80%. In terms of volume, India's cashew exports declined from 80,366.25 MT in FY22 to 76,824 MT in FY23 from and increase to 79,030.65 MT in FY24. Importing of raw cashew nuts has played a key role in the growth of the Indian cashew industry, which accounts for almost half of the domestic and export demand for cashew kernels in the country. To address the same, the Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW), under the Mission for Integrated Development of Horticulture (MIDH) and Rashtriya Krishi Vikas Yojana (RKVY), had implemented various initiatives that led to increased domestic production of cashew.
The Government of India and the cashew export promotion council have undertaken several initiatives for the ease of exports and growth of the cashew industry. As non-financial assistance to exporters, many trade delegations, buyer-seller meets, fairs, development workshops, and research and development data are provided. Additionally, in 2018, the Basic Customs Duty on raw cashew nut was reduced to 2.5% from the previous 5%, and the Goods and Services Tax (GST) on the same was reduced to 5% from 12%. As the cashew industry's domestic demand and exports are heavily dependent on imported raw cashew nuts, the Government of India has taken several steps to support efficient sourcing.
Pros and strengths
Strategically located processing facility with modern machineries: The company’s cashew processing plant is located in Visakhapatnam, Andhra Pradesh, one of the major Cashew producing states in India. This proximity to abundant raw cashew nut supplies provides cost-effective sourcing, reduces procurement lead times, and ensures consistent material availability. The plant's proximity to the Port of Visakhapatnam facilitates easy import and export, reducing transportation costs and enabling it to serve both domestic and international markets efficiently. The company’s processing plant is equipped with advanced machinery, including shelling machines, color sorters (1 ton and 2 tonnes capacity), and Borma Units for controlled heating and drying. These technologies ensure that it achieve high precision in processing, resulting in quality cashew kernels that meet international standards. Its processing line features AI-powered sorting technology, which ensures superior quality control by eliminating defective kernels and sorting the nuts according to size and quality. This capability allows it to maintain consistent product quality while minimizing manual intervention.
In-house packaging unit: The company’s in-house packaging unit is located in First and second floor, part of property bearing no. GI-50, Lawrence Road Industrial Area, Delhi, is equipped to efficiently manage post-processing operations catering to the B2C segment under its brand “Royal Mewa”. Having an in-house packaging unit provides it several key benefits, including cost efficiency by eliminating the need for third-party vendors, and ensuring consistent quality control over the packaging process. This setup allows for greater flexibility in adjusting packaging designs and sizes to meet changing market demands or customer preferences. Additionally, it results in faster turnaround times, reducing lead times between processing and delivery. With direct control over packaging, it can maintain brand consistency for 'Royal Mewa', ensuring that all products align with its brand standards.
Efficient procurement and raw material management: The company has developed a strong and efficient procurement strategy for Raw Cashew Nuts (RCN), sourcing from both domestic and international suppliers, with a focus on reliable, high-quality raw materials. It primarily imports RCNs from established suppliers in countries such as Côte d'Ivoire, Benin, Ghana, Togo, Guinea-Bissau, Nigeria, and Tanzania, facilitated by its group company, Pajson Global DMCC, which enables it to leverage a robust supply chain network. This procurement approach ensures consistency in its raw material supply, which is critical for its production processes. Additionally, it maintains two-to-four-months of inventory buffer, allowing it to manage fluctuations in supply and demand with optimal efficiency. Its short-term procurement arrangements, based on production needs, help it to maintain flexibility and respond quickly to market conditions. The company has demonstrated strong operational efficiency, with material cost efficiency improving significantly over the years.
Risks and concerns
Business impact of concentrated and unsecured client relationships: The company has derived a significant portion of its revenue -- i.e., 60.10 %, 59.63%, 62.30%, and 56.94% for the period ended September 2025, for the FY 2025, FY 2024, and FY 2023 respectively -- from its top 10 customers. The loss of any of these customers, a significant reduction in their purchase volumes, or a decision by any of them to pursue backward integration could adversely affect its business, results of operations, and financial condition. Furthermore, it has not entered into any written agreements or contracts with its customers for the sale of its products, which increases its exposure to such risks.
Operational risks from limited geographic diversification: The company has derived its revenue primarily from the domestic market out of which substantial portion of its revenue from its operations in certain geographical regions especially from Delhi, Andhra Pradesh and Rajasthan. The company has garnered 63.15%, 70.18% and 83.45% of its total revenue from Delhi, Andhra Pradesh and Rajasthan in FY25, FY24 and FY23 respectively. Any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.
Dependence on Pajson Group Entities for raw cashew supply: The company is significantly (26.00% for the period ended September 30, 2025 and 96.33% in FY 2025) dependent on Pajson Global DMCC and Pajson International FZCO, Dubai based group companies, for procurement of raw cashew nuts. This high dependence on these suppliers exposes it to supplier concentration risk. Any disruption, delay or discontinuation in the supply of RCNs from Pajson Global DMCC and Pajson International FZCO, due to operational, financial, regulatory or geopolitical factors, may materially affect its production, revenues and profitability.
Outlook
Pajson Agro India processes raw cashew nuts into cashew kernels and supplies them to domestic and international markets. The company sells in bulk and also in retail packs under its white-label brand Royal Mewa (dry fruits segment). Further, it sells by-products (cashew husk and shells) for industrial and agricultural use. The company has efficient procurement and raw material management. It has strong wholesaler network and customer loyalty. On the concern side, the company is significantly dependent on Pajson Global DMCC and Pajson International FZCO, Dubai based group companies, for procurement of raw cashew nuts. Any disruption in this arrangement may adversely affect its business operations, financial condition and results of operations. Moreover, the company’s limited operating history makes evaluating its business and future prospects difficult.
The company is coming out with a maiden IPO of 63,09,600 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 112-118 per equity share. The aggregate size of the offer is around Rs 70.67 crore to Rs 74.45 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations has increased by 95.25% from Rs 9,591.21 lakh in Fiscal 2024 to Rs 18,726.83 lakh in Fiscal 2025. Moreover, in Fiscal 2025, the company reported a net profit of Rs 2041.72 lakh attributable to owners, marking a significant increase from Rs 335.31 lakh in Fiscal 2024.
In a bid to meet the growing demand for cashew kernels, the company plans to establish a new facility for processing raw cashew nuts (RCNs) into cashew kernels. This investment will significantly increase its production capacity, allowing it to better meet market demand. Net Proceeds of the Issue will be utilized for the construction of the new plant and the purchase of necessary machinery. This expansion will support its commitment to providing high-quality products while enhancing its operational capabilities. The company will continue to pursue such opportunities where it will add value to its business, its stakeholders and its customers.
