Shyam Dhani Industries
- Shyam Dhani Industries is coming out with an initial public offering (IPO) of 54,98,000 shares in a price band of Rs 65-70 per equity share.
- The issue will open on December 22, 2025 and will close on December 24, 2025.
- The shares will be listed on SME Platform of NSE.
- The face value of the share is Rs 10 and is priced 6.50 of its face value on the lower side and 7.00 times on the higher side.
- Book running lead manager to the issue is Holani Consultants.
- Compliance Officer for the issue is Ambika Sharma.
Profile of the company
Shyam Dhani Industries is engaged in the manufacturing and processing of 164 type/varieties of spices such as Ground Spices, Blend Spices and Whole Spices under the brand name “SHYAM”. In addition to its spices offerings, the company is also engaged in trading and distribution of Grocery Products such as Black Salt, Rock Salt, Rice, Poha, Kasuri Methi (Dried Fenugreek) etc. and a diverse range of Herbs and seasonings which includes Organo, Peri Peri, Chilli Flakes, Mixed Herbs, Onion Flakes, Tomato Powder etc.
The company sources the raw material of spices directly from mandis and suppliers situated across India and process and manufacture them at its manufacturing facility situated at Khasra No. 06/1067 Manpura Road, Jatawali, near Delhi bypass, Tehsil -- Chomu, Jaipur, Rajasthan. The company’s manufacturing facility is equipped with plant and machinery to facilitate efficient production process of cleaning, drying, grading, grinding and packaging.
The company operates across multiple sales channels, catering to both Business to Business (B2B) and Direct to Consumer (D2C) markets. In the B2B space, it serves customers through General Trade (wholesalers and distributors across India), Modern Trade (supermarkets and big retail chains), and Quick Commerce Platforms (through quick commerce apps), ensuring its products are easily accessible to consumers. The company is also involved in Private Labelling, HoReCa (Hotel, Restaurant, and Catering) sales, and Export Sales. By using its products these businesses can create custom spice blends for their own branded lines, allowing them to provide good quality ingredients and tailored solutions to meet the unique needs of professional kitchens.
Proceed is being used for:
- Funding the incremental working capital requirements of the company
- Repayment/Pre-Payment, in full or in part, of certain outstanding borrowings availed by the company
- Brand creation and marketing expenses
- Capital expenditure towards the purchase of new additional machineries to be installed at the existing manufacturing unit
- Purchase and installation of Solar Rooftop Plant at the existing manufacturing unit
- General corporate purposes
Industry Overview
India is the world’s largest spice producer. It is also the largest consumer and exporter of spices. The production of different spices has been growing rapidly over the last few years. Production in 2022-23 stood at 11.14 million tonnes compared to 11.12 million tonnes in 2021-22. During 2022-23, the export of spices from India stood at US$ 3.73 billion from $3.46 billion in 2021-22. During 2021-22, the single largest spice exported from India was chilli followed by spice oils and oleoresins, mint products, cumin, and turmeric. India produces about 75 of the 109 varieties which are listed by the International Organization for Standardization (ISO). The most produced and exported spices are pepper, cardamom, chilli, ginger, turmeric, coriander, cumin, celery, fennel, fenugreek, garlic, nutmeg & mace, curry powder, spice oils and oleoresins. Out of these spices, chilli, cumin, turmeric, ginger and coriander makeup about 76% of the total production.
India is the largest exporter of spice and spice items. During 2023-24 (until February 2024), the country exported spices worth $3.67 billion. For FY23, the country exported spices worth $3.73 billion. In July 2023, the exports of spices from India increased to $298.77 million from $293.84 million in June 2023. From 2016-17 to 2022-23, the total exported quantity from India grew at a CAGR of 5.85%. For FY23, total volumes of chilli, cumin, turmeric, and ginger exports were 0.51, 0.18, 0.17 and 0.05 million tonnes. During 2022-23, the export of turmeric, coriander, garlic, curry powder, other spices such as asafoetida, tamarind, etc., expanded both in value and volume as compared to 2021-22.
The Spices Board of India is set up for the development and global promotion of Indian spices. It acts as a link between Indian exporters and importers abroad. The main activities of the board involve promotion, maintenance and monitoring of quality, development of better production methods, guidance, financial and material support to growers, infrastructure facilitation and research. This board has been spearheading activities for the excellence of Indian spices, involving every segment of the industry. Further, Spices Board has launched eight crop-specific Spices Parks in key production/market centres intending to facilitate the farmers to get an improved price realization and wider reach for their produce. The purpose of the park is to have an integrated operation for cultivation, post-harvesting, processing, value-addition, packaging and storage of spices and spice products. The common processing facilities for cleaning, grading, packing, and steam sterilization will help the farmers to enhance the quality of the produce, resulting in better price realization.
Pros and strengths
Integrated pest management: The company is dedicated to providing good quality natural spices while supporting sustainable and ethical practices in the sourcing and production of its products. One of the major challenges to achieving these quality standards is the widespread overuse of chemical pesticides by farmers, due to lack of awareness and knowledge. While pesticides are intended to boost crop production, their excessive use can result in harmful residues in food, soil degradation, and adverse effects on human health, wildlife, and the broader environment.
Established manufacturing facility and integrated production with cost efficiencies: The company has Manufacturing Unit located at Khasra No. 06/1067 Manpura Road, Jatawali, near Delhi bypass, Tehsil - Chomu, Jaipur, Rajasthan. Its manufacturing unit is equipped and capable of carrying out end-to-end manufacturing and processing activities. It has full-service capabilities across the product cycle including product development, raw material sourcing, mixing of ingredients according to different recipes, testing and measurement infrastructure, all under one roof to meet the requirement of its global customers. The entire process is carried out under one roof. Its dynamic setup not only gives it better control over quality but also benefits it with cost advantages compared to its competitors who resort to job work for various activities in the complete manufacturing process.
Diversified product portfolio: The company’s understanding of the consumer’s culinary taste complements its product development capabilities, which has allowed it to develop a comprehensive portfolio of a variety of spices and other products. Its product portfolio comprises various types products which includes Ground Spices like Chilli Powder, Turmeric Powder, and Coriander Powder, as well as Blended Spices such as Sambar Masala, Garam Masala, Pav Bhaji Masala, and Chole Masala. It also offers Whole Spices including Cumin Seeds, Cloves, and Black Pepper etc. and the grocery products such as Black Salt, Rock Salt, Rice Poha, Kasuri Methi (Dry fenugreek), Sabudana Soyavadi Moong Mangodi and Mishri Dana.
Risks and concerns
Significant revenue dependence on key customers: The company is dependent on and derive its 57.86 %, 56.39%, 57.92% and 45.05% of revenue from top 10 key customers for the period ended on September 30, 2025 and during the fiscal year ended on March 31, 2025, 2024 and 2023. Decreasing the revenues, it derives from them, could materially and adversely affect its business, results of operations, cash flow and financial condition.
Reliance on limited suppliers without long-term contracts: The company is dependent upon a limited number of suppliers 42.11%, 40.86%, 58.66% and 68.70% of its Total Purchases are derived from its top 10 suppliers for the period ended on September 30, 2025 and for the Fiscal Years ended on March 31, 2025, 2024 and 2023. Further its 5.96%, 13.20%, 27.88% and 22.28% of its total purchases for the period ended on September 30, 2025 and for the Fiscal Years ended on March 31, 2025, 2024 and 2023 are procured from its group company and members of its Promoter Group. The company does not have long-term contracts with any of its suppliers. Any disruption in the supply of raw materials or any failure of its suppliers to deliver these products in the necessary quantities or to adhere to delivery schedules, credit terms or specified quality standards and technical specifications may adversely affect its business and its ability to deliver orders on time at the desired level of quality.
Susceptibility to climatic and monsoon variability: The company’s business is heavily reliant on raw materials sourced from the agricultural industry, which is subject to various external factors, particularly weather and monsoon conditions. The geographical diversity within its country results in differing weather patterns across regions, with some areas experiencing heavy rainfall while others may suffer from drought or inadequate rainfall. Such fluctuations in weather, including abnormal monsoons or extreme weather events, can negatively affect crop yields, damage crops, and lead to an increase in raw material prices. In these circumstances, it may be forced to purchase lower-quality raw materials to meet production needs, potentially increasing production costs as it sources from alternative suppliers or regions where prices are higher. These disruptions could materially affect its results of operations, financial condition, and cash flows.
Outlook
Shyam Dhani Industries is an ISO-certified company and manufacturer, exporter, wholesaler, and supplier of Premium Spices, Spices Powder, Whole Spices, etc. The company is offering high-quality natural spices while promoting sustainable, ethical sourcing and production. It established a manufacturing facility and integrated production with cost efficiencies. On the concern side, the company’s products are semi-perishable in nature and the shelf life of its products ranges from 4-18 months. Inaccurate demand forecasting for its semi-perishable product can result in excess inventory and waste which, in turn, could have an adverse effect on its business, financial condition, results of operations and cash flows. Moreover, the company may face shortage of Raw Materials because of the seasonal nature of its purchase.
The company is coming out with a maiden IPO of 54,98,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 65-70 per equity share. The aggregate size of the offer is around Rs 35.74 crore to Rs 38.49 crore based on lower and upper price band respectively. On performance front, the company’s total revenue has increased by 15.90% to Rs 12,475.41 lakh for fiscal 2025 from Rs 10,763.63 lakh for fiscal 2024. Moreover, profit after tax has increased by 27.59% in the FY25 to Rs 804.16 lakh from Rs 630.29 lakh in the FY24.
The company will continue to focus on expanding its reach within the modern trade sector. It is working towards broadening its presence across key modern trade players, including DMart, Reliance Retail, Dealshare, and Metro Cash and Carry, with plans for a Pan-India reach. This move is aimed at further increasing its market footprint and driving revenue growth. Additionally, it has made strategic efforts to strengthen its presence on quick commerce platforms, with partnerships established with leading players such as Swiggy Instamart, Zepto, Flipkart Minutes, and BlinkIT. This will help it to increase its market presence and tap into the growing quick commerce industry in India. In line with its expansion across these segments, the company is also increasing its production capacity to meet the growing demand in the private labelling segment. This capacity enhancement will enable it to better serve its clients and ensure a steady supply of products as demand continues to rise.
