Ganesh Consumer IPO

Ganesh Consumer Products claims to be one of the largest brands of packaged wheat- and gram-based flour products in East India. In FY25, the company’s market share by value for products such as sooji and dalia was 31.2 percent and for maida, 16.4 percent, while it was among the top two players for sattu and besan with shares of approximately 43.4 percent and 4.9 percent, respectively. The company claims that its extensive distribution network and focused marketing initiatives have contributed to its widespread market presence and brand recognition across urban and rural areas.

Ganesh Consumer claims to have a diversified and continuously expanding product portfolio. As of FY25, the company offered 42 products with 232 stock-keeping units (SKUs) across categories, such as whole wheat flour, wheat- and gram-based value-added flours, packaged instant mixes, spices, ethnic snacks, and speciality flours. The company claims to cater to a wide range of consumer needs through varied SKU sizes, premium and economical offerings, and health-focused products, enabling it to address different market segments and consumer preferences across East India.

Ganesh Consumer claims to have a well-established and widespread multichannel distribution network across East India. As of FY25, the company serviced over 972 distributors, 28 carrying & forwarding (C&F) agents, and 9 super stockists, reaching more than 70,000 retail outlets in states including West Bengal, Jharkhand, Bihar, Odisha, and Assam. The company also claims to have a presence in modern trade through over 204 retail stores and a growing e-commerce channel, supported by digital tools such as Botree distributor management system (DMS) & sales force automation (SFA) applications, SAP S/4 HANA, and chatbots for distributors, retailers, and customers to enhance supply chain management, sales efficiency, and customer reach.

Ganesh Consumer Products claims to operate seven strategically located manufacturing facilities in Kolkata (West Bengal), Varanasi and Agra (Uttar Pradesh), and Hyderabad (Telangana). The company claims that these facilities are designed to optimise raw material sourcing and logistics, with advanced machinery capable of scanning and rejecting substandard grains before processing. Each facility is said to have a quality laboratory and a dedicated quality assurance team, with several units holding certifications such as Food Safety System Certification (FSSC) 22000, ISO 14001:2015 for environmental management systems, and ISO 45001:2018 for occupational health and safety. The company also claims to use software applications to automate, monitor, and control production processes, enhancing efficiency and enabling higher yields in products like semolina (sooji), while supporting large-scale operations and economies of scale.

The company has witnessed a consistent increase in revenue from operations. It increased from Rs 610.75 crore in FY23 to Rs 759.07 crore in FY24 and Rs 850.46 crore in FY25.

The cost of materials consumed accounted for Rs 661.40 crore (77.77 percent) of the company’s revenue in FY25, Rs 596.81 crore (78.62 percent) in FY24, and Rs 471.39 crore (77.18 percent) in FY23. Any sudden increase in the cost of, or a shortfall in the availability of, raw materials could have an adverse effect on the company’s business and results of operations.

The top three suppliers accounted for Rs 125.48 crore (18.40 percent) of the company’s cost of materials consumed in FY25, Rs 96.41 crore (17.19 percent) in FY24, and Rs 87.86 crore (16.65 percent) in FY23. Any disruption in supply from one or more of these suppliers could negatively impact the company’s operations and financial performance. In addition, the lack of long-term agreements with these suppliers increases the company’s exposure to pricing volatility.

The company derives a substantial portion of its business-to-consumer (B2C) revenue from wheat- and gram-based value-added flour products. They accounted for Rs 394.11 crore (60.20 percent) of the company’s revenue attributable to its B2C operations in FY25, Rs 335.22 crore (59.83 percent) in FY24, and Rs 299.21 crore (61.98 percent) in FY23. Any reduction in demand for, or production of, these key products could negatively impact the company’s business, results of operations, and financial condition.

Ganesh Consumer Products derives a significant portion of its B2C revenue from its top three SKUs within whole wheat flour (atta) and wheat and gram-based value-added flour products. They accounted for Rs 246.83 crore (37.70 percent) of the company’s revenue from its B2C operations in FY25, Rs 141.10 crore (25.18 percent) in FY24, and Rs 193.93 crore (40.17 percent) in FY23. Any decline in demand for these SKUs, or disruptions in their supply chain—such as delivery delays or quality concerns—could negatively affect the company’s operating results, financial condition, and cash flows.

West Bengal accounted for Rs 606.65 crore (71.33 percent) of the company’s B2C revenue in FY25, Rs 513.32 crore (67.63 percent) in FY24, and Rs 434.59 crore (71.16 percent) in FY23. Any disruption in this region could hurt the company’s business and financial condition.

Ganesh Consumer Products may face potential conflicts of interest arising from common business objectives with members of its promoter group. Mimani Agro Products Private Limited, the company’s largest supplier of gram, roasted gram flour, and gram flour, and Ganpati Tasty Foods Private Limited, which manufactures ethnic snacks and papad purchased by the company, operate in businesses similar to Ganesh Consumer Products. Any conflicts or competition from these promoter group members could adversely affect the company’s business, results of operations, and financial condition.

As of FY25, the company had contingent liabilities amounting to Rs 14.02 crore. If any of these contingent liabilities materialise, it could adversely affect the company’s financial condition.

The company has reported negative cash flow from operating activities amounting to Rs 13.11 crore in FY23. This was primarily on account of increased inventory levels resulting from participation in the Food Corporation of India’s Open Market Sale Scheme (domestic) (OMSS(D)), where the company procured wheat directly and through traders. Negative cash flows from operating activities in the future could materially impact the company’s financial performance and liquidity.

Ganesh Consumer is exposed to delays or defaults in payments from its business-to-business (B2B) customers, modern trade channels, and e-commerce platforms, which could negatively impact its profits. As of FY25, it had trade receivables of Rs 9.10 crore, an increase from Rs 6.80 crore in FY24. Any delay or default in payments, or an increase in outstanding receivables relative to total revenue, could adversely affect the company’s financial position and results of operations.

The company’s PAT margin declined from 4.44 percent in FY23 to 3.56 percent in FY24 due to higher cost of materials consumed, increased finance costs, higher depreciation and amortisation expenses, and changes in inventory of finished goods, work-in-progress, and stock-in-trade. Any failure to effectively manage expenses could prevent the company from maintaining or improving PAT margins, even with continued revenue growth.

The company, its directors, key managerial personnel, and promoters are involved in certain ongoing legal proceedings, including criminal and tax-related cases. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.

As of July 31, 2025, the company had financial indebtedness of Rs 204.95 crore. Any failure to service or repay these loans can hurt the company’s operations and financial position.