M R Maniveni Foods Ltd IPO

M R Maniveni Foods has been engaged in the pulses industry for more than 15 years, with operations focused on the milling, processing, and supply of urad dal and toor dal. Over the years, the company has expanded from manual processing operations to automated and semi-manual milling facilities.

The company claims to have an automated urad dal milling facility and a semi-manual toor dal processing unit. This combination allows it to balance large-scale production efficiency with operational flexibility based on raw material availability and demand conditions.

The company primarily operates on a business-to-business (B2B) model, supplying products to supermarkets, wholesalers, and e-commerce platforms. In FY25, around 58% of its revenue was generated through supermarket sales, indicating established relationships with institutional buyers.

The company claims to source raw materials through a diversified procurement network that includes cooperatives, mandis, licensed traders, commission agents, and authorised importers. This sourcing structure may help reduce dependence on a single procurement channel.

The company is certified for ISO/FSSC 22000 Food Safety Management Systems and has also received ZED Bronze and Silver certifications under the MSME Sustainable (ZED) Certification Scheme. It also holds an FSSAI Central License for its food processing operations.

M R Maniveni Foods has reported consistent growth in revenue from operations and profit after tax (PAT) over the last three financial years. Revenue from operations increased from Rs 119.58 crore in FY23 to Rs 154.99 crore in FY24 and further to Rs 203.48 crore in FY25, while PAT increased from Rs 1.55 crore in FY23 to Rs 2.18 crore in FY24 and Rs 4.13 crore in FY25.

The top 10 customers of the company contributed Rs 153.32 crore (75.34%), Rs 104.88 crore (67.68%), and Rs 71.84 crore (59.91%) to the total revenue in FY25, FY24, and FY23, respectively. Any failure to retain these key customers, reduction in order volumes, delayed payments, or loss of business from these clients can negatively impact the company’s business and financial condition.

The company’s milling operations are entirely concentrated at its Thiruvallur facility in Tamil Nadu, where both its urad dal and toor dal processing units are located. Any adverse operational, environmental, regulatory, political, or social developments in this region could disrupt production, negatively impacting the company’s business and financial performance. The company’s toor dal facility has witnessed fluctuating capacity utilisation levels of 4.51%, 26.77%, 81.75%, and 48.23% in FY23, FY24, FY25, and the period ending December 31, 2025, respectively. Continued under-utilisation of manufacturing capacity may impact operational efficiency and profitability.

The company is significantly dependent on the sale of urad dal and toor dal. Revenue from these two products contributed around 98.88%, 99.91%, 97.41%, and 97.56% of total revenue in the period ended December 31, 2025, FY25, FY24, and FY23, respectively. Any decline in demand for these products, changes in consumer preferences, pricing pressure, or disruptions in the supply chain could hurt the company’s business, profitability, and cash flows.

The company has experienced fluctuating cash flows from operating activities, with cash flow moving from positive Rs 1.71 crore in FY23 to negative Rs 3.17 crore in FY24, before recovering to positive Rs 3.33 crore in FY25. The negative operating cash flow in FY24 was primarily due to higher inventory levels, increased trade receivables, and reduction in trade payables, resulting in greater working capital deployment. The company has also consistently reported negative cash flows from investing activities amounting to Rs 9.51 crore, Rs 0.80 crore, and Rs 0.37 crore in FY25, FY24, and FY23, respectively. These outflows were largely attributable to capital expenditure towards purchase of fixed assets, investments in short-term deposits, and increase in capital work-in-progress. Any continued volatility in operating cash flows, substantial future capital expenditure or continued negative investing cash flows may put pressure on the company’s financial position and cash reserves and could adversely affect the company’s liquidity.

The company, its promoters, directors, KMPs, and SMPs are involved in certain ongoing legal proceedings, including tax and other matters. Any adverse judgment in these matters could adversely affect the company’s business, financial condition, cash flows, and profitability.

The company’s business is working capital intensive as it requires significant funding for raw materials, inventory, work-in-progress, and finished goods. Its working capital requirements increased from Rs 1.11 crore in FY23 to Rs 3.72 crore in FY24, Rs 4.87 crore in FY25, and Rs 7.15 crore in the period ended December 31, 2025. Any inability to arrange adequate working capital financing or an increase in borrowing costs could adversely affect the company’s operations, cash flows, and financial condition.

As of the period ending December 31, 2025, the company had trade receivables amounting to Rs 8.42 crore, compared to Rs 6.44 crore in FY25, Rs 8.14 crore in FY24, and Rs 6.33 crore in FY23. Any delay in the collection of receivables or failure of customers to make payments on time could adversely affect the company’s cash flows and financial condition.

The top 10 suppliers of the company accounted for Rs 84.38 crore (44.55%), Rs 95.54 crore (65.61%), and Rs 49.62 crore (44.85%) of the total purchases during FY25, FY24, and FY23, respectively. Any disruption in relationships with these key suppliers, adverse changes in pricing terms, or delays in the procurement of raw materials could adversely affect the company’s operations, profitability, and ability to fulfil customer orders on time.

The company operates in the highly competitive and fragmented pulses industry, which is commodity-driven in nature. The industry typically operates on thin profit margins and has relatively low entry barriers, allowing new organised and unorganised players to enter the market easily. Any increase in competitive intensity, pricing pressure, or inability to maintain margins may adversely affect the company’s profitability and growth prospects. Investors should note that businesses operating in commodity markets may face limitations in achieving significant margin expansion and returns over the long term.

As of December 31, 2025, the company had total outstanding borrowings of Rs 22.40 crore, all of which were secured loans. Any failure to service or repay these borrowings on time could adversely affect the company’s cash flows, financial condition, and ability to raise additional funding in the future.