Srivari Spices follows a business model that involves directly sourcing raw materials from farmers, ensuring the use of natural ingredients in their products. By sourcing directly, the company offers its products at a competitive price range.
The company offers various products, including blended spices and whole wheat flour, available in various varieties.
Strong existing customer relationships enable the company to receive repeat business and maintain long-term partnerships.
To ensure sustainability, Srivari Spices uses locally available, unadulterated raw materials and refrains from adding artificial preservatives or chemicals to its products. This commitment preserves the authentic taste of the spices during the manufacturing process.
The company ensures product sustainability by manufacturing and packaging products in quantities aligned with their shelf life. This practice helps minimise wastage.
Srivari Spices has helped establish a customer base in Telangana and Andhra Pradesh.
The production quantity and cost of Srivari Spices' products depend on their ability to source raw materials and packaging materials at acceptable prices and maintain a stable supply. Discontinuation of supply from certain suppliers or difficulties in sourcing quality raw materials at competitive prices could impact their production and sales targets.
The company does not have formal agreements or arrangements with customers, and its business relies on maintaining strong customer relationships and delivering quality products. Additionally, they have not engaged any exclusive agents, dealers, or distributors.
Any changes in market conditions, trends, customer requirements, or failure to adapt to industry shifts may directly affect their revenue and customer base.
Srivari Spices manufactures products for human consumption, which exposes them to risks like contamination, adulteration, and product tampering during production, transport, or storage.
Proper storage, handling, and transportation at specific temperatures and food safety conditions are crucial. Any lapses or negligence in these processes could damage their products and lead to non-compliance with regulatory standards.
The company's foray into spice manufacturing and trading of whole wheat flour is relatively recent. Due to this limited operating history, evaluating historical performance or predicting prospects may pose challenges for potential investors.
The company has experienced negative cash flow in the past, and this trend may continue. Such negative cash flow could significantly adversely impact the company’s business.
Srivari Spices has availed certain unsecured loans, with an outstanding amount of Rs. 2.85 crores as of March 31, 2023, which may be recalled at any time.