Shreeji Global FMCG Limited IPO Analysis

From the heart of Gujarat to your kitchen shelf, Shreeji Global FMCG Limited is stirring up the Indian FMCG space. With a strong foothold in spices, grains, and pulses and ambitions to expand into branded packaged goods; the company is now inviting investors through an IPO, worth ₹85 crore. But is this spice-packed story worth the bet?

Let’s break down what this IPO has to offer.

Investors have shown early curiosity about the Shreeji Global FMCG IPO GMP (Grey Market Premium), which indicates the speculative interest in this upcoming IPO. However, investors should weigh fundamentals over GMP trends before making decisions.

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The Indian FMCG sector, currently valued at over ₹6 lakh crore, is projected to grow at an 8–10% CAGR over the next few years, supported by urbanization, rising disposable incomes, and greater penetration of packaged goods into rural markets.

Within this sector, spices and agri-processing stand out as resilient sub-segments. India is not only one of the largest consumers but also the world’s leading exporter of spices. The global shift toward authentic Indian flavors and clean-label ingredients further strengthens export potential.

Company Overview

Incorporated as Shreeji Agri Commodity Private Limited in 2018, the company—now known as Shreeji Global FMCG Limited, operates from Rajkot, Gujarat. The company deals in the manufacturing and processing of ground & whole spices, seeds, grains & pulses, and Atta (Flour) under their brand name “SHETHJI”. 

In parallel with their branded product line, they are also involved in the supply of whole spices and food grains, which are sold under a white label in different sizes and quantities.

Business Model 

A true moat in FMCG lies in brand recall, product differentiation, and scale. Shreeji’s current business remains dependent on whole-seed trading, which is inherently commoditized with low margins and limited pricing power. They are more focused on scale, repeat orders, and distribution reach rather than seasonality. 

The company is following a B2B model with plans to move to B2C with online sales to strengthen its digital presence and tap into the growing demand for agricultural based and related products.

The company’s revenue is driven primarily by:

• Domestic – contributing roughly 90% of total revenue, through distributors, wholesalers, and modern trade channels.

• Exports – contributing around 9% of revenue, to markets such as UAE, Vietnam, Germany, Jordan, and Mauritius.

While domestic volumes remain the backbone, exports are a strategic focus area for margin expansion and brand visibility in the coming years.

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The company’s product mix reflects its dual identity:

It still earns a large portion of its revenue from wholesale trading, but its spices, blended masalas, and dry fruit lines are gradually increasing in share for better margins.

Suppliers and Customers

Shreeji procures its raw materials from domestic APMC traders, commission agents, and local suppliers, ensuring steady supply and quality control.

The RHP notes significant related-party exposure with multiple associate firms in warehousing, logistics, and trading; which may limit governance transparency and independence of decision-making.

The company also imports a limited range of raw materials from countries like UAE, Vietnam, Singapore, and Sri Lanka. Its top 10 suppliers typically contribute around 45–60% of total purchases, though there is no dependency on any single supplier.

The company’s customers include wholesalers, retailers and private-label manufacturers. Although, the company has not yet a big customer base—it is planning to expand the brand “SHETHJI” in the upcoming years.

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The company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects:

• Capital Expenditure for Factory Premises – INR 5.67 crore

• Capital Expenditure for Plant and Machinery & Cold Storage – INR 29.01 crore

• Capital Expenditure for Solar Power for internal consumption – INR 4.25 crore

• Working Capital – INR 33.54 crore

• General corporate purposes

The investment in infrastructure and working capital aligns with the company’s growth ambitions of expanding its product base and increasing production capacity.

Financial Performance

Shreeji Global FMCG has exhibited a steady increase in revenue, with its topline increasing from ₹46.7 crore in FY23 to ₹64.9 crore in FY25, and ₹25 crore in the opening five months of FY26, demonstrating robust business growth. 

Profitability has also seen significant improvement, with EBITDA margin growing from 0.85% in FY23 to 5.51% in FY26 (Aug), which demonstrates improved cost efficiency and higher value-added sales. 

The debt-equity ratio has decreased from 2.13 to 0.76, which shows a change in the management of leverage.

Promoters Shareholding

Before the IPO, almost the entire company, 99.99% of it, was owned by the Promoters and their group.
After the issue, their combined stake will come down to about 70.12%.

Even with this reduction, the Promoters will still hold a majority share, which means they’ll continue to have substantial control and influence over the company’s decisions and direction.

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Strengths:

• The company benefits from its location in the agriculturally rich regions of Gondal and Rajkot, Gujarat, which are major agri-produce hubs in India.

• The company operates under both its proprietary brand “SHETHJI” and through white label arrangements for third-party brands. This dual approach helps diversify revenue and mitigate market risks.

• Management has a defined strategy for expansion, including forward integration by establishing a dedicated manufacturing and cold storage facility, and a focus on expanding its Direct-to-Consumer (D2C) and e-commerce channels.

Risks: 

• Shreeji operates in an intensely competitive, price-sensitive segment dominated by regional leaders and national giants. The RHP warns that new entrants and private labels can easily replicate product offerings, eroding market share.

• The business is largely dependent on the whole seeds segment, which represented roughly 85.54% of total revenue from operations as at August 31, 2025.

• The company relies on several customers, with its 5 largest customers contributing 48.48% of total revenue from operations as at August 31, 2025. Should one or more large customers cease to do business with the company, its revenue would be materially affected.

• The company has reported negative cash flows from operating activities in each of the last financial three years. Continuing to have negative cash flows would impact the company’s ability to fund operations and growth.

• The company has not yet placed committed orders for the ₹ 3264.52 lakhs capex (plant and machinery), and cold storage capacity from the Net Proceeds, some risk of delay and cost overruns in its expansion plans.

Peer Companies Comparison

When compared with listed peers such as Sheetal Universal Ltd and Madhusudan Masala Ltd, Shreeji Global FMCG presents an interesting financial profile. 

With an EPS of ₹21.32, it delivers the highest earnings among the three, indicating stronger profitability and operational efficiency. Its Return on Net Worth (41.11%) further shows this, standing well above Sheetal’s 21.26% and Madhusudan’s 12.83%.

At an indicative P/E of 16.42, Shreeji’s valuation appears aligned with the peer average range of 17x, suggesting a balanced pricing perspective if the IPO falls within that band. 

Final Words

The Shreeji Global FMCG IPO tells a compelling turnaround story, from commodity trading roots to a budding FMCG identity. Its revenue growth, improving margins, and declining leverage are positives that indicate improving financial health.

However, beneath this steady progress, the business remains heavily reliant on trading activities, which offer limited value addition and scalability. The company’s push toward branded and processed products is promising, but still very early; and building consumer trust, marketing channels, and distribution networks in India’s crowded FMCG market takes years.

While short-term listing gains may depend on Shreeji Global FMCG Share Price trends and GMP movement, long-term investors should focus on fundamentals.

To sum up, while operational improvements have been made, Shreeji Global FMCG Limited currently offers limited visibility for growth and there is a high execution risk at this point of time. 

Therefore, we will take a cautious approach and not participate in the Shreeji Global FMCG IPO for now, until the company can demonstrate stronger brand traction and levels of consistent growth in the branded FMCG category.

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