About Shri Ahimsa Naturals
Founded in 1990 and based in Jaipur, Rajasthan, Shri Ahimsa Naturals extracts and processes Caffeine Anhydrous Natural and Green Coffee Bean Extracts. It sources crude caffeine from decaffeination plants in Vietnam and Mexico, and uses proprietary processes to turn tea and coffee residues and crude caffeine into finished products. Its products serve food and beverage, nutraceutical, cosmetics and pharmaceutical applications. Existing installed capacity is 270 MTPA for natural caffeine and 200 MTPA for green coffee bean extract.
Investment Rationale
- Capacity expansion: The Sawarda unit is planned to add 700 MTPA of Caffeine Anhydrous Natural, 300 MTPA of Green Coffee Bean Extracts and 63 MTPA of crude caffeine capacity. Commercial production is expected from Apr’26, with utilization planned to increase in phases from FY27.
- Project funding: The project cost is INR 60.7 Cr.; INR 35 Cr. is funded from IPO proceeds and the remaining INR 25.7 Cr. from internal accruals.
- Export-oriented business: Exports made up 91% of FY25 sales, with the US identified as a key market. Management stated that caffeine falls under categories exempt from US tariffs.
- Multiple product applications: FY25 product mix comprised Caffeine Anhydrous Natural at 73%, Green Coffee Bean Extract at 23%, and Herbal Products & Others at 4%. Herbal extracts, currently about 2% of sales and outsourced, are planned to be made in-house using the new capacity.
- Certifications and operating profile: The company holds FSSC 22000 approval and several other certifications listed in the report, supporting sales in 14 countries. FY25 Debt/Equity was 0.00x and CFO/EBITDA was 145.8%.
Products and Markets
Natural caffeine is used in food and beverages, nutraceuticals, cosmetics and pharma. Green Coffee Bean Extract is derived from crude caffeine and unroasted coffee beans and is used in nutraceuticals, supplements and functional beverages. Herbal products include extracts such as Senna Leaf, Ashwagandha, Bacopa Monnieri, Turmeric and Garcinia. In FY25, domestic sales were 9% and exports were 91%; exports were made through direct orders, deemed exports and third-party exports.
Shri Ahimsa Naturals Key Financials
| Particulars | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenues | 58 | 104 | 78 | 96 |
| % Y-o-Y | 79.3% | (24.9%) | 22.9% | |
| Gross Mar % | 59.0% | 68.5% | 60.6% | 51.4% |
| EBITDA % | 29.6% | 48.3% | 34.3% | 31.7% |
| PAT % | 18.7% | 36.0% | 23.8% | 22.4% |
| CFO/EBITDA | 83.8% | 40.2% | 21.3% | 145.8% |
| Debt/Equity | 0.24x | 0.05x | 0.16x | 0.00x |
| NWC (Days) | 50 | 76 | 180 | 199 |
Revenue rose to 96 in FY25 after declining to 78 in FY24. The table also shows higher net working capital, at 199 days in FY25.
Industry Context
The report describes dosage precision and purity as important for caffeine applications in beverages, pharma and dietary supplements. It cites a Caffeine Anhydrous market value of $622 Mn. in 2023 and an expected $ 881.5 Mn. by 2030, with CAGR of 6.88% during 2024-30. It also cites a Green Coffee Bean Extract market value of $281 Mn. in 2023 and an expected $ 417 Mn. by 2033, with CAGR of 4%.
Management
The report states that the promoters have three decades of experience in caffeine processing and established customer and supplier relationships. Founder Nemi Chand Jain is Chairman & Managing Director. Amit Kumar Jain is Promoter, Whole Time Director & CFO, and Dipak Kumar Jain is Whole Time Director; both have been associated with the company since 2004.
Key Risks
- Supplier concentration: The top supplier accounted for 73.2% of purchases in FY24, and the top 5 suppliers accounted for 95.5%. The report notes that supplier risk is likely to remain given the nature of the product segment.
- Customer concentration: The top customer represented 65.9% of FY24 sales and the top 5 customers represented 84.9%. Management has stated that it plans to diversify both customer and supplier bases.
- Raw-material and pricing volatility: The report notes a 48% rise in crude caffeine purchase price and volatility in finished-product realizations.
- Uneven demand and sales: The report attributes lower natural caffeine sales to delays in key raw-material deliveries and lower Green Coffee Bean Extract sales to weaker customer demand.
Peer Comparison
The report states that, as per the RHP, there are no listed companies engaged in a similar business.
Our View
The company note focuses on the proposed Sawarda expansion, export-led sales and low FY25 leverage, while also highlighting concentrated suppliers and customers and volatility in input costs and realizations. It provides no stock recommendation, target price or upside.