Riddhi Siddhi Gl - Riddhi Siddhi Gl

📊 BSE: 524480 🏢 Trading & Distributors 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The Riddhi Siddhi Group's overall revenue grew 31% YoY to INR 1,990 Cr in FY25, primarily driven by the starch business expansion. However, RSGBL standalone revenue from operations declined 49.4% to INR 136 Cr from INR 269 Cr in FY24. The wind energy segment (31.65 MW) and packaged water (42.37 lakh cases) remained stable contributors.

Geographic Revenue Split

Domestic sales account for over 80% of total revenue. Exports contributed 18% of total sales in FY24, primarily targeting South-East Asian countries, Africa, UAE, and Mexico. Export margins were pressured by Chinese competition, leading to a focus on domestic markets.

Profitability Margins

Group operating margins moderated by 190 bps to 6.1% in FY25 from 8% in FY24. Standalone operating profit ratio improved to 3.24% from 2.45% due to lower depreciation and operating expenses. Standalone net profit ratio is reported at 103% due to significant other income despite declining operational revenue.

EBITDA Margin

Group EBITDA margin stands at approximately 6.1% for FY25. Core profitability was impacted by a 190 bps decline in operating margins caused by the entry of Chinese players with large capacities, which suppressed export realizations for Indian starch manufacturers.

Capital Expenditure

The group completed significant capex at the Yamunanagar plant, increasing capacity from 1,000 TPD to 1,400 TPD. Ongoing capex in the Telangana plant is expanding capacity from 200 TPD to 350 TPD, including a new 125 TPD rice-based starch facility. No further significant capex is planned for FY26.

Credit Rating & Borrowing

Crisil maintains a 'Stable' outlook. Group interest coverage ratio moderated to 2.38x in FY25 from 3.62x in FY24. The group has access to fund-based limits of INR 409-420 Cr, with RSGBL's specific limit being INR 40 Cr, utilized at 22-77% depending on the period.

⚙️ Operational Drivers

Raw Materials

Maize is the primary raw material for starch production, representing the bulk of input costs. Reserved rice is also used for the new 125 TPD rice-based starch capacity in Telangana.

Import Sources

Maize is sourced domestically as an agricultural product, making the company susceptible to Indian climatic conditions and government agricultural policies.

Key Suppliers

Not specifically disclosed in available documents; however, the company relies on a broad network of maize traders and agricultural suppliers.

Capacity Expansion

Current starch capacity at Yamunanagar is 1,400 TPD (expanded from 1,000 TPD). Telangana capacity is expanding to 350 TPD (from 200 TPD). Wind energy capacity is 31.65 MW (30 MW in Tamil Nadu, 1.65 MW in Gujarat).

Raw Material Costs

Raw material costs are highly volatile; operating margins are expected to decline by 6-7% in certain periods due to unforeseen price increases in reserved rice and maize price susceptibility.

Manufacturing Efficiency

Capacity utilization at the expanded Yamunanagar plant is above 70%. The paper division was shut down in February 2022 as it was deemed unviable, improving overall group resource allocation.

Logistics & Distribution

The company maintains a diversified distribution network where the top five customers account for 32% of total sales, reducing concentration risk in logistics.

📈 Strategic Growth

Expected Growth Rate

31%

Growth Strategy

Growth is targeted through the stabilization of the expanded 1,400 TPD Yamunanagar plant and the 350 TPD Telangana plant. The strategy focuses on domestic market dominance (80% of sales) to counter international pricing pressure and leveraging 20-30 year relationships with key industrial customers.

Products & Services

Starch and starch derivatives, maize products, wind power generation, and packaged drinking water.

Brand Portfolio

Clear (packaged drinking water).

New Products/Services

Rice-based starch (125 TPD capacity) is a new product line expected to contribute to revenue as the Telangana facility stabilizes.

Market Expansion

Expansion is focused on increasing domestic market share in India and maintaining a presence in South-East Asia, Africa, and the UAE.

Strategic Alliances

The group includes Bluecraft Agro Pvt Ltd (BAPL) and Shree Rama Newsprint Ltd (SRNL) as key entities in its consolidated operations.

🌍 External Factors

Industry Trends

The starch industry is seeing a shift toward domestic consumption in India. The paper industry was exited by the group due to unviability, with the SRNL paper facility remaining shut since Feb 2022.

Competitive Landscape

Key competition comes from large-scale Chinese starch producers and other domestic corn wet milling players.

Competitive Moat

The moat consists of 20-30 year relationships with industrial clients and a diversified product mix (starch, energy, water). This is sustainable but vulnerable to raw material price shocks.

Macro Economic Sensitivity

Highly sensitive to agricultural output (Maize/Rice) and government policies regarding crop procurement and pricing.

Consumer Behavior

Increased demand for packaged water (Clear brand) and starch-based derivatives in industrial applications.

Geopolitical Risks

Trade dynamics with China significantly impact the starch business, as Chinese overcapacity leads to dumping in South-East Asian markets where the company exports.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to agricultural procurement norms and environmental standards for chemical/starch processing. The paper division retrenched all workmen in Feb 2022 following regulatory and viability issues.

Environmental Compliance

The company operates 31.65 MW of clean wind energy, supporting ESG goals and reducing carbon footprint.

Taxation Policy Impact

Not specifically disclosed; standard Indian corporate tax rates apply.

Legal Contingencies

The company faces significant financial risk regarding its investment in subsidiary Shree Rama Newsprint Limited (SRNPL), totaling INR 553.45 Cr, which is under impairment assessment due to the subsidiary's poor performance.

⚠️ Risk Analysis

Key Uncertainties

Volatility in maize prices (raw material) and the impact of Chinese starch exports on global pricing are the primary risks, with a potential 5-7% impact on margins.