Agribio Spirits - Agribio Spirits

📊 BSE: 539546 🏢 Breweries & Distilleries 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment (Jute); while specific revenue figures are not disclosed, the industry witnessed a 25-30% decline in raw jute production during FY 2024-25 due to crop shifts and adverse weather.

Geographic Revenue Split

Not disclosed in available documents; however, the company is registered in Rajasthan and the industry is concentrated in West Bengal.

Profitability Margins

Return on Capital Employed (ROCE) declined significantly to 1.78% from 4.16% in the previous year, primarily due to lower profitability during the year.

EBITDA Margin

Not disclosed in available documents, though the company reported lower profitability and a decline in ROCE from 4.16% to 1.78%.

⚙️ Operational Drivers

Raw Materials

Raw Jute (agro-product) is the primary raw material, with procurement prices influenced by the Government-set Minimum Support Price (MSP).

Import Sources

India (primarily West Bengal, which contributes the majority of cultivation and manufacturing).

Key Suppliers

Jute Corporation of India (JCI) for procurement at MSP.

Raw Material Costs

The Government of India enhanced the MSP of raw jute to INR 5,335 per quintal for FY 2024-25. Procurement is risky when ruling market prices prevail over MSP due to low production (25-30% decline).

📈 Strategic Growth

Growth Strategy

The company is focusing on product diversification (moving from traditional packaging to eco-friendly products like shopping bags and geo-textiles), modernization, and exploring export opportunities to capitalize on the global preference for biodegradable products.

Products & Services

Hessian, sacking, and diversified jute goods (DJG) including shopping bags, mats, carpets, handicrafts, and geo-textiles.

Brand Portfolio

Agribio Spirits Limited (formerly Beekay Niryat Limited).

New Products/Services

Value-added products such as shopping bags, mats, carpets, handicrafts, and geo-textiles are being introduced to diversify the revenue base.

Market Expansion

Targeting export opportunities for jute products due to rising global demand for sustainable alternatives to plastics.

Market Share & Ranking

India is the world's largest producer of raw jute and jute goods; company-specific market share is not disclosed.

🌍 External Factors

Industry Trends

The industry is shifting from traditional packaging to eco-friendly, value-added products like geo-textiles and shopping bags, supported by a 2024-25 MSP of INR 5,335 per quintal.

Competitive Landscape

Intense competition from synthetic substitutes and market rivals who engage in aggressive cost-cutting.

Competitive Moat

The company benefits from government-mandated compulsory packaging regulations and the Jute Corporation of India's MSP support, which provide a regulatory moat against synthetic substitutes.

Macro Economic Sensitivity

Highly sensitive to agricultural output (25-30% production decline in FY25) and government policy regarding MSP and compulsory packaging norms.

Consumer Behavior

Increasing global preference for sustainable, biodegradable, and eco-friendly products over plastics.

Geopolitical Risks

Global awareness of sustainability and environmental protection creates opportunities for Indian jute exports as a substitute for synthetic materials.

⚖️ Regulatory & Governance

Industry Regulations

Minimum Support Price (MSP) of INR 5,335 per quintal and compulsory packaging regulations mandated by the Government of India.

⚠️ Risk Analysis

Key Uncertainties

Raw material availability due to weather-related crop shifts (25-30% decline) and the risk of procuring raw jute at ruling market prices for commercial operations.