Tanvi Foods - Tanvi Foods

📊 BSE: 540332 🏢 Packaged Foods 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Entire operations relate to a single segment. Operating profit margin improved from 3.29% to 3.60% YoY, while net profit margin slightly declined from 0.47% to 0.43% due to market conditions.

Geographic Revenue Split

Not explicitly disclosed by percentage, but the company operates in India, the USA (via Tanvi Foods USA Inc), and is expanding into the UK with a new 51% subsidiary.

Profitability Margins

Operating Profit Margin is 3.60% (up from 3.29% previous year). Net Profit Margin is 0.43% (down from 0.47% previous year). Return on Net Worth is 0.52% (down from 0.64% previous year).

EBITDA Margin

Operating Profit Margin of 3.60% reflects core profitability, showing a slight improvement of 0.31% YoY despite inflationary pressures on raw materials.

Capital Expenditure

Historical and planned CAPEX values in INR Cr are not disclosed, though the company mentions an upcoming 'state of the art facility' to ramp up processing capabilities.

Credit Rating & Borrowing

Long-term bank facilities of INR 24.20 Cr were downgraded to IVR B/ Negative (ISSUER NOT COOPERATING) from IVR B+/ Negative due to lack of information for review.

⚙️ Operational Drivers

Raw Materials

Agri-foods, specifically corn and other ingredients for frozen snacks. Percentage of total cost is not disclosed, but they are noted as the primary cost driver subject to high inflation.

Import Sources

Sourced primarily from India (Andhra Pradesh) for the Vijayawada manufacturing unit. International sourcing for overseas subsidiaries is not specified.

Capacity Expansion

Current installed capacity is 1,80,00,000 pieces per annum at the Vijayawada unit. Planned expansion includes ramping up processing capabilities for self-branded 'Frozen Kings' products.

Raw Material Costs

Raw material costs are subject to high volatility due to dependence on agri-foods; price fluctuations directly impact margins. Specific YoY cost change % is not disclosed.

Manufacturing Efficiency

Capacity utilization percentage is not disclosed, but the unit is described as manpower-intensive, employing 230 permanent staff.

Logistics & Distribution

Distribution is handled through major retail chains (Lulu, Nesto, Carrefour) and wholesale giants (Walmart, Metro, Reliance) for private labeling.

📈 Strategic Growth

Expected Growth Rate

12-14%

Growth Strategy

Achieving growth through international expansion (incorporation of Tanvi Foods UK Ltd in Jan 2026), leveraging the successful US business model, and increasing sales of self-branded 'Frozen Kings' products. The strategy also includes private labeling for wholesale giants like Walmart and Reliance to capture larger market segments.

Products & Services

Frozen corn, Corn Samosas, Corn Spring Rolls, frozen meal trays, South Indian breakfast items (idlis, vadas), parathas, and ready-to-eat curries.

Brand Portfolio

Frozen Kings, Tanvi Foods.

New Products/Services

New product lines include preservative-free, vegan, and handmade ethnic meals, targeting health-conscious international consumers.

Market Expansion

Expansion into Milton Keynes, United Kingdom (Jan 2026) with a 51% subsidiary to capitalize on the demand for halal-certified Indian food.

Strategic Alliances

Private labeling partnerships with Walmart, Metro, and Reliance; distribution through Lulu, Nesto, and Choithrams.

🌍 External Factors

Industry Trends

The Indian frozen food market is growing at 12-14% CAGR (2025-2030). Global trends show a shift toward e-commerce and D2C channels, with online frozen food sales growing at 15-18% globally.

Competitive Landscape

Competes with wholesale giants (Walmart, Reliance) in private labeling and faces disruption from new entrants in the snack segment.

Competitive Moat

Moat is built on promoter-led R&D and a proactive approach to regional taste-based product development. Sustainability depends on maintaining international certifications (BRC, US FDA, Halal).

Macro Economic Sensitivity

Highly sensitive to food inflation and agri-commodity price cycles, which impact the cost of raw materials for frozen snacks.

Consumer Behavior

Rising preference for convenience, halal-certified ethnic meals, and plant-based/gluten-free frozen products among the global diaspora.

Geopolitical Risks

Not disclosed, though international operations in the UK and USA expose the company to trade and regulatory changes in those regions.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with international certifications including BRC, US FDA, and Halal is required for global market access.

Taxation Policy Impact

Not disclosed; undisputed statutory dues (Income-tax, GST, PF) are generally deposited with appropriate authorities.

Legal Contingencies

The company has disclosed the impact of pending litigation in its standalone financial statements, though the specific INR value is not provided in the snippets.

⚠️ Risk Analysis

Key Uncertainties

Credit risk is high due to 'Issuer Not Cooperating' status. Execution risk exists regarding the timely implementation of growth strategies in new geographies like the UK.