Sarveshwar Foods Limited has reported a mixed set of financial results for the second quarter of the fiscal year, alongside announcing a significant agreement to boost the procurement of Kashmir's aromatic Mushkbudji rice.

Financial Performance

The company reported a consolidated net profit of 83 million rupees for the quarter, marking a slight increase from 81 million rupees in the same period last year. Revenue saw a substantial rise, increasing to 3.35 billion rupees from 2.71 billion rupees year-over-year, representing a growth of about 23.6%.

However, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) declined to 173.7 million rupees from 208.5 million rupees in the previous year. Consequently, the EBITDA margin compressed to 5.19% from 7.68% year-over-year.

Strategic Partnership for Mushkbudji Rice

In a significant development, Sarveshwar Foods has entered into a tripartite Memorandum of Understanding (MoU) with Sagam Mushkbudji Farmer Producer Company (FPC) and the Indian Rice Exporters Federation (IREF) for the procurement and distribution of Mushkbudji rice, a locally produced aromatic rice variety from Jammu & Kashmir.

The agreement outlines plans to explore the procurement of approximately 500 Metric Tons (MT) of Mushkbudji rice, valued at around 7.5 crore rupees, for distribution across India. This collaboration aims to promote the unique agricultural produce of Jammu and Kashmir while providing fair value to farmers and enhancing India's portfolio of specialty rice exports.

Rohit Gupta, Chairman of Sarveshwar Foods Limited, commented on the MoU, stating, "Sarveshwar Foods is committed to promoting the unique agricultural wealth of Jammu and Kashmir. This MoU formalizes our intent to expand the reach of this exquisite rice variety to consumers across the country."

The agreement is expected to benefit Mushkbudji rice farmers represented by the Sagam FPC by strengthening the supply chain and establishing a framework for good-faith cooperation regarding the procurement of high-quality Mushkbudji rice.

Company Overview

Sarveshwar Foods Limited is an ISO 22000:2018 and USFDA certified company engaged in the manufacturing, trading, processing, and marketing of branded and unbranded basmati and non-basmati rice in domestic and international markets. The company operates primarily out of the Jammu region in Jammu and Kashmir and the Gandhidham region in Gujarat.

With a legacy spanning over 130 years, Sarveshwar Foods has expanded its product range to include premium FMCG and organic products under the brand name 'NIMBARK'. The company is notable for being the first private sector NSE and BSE listed food company in Jammu & Kashmir.

As Sarveshwar Foods navigates through a challenging quarter with margin pressures, the new partnership for Mushkbudji rice procurement presents an opportunity for diversification and potential growth in the premium rice segment.

Sarveshwar Foods Limited (SFL), a leading food company specializing in quality products from Jammu & Kashmir, has announced a significant move to boost the procurement and distribution of Kashmir's aromatic Mushkbudji rice. The company has entered into a tri-party agreement with a Jammu & Kashmir-based Farmer Producer Organization (FPO) and the Indian Rice Exporters Federation (IREF) to enhance the supply chain of this premium rice variety.

Key Highlights of the Agreement

• Procurement Target: Sarveshwar Foods aims to procure 500 metric tons of Mushkbudji rice.
• Estimated Value: The deal is valued at approximately ₹7.50 crores.
• Distribution Plan: The procured rice is intended for nationwide distribution.

Collaborative Effort

The agreement brings together three key entities:

1. Sagam Mushkbudji Farmer Producer Company (FPC): Representing the growers of Mushkbudji rice in Jammu and Kashmir.
2. Indian Rice Exporters Federation (IREF): The apex body of rice exporters in India.
3. Sarveshwar Foods Ltd: A leading food company specializing in quality products from Jammu and Kashmir.

Objectives of the MoU

The Memorandum of Understanding (MoU) outlines several key objectives:

• Establish a framework for good-faith cooperation in procuring high-quality Mushkbudji rice.
• Define product quality expectations and specifications for future definitive agreements.
• Strengthen the supply chain to directly benefit Mushkbudji rice farmers represented by the Sagam FPC.

Industry Perspectives

Mr. Rohit Gupta, Chairman of Sarveshwar Foods Limited, expressed the company's commitment to promoting Jammu and Kashmir's unique agricultural wealth. He stated, "This MoU formalizes our intent to expand the reach of this exquisite rice variety to consumers across the country."

Dr. Prem Garg, National President of IREF, highlighted the importance of connecting premium, niche agricultural produce like Mushkbudji directly to established markets. This collaboration aims to provide fair value to FPCs and enhance India's portfolio of specialty rice exports.

Mr. Shabir Ahmad Baba, the Authorized Signatory for Sagam Mushkbudji, welcomed the initiative, stating that it opens up significant opportunities for farmers and provides stability and confidence in finding deserving markets for their unique produce.

Company Background

Sarveshwar Foods Limited is an ISO 22000:2018 and USFDA certified company with various other certifications including BRC, Kosher, and NOP-USDA Organic. The company specializes in manufacturing, trading, processing, and marketing branded and unbranded basmati and non-basmati rice in domestic and international markets.

This strategic move by Sarveshwar Foods not only supports local farmers but also aims to bring the exquisite taste of Kashmir's Mushkbudji rice to a wider audience across India. As the company continues to expand its product portfolio and market reach, this agreement marks a significant step in promoting regional specialties and supporting sustainable agricultural practices.