Sarveshwar Foods: Acquires Full Ownership Of Himalayan Ancient Foods

Sarveshwar Foods Limited has announced the acquisition of a 100% equity stake in Himalayan Ancient Foods Private Limited, as approved by its board of directors. The acquisition, valued at ₹1.00 lakh, will make Himalayan Ancient Foods a wholly owned subsidiary of the company.

Strategic Purpose of Acquisition

The board approved this acquisition to create a dedicated Special Purpose Vehicle (SPV) for the execution, implementation, and management of the Holistic Agriculture Development Programme (HADP) Project. This strategic move aims to ensure focused operations, efficient governance, ring-fencing of project risks, and regulatory compliance for the agriculture development initiative.

Transaction Details

The acquisition involves purchasing 1,000 shares at a face value of ₹100.00 each, totaling ₹1.00 lakh for 100% of the paid-up equity share capital.

Parameter:	Details
Acquisition Cost:	₹1.00 lakh
Number of Shares:	1,000 shares
Face Value per Share:	₹100.00
Shareholding Acquired:	100% equity stake
Post-Acquisition Status:	Wholly Owned Subsidiary

Target Company Profile

Himalayan Ancient Foods Private Limited was incorporated on February 05, 2015, under the provisions of the Companies Act, 2013. The company has its registered office address near State Bank of India, Bari Brahmana, Jammu, Jammu Kashmir - 181133.

Financial Parameter:	As of March 31, 2025
Paid-up Capital:	₹1.00 lakh
Turnover:	Nil
Country of Presence:	India

Regulatory Compliance

The transaction qualifies as a Related Party Transaction due to common directorship and promoter interest between Sarveshwar Foods Limited and Himalayan Ancient Foods Private Limited. However, the transaction has been conducted at arm's length basis and received approval from both the audit committee meeting and board meeting, ensuring compliance with the provisions of the Companies Act, 2013 and SEBI regulations.

Board Meeting and Documentation

The board meeting approved the execution of Share Transfer Deed in Form SH-4 and authorized Mr. Harbans Lal to execute the share transfer, sign Form SH-4, and complete all necessary formalities for the acquisition. The acquisition is expected to be completed within a mutually agreed timeframe between the parties, subject to completion of customary formalities.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.46%	+1.64%	-8.82%	-35.80%	-53.63%	+933.33%

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.

Financial Metric	Q2 FY2026	Q2 FY2025	YoY Change
Revenue	3,350.00	2,710.00	+23.6%
Net Profit	83.00	81.00	+2.5%
EBITDA	173.70	208.50	-16.7%
EBITDA Margin	5.19%	7.68%	-249 bps

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.