Spice maker Shyam Dhani Industries (Shyam Kitchen Masale) has filed its draft papers with the National Stock Exchange (NSE), marking its intent to go public with a fresh issue of 57.84 lakh equity shares. The Jaipur-based company, known for its diverse portfolio of spices and grocery products under the brand “SHYAM”, is set to tap the capital markets to scale operations and reduce its financial liabilities.
Shyam Dhani IPO Details
According to the DRHP, the entire issue will be a fresh issue, offering up to 57,84,000 equity shares. There is no Offer for Sale (OFS) component, indicating that the promoters will not be diluting their stake at this stage. The company is expected to utilize the net proceeds primarily for:
- Purchase of machinery for the existing manufacturing unit (INR 91.25 lakh)
- Installation of a 200 KW solar rooftop system (INR 66 lakh)
- Partial repayment of existing working capital loans (INR 7.00 crore)
- Incremental working capital needs (INR 14.65 crore)
- General corporate purposes
The issue is being managed by Holani Consultants, and Bigshare Services will act as the registrar to the issue.
Shyam Kitchen Masale – Business Overview
Shyam Dhani Industries is a 13-year-old spice manufacturer and grocery products trader headquartered in Jaipur, Rajasthan. The company manufactures 163 varieties of spices across three key categories—Ground Spices, Blend Spices, and Whole Spices—with a presence in both B2B and D2C segments.
In addition to its core spice portfolio, the company trades items such as black salt, poha, kasuri methi, and herb-based seasonings like oregano, peri peri, and tomato powder.
Its operations are vertically integrated, right from the procurement of raw material from mandis to processing, R&D, and packaging, all spread across two facilities:
- Manufacturing Unit: Chomu, Jaipur
- Packaging & R&D Unit: Vishwakarma Industrial Area, Jaipur
Revenue Model
Shyam Dhani operates across multiple sales channels:
- General Trade (distributors/wholesalers) – ~53.4% of revenue (H1 FY25)
- Modern Trade (retail chains like D-Mart, Reliance Retail) – 45.81%
- Quick Commerce (Blinkit, Zepto, Swiggy Instamart) – marginal share
- Private Labelling, HORECA, and Exports account for a small but growing portion
While D2C contributes marginally through its website, B2B remains the dominant force. The company works with 464 distributors and has a dedicated sales force of 104 for modern retail.
Financial Snapshot
Shyam Dhani has delivered strong topline growth over the years:
| FY | Revenue from Operations | Net Profit |
|---|---|---|
| FY22 | 43.31 | 1.00 |
| FY23 | 67.95 | 2.92 |
| FY24 | 107.61 | 6.30 |
| H1 FY25 | 59.52 | 4.19 |
The company has significantly improved its margins while nearly doubling its revenue in two years. A closer look at product-wise contribution shows Ground Spices continue to be the largest revenue driver (47.56% in H1 FY25), followed by Whole Spices (29.79%) and Blend Spices (20.50%).
Promoters and Leadership
The company is promoted by Mr. Ramawtar Agarwal, Mrs. Mamta Devi Agarwal, and Mr. Vithal Agarwal. The promoter family holds significant operational control and is instrumental in product development, R&D, and sales expansion.
Conclusion
With a rising trend in branded spice consumption and the shift from unorganized to organized retail, Shyam Dhani Industries finds itself well-positioned. Its investments in machinery, solar energy, and working capital are aimed at scaling operations, improving sustainability, and reducing debt burden.
The upcoming IPO will be worth watching, especially for investors interested in India’s consumption story and small-cap FMCG plays with the potential for pan-India expansion.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.