Pajson Agro India Limited processes raw cashew nuts into cashew kernels for domestic and international markets. The company earns revenue through wholesale mandis, institutional clients, exports, and its B2C dry-fruit brand “Royal Mewa”. It produces multiple grades of cashews, retail packs, and dry fruits. By-products like cashew husk and shells are also sold for agricultural and industrial use, improving overall value recovery.

Key Clients & Manufacturing Facilities
Major institutional clients include Bikanervala, More Retail, Nutraj, Farmley, Reliance Retail, and Haldiram, along with export sales to the UAE. The company’s main processing facility is at Janakiramapuram, Rolugunta, Andhra Pradesh, spread over ~2,95,990 sq. ft., purchased from Olam Agro. Capacity was expanded from 7,000 MT to 18,000 MT through technology upgrades. A dedicated packaging unit operates at Lawrence Road Industrial Area, Delhi.

Product Portfolio & Order Book
The product portfolio includes multiple cashew grades, bulk kernels, retail packs, and dry fruits under “Royal Mewa”. These products lie in the value-added mid-to-premium food category, supporting client product cycles in snacks, confectionery, and retail. Multi-channel demand ensures strong recurring orders across wholesale mandis, institutional buyers, and exports. Execution capacity is supported by a modern facility with shelling, peeling, grading, and sorting systems, enabling efficient order fulfillment.

Mergers, Capex & Expansion
The company acquired the Olam Agro processing plant in 2021 for ₹1,825 lakh, enabling immediate scale. Capacity has been gradually expanded to 18,000 MT as of FY 2025. Future expansion is driven by technology upgrades, efficiency improvements, and scaling white-label retail distribution. The company continues to enhance production capabilities, packaging infrastructure, and operational throughput aligned with rising domestic dry-fruit consumption.

Employees & Bankers
As on July 31, 2025, we employed an aggregate of 465 permanent employees. The Banker to the Company is Kotak Mahindra Bank Limited.

MANAGEMENT & THEIR VISION

The company is led by Managing Director Aayush Jain and Whole-Time Director Anjali Jain, supported by a professional CFO and operational team. Management aims to scale Pajson Agro into a leading integrated cashew and dry-fruit brand with higher capacity, stronger supply chains, and increased retail penetration. Long-term targets include expanding processing volumes, strengthening the “Royal Mewa” brand, and enhancing export markets. Capex is expected to be funded through internal accruals, improved working capital cycles, and IPO proceeds, enabling operational expansion and further modernization.

INDUSTRY OVERVIEW

The Indian cashew processing and dry-fruit industry has a large and growing market driven by rising consumption in snacks, bakery, confectionery, and retail packs. India is among the world’s largest processors and consumers of cashews. Industry growth is supported by higher disposable incomes and healthier snacking trends. Global cashew kernel demand continues to rise with strong consumption in the Middle East, the U.S., and Europe. The Indian cashew industry operates at multi-billion-dollar annual turnover levels with steady mid-single-digit to double-digit growth outlook. (Note: RHP sections provided do not contain specific numerical industry data; this summary is based on typical industry insights.)

KEY RISK FACTORS

1. Dependence on Raw Cashew Supply
   The business requires consistent availability of high-quality raw cashew nuts. Any disruption in procurement, import fluctuations, or price volatility can directly impact margins, capacity utilization, and timely order execution.
2. Customer Concentration in Mandis & Institutions
   A large share of revenue comes from wholesale mandis and selected institutional clients. Loss of major clients, changes in procurement preferences, or pricing pressure may affect year-on-year revenue stability.
3. Operational Risks at a Single Major Facility
   The primary processing unit is concentrated at one manufacturing location in Andhra Pradesh. Operational downtime due to accidents, regulatory actions, or natural calamities may severely affect production continuity.
4. Competition in Cashew & Dry-Fruit Market
   The company operates in a highly competitive market with numerous regional and national processors. Pricing pressure, brand competition, and retail differentiation challenges may affect margins and growth potential.
5. Regulatory & Compliance Risks
   The business requires multiple approvals relating to food safety, pollution control, labor laws, and factory operations. Any lapses, delays in renewals, or non-compliance could result in penalties or operational restrictions.
6. Foreign Exchange Exposure from Exports
   Export revenue exposes the company to exchange rate volatility. Any sharp fluctuation may impact profitability unless hedged effectively.
7. Working Capital Intensive Business
   The business requires significant working capital for raw material purchases, processing, and inventory storage. Constraints in working capital availability may affect the ability to scale operations.

KEY STRENGTHS & OPPORTUNITIES

1. Large and Modern Processing Capacity
   With 18,000 MT capacity and advanced shelling, peeling, grading, and sorting equipment, the company is positioned among sizable processors, enabling quality control, efficiency, and strong order execution capabilities.
2. Diverse Revenue Mix Across Channels
   Balanced sales through wholesale mandis, institutional clients, exports, and retail strengthen revenue stability. Multi-channel distribution reduces dependence on any one segment and enhances market penetration.
3. Strong Institutional Client Base
   Supplying to well-known brands like Reliance Retail, Haldiram, Bikanervala, Nutraj, and others provides stable demand, strengthens credibility, and supports premium pricing in bulk and retail segments.
4. Value Addition Through By-Products
   Cashew husk and shells, typically waste products, are monetized for agricultural and industrial applications. This improves overall profitability and enhances sustainability in operations.
5. Growing Branded Retail Opportunity
   The “Royal Mewa” brand, supported by e-commerce and offline channels, positions the company to capture rising demand for premium packaged dry fruits. White-label opportunities further expand B2C potential.
6. Scalability Through Ongoing Capex & Expansion
   Acquisition of a large facility and ongoing upgrades allow further scaling of capacity, improved efficiencies, and enhanced export readiness, positioning the company well for long-term growth.