Quanto Agroworld IPO

Quanto Agroworld Limited was originally incorporated as “Quanto Agroworld Private Limited” on March 21, 2018, under the Companies Act, 2013. Subsequently, pursuant to a shareholders’ resolution dated July 31, 2023, the Company was converted into a Public Limited Company and renamed “Quanto Agroworld Limited”, with a fresh Certificate of Incorporation issued on September 7, 2023.

The Company is engaged in the cultivation, processing and supply of Medicinal and Aromatic Plants (MAPs), with lemongrass as its primary crop and commercial focus. It operates as a specialty botanical ingredient manufacturer, producing lemongrass biomass, tea-cut and essential oil. Its essential oil caters to the personal care, home care, fragrance, aromatherapy and pharmaceutical industries, while biomass and tea-cut are supplied to herbal tea manufacturers, nutraceutical companies and functional beverage brands. The Company primarily follows a B2B model, supplying institutional and industrial customers across India.

Quanto Agroworld follows a vertically integrated operating model covering land preparation, plantation, crop management, harvesting, onsite steam distillation, packaging and dispatch. Its cultivation base includes approximately 424 acres of developed agricultural land under MSFCL, with an additional 312.57 acres under development. Through its subsidiary, Quanto Agritech Private Limited, the Company also has access to approximately 165.33 acres of privately leased agricultural land.

The Company’s manufacturing and processing facility is located at Ravalgaon, Nashik, Maharashtra, spread across approximately 20 gunthas (0.50 acres). The facility includes steam distillation units, utilities, material handling systems and storage infrastructure. It currently has a certified installed essential oil processing capacity of approximately 11.25 MT per annum, which is expected to increase to approximately 56.25 MT per annum through restoration of transferred capacity and addition of new distillation units, subject to stabilisation of operations and raw material availability.

The Company is supported by its subsidiaries, with Quanto Agritech Private Limited facilitating access to privately leased agricultural land, while Quanto Kisan Private Limited undertakes limited agricultural trading and retail activities.

Vertically Integrated Operations: Controls key stages from land access, cultivation and harvesting to processing and dispatch, reducing dependence on third parties and improving traceability, quality and production consistency.

Structured Access to Cultivation Land: Leases agricultural land through MSFCL under multi-year tenures and supplements it with private land leases through its subsidiary, providing better visibility for crop planning and expansion.

Cost-Efficient Cultivation & Processing: In-house cultivation and processing, with distillation facilities located close to farms, helps reduce transportation and handling losses and improve processing turnaround. Drip irrigation, borewells, ponds, sprinklers and mulching support yield stability and resource optimisation.

Past Companies Act Non-Compliance: The Company has previously compounded a non-compliance relating to private placements under Section 42, including failure to maintain a separate bank account for application monies. This may have regulatory and reputational implications.

Dependence on Related-Party Purchases: A significant portion of purchases in certain financial years was from Quanto Agritech Private Limited, a subsidiary. Any adverse development affecting the related party or the business relationship may adversely affect operations and financial condition.