Freshara Agro Exports

About the Company

Established in 2015, Freshara Agro Exports specializes in the procurement, processing, and export of preserved gherkins, cucumbers, baby corn, jalapenos, and other pickled products from India to various countries around the world. Gherkins, a popular pickled vegetable, are enjoyed globally as a delicacy, particularly in markets such as Europe, the USA, Australia, and Russia, where they are often served alongside other foods. Through its contract farming program, the company has formed strategic partnerships with local farmers in Tamil Nadu, Karnataka, and parts of Andhra Pradesh. Freshara Agro Exports sources raw produce directly from these farmers for export. Approximately 70% of the company’s products are “not ready to eat” and are supplied to factories for further processing into finished goods. The remaining 30% of its products are sold to food brokers and traders in the international market.

Strengths

• The company has been recognized as a 100% export house by the Ministry of Commerce & Industry, Government of India.
• It has good relationships with the contract farmers and other vendors ensuring the availability of raw materials during the off-season period.
• The company has advanced in-house processing facilities with a focus on cost competitiveness.
• One of the key strengths of its product portfolio is its adaptability to local preferences and cultural nuances. Whether it’s adjusting spice levels, incorporating regional ingredients, or adhering to dietary preferences, it ensures that the products resonate with local consumers wherever they may be.

Risks

• The company has derived approximately 85-90% of its revenue from the sale of gherkins over the past three years. Failure to anticipate and adapt to changing consumer preferences, and demand for specific products, or maintain product quality could negatively impact demand for its products and, in turn, the business.
• Improper storage, processing, or handling of gherkins, baby corn, banderillas, chilies, bell peppers, and other products could lead to spoilage and damage, which may adversely affect the business prospects.
• Any real or perceived product contamination could result in reduced sales, potential product liability, harm to the company’s reputation, and even regulatory actions.
• The company also derives a substantial portion of its revenue from international customers, including those in Russia, which is currently involved in a conflict with Ukraine.
• The company’s top ten customers contribute nearly 43.5% of its total revenues. The loss of one or more of these key customers could significantly impact its revenue and profitability.