Vandan Foods

About the Company

Incorporated in 2015 and converted to a public limited company in 2023, Vandan Foods Limited manufactures castor oil and its derivatives. Based in Gujarat with manufacturing facilities in Dhinoj, Patan, the company specializes in Refined F.S.G. Castor Oil and castor de oil cake through a B2B business model. Originally engaged in catering and agro commodity trading, the company transitioned to castor oil manufacturing in 2024 under new promoter management. Castor oil serves diverse industrial applications, including synthetic resins, plastics, paints, varnishes, cosmetics, lubricants, and textile finishing materials. Due to its renewability and versatility, castor oil is a vital raw material for the chemical industry. With ISO certification, Vandan Foods maintains quality standards through rigorous testing of raw materials and finished products via outsourced laboratories. The company’s distribution network covers multiple Indian states, including Gujarat, Haryana, Andhra Pradesh, Delhi, Bihar, Rajasthan, and Telangana. It focuses on quality products at competitive prices to ensure customer satisfaction and retention.

Strengths

• Experienced promoters and team with strong industry knowledge drive operations and growth.
• ISO-certified quality systems ensure consistent product standards.
• Diversified product range and customer base reduce industry dependence and support steady revenues.
• Scalable, order-driven model with efficient resource use and quality focus.
• Strong customer and supplier ties ensure stable demand and smooth operations.
• Focus on process improvement and modernization enables optimal resource utilization.

Risks

• High revenue dependence on top 10 customers (61.44% as of Aug ’24) poses concentration risk.
• High supplier concentration (64% from top 10) poses supply risk.
• High dependence on Gujarat makes the business vulnerable to regional disruptions.
• Legal cases involving the company and promoters may affect reputation and operations.
• Rented office space – non-renewal or disputes may disrupt business.
• Margins may be impacted by fluctuations in castor seed prices, a key raw material.
• Quality lapses can harm reputation, reduce sales, and pose financial and legal risks.