This Food Processing Company Approves Rs 9 Crore Investment in Subsidiary, Plans 28,000 MT Manufacturing Expansion
On YTD basis the stock is down by 21 per cent while in last 12 months it is up by 1.47 per cent.
ADF Foods Limited has announced a strategic investment plan to acquire additional shares in its wholly owned subsidiary, Telluric Foods (India) Limited (TFIL). The company’s Board of Directors has approved an infusion of up to Rs 9 crore in Optionally Convertible Redeemable Preference Shares of TFIL for the financial year 2025-26. This move aims to strengthen brand building initiatives and support the working capital requirements of the step-down subsidiary, Telluric Foods Limited, which operates in the food products segment through e-commerce and other channels.
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Telluric Foods (India) Limited, incorporated in July 2022, focuses on back-end solutions and services related to the food business, while Telluric Foods Limited was incorporated in May 2022 and is engaged in marketing food products. This acquisition is categorised as a related party transaction since the promoter group holds shareholding interests in these entities. However, the transaction is conducted on an arm’s length basis, with cash consideration being the mode of payment, ensuring transparency and fairness.
As of May 14, 2025, ADF Foods Limited’s stock is trading at Rs 234.65, with a 52-week high of Rs 348.05 and a low of Rs 205.40. The company has a market capitalization of Rs 2,578 crore. Over the past year, the stock has seen a slight negative return of -1.1 per cent but has delivered a solid 3-year return of 61.92 per cent, indicating strong long-term growth potential. Its current Price-to-Earnings (PE) ratio stands at 32.73, reflecting investor expectations for future earnings growth.
ADF Foods is a recognized name in the production and export of traditional Indian food products, including pickles, chutneys, pastes, sauces, ready-to-eat meals, and frozen and canned foods. With a diverse portfolio exceeding 400 SKUs under eight brands such as Ashoka, Camel, and Truly Indian, ADF serves markets across Europe, the US, Australia, and the Gulf region. Its subsidiaries, including ADF Foods UK Limited and ADF Holding USA Limited, facilitate FMCG distribution in major overseas markets.
The company’s revenue mix for FY22 highlights that 80 per cent comes from processed and preserved foods, while 20 per cent is derived from agency distribution. ADF operates a manufacturing capacity of around 28,000 metric tonnes annually and plans to expand further with a greenfield manufacturing unit in Surat. The firm also boasts a strong global distribution network with over 180 distributors and two warehouses in the USA.
Among its public shareholders are Infinity Direct Holdings with a 4.55 per cent stake, the Investor Education and Protection Fund Authority with 2.51 per cent, Lashit Sanghvi holding 1.29 per cent, and Ashwin Kedia with 1.14 per cent. This solid shareholding base, along with the company’s steady expansion and investments, positions ADF Foods well for future growth in the Mid-Cap space.
Disclaimer: The article is for informational purposes only and not investment advice.