Astron Multigrain

• Astron Multigrain is coming out with an initial public offering (IPO) of 29,20,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 63 per equity share.
• The issue will open on December 01, 2025 and will close on December 03, 2025.
• The shares will be listed on SME Platform of BSE.
• The share is priced at 6.30 times higher to its face value of Rs 10.
• Book running lead manager to the issue is Finaax Capital Advisors.
• Compliance Officer for the issue is Shivani Garg.

Profile of the company

Established in year 2018, Astron Multigrain is into manufacturing of instant noodles. It manufactures noodles on contract manufacturing basis for Gokul Snacks who sells the product manufactured by it under their trade name. It also manufactures noodles for own brand sales which is sold under trade name “Astron’s Swagy Noodles”. Its instant noodles are available in one variant - 1. Mast Masala (Classic flavour). The company is also engaged in manufacturing of noodle bhujiya and papad. Instant Noodles are pre-cooked noodles, sold in dried blocks with flavouring powder and/or seasoning oil. The “instant” aspect comes from the fact that they only require hot water to rehydrate and cook, significantly reducing preparation time compared to traditional noodles. Ready to eat noodles are making a niche for itself based on its popularity for being tasty and quick to make.

The company currently operates through its Registered Office and manufacturing unit set up located in Gondal, Rajkot, Gujarat, with an installed capacity of 5110 MTA, where the production of its products consisting of instant noodles, noodle bhujiya and papad are carried out. Its manufacturing unit is accredited with FSSAI license under Food Safety and Standards Act, 2006. To demonstrate food safety commitment, its organization has received ISO 22000 - 2018, for food safety management. Its in-house manufacturing enables it to minimize production time, bring cost effectiveness, have an effective control over every stage of manufacturing process that allows continuous monitoring of its product’s quality. The company markets and sells its products in B2B segment majorly in the states of Gujarat, Madhya Pradesh, Maharashtra and Bihar. Its products are sold to Super Stockiest who supplies to the wholesalers and further the same is distributed among retailers.

Since its inception, the company is managed by its Promoters cum Directors Jenish Parshottambhai Khunt and Poonam Jenish Khoont, who individually have experience of 7 years and 5 years in the Ready to Eat Food Industry. Their involvement in day to day activities of its business operations including corporate strategy and planning, sales and marketing, production planning has helped the company to set up efficient process thereby streamlining the operations from start. In a short span of time, the company’s Promoters have established themselves as a trusted and reliable source for supply of Instant Noodles to its customers. Its approach of timely supply of materials, quality control, logistics, inventory management, credit and delivery at cost effective prices to the customers has helped the company to build strong relationship with its customers.

Proceed is being used for:

• Funding capital expenditure towards purchase of machinery
• Meeting working capital requirements
• General corporate purposes

Industry Overview

India Ready-To-Eat Food Market was valued at $1,037.15 Million in 2025 and is expected to reach $2,436.79 Million by 2031 with a CAGR of 15.3% during the forecast period. The India Ready-To-Eat (RTE) food market has experienced significant growth in recent years, driven by evolving consumer lifestyles, increasing urbanization, and a burgeoning middle-class population. RTE foods offer convenience and time efficiency, catering to the busy schedules of urban dwellers who seek quick meal solutions without compromising on taste or nutrition. The market is characterized by a diverse range of products including frozen meals, snacks, instant mixes, and ready-to-cook foods. Key players in the RTE food industry in India include both domestic brands and multinational corporations, each vying to capture a larger share of the growing market. Factors contributing to the market's expansion include rising disposable incomes, changing dietary preferences, and the influence of Western eating habits.

The Indian instant noodles market size stands at $1.59 billion in 2025 and is projected to reach $2.98 billion by 2030, reflecting a strong 13.39% CAGR. Rapid urban migration, quick-commerce penetration, and a growing appetite for global flavors are broadening both the buyer base and the usage occasions for the Indian instant noodles market. Urban households now combine traditional masala preferences with adventurous Korean variants, creating parallel value and volume growth streams. Retail digitalization, led by 10-minute delivery apps, is reshaping route-to-market economics, while packaging innovation in cup formats adds premium price ceilings without material demand erosion. Simultaneously, programs focusing on fortification, millet incorporation, and sodium reduction highlight the Indian instant noodles market's blend of nutrition and convenience in its offerings.

Structural changes in Indian household dynamics are driving the demand for convenience, extending beyond urban areas into semi-urban and rural regions. Urban consumers, particularly working professionals and students, often face time constraints, leaving little opportunity for cooking. Instant noodles, which require minimal time and effort to prepare, perfectly address this need for convenience. Busy families, single-person households, hostellers, and young adults increasingly rely on instant noodles as a quick meal or snack option. This widespread adoption reinforces instant noodles' position as a staple convenience food. The growing popularity of multi-serve packs, with a 13.51% CAGR, highlights a shift in perception, as instant noodles are now viewed as complete meal solutions rather than just snacks. This trend is further fueled by the rise of nuclear families, which reduces the transfer of traditional cooking knowledge and increases dependence on packaged solutions.

Pros and strengths

Affordable pricing: One of the most significant competitive moats the company possesses is its ability to offer products at a price point accessible to a vast consumer base, especially middle and lower income groups families and students who seek affordable meals. Its large scale production significantly drives down the per unit cost of manufacturing. By producing more unit of its product, it can negotiate favorable terms with raw material suppliers, optimize production line for maximum output and spread fixed costs over a large volume. Automation in mixing, sheeting, steaming, frying/drying, and packaging not only reduces labour costs but also enhances consistency and minimizes waste, further contributing to a lower cost of goods sold.

Well established trade name: The company operates in a brand sensitive market and consumers prefer reliable and affordable products for self-consumption. The reputation and the quality of its products have enabled it to establish brand equity of the products marketed under its trade name “Astron Swagy” thereby fostering consumer loyalty. Consumers expect a familiar and reliable product every time they open a package. This consistency builds trust and reinforces brand loyalty. Maintaining a consistent and satisfying taste profile and selling quality products at affordable prices and innovative packaging has assisted the company in building strong brand name. The company’s commitment to quality and purity has enabled it to position itself as a trusted brand in the market in which it operates.

Widespread sales and distribution network: Currently, majority of the company’s sales is derived from the states of Gujarat, Madhya Pradesh, Maharashtra and Bihar. The company sells its products through super stockiest. It has a well-established relationship with its super stockiest. Instant noodles being an FMCG item have demand from many small retailers (kiranas, small shops), and super-stockists help in ensuring availability across the network. Through super stockiest the company is able to cover large territories, including remote, semi-urban or rural areas. For a product that thrives on mass consumption, penetrating rural markets is vital for growth. A super stockist model is well-suited for these scattered population pockets, as it makes it economically feasible to distribute products to areas that would be challenging for the company to service directly.

Risks and concerns

Reliance on top clients for majority of revenues: The company is dependent on certain customers who have contributed a substantial portion of its total revenues. The company has garnered 48.86%, 61.42% and 67.55% of its total revenue from top 10 customers in FY25, FY24 and FY23 respectively. Till date the company has good relation with its customers. It cannot guarantee that it will continue to generate the same volume of business, or any business, from them, and the loss of one or more key customers could adversely affect its revenue and operational results.

Dependence on limited suppliers for product procurement: The company relies on a limited number of suppliers for product procurement. The company has procured 49.12%, 67.55% and 83.21% of its product from top 10 suppliers in FY25, FY24 and FY23 respectively. Till date the company has good relation with its Suppliers. It cannot guarantee that it will continue to receive the same volume and quality of supplies, or any supplies at all, from these suppliers. The loss of one or more key suppliers could adversely impact its stock procurement, revenue, and operational results. However, the composition and volume of purchases from these suppliers may change as it actively seeks new suppliers to improve quality and pricing in the normal course of business. While it is confident in its ability to maintain strong relationships with existing suppliers and identify new ones, it cannot assure that these relationships will endure long-term or that new suppliers will be secured in a timely manner.

Concentration of operations in Gujarat poses business risk: The company is dependent on state of Gujarat for a significant portion of its revenue from operations. The company has garnered 91.41%, 74.46% and 66.31% of its total revenue from state of Gujarat in FY25, FY24 and FY23 respectively. The loss of any of its major customer in this state due to any adverse development or significant reduction in business from its major customer may adversely affect its business, financial condition, results of operations and future prospects.

Outlook

Astron Multigrain manufactures instant noodles. It produces noodles on a contract basis for Gokul Snacks Pvt. Ltd., who sells them under their own brand. The company also sell under own brand “Astron’s Swagy Noodles”, currently available in Mast Masala (Classic Flavour). The company is well-established trade name with widespread sales and distribution network. On the concern side, the company relies on a limited number of customers for its sales, and the loss of any major customer could adversely impact its revenue and profitability. Moreover, the company relies on a limited number of suppliers for product procurement, and the loss of any key supplier could impact its business operations.

The company is coming out with an IPO of 29,20,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 63 per equity share to mobilize Rs 18.40 crore. On performance front, the company has reported 30.93% rise in revenue from operations to Rs 3,390.58 lakh in FY25 as compared to Rs 2,589.53 lakh in FY24. The company’s net profit surged 16.30% to Rs 230.71 lakh in FY25 from Rs 198.38 lakh in FY24.

The company currently sells instant noodles in only one flavour i.e. Classic Flavor. It intends to offer multiple flavors like Manchurian and Peri Peri to cater to varied consumer tastes. While its core product has established a strong market presence, the Indian consumer's palate is diverse, adventurous, and constantly evolving. This strategy outlines a flavor-centric approach to growth, moving beyond a ‘one-size-fits-all’ masala offering. Instead of significant capital investment in new product formats, it will leverage its existing manufacturing infrastructure to rapidly innovate on flavor, the primary driver of choice in this category. The company’s strategy is to systematically expand its instant noodle portfolio by developing a diverse and exciting range of flavors, thereby capturing a larger market share, increasing household penetration, and solidifying its brand as the innovative flavor player in instant noodle market.