India's largest dry corn miller supplying ITC, Prataap Snacks & Balaji Wafers
₹212 Cr revenue, 33% CAGR over 4 years, capacity tripled to 350 TPD — but negative ₹30 Cr operating cash flow and ₹32 Cr in unexplained interest-free loans. Growth story or governance trap?
The business
TBI dry-mills corn into Grits, Bran, Flour, Germ & Flakes for India's snacking industry. Supplies ITC (Outstanding Vendor Award), Prataap Snacks, Balaji Wafers. 3 facilities in Maharashtra, 350 TPD capacity. Entering wet milling via Vedant Starch MoU.
Why this business matters
India's snacking boom — ₹46,571 Cr market growing 8.63% CAGR. Corn grits are the essential raw material. Snacking + Namkeen = 65% of TBI's revenue
Capacity tripled in 18 months — 150→350 TPD across 3 facilities. Volume +43.7% YoY. 70% utilization = significant growth runway
Wet milling entry — asset light — Vedant MoU for 2,000 MT/month starch, gluten processing. ~₹150 Cr over 3 years without capex
The moat
Reality check
₹32 Cr interest-free loans to unnamed parties — CARO flagged as Companies Act violation. Identity undisclosed. Primary driver of negative ₹30 Cr OCF
Negative OCF: -₹30 Cr in FY25 — despite ₹13.63 Cr PAT. Near-zero cash (₹0.25 Cr). Dependent on ₹60 Cr short-term borrowings
Investor presentation overstates PAT by 34.5% — FY25 PAT shown as ₹18.36 Cr vs audited ₹13.63 Cr. Material data integrity issue
Commodity margins, single product — 12-13% EBITDA on corn milling. No pricing power. 100% corn, no contracts. Top 10 = 33-40% revenue
Exit Trigger
Exit if CARO-flagged interest-free loans are not recovered or explained within 2 quarters, or if OCF remains negative for another full year, or if EBITDA margin drops below 10%
The verdict
High-growth corn processor with strong revenue trajectory (+33% CAGR) and expanding margins (2.5%→13.5%) tied to India's snacking boom. ITC vendor award and capacity tripling validate execution. But deeply negative OCF (-₹30 Cr), CARO-flagged ₹32 Cr in unexplained loans, and PAT discrepancy in investor presentation are serious red flags.
Watch For
Recovery/explanation of ₹32 Cr CARO-flagged loans, OCF turning positive, FY26 revenue vs ~₹273 Cr run-rate, EBITDA margin above 12%, Vedant Starch MoU revenue ramp, Malkapur expansion to 120 TPD.
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Read Full Deep Dive33% revenue CAGR supplying ITC & Balaji — but ₹32 Cr in unexplained loans and negative ₹30 Cr cash flow. Growth story or governance trap? Tell us below 👇
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Disclaimer: For educational purposes only. Not SEBI-registered. Author may hold positions in stocks discussed. Not a buy/sell/hold recommendation. Do your own due diligence.
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