Kathmandu. Samriddhi Foods Products Pvt Ltd’s business size has been shrinking in recent years. According to a press release issued by rating agency ICRA Nepal for the purpose of bank loans, the company’s business is in the current fiscal year 2081. In the first six months of 2018,1982, it was Rs 397 million.
Last fiscal year 2080. It had a total turnover of Rs 978 million in 1981. Even after doubling the transaction points in the first half of the current fiscal year, it is expected to increase the total transaction amount to more than Rs 800 million in this fiscal year.
And 2079. 2080 was the most suitable in terms of business. In that fiscal year, the company sold food grains worth Rs 1.22 billion. In the last fiscal year, its transaction amount had decreased by 20 percent to Rs 978 million compared to the previous fiscal year.
fiscal year 2078. It had a turnover of Rs 1.14 billion in 2017. Prior to that, the company. Rs 970 million in 2078 and 2076. It had a turnover of Rs 950 million.
According to ICRA Nepal, recent instances of India imposing quotas on wheat exports and its domestic appropriation in Nepal remain untenable. For this reason, there is pressure on the availability of raw materials for Samriddhi Foods and its pricing. Any increasingly adverse regulatory changes will further impact its raw material prices. Flour milling industries are vulnerable to agricultural climate risks, which can affect wheat crop and availability and, consequently, affect agricultural commodity prices.
“Prosperity’s ability to transfer increased costs to consumers will be significant amid intense competition and greater reliance on price-sensitive institutional buyers (contributing 50 per cent of its total income in the last fiscal year), ICRA Nepal said.
The company has been processing its wheat and producing food items including flour, flour, semolina and bran. Its products are sold through the Eternal Vogue brand. With intense competition in the wheat-produced food market, it has not been able to capture the retail market, due to which the transaction amount is gradually shrinking.
Samriddhi Foods has a factory in Kapilvastu. Its installed capacity is 140 metric tons per day. The company started commercial production in May 2018. It is producing only about 30 per cent of its installed capacity as it has not been able to generate market demand as per production capacity.
ICRA Nepal has provided LB and AFO ratings for 399 million long-term and 300 million short-term bank loans respectively. On the question of fulfilling the financial liability of such a rated company within the stipulated time
