Shellz India Limited

Sector: Packaged Confectionery (FMCG)

1. Overview

Shellz India Limited is a Delhi-based confectionery manufacturer, incorporated on May 07, 2012. The company manufactures and markets 300+ SKUs across baked treats, choco delights, jellies, and panned & sugar candies, and also supplies food and bakery ingredients to HoReCa and institutional buyers. It sells under two consumer brands — "Hugs" (mass-market, majority of products priced at ₹10 or below) and "Tosca" (mass-premium, focused on e-commerce and quick commerce) — and also undertakes private-label manufacturing and exports (Middle East, South Asia, Europe).

The company is mass-market and distribution-led. Products reach kirana stores in about 24 states through a network of 300+ super stockists (344 billed in FY26), with no field sales force at retail level. The super stockist channel contributed 95.91% of FY26 revenue. Geographic concentration is high: North India contributed 75.34% of FY26 revenue (79.66% in Jun-26), with Delhi NCR (39.68%) and Haryana (17.88%) the two largest markets.

Manufacturing is currently at Samaipur, Delhi (installed capacity 17,100 MTPA; 66.52% utilised in FY26), with a Sonipat, Haryana facility being built out to take total capacity to about 34,500 MTPA. The company has 258 full-time employees (176 in production) as of August 31, 2026.

2. Business Model and Revenue Streams

Revenue by Brand / Segment (₹ Cr)

Revenue by Sales Channel (₹ Cr)

Revenue by Geography (₹ Cr)

Top states in FY26: Delhi NCR ₹76.44 Cr (39.68%), Haryana ₹34.43 Cr (17.88%), Assam ₹11.26 Cr (5.85%), Uttar Pradesh ₹11.02 Cr (5.72%), West Bengal ₹9.29 Cr (4.82%), Jammu & Kashmir ₹9.09 Cr (4.72%).

Pricing, Distribution and Dependency

Pricing strategy: Mass-market price points — majority of SKUs priced at ₹1 to ₹10 per unit (e.g., Golmaal ₹1, Gold Bon-Bons ₹2, Push Up the Cone ₹5, Relive ₹10); Tosca carries higher ticket sizes (₹100–₹400 packs).

Distribution model: Company → Super Stockists → Distributors → Wholesalers/Intermediaries → Kirana stores. Online sales run through Amazon, Flipkart, Meesho, Kirana Club and Swiggy Instamart; modern trade through cash-and-carry formats (Walmart, Metro, Lots).

Contract model: No long-term agreements with most customers or suppliers; sales run on purchase orders (average delivery schedule 2–4 weeks).

Customer concentration is rising sharply:

Supplier dependency: Raw materials (cocoa, sugar, milk solids, cereal flours, edible fats) are bought from the local market via purchase orders from 249 suppliers in FY26. Cost of materials consumed was ₹128.26 Cr in FY26 (73.76% of total expenses).

Industry-Specific Operating Metrics (Manufacturing)

Capacity utilisation — Delhi facility (installed 17,100 MTPA):

Jun-26 total utilisation was 68.17% (2,914 MT on 4,275 MT installed for 75 working days). The Sonipat facility's proposed installed capacity is 34,500 MT (including 10,950 MT of new equipment across three phases). Certified by Er. Aayushman Chauhan, Chartered Engineer.

Working capital and leverage KPIs:

3. Products and Service Portfolio

Revenue by Product Category

Mix shift: Choco Delights became the largest category in FY26 (48.06% of revenue, up from 31.77% in FY24), while Baked Treats fell from 51.09% to 28.38% over the same period. In absolute terms, Baked Treats revenue dropped from ₹88.04 Cr (FY25) to ₹54.67 Cr (FY26). The RHP does not separately explain this swing in the Our Business section.

Key Product Lines

Portfolio Breadth

Primary revenue drivers: Hugs (89.99% of FY26 revenue) led by Choco Delights and Baked Treats.

Emerging segments: Tosca (₹2.72 Cr in FY26; 1.41% of revenue — still sub-scale), private labelling (₹2.01 Cr in FY26, ₹1.23 Cr in Jun-26 alone), Food & Bakery Ingredients (₹16.56 Cr in FY26, up from ₹7.48 Cr in FY24, 2.2x), and export.

4. Key Business Strengths

• Differentiated formats across price points — in-house food and packaging technologists develop formats such as Dip Sticks and Push Up the Cone, plus premium Tosca Oat Choco.
• Mass-market price positioning — majority of SKUs at ₹10 or below, aligned with the segment where 86% of purchase intent sits (Ken Research).
• Super stockist-led distribution — 300+ super stockists reach kirana stores in about 24 states without a retail field force; 95.91% of FY26 revenue flows through this channel.
• Integrated in-house manufacturing — all consumer products made in-house across fat-based, milk-based, cocoa-based, water-based and sugar-based formats, with machinery from Turkey, China and Indonesia.
• Capacity headroom — Delhi plant at 66.52% utilisation (FY26); Sonipat expansion to take capacity from 17,100 MTPA to about 34,500 MTPA.
• Strong earnings momentum — PAT CAGR of 59.52% and EBITDA margin up from 11.66% (FY24) to 15.65% (FY26); RoE 26.87% in FY26.
• Experienced promoter-led management — Promoter Kapil Garg has over two decades in consumer packaged foods; senior team spans strategy, finance and engineering.

5. Future Growth Strategy

• Expand the product portfolio — move into biscuits, cereal-based snacks and lower-sugar/reduced-fat variants; reduce dependence on volatile cocoa-based inputs.
• Scale manufacturing at Sonipat — consolidate Delhi operations, add automation and semi-automation, and double installed capacity to about 34,500 MTPA.
• Build the "Tosca" brand — push higher-value chocolate, cereal and biscuit formats through modern trade, e-commerce and quick commerce to lift realisations and margins.
• Deepen "Hugs" penetration — onboard more super stockists, enter under-penetrated regions and raise the number of products per retail outlet.
• Grow exports selectively — prioritise markets with higher unit realisations and compliance standards, supported by Sonipat's process controls.
• Deploy IPO proceeds — ₹22.00 Cr towards debt repayment/prepayment, ₹23.00 Cr for incremental working capital, balance for general corporate purposes.