About Company

• Incorporated on February 26, 1982, Sanstar Ltd is one of the manufacturers of plant-based specialty products and ingredients solutions in India for food, animal nutrition and other industrial applications. Promoted by Gautam Choudhary, Sanstar Group (SG) comprises of 2 entities, namely Sanstar Ltd and Sanstar Bio Polymers Ltd (SBPL). The group is engaged in manufacturing of maize based specialty products and ingredients solutions and its co-products such as Gluten, Germ and Bran. Sanstar Ltd and Sanstar Biopolymers Ltd, are merged on November 23, 2023.

• Sanstar manufactures maize starch, dextrin, modified starches, liquid glucose, high maltose maize syrup, maltodextrin, dextrose monohydrate, sorbitol, gluten, germ and steep liquor. The products find application in Textiles, Paper, Pharmaceutical, Food, Adhesives, Animal Nutrition & many other industries. Noval application such as bio polymers, bioethanol, biomaterials, mock meats also boost the demand for starch.

• Company’s manufacturing facilities are in Gujarat and Maharashtra which are the major states producing maize in India. Post the expansion, Sanstar will have aggregate capacity of 2,100 MTD and be 3rd largest player in maize base speciality products and ingredient solutions providers industry.

• Sanstar sources its maize through various channels, including mandi procurement, local stock houses, and direct farmer buying. This multifaceted approach allows Sanstar to ensure a consistent supply of high-quality maize while supporting local farmers and communities.

• Sanstar has a reputed clientele of companies such as AB Mauri, ITC, Capital Foods, Hindustan Unilever, Godrej Agrovet and Zydus wellness in domestic market. Sanstar has a strong presence in states of Maharashtra, Gujarat, and Andhra Pradesh.

• Sanstar is making strides in markets of Telangana, Tamil Nadu, Madhya Pradesh, and Bihar. In exports markets, Sanstar supplies starch and other products to ~49 countries with Malaysia, Kenya and Vietnam being the top importers.

Strengths

Competitive Strength 

• One of the largest manufacturers of maize based speciality products and ingredient solutions in India with diverse product portfolio;

• Speciality products and ingredients solutions player catering to diverse industry segments and poised to benefit from mega industrial trends;

• Strategically located, sustainability driven, state of the art manufacturing facilities

• Global presence in a market with high entry barriers

• Strong financial growth along-uswith robust performance metrics

• Two Generations of Promoters with domain knowledge

• Well positioned to leverage the large opportunities in speciality products and ingredient solutions industry

• Large, diversified customer base with long lasting relationships.

Business Strategies 

• Expand the manufacturing capacities to capture additional market share;

• Leverage the industry-leading capabilities by continuing to diversify the customer base and increase wallet share with existing customers;

• Increase the global footprint and augments growth in current geographies;

• Increase the revenue contribution from derivative products and scale up organic ingredients segment;

• Foray into manufacturing of Ethanol through leveraging the maize sourcing capabilities.

Company Promoters

Company Financials

Sanstar Limited's revenue decreased by -10.58% and profit after tax (PAT) rose by 59.71% between the financial year ending with March 31, 2024 and March 31, 2023.

Objects of the Issue

The Net Proceeds of the Fresh Issue, i.e., Gross Proceeds of the Fresh Issue less the offer expenses apportioned to the Company are proposed to be utilized in the following manner:

1. Funding the capital expenditure requirement for the expansion of the Dhule Facility;
2. Repayment and/or pre-payment, in part or full, of certain borrowings availed by the Company, and;
3. General Corporate Purposes.