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Aditya Sharma    

Mumbai, India

I am a MBA students and simultaneously reading on capital market to get some knowledge on fundamental research where I more focus on business model, opportunity size of the industry and their related parameters who help me out to find out great businesses for the investment. Nevertheless, I always look forward to learn about grow further into the same.

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Contributor since: 2022







Uma Exports Limited

A Business Analysis

About The Company

Incorporated in 1988, Uma Exports Limited markets, trades and distributes agricultural products including rice, wheat, sugar, spices, dry red chillies, coriander, cumin seeds, food grains, pulses, etc. It is a B2B trader that supplies products to manufacturers, exports, etc. The company imports products like lentils, faba beans, black urad dal, and tur dal in India in bulk quantities from Canada, Australia, and Burma.

The company not just supplies agricultural products domestically but also supplies it in the international markets as it has expanded its business in Malaysia, Sri Lanka, and Bangladesh.

Business Overview

Company was initially incorporated as a private limited company under the name and style ‘Uma Exports Private Limited’ under the Companies Act, 1956 vide Certificate of Incorporation dated March 9, 1988 issued by the Registrar of Companies, West Bengal. Company was initially engaged in the business of export of building materials i.e. marble, granite, marble chips and other construction materials to the neighbouring country, Bangladesh. Keeping in view the demand in Bangladesh market their Company diversified from export of building materials to export of agricultural produce and commodities in the year 1997. Since then, Company has been engaged in exporting agricultural produce and commodities including rice, wheat, sugar and spices. The company have explored the business opportunities in Malaysia and Sri Lanka in addition to Bangladesh during these years.

Company is engaged into trading and marketing of agricultural produce and commodities such as sugar, spices like dry red chillies, turmeric, coriander, cumin seeds, food grains like rice, wheat, corn, sorghum and tea, pulses and agricultural feed like soyabean meal and rice bran de-oiled cake. The company import lentils, faba beans, black urad dal and tur dal in India in bulk quantities. Company's major imports are from Canada, Australia and Burma. Company are B2B traders, highly specialized in sugar and Lentils. Company is maintain stocks and distribute them to different institutional parties like manufacturers, exporters, etc. Company is provide them in bulk quantities.   

Company has developed business strategy to switch over exports/imports from one commodity to another with change in demand or inconsistency in pricing for any commodity during any season. This policy adopted by the management ensures that the Company does not pass through a lean period during the year.

With an objective of having overseas presence,  Company acquired 100% shareholding of U.E.L. International FZE, incorporated under the laws of United Arab Emirates and having its registered office at FDRK0757 Compass Building, Al Shohada Road, AL Hamra Industrial Zone-FZ, Ras Al Khaimah, United Arab Emirates. U.E.L. International FZE is engaged in business of trading in sugar, spices & textile. 

Company's Revenue Break-Up




The details of country wise and products wise export and import for the last three fiscals are as under: 




The details of revenue from Export and other than export for September 30, 2021 and for last five years are as under: 

Impact of COVID-19 on our business operations

The current outbreak of COVID-19 pandemic has adversely impacted the global economy. The World Health Organization declared the outbreak of COVID-19 as a public health emergency of international concern on January 30, 2020 and a pandemic on March 11, 2020. The Government of India announced a nation-wide lockdown on March 24, 2020 and imposed several restrictions. Subsequently in view of the second wave of COVID-19, various state governments had imposed a complete lockdown on or about the beginning of May, 2021. However, as their are engaged in import/export and trading of agricultural produce and commodities which are ‘essential goods’, their operations were not shut down during this pandemic. However, due to limited availability of labour, logistics and supply chain constraints, their business was impacted during the initial period of the lockdown. The company continued their operations and business activities after making arrangements to meet the government’s requirements on santization, people movement and social distancing.

Since, the relaxation of the aforementioned restrictions, our procurement, day to day operations and logistics have become more regular. The future impact of COVID-19 or any other severe communicable disease on their business and results of operations depends on several factors including those discussed in “Risk Factors – External Risk Factors No. 7. The company is continuously monitoring the economic conditions and have outlined certain measures to combat the pandemic situation and to minimize the impact on their business.

Competitive Strengths 

Experienced management team with proven project management and implementation skills.

The company have an experienced management team which has positioned their business well for continued growth and development. The company's management team has significant experience in the areas of finance, trading in agricultural commodities, quality control, strategy, material sourcing and business development. The knowledge and experience of their management team provides them with a significant competitive advantage as we seek to grow in their existing markets and enter new segments and geographies. Company's experienced management team has enabled them to improve their financial results over the years and increase portfolio of their products as well as their markets. Company's management team has demonstrated its ability to execute their business plan and has the skills and experience needed to implement their strategic objectives related to their business and expansion in the future. 

Strong presence in agro commodities trading segment 

Company has a strong presence in agro commodities trading segment thereby enabling it to strategize and switch over exports/imports from one commodity to another in accordance with change in demand or inconsistency in pricing for any commodity during any season. Company's senior management team continuously monitors and undertakes deep research of the current trends and demand of agricultural produce and commodities in the market and accordingly it easily switches over to the agricultural produce or commodity in demand. This policy adopted by the management ensures that the Company does not pass through a lean period during the year. 

Track record of growth and profitability 

The company have a track record of revenue delivery and profitability across various markets with healthy cash flows. The following table sets forth our total revenue from operations, EBITDA and restated profit for the year/period, as specified below: 

Long term relationship with clients and repeat business 

Company enjoy a good reputation and despite increase in competition, have received repeat orders from several of their prominent clients. Company's clients are spread across the country and overseas and have been associated with them for a long term period. Company is constantly try to address their clients’ requirements which help them to maintain a long-term working relationship with their clients and improve their retention strategy. The portfolio of their existing clients gives them a competitive advantage in gaining new clients and increasing their business.  

Company's Business Strategy

Backward Integration 

Company's import lentils, faba beans, black urad dal and tur dal majorly from Canada, Australia and Burma. Company is in process of setting up a procurement office in Australia through a wholly owned subsidiary which will allow them to procure the commodities directly in Australia through such Australian office and dispatch the commodities directly to various other global locations. This move will enable them to save costs like freight and import duties and thereby improving the profitability.

Vessel load procurement  

Company's generally procure the commodities in a container or by sharing the vessel load. Procurement of commodities through vessel has larger economies of scale as compared to a container. Company can save on reduced costs such as freight, duties etc. if the commodities are procured through a vessel. This will in turn result in better profitability for their Company. Company is continuously thriving to initiate various steps to reduce the costs attached with procurement of agricultural produce and commodities.

Focusing on increasing the exports  

Company primarily exports sugar to Sri Lanka, UAE & Afghanistan and corn to Bangladesh. In the financial years 2021, 2020 and 2019, exports constituted 9.53%, 5.42% and 37.64% respectively of our total income. With the infusion of additional capital, we shall be in a better position to bid and participate in for bigger tenders and as a result export larger quantities than before. 


Company's Product Portfolio

Procurement Process

Major Customers


Industry Analysis

Indian Agriculture Industry Analysis 

Agriculture is the primary source of livelihood for about 58% of India’s population. Gross Value Added by agriculture, forestry, and fishing was estimated at Rs. 19.48 lakh crore (US$ 276.37 billion) in FY20. Share of agriculture and allied sectors in gross value added (GVA) of India at current prices stood at 17.8 % in FY20. Consumer spending in India will return to growth in 2021 post the pandemic-led contraction, expanding by as much as 6.6%.  The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year due to its immense potential for value addition, particularly within the food processing industry. Indian food and grocery market is the world’s sixth largest, with retail contributing 70% of the sales. The Indian food processing industry accounts for 32% of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth.

Opportunity Size

The Economic Survey of India 2020-21 report stated that in FY20, the total food grain production in the country was recorded at 296.65 million tonnes—up by 11.44 million tonnes compared with 285.21 million tonnes in FY19. The government has set a target to buy 42.74 million tonnes from the central pool in FY21; this is 10% more than the quantity purchased in FY20. For FY22, the government has set a record target for farmers to raise food grain production by 2% with 307.31 million tonnes of food grains. In FY21, production was recorded at 303.34 million tonnes against a target of 301 million tonnes.  

Production of horticulture crops in India was estimated at a record 326.6 million metric tonnes (MMT) in FY20 as per third advance estimates, an increase of 5.81 million metric tonnes over FY20. India has the largest livestock population of around 535.78 million, which translates to around 31% of the world population.

Milk production in the country is expected to increase to 208 MT in FY21 from 198 MT in FY20, registering a growth of 10% y-o-y. Area under horticulture is projected to rise by 2.7% in FY21.  Sugar production in India reached 26.46 MT between October 2019 and May 2020 sugar season according to Indian Sugar Mills Association (ISMA).  India is among the 15 leading exporters of agricultural products in the world. Agricultural export from India reached US$ 38.54 billion in FY19 and US$ 35.09 billion in FY20.  

The organic food segment in India is expected to grow at a CAGR of 10% during 2015-25 and is estimated to reach Rs. 75,000 crore (US$ 10.73 billion) by 2025 from Rs. 2,700 crore (US$ 386.32 million) in 2015.  

The processed food market in India is expected to grow to Rs. 3,451,352.5 crore (US$ 470 billion) by 2025, from Rs. 1,931,288.7 crore (US$ 263 billion) in FY20 on the back of government initiatives such as planned infrastructure worth US$ 1 trillion and Pradhan Mantri Kisan Sampada Yojna. The food processing industry employs about 1.77 million people. The sector allows 100% FDI under the automatic route. 

The growth /(de-growth) in the export/import of major products in which the company deals-in in India for last 5 years are as under:

Financial Performance

Profit And Loss

Balance Sheet

Cash Flow Statement

Management Overview

Madan Mohan Khemuka - Non-Executive; Non-Independent Director 

Rakesh Khemka - Managing Director 

Manmohan Saraf - Executive Director and CFO

Shareholding Pattern



I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure:

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Stocx Research Club). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure:

Source - Company's RHP, Website and Disclaimer - This is not an recommendation.

Disclosure legality:

I am not a SEBI Registered individual/entity and the above research article is only for educational purpose and is never intended as trading/investment advice.


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