Quanto Agroworld IPO Review (BSE SME)

Quanto Agroworld Ltd. (QAL) is engaged in the cultivation, processing and supply of Medicinal and Aromatic Plants (“MAPs”) in India, with lemongrass constituting its primary crop and principal commercial focus. Incorporated in 2018, the Company was established with the objective of undertaking organised agricultural and farming activities and has since scaled its operations to serve institutional and business-to-business (“B2B”) customers requiring consistent and specification driven botanical ingredients.

The Company operates as a specialty ingredient manufacturer focused on lemongrass-based botanical formats and essential oils. Its business model is vertically integrated and covers the complete operational cycle from agricultural cultivation to primary processing and bulk supply. Core activities include land preparation, plantation, crop management, harvesting, on-site steam distillation, packaging and dispatch of finished products. This integrated operating structure enables tighter control over production schedules and quality consistency while reducing dependence on third-party aggregators or processors.

Company’s cultivation operations are undertaken through a clearly defined land-access framework comprising government-leased agricultural land and privately leased farmland operated through a subsidiary. As on the date of this Prospectus, the Company has access to agricultural land allotted through Maharashtra State Farming Corporation Limited (“MSFCL”), a Government undertaking. Of this MSFCL land, approximately 424 acres represent developed agricultural land currently under active cultivation, while an additional 312.57 acres of MSFCL land are under development and are proposed to be progressively brought into cultivation, subject to land readiness, irrigation infrastructure and operational planning. These land parcels are located in and around Ravalgaon, Maharashtra, and form its core cultivation base.

In addition to MSFCL land, cultivation is supplemented through privately leased agricultural land aggregated and managed by its subsidiary, Quanto Agritech Private Limited (“QAPL”). QAPL has leased approximately 165.33 acres from marginal and private landholders, including absentee landowners, and undertakes cultivation under structured operational arrangements. This private-leasing framework supports incremental expansion of MAP cultivation in a capital-efficient manner while remaining operationally aligned with its overall crop planning and quality standards.

Manufacturing and processing activities are centralised at the Company’s facility located at Gat No. 82, SN 33/37/73, Block No. 18, Village Ravalgaon, Taluka Malegaon, Nashik – 423 108, Maharashtra, India, spread over approximately 20 gunthas (0.50 acres). The existing Distillation Plant is situated within the land parcel forming part of QAL’s existing arrangement with Maharashtra State Farming Corporation Limited (“MSFCL”), i.e., Block 18 (admeasuring approximately 424.04 acres). Manufacturing and processing activities are centralised at its facility located at Gat No. 82, SN 33/37/73, Block No. 18, Village Ravalgaon, Taluka Malegaon, Nashik – 423 108, Maharashtra, India, spread over approximately 20 gunthas (0.50 acres). The facility houses steam distillation units, utilities, material handling systems and storage infrastructure. Co-location of processing infrastructure with its principal cultivation area enables timely processing of harvested biomass, reduces post-harvest handling and logistics requirements, and supports consistency in essential oil quality. However, its capacity utilization sharply declined to 41.91% for FY26, against 85.96% for FY24, and raise concern. As of the date of the Prospectus, it had 11 permanent employees deployed across various business functions.