Pasta Manufacturing Company for Sale in Sambalpur, India

Key products:
- The company specializes in "short cut" dry pasta, which is the highest-selling category in India.
Product formats and target use:
- Penne rigate (100g/400g/500g/1kg): Top seller for restaurants and urban households.
- Fusilli (spirals) (100g/400g/500g/1kg): Popular for pasta salads and masala stir-fries.
- Elbow macaroni (100g/500g/Bulk): Widely used in school tiffins and quick snacks.
- Vermicelli (roasted & standard): Targets the traditional Indian market for dishes like Upma and Kheer.

1. Top-selling shortcut production in our factory:
The focus is on shapes that can hold thick, spiced gravies or be eaten easily with a spoon.
- Penne rigate: The absolute bestseller. The ridges (rigate) are highly valued by Indian consumers because they hold heavy masala and cream-based sauces better than smooth surfaces.
- Elbow macaroni: Often referred to simply as "Macaroni" in India, it is a staple in households for school tiffins and is frequently used in Indian-style salads and Mac & Cheese.
- Fusilli (spirals): Popular for its aesthetic appeal.
- Vermicelli (seviyan): While technically a long cut, Indian factories produce a short-cut roasted version, which is a top seller for traditional dishes like Upma (savory) and Kheer (sweet).

2. Factory services (contract) for the Indian market:
Indian pasta factories provide specialized B2B services to help brands navigate the country's diverse food regulations and tastes.
- Contract manufacturing & private label: The company produces pasta for supermarket house brands.
- Alternative flour extrusion: Due to rising health trends, the factory offers services to produce pasta from millet (jowar/bajra), chickpea, or multigrain blends targeting the premium health segment.

3. Who uses them and how:
A. Urban households (the "tiffin" market):
- Who: Busy parents and working professionals in Tier 1 and Tier 2 cities.
- How: Shortcut pasta is used as a quick breakfast or lunchbox snack. Unlike in Italy, it is often boiled until soft and tossed with ginger-garlic paste, onions, tomatoes, and garam masala.
B. Street food vendors & "Maggi points":
- Who: Small roadside stalls near colleges and offices.
- How: They use bulk-purchased elbow macaroni or penne to make "street-style masala pasta, " often loaded with processed cheese, butter, and extra chili flakes.
C. Quick service restaurants (QSRs) & cafes:
- Who: Chains like Domino’s India, Pizza Hut, and local cafes.
- How: They use par-boiled or IQF (individually quick frozen) shortcut pasta, allowing them to serve "white sauce pasta" in under three minutes by simply heating the pre-cooked pasta with a sauce base.
D. The catering & wedding industry:
- Who: Event caterers for large-scale Indian weddings.
- How: They set up "live pasta counters. " Shortcut pasta (penne/fusilli) is preferred because it is easy to portion out quickly to hundreds of guests compared to long spaghetti. - Physical assets: The business owns 1 acre of land with a production building, along with plant, machinery, and trucks.
- Intangible assets: The business holds an established brand and a recurring customer base. Own land and building:
- The production facility is spread over 1 acre of land and is fully owned by the company. It is located in the IDCO Industrial Estate in Sambalpur, Odisha, strategically positioned very close to the Raipur border.
- The plant is a modern, high-tech unit designed to replicate traditional Italian pasta-making standards on an industrial scale and has good accessibility to major ports.

1. Advanced Italian technology:
- The facility is powered by Italian machinery from a world leader in pasta production technology based in Italy. This provides the factory with a significant quality advantage over local manufacturers.
- The production process is fully automated and untouched by hand. From the initial mixing of semolina and water to final packaging, the entire process is automatic, ensuring high standards of hygiene and consistency.
- The machinery uses high-pressure precision extrusion to form shapes such as penne and fusilli without compromising the protein structure of the wheat.

2. Artisanal quality at scale:
- Despite being a mass-production facility, the unit incorporates specific artisanal methods typically found only in boutique Italian factories.
- Bronze dies are used instead of cheaper Teflon dies, creating a rough and porous pasta surface that allows sauces to adhere better, which is a key brand differentiator.
- The facility follows a low-temperature, slow-drying process rather than flash drying. This preserves the natural aroma, golden color, and nutritional value, particularly the gluten and protein content, of the durum wheat.

3. Infrastructure and strategic location:
- The plant is located in a region selected strategically due to its climate, which is well suited to the pasta drying process.
- The facility is well connected for pan-India distribution, enabling efficient shipment of bulk orders to hubs such as Bhubaneswar, Cuttack, and other major markets.
- The project was established at an approximate cost of ₹15 crore, reflecting substantial investment in high-end machinery and quality control laboratories.

4. Quality control and standards:
- The facility includes an in-house laboratory to monitor raw materials and finished products.
- Raw material testing ensures the exclusive use of 100% durum wheat semolina, with no maida or refined flour blended into production.
- Product stability testing ensures the pasta remains non-sticky even after extended boiling, catering specifically to Indian cooking practices where pasta may be overcooked or reheated.
- The plant operates under FSSAI certification and complies with all applicable Indian food safety and quality standards. Ownership & shareholding pattern:
- The ownership is concentrated within the founder family, ensuring high control over operations.
- The total number of shareholders is 2.
- The ownership breakdown consists of two directors.
Note: The company’s paid-up capital is currently ₹7.00 crore, which matches its authorized capital. This indicates that the founders have fully infused the initially planned equity into the business.

Debt profile & outstanding loans:
The company has utilized significant leverage to fund its ₹9.73 crore automated pasta plant located in the center of the country. The debt consists of long-term project loans and working capital facilities.
1. Major outstanding charges (loans):
- As per the Ministry of Corporate Affairs (MCA) records, the company has several active charges (secured loans) against its assets.
- The charge holders include Indian Bank with ₹8.90 crore created in September of this year, HDFC Bank Limited with ₹1.20 crore created in April of this year, and HDFC Bank Limited with ₹0.20 crore created in June of this year.
- The total estimated bank debt is approximately ₹10.30 crore.
2. Types of debt instruments used:
- Term loans are used primarily for the procurement of Italian Axor Ocrim machinery and the construction of the Balangir facility.
- Working capital (cash credit) is used to manage daily operational costs, including the purchase of raw durum wheat and managing the 45–60 day credit cycle for distributors.
- Promoter contribution of approximately ₹2.00 crore was originally infused, which often includes interest-free unsecured loans from the directors to the company.

Current financial health:
- The business has progressed from the “proposed project” stage, where it held a CARE B+ rating, to an active manufacturing stage.
- With a reported annual turnover in the range of ₹18 crore, the company utilizes its cash flows to meet interest obligations and principal repayments to Indian Bank and HDFC Bank.