Sawaliya Food Products Ltd IPO

We depend on one of our key customers for a significant portion of our revenue, and any decrease in revenues or sales from such customer may adversely affect our business and results of operations. Further, we do not have firm commitment agreements with some of our customers. If our customers choose not to source their requirements from us, there may be a material adverse effect on our business, financial condition, cash flows and results of operations

We derive a significant portion of our revenue from certain of our products. If sales volume or price of such products declines in the future, or if we are unable to sell such products for any reason, our business, financial 32 condition, cash flows and results of operations could be adversely affected. Our commercial success is largely dependent upon our ability to strategically diversify our product portfolio. Presently, we deal in a limited number of products and therefore, our ability to diversify and successfully market our products might be limited, which may have an adverse impact on our revenue and profitability

We derive a significant portion of our revenues from repeat orders which we identify as orders placed by key customers that have placed orders with our Company previously. Any loss of, or a significant reduction in the repeat orders received by us could adversely affect our business, results of operations, financial condition and cash flows.

Our business is subject to seasonal variations that could result in fluctuations in our results of operations. Further, fresh vegetables being the principal raw material used for manufacturing of our products, our business depends on the availability of such vegetables and any shortage of vegetables may adversely affect our business and results of operations

The improper handling, processing or storage of raw materials or products, or spoilage of and damage to such raw materials and products, or any real or perceived contamination in our products, could subject us to regulatory and legal action, damage our reputation and have an adverse effect on our business, results of operations and financial condition.

Our Company is reliant on the demand from the FMCG industry for a significant portion of our revenue. Any downturn in the FMCG industry or an inability to increase or effectively manage our sales could have an adverse impact on our Company's business and results of operations.

The commercial success of our products depends to a large extent on the success of the products of our end use customers. If the demand for the end use products in which our products are used as a raw materials declines, it could have a material adverse effect on our business, financial condition and results of operations.

Our manufacturing unit and our operations are geographically concentrated in Madhya Pradesh. Consequently, we are exposed to risks from economic, regulatory and other developments in such region which could have an adverse effect on our business, results of operations and financial condition. Further, our continued operations are critical to our business and any shutdown of our manufacturing unit may adversely affect our business, results of operations and financial condition.

We generate our major portion of sales from our operations in certain geographical regions. Any adverse developments affecting our operations in these regions could have an adverse impact on our revenue and results of operations

We may face several risks associated with the proposed expansion of our manufacturing unit, which could hamper our growth, prospects, cash flows and business and financial condition