Aelea Commodities Ltd IPO

About Aelea Commodities Ltd

Aelea Commodities Limited was originally incorporated on November 05, 2018, as a private limited Company under the name and style of Aelea Commodities Private Limited under the provisions of Companies Act, 2013 with the Registrar of Companies, Mumbai Maharashtra bearing Registration No. 316782. Thereafter, the Company was converted from private limited to public limited and the name of the Company was changed from Aelea Commodities Private Limited to Aelea Commodities Limited vide fresh certificate of incorporation dated February 28, 2024 issued by the Registrar of Companies Mumbai Maharashtra. The Corporate Identification Number of the Company is U51909MH2018PLC316782.

GLOBAL CASHEW PRODUCTION Cashew nuts are a popular nut. They are also the most expensive nut in the world. The cashew tree is native to South America, and today, it is grown in many countries including India, Vietnam and Nigeria. The cashew plant is a tropical evergreen that can grow up to 30 meters tall and has an average lifespan of 50 years. The cashew tree has a unique shape with leaves on the top of its branches and short leaves on the trunk that provide shade for the lower branches. From 2010 to 2020, this statistic depicts the global production of cashew nuts (in shell). Globally, roughly 4.18 million metric tons of cashew nuts in shell were produced in 2020, an increase over 2019 output levels. Africa produced more than half of the world's raw cashew nut output between 2014 and 2018, with West Africa accounting for 42% and East Africa accounting for 10% of annual production, respectively. Asia accounted for 43% of total annual revenue on average, while Latin America and the Caribbean accounted for 5%. Africa accounted for 63 percent of worldwide raw cashew nut production growth between 2000 and 2018. All 46 countries that produce cashew nuts on a large scale are developing countries, including 18 of the world's least developed countries. However, not all cashew-producing countries participate equally in the global value chain. The majority of cashew nuts harvested in Africa are exported uncooked, before being shelled in primarily two countries: India and Vietnam. Two illustrations demonstrate this pattern: Africa exported 90% of worldwide raw cashew nut exports between 2014 and 2018, whereas India and Vietnam imported 98 percent of global raw cashew nut imports over the same time. The Cashew Market size is estimated at USD 7.82 billion in 2024, and is expected to reach USD 9.20 billion by 2029, growing at a CAGR of 3.31% during the forecast period (2024-2029). CASHEW INDUSTRY - AN INDIAN OVERVIEW India is among the largest cashew-producing countries in the world. The cashew industry has large economic significance as it employs more than 10 lakh people on farms and factories in rural areas. The cultivation of cashews in India covers a total of 0.7 million hectares of land, and the country produces over 0.8 million tonnes (MT) annually. Between 2019-20 and 2021-22, India's cashew nut production grew from 0.70 million tonnes (MT) to 0.77 million tonnes (MT). In India, cashew cultivation is spread along the coastal regions of the peninsula. Cashew is mainly grown in states like Maharashtra, Kerala, Karnataka, Tamil Nadu, Andhra Pradesh, Goa, Orissa, West Bengal, and some parts of the North-Eastern region. According to data published by the National Horticulture Board (NHB), Maharashtra stands first in annual cashew nut production during 2021-22 at 0.20 million tonnes (MT), growing from 0.19 million tonnes cashew nut produced in 2020-21. Besides the vast scale of cashew production, India is also known for pioneering cashew processing and exporting cashew kernels across the globe. The cashew processing industry was earlier concentrated in Kollam (Kerala), Mangalore (Karnataka), Goa, and Vettapalam (Andhra Pradesh), but now it is spread across many states of India. Over the years, India has emerged as the global processing hub for the cashew industry.

As a versatile enterprise, the company is deeply entrenched in the processing and trading of cashews, while also actively engaged in the trading of a diverse range of commodities such as Sugar, Pulses, Soybean, Rice, Wheat Flour, and more. Its operational strategy revolves around two distinct models, namely Business to Business (B2B) and Business to Customer (B2C). In the realm of cashews, the company has successfully established a presence in both B2B and B2C segments, allowing it to cater to the nuanced requirements of both wholesale clients and individual consumers. On the other hand, its trade in products like Sugar, Pulses, Soybean, Rice, Wheat Flour, etc., is exclusively conducted through its B2B channel. This strategic approach enables it to optimize its operations, ensuring efficiency and quality service for its business partners, while also delivering top-notch products to its valued retail customers. The strategic approach involves not only meeting the demands of the domestic market but also extending its reach to customers outside India. Through a commitment to excellence in processing and a customer-centric approach, the company aims to establish itself as a prominent player in the cashew industry, ensuring the satisfaction of its clientele through top-notch products and services. The company engages in importing Raw Cashew Nuts (RCN) from diverse African nations, including Benin, Tanzania, Burkina Faso, Senegal, and Cote d'Ivoire, necessitating substantial quantities and tying up working capital funds. It specializes in trading RCN and Cashew Kernels for consumption. Additionally, it trades in by-products from sugar mills, such as Bagasse.

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