Shah Foods Expands into Power Storage with Tandhan Acquisition

Shah Foods Limited is acquiring a 100% stake in Tandhan Power Technologies Private Limited for ₹99.28 crore. Tandhan Power Technologies reported a turnover of ₹144.35 crore for fiscal year 2025.

Deal Details

Shah Foods Limited's Board of Directors has approved the acquisition of 100% of Tandhan Power Technologies Private Limited (TPTPL). The acquisition will be a mix of share swap and cash payment. The total value of the deal is ₹99.28 crore. TPTPL operates in the power storage and backup solutions sector, marking a significant new direction for Shah Foods.

Strategic Rationale

This move diversifies Shah Foods into the growing power storage and backup solutions market. Shah Foods expects to benefit from operational synergies, reach new customers, and strengthen its market position. This is a significant step to reshape the company's business beyond its current trading focus.

Company Background

Shah Foods Limited, founded in 1982, originally focused on food processing, including manufacturing biscuits for Britannia Industries. After closing its biscuit unit in 2019, the company shifted to wholesale fruit and vegetable trading, which now makes up its entire revenue. Shah Foods has recently taken steps such as increasing its authorized share capital at an EGM on March 6, 2026, and issuing preferential equity to fund new initiatives. Tandhan Power Technologies Private Limited was incorporated in August 2018 and operates in the power storage and backup sector.

Impact of the Acquisition

Shah Foods will enter the power storage and backup solutions industry, diversifying its revenue sources. The deal is anticipated to create operational synergies across sectors and expand market reach. Following the SEBI (SAST) regulations' open offer process, some TPTPL shareholders may become promoters of Shah Foods. The company recently increased its authorized share capital to support strategic growth.

Key Risks

• Integration risk: Successfully merging TPTPL's operations and culture with Shah Foods.
• Market competition: The power storage sector faces strong competition from large, established companies and rapid technological change.
• Execution risk: Realizing TPTPL's growth plans under the new ownership.
• Open offer management: Efficiently managing the SEBI SAST open offer process.
• Shah Foods Limited recently paid a ₹139,780 penalty for a delayed Company Secretary appointment.

Competitive Landscape

TPTPL's FY25 turnover of ₹144.35 crore makes it a smaller competitor compared to major Indian energy storage firms like Exide Industries (FY24 revenue ~₹16,588 crore) and Amara Raja Energy & Mobility (FY24 revenue ~₹12,846 crore), which operate on a much larger scale. Other players in this competitive sector include HBL Power Systems (FY24 revenue ~₹2,251 crore) and Luminous Power Technologies.

Financial Metrics

• Tandhan Power Technologies Standalone Turnover FY2024-25: ₹144.35 crore
• Tandhan Power Technologies Standalone Turnover FY2023-24: ₹119.29 crore
• Tandhan Power Technologies Standalone Turnover FY2022-23: ₹120.34 crore

Investor Focus

• The completion of the acquisition and integration of TPTPL's operations.
• Management of the SEBI SAST open offer process for TPTPL shareholders.
• The combined entity's performance and TPTPL's contribution to revenue and profit.
• Any new strategic initiatives or capital plans for the energy storage segment.
• Management's outlook on achieving synergies and growth in the power storage market.