Former Engineer Transforms Bihar's Makhana into a Booming Agri-Food Business

Agriculture

Updated on 04 Nov 2025, 08:14 am

Reviewed By

Satyam Jha | Whalesbook News Team

Short Description :

Syed Faraz, an engineer turned entrepreneur, has revitalized Bihar's traditional makhana (fox nut) industry with his startup, Shhe Foods. Starting with minimal capital and a focus on B2B white labelling, the company has grown significantly by directly partnering with over 2,500 farmers. Shhe Foods has secured government aid and angel investment, is projecting substantial revenue growth, and is now launching its own retail brands, aiming to formalize the supply chain and boost farmer incomes.

Former Engineer Transforms Bihar's Makhana into a Booming Agri-Food Business

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Detailed Coverage :

Syed Faraz, a former engineer, returned to Bihar to establish Shhe Foods, a startup focused on industrializing the production of makhana, or fox nuts. The company began in November 2021 with limited funds, initially operating through B2B white labelling to build market trust. Shhe Foods has since grown substantially, securing a Rs 10 lakh loan under the PMFME scheme and Rs 15 lakh from an angel investor. Revenue has climbed from Rs 8.3 lakh in FY23 to Rs 45.4 lakh in FY24, with ambitious projections for future growth to Rs 20 crore by FY26. A key strength is its direct sourcing model, involving over 2,500 farmers in Bihar's Mithilanchal region, which has restored trust and increased farmer earnings. The company is now pivoting to retail with its own brands: Makhanza, Nutrimix, and Maket.

Impact: This venture is creating significant value in India's agri-food sector and the regional economy of Bihar. It demonstrates successful modern entrepreneurship in traditional crops, empowering farmers and fostering local development. The direct sourcing model provides a competitive edge. Its impact on the Indian stock market is indirect, relevant to investors in the food processing and agri-business segments. Rating: 7/10.

Difficult Terms: * Makhana: Edible seeds from a plant, also known as fox nuts or gorgon nuts, used as a traditional Indian snack and praised for being nutritious and low in fat. * B2B White Labelling: A business practice where one company manufactures a product, and another company sells it under its own brand name. * PMFME Scheme: Pradhan Mantri Formalisation of Micro Food Processing Enterprises scheme, a government initiative to support and upgrade small food processing businesses in India. * ROC Filings: Documents submitted to the Registrar of Companies, containing official records of a company's financial and operational status. * FMCG: Fast-Moving Consumer Goods, everyday items like packaged food, beverages, and toiletries that are sold quickly. * MRP: Maximum Retail Price, the highest price legally allowed for a product in India. * APEDA: Agricultural and Processed Food Products Export Development Authority, an Indian government body promoting agri-product exports. * ICRIER: Indian Council for Research on International Economic Relations, an independent research institution focusing on economic policy.