Papadmalji uses 11 contractors for handmade papad output

Papadmalji makes handmade papads through a formal home-production system in which 11 independent contractors supervise women who roll and sun-dry papads. Handmade papads generated Rs 11.474 crore, or 36.14% of revenue from operations, in fiscal 2025, making the contractor-managed line a material part of Papadmalji’s product mix.

How does Papadmalji make handmade papads through contractors?

Papadmalji assigns hand-rolling and sun-drying to Bataras, independent contractors appointed under formal Batara Agreements. Each Batara manages women papad makers known as Bataris, who work from their homes; 11 Bataras oversaw the activity as of the Draft Red Herring Prospectus date. Papadmalji prepares the dough before the home-based stages begin.

Papadmalji selects, cleans and grinds moong dal, urad dal, chana dal or combinations of lentils into flour. The flour is mixed with spices, boiled reverse-osmosis water and groundnut oil, then machine-kneaded before a cutting machine forms loyas and tikdis, the terms used for dough balls and discs. Papadmalji supplies these dough portions and besan, or gram flour, to Bataras for distribution to Bataris.

Bataris use wooden chakla and belan tools to roll dough into thin papads, applying besan to prevent sticking, before sun-drying the output at home. They must follow Papadmalji’s instructions for size, shape, thickness, quality and workplace hygiene. The company applies a standard 17% weight loss after finished papads return to its facility, accounting for expected moisture evaporation during rolling and sun-drying.

What control does Papadmalji retain over home-based papad production?

Papadmalji retains control over inputs, specifications, inspection and acceptance, although Bataras are independent contractors. Under the agreements, the dough portions and besan supplied in containers and bags remain Papadmalji property until the finished papads are inspected, tested and formally accepted after quality verification. Bataras must ensure Bataris comply with the company’s Product Specifications and Operational Standards for Home-Based Papad Production.

Finished handmade papads must reach Papadmalji’s Gharsisar Unit in a properly dried, flat, unbroken and moisture-free condition. The company weighs each returned batch and checks shape, size, thickness, texture, defects, contamination, moisture, dryness, sensory attributes and nutritional assessment. Papads that are misshapen, broken or outside predefined tolerance limits are removed during sorting.

Papadmalji records raw materials issued and finished papads received in a gate pass book, including shortages and rejections. The company states that these entries are final and binding on the Batara for payment, reconciliation and settlement. The model’s consistency therefore depends on contractor supervision, Batari compliance with specifications and post-delivery acceptance by Papadmalji.

How are Papadmalji’s contractors paid for handmade papads?

Papadmalji pays each Batara twice a month according to the quantity of finished papads accepted after inspection and quality verification. Payment is acceptance-based rather than determined solely by the quantity of dough or besan issued. Papadmalji may deduct amounts for shortages or rejected papads recorded by the company, while payments are subject to tax deducted at source under the Income Tax Act, 1961.

The agreement identifies the Batara as an independent contractor, not an agent, representative, partner or employee of Papadmalji. A Batara’s engagement continues subject to satisfactory performance and adherence to company standards. The supplied material does not classify Bataris as Papadmalji employees; it says Bataras engage, manage and supervise them.

The contractual arrangement centralises acceptance after decentralised production. After a batch clears quality checks and sorting at the Gharsisar Unit, Papadmalji weighs it into approved pouches, seals and labels the packs, and stores cartons in a clean, dry and ventilated area before distribution through its sales channels.

How important are handmade papads to Papadmalji’s sales mix?

Handmade papads were Papadmalji’s largest reported product category in fiscal 2025, generating Rs 11.474 crore and representing 36.14% of revenue from operations. The category’s share declined from 47.80% in fiscal 2024 and 49.37% in fiscal 2023, while machine-made papads increased their contribution. Handmade papad revenue fell by Rs 1.084 crore from fiscal 2024 to fiscal 2025.

Machine-made papads rose to Rs 7.9952 crore in fiscal 2025 from Rs 5.0363 crore in fiscal 2024, increasing their revenue share by 6.01 percentage points to 25.18%. Rice papads generated Rs 7.3261 crore, or 23.07% of fiscal 2025 revenue. For the three months ended June 30, 2025, handmade papads contributed Rs 3.0981 crore, or 38.26%, of Rs 8.0981 crore in revenue from operations.

What will change in Papadmalji’s production footprint?

Papadmalji plans to establish a 45,000-square-foot manufacturing unit at Bachhasar in Bikaner District, Rajasthan, at an estimated project cost of Rs 7.6094 crore funded through initial public offering proceeds. The proposed unit is intended to make 5-inch and 7-inch rice papads under the Zhakass brand, machine-made mini papads under the Rozana brand, and include a 250-kilowatt rooftop solar system for partial electricity generation.

The Bachhasar Unit is planned as the central hub for machine-made production currently undertaken at the Gharsisar and Karni units, including machine-made papads and moongodi. Papadmalji states that the rented Karni Unit will close following the transition. Gharsisar is then intended to focus exclusively on handmade papads, leaving the Batara-Batari model as its stated production role.

Conclusion

Papadmalji’s handmade papad business operates through a controlled contractor-production system rather than wholly through factory workers. Eleven Bataras supervise home-based Bataris, while Papadmalji supplies core inputs, sets production standards, conducts quality checks, records shortages and rejections, and pays for accepted output. The system accounted for Rs 11.474 crore, or 36.14%, of fiscal 2025 revenue from operations.

The disclosed Bachhasar plan is the next operational development to watch. If the Rs 7.6094 crore project is funded through initial public offering proceeds and machine-made production is consolidated there, Gharsisar is intended to focus exclusively on handmade papads, increasing the importance of the contractor-managed network to that unit’s role.