(ANNEXURE ‘C TO DIRECTORS REPORT)
Economic Overview
In comparison to expectations, the global recovery from the COVID-19 epidemic has been
slow. The rise of geopolitical tensions due to Russia Ukraine War has resulted in a
broad-based increase in global commodity prices and is projected to have a big negative
impact on global trade and economy, has increased the downside risks to even this moderate
rebound. Globally, growth and inflation outcomes arein jeopardy. In the context of this
unprecedented risk, the positive effects expected from the release of pent- up demand,
particularly for contact-intensive services, the governments focus on infrastructure and
capital spending, favourable financial circumstances and increased capacity utilisation
appear transitory.
The geopolitical conflict, prolonged Covid-19 flare- ups, frequent and wider-ranging
lockdowns in China, particularly in major manufacturing hubs weakened
fiscal assistance, and lingering supply constraints are all expected to slow global GDP
from 6.1% to 3.6% in 2022 and 2023. These occurrences have resulted in global inflationary
pressure and supply chain disruptions. In many nations, higher, broader, and more
persistent pricing pressures have led to monetary policy tightening. Overall economic
risks have risen dramatically, and policy trade-offs have become increasingly difficult.
Global growth is expected to slow to around 3.3% after 2023 in the medium term. Inflation
forecasts for 2022 are 5.7% in advanced economies and 8.7% in emerging market and
developing economies, up 1.8 and 2.8 percentage points from January. Multilateral efforts
are critical in responding to the humanitarian crisis, preventing further economic
fragmentation, maintaining global liquidity, managing debt distress, combating climate
change and ending the pandemic.
|
2022 |
2023P |
2024P |
| World Output |
3.5 |
3.0 |
3.0 |
| Advanced Economies |
2.7 |
1.5 |
1.4 |
| United States |
2.1 |
1.8 |
1.0 |
| Euro Area |
3.5 |
0.9 |
1.5 |
| Germany |
1.8 |
-0.3 |
1.3 |
| France |
2.5 |
0.8 |
1.3 |
| Italy |
3.7 |
1.1 |
0.9 |
| Other Advanced Economies |
2.7 |
2.0 |
2.3 |
| Emerging Market and Developing Economies |
4.0 |
4.0 |
4.1 |
| Emerging and Developing Asia |
4.5 |
5.3 |
5.0 |
| China |
3.0 |
5.2 |
4.5 |
| India |
7.2 |
6.1 |
6.3 |
Indian overview
Indias economy is rebounding after subsequent rounds of COVID-19 infestations this
year, which slowed activity and took a toll on the countrys population. Indias swift and
comprehensive response to the pandemic, including fiscal support and economic reforms, is
assisting in a GDP recovery that is now forecast to be the fastest among the worlds major
countries.
In its April World Economic Outlook report, the IMF reduced Indias projected growth
rate for 2023 is 6.9%. The RBI maintained all policy rates at their current levels. Retail
inflation was 5.66% in March 2023, and wholesale price index inflation was 4.12% in June
2023. Consumer confidence has strengthened, manufacturing business conditions have
improved, financial markets have stabilised, demand has risen, and market conditions have
improved, all of which have contributed to Indias sustained economic growth. The FY
2023-24 budget satisfactorily exceeded expectations of a faster economic path due to a
consistent emphasis on infrastructure, investment, manufacturing improvement, improved
logistical capabilities, help for MSMEs, green economy goals, expanding digitalization,
and banking expansion.
India has the highest population in the world. We anticipate that Indias population
would surpass 1.5 billion by 2030. It is anticipated that this will increase demand for
food and increase consumption of goods derived from animals, such as milk, meat, eggs,
shellfish, etc. In addition, shifting lifestyles, increased disposable incomes, and
growing awareness of health and wellness have caused a shift in Indians eating patterns
away from cereals and toward foods high in proteins, vitamins, and minerals. The nations
intake of milk, beef, and eggs is being driven by this. Other major variables influencing
the market include a growing emphasis on boosting yields, rising exports, a growing
emphasis on preventing livestock diseases, a growing concern about the quality of animal
products, etc.
Indian Livestock Population Overview
Source: 20th Livestock Census 2019, Ministry of Fisheries, Animal Husbandry &
Dairying
India has the worlds largest number of livestock animals. The country also has the
largest buffalo population of 110 million. With a cattle population of 192 million,
Indias total bovine population stood at 303 million in 2020.India has a large population
of cattle and buffaloes including more than 125 million milch cows and buffaloes
The total Cattle Population in the country is 192.49 Million during 2019. Total cattle
is increased by 0.8% over previous Livestock Census (2012). Female Cattle Population
increased by 18.0% whereas Male cattles decreased by 30.2% over previous census. About 36%
of the total livestock is contributed by cattle. Total Buffalo Population in the country
is 109.85 Million during 2019.Total Buffalo has increased by 1.1% over previous Livestock
Census (2012). Female Buffalo Population increased by 8.61% whereas Male Buffalo is
declined by 42.35% over previous census. About 20.5% of the total livestock is contributed
by buffaloes.
Global Animal Feed & Supplement Industry
Animal feeds play a leading role in the global food industry, enabling the economic
production of animal proteins throughout the world. Feed is the largest and most important
component to ensuring safe, abundant and affordable animal proteins.
Livestock raising and the consumption of animal products make a crucial contribution to
the economic and nutritional wellbeing of millions of people around the world.
World compound feed production is estimated at over one billion tonnes annually. Global
commercial feed manufacturing generates an estimated annual turnover of over US $400
billion. Commercial production or sale of manufactured feed products takes place in more
than 130 countries and directly employs more than a quarter of a million skilled workers,
technicians, managers and professionals. Animal feeds play a leading role in the global
food industry and feed is the largest and most important component to ensuring safe,
abundant and affordable animal proteins.
The United Nations Food and Agriculture Organization (FAO) estimates that by 2050 the
demand for food will grow by 60% and that between 2010 and 2050 production of animal
proteins is expected to grow by around 1.7% per year, with meat production projected to
rise by nearly 70%, aquaculture by 90% and dairy by 55%. This already marks a growth
factor of almost two, however if we were to extrapolate the growth rates of the last forty
years forward to 2050, this would in theory quadruple the needs.
The animal feed market in the Asia Pacific region is accounted to hold a significant
share in the animal feed market owing to a large consumer base especially in the emerging
economies of China and India.
(Source - International Feed Industry Federation)
The veterinary supplements market is expected to reach US$ 13.76 Bn by 2031. Unique
formulations of phosphorous, calcium, and organic minerals are being preferred in
veterinary feed supplements. Refit Animal Care - a provider of veterinary products in
India, is publicizing Lam Tone tonic in order to treat lameness in cattle. Such tonics
induced with high quality vitamins and supplements are in demand.
The global market was valued at $ 19.6 billion in 2017, and is estimated to reach $
31.4 billion by 2025 registering a CAGR OF 6.0% from 2018 to 2025.
The livestock and pet market size was valued at $598 million in 2019, and is estimated
to reach $825 million by 2027.
Indian Animal Feed & Health Care Market Overview
The Indian animal feed market reached a value of 873.7 billion in 2021. Looking
forward, the market is projected to reach 1493.8 billion by 2027, exhibiting at a CAGR
of 9.6% during 2022-2027.
India currently represents one of the largest feed producers in the world. Animal feed
includes various raw, processed and semi-processed products that are fed to livestock.
Some of the most common feeds include pasture grasses, cereal grains, hay and silage
crops, and other by-products of food crops, such as brewers grains, pineapple bran and
sugar beet pulp. These products are carefully formulated with the help of nutritional
additives, like vitamins and minerals, to maintain the overall health of animals and
improve the quality of various end- products, including eggs, meat and milk.
(Source -www.researchandmarkets.com
Indian Animal Husbandry and Dairying Overview
India has vast livestock resources including poultry. Livestock is an important source
of income for landless and marginal farmers and plays an important role in national
economy. Livestock Sector has continuously been growing at Compound Annual Growth Rate
(CAGR) of 7.93% (at constant price) from 2014-15 to 2020-21.
Agriculture diversification through animal husbandry is one of the primary drivers of
growth in rural incomes and higher public investment in Livestock Sector is need of the
hour for doubling farmers income.
To further boost growth in livestock sector and thereby making animal husbandry more
remunerative to 10 crore farmers engaged in Animal Husbandry Sector, recently, the
Government has revised and realigned various components of Government of Indias schemes
for next 5 years starting from 2021-22 with the outlay of Rs.98 billion for leveraging
total investment of Rs.546 billion for 5 years.
Government Initiatives
On 14.07.2021, the Government approved implementation of a Livestock Sector Package
consisting of several activities by revising and realigning various components of
following existing schemes in order to have focused development of animal husbandry and
dairying across the countryfor next 5 years starting from 2021-22 with the outlay of
Rs.9800 crore over a duration of 5 years for leveraging total investment of Rs. 54,618
crore for 5 years.
I. Rashtriya Gokul Mission
II. National Programme for Dairy Development
III. Support to Dairy Cooperatives and Farmers Production Organisationengaged in dairy
activities
IV. National Livestock Mission
V. Livestock Census and Integrated Sample Survey
VI. Livestock Health & Disease Control
Milk Production
India continues to be the largest producer of milk in world. Several measures have been
initiated by the Government to increase the productivity of livestock, which has resulted
in increasing milk production significantly. Milk production during 2020-21 and 2021-22 is
209.96 million tonnes and 221.06 million tonnes respectively showing an annual growth Of
5.29%. The per capita availability of milk is around 444 grams/day in 2021-22. The
production of milk and corresponding annual growth rate (%) per year from 2011-12 to
2021-22 is given below:
Note: Projected Population as on 1st March 2011-2020 based on census of India-2011 of
RGI, India
Top10 Milk Producers in the World in million tonnes
| Country |
2017-2019: Average |
2020 Production Estimates |
2021 Production
Forecast |
| India |
187.555 |
202.368 |
206.82 |
| EU |
172.308 |
160.893 |
! 161.859 |
| USA |
98.511 |
101.251 |
102.972 |
| Malaysia |
54.21 |
57.722 |
! 59.57 |
| China |
32.503 |
35.882 |
! 38.562 |
| Brazil |
35.319 |
36.934 |
l 37.298 |
| Russian |
30.719 |
32.226 |
i 32.323 |
| Federation |
|
|
|
| Turkey |
21.927 |
23.763 |
! 24.566 |
| New Zealand |
21.731 |
21.871 |
22.271 |
| Colombia |
22.138 |
22.592 |
! 21.512 |
| World Total |
876.091 |
914.322 |
! 928.057 |
World milk production is forecast to reach 928 million tonnes in 2021, 1.5% higher than
in 2020, with anticipated output expansions in all regions, led by Asia and North America.
Rising dairy cattle numbers, farm productivity improvements and investments are driving
the increase in Asia, especially in India, China and Pakistan.
India is worlds largest Milk producer with approx. market share of 22%
Meat production
Meat production during 2014-15 was 6.69 million tonnes which has been further increased
to 9.29 million tonnes in 2021-22. The Meat production has shown positive growth as 5.62%
during 2021-23.The production of meat and the corresponding annual growth rate (%) per
year of the country from 2011-12 to 2021-22 is shown in graph given below:
As per FAO India is largest producer of Buffalo Meat with 1.59956 mn tonne production
& worldwide market share of 38%
Key Business Segments
Ajooni has portfolio of a wide range of Quality Cattle feed, Cattle feed Chips, Camel
Feed, Cotton Oil Cake, Mustard Oil Cake and wide range of Feed supplements to cover the
entire life cycle of an animal.
? HIGH ENERGY BALANCED CATTLE FEED which includes calf starter, heifer, dairy calf
grower, low yield cattle, basic milking cattle and high yield cattle.
? FEED SUPPLEMENTS which includes liquid calcium, liver tonic, mineral mixture, ultra
tonic, Digestive powder and multi vitamins.
Benefits of the product:
Enables holistic dietary provision: Protein, minerals, vitamins, and other essential
nutrients are found in cattle feed. These necessary nutrients work together to support
cattles digestion, tissue regeneration, daily activity needs, and other processes.
High-productivity cattle require the
optimal nutrition, which grazing cannot supply. Cattle feed meets this need.
Promotes growth: The vital nutrients in cattle feed are present in the proper ratios to
encourage animals to grow more quickly. Giving cattle and buffaloes specialised complex
feed and supplements improves their weight, muscle to fat ratio, and growth rate since
they have distinct nutritional needs.
Addressing of the nutritional needs of pregnant cows: Cows need to change their diets
while they are expecting. Giving pregnant cows specialised feed promotes the foetuss
healthy growth, which benefits the health of the calf after birth.
Improves Milk Production: The amount and type of feed offered to milch animals has a
significant impact on milk output. Compound feed and nutritional supplements help dairy
cattles rumen microbes produce more protein and digest more fibre, which increases milk
production and improves milk fat composition.
Takes care of nutritional needs of calves and heifers: To grow and develop, calves and
heifers require the proper nutrients. A special diet for calves reduces the stress of
weaning, promotes rumen development and stops diarrhea.
GROWTH DRIVERS ANIMAL HEALTH CARE PRODUCTS
? Shift from unorganized livestock farming to the organized
? Growing Population & Income
? Growing Food Demand
? Growing demand for Livestock
? Highest Milk Producing Country
? Largest Producers/Exporter of Beef, Chicken and Fish
? High demand for animal healthcare products
? MNCs venturing Indian market for Meat/Milk production facilities
Internal Control Systems and Their Adequacy
Your Company remains committed to improve the effectiveness of internal control systems
for business processes with regard to its operations, financial reporting and compliance
with applicable laws and regulations. The Company has a proper system of internal controls
to ensure that all assets are safeguarded and protected against loss from unauthorized use
or disposition and that all transactions are authorized, recorded and reported correctly.
Material Developments in Human Resources
The workforce is a critical factor in maintaining quality and safety, which strengthens
the competitive position and the human resource policies focus on training and retaining
of the employees of the Company. The Company trains employees regularly to increase the
level of operational excellence, improve productivity and maintain compliance standards on
quality and safety. Employees are offered performance-linked incentives and benefits and
the Company conducts employee engagement programs from time to time. The Company also
hires contract labour from time to time. The management team comprises of professionals
with a proven track record. The Company continues to remain focused and sensitive to the
role of human resources in optimizing results in all its areas of working and its
industrial relations also continue to be cordial.
Risks and Concern
The impact of COVID 19 on the expansion of the world economy has been published. The
Company in particular, as well as the Indian food processing industry in general, may be
effected with Russia Ukraine on going War. It might stop the flow of commerce. It could
result in problems with labour shortages, interstate trade movements, etc. that would be
detrimental to the companys operations. On the other side, the Company made quick
preparations for the challenge and asserted that it achieved successful outcomes.
A number of factors outside the companys control affect the cost and availability of
raw materials, which are essentially agricultural residues. These include general economic
conditions, production levels, market demand and competition, production and
transportation costs, duties and taxes, and trade restrictions. The Company typically
sources raw materials from third-party suppliers or the open market which exposes the
Company to volatility in the prices of raw materials and dependence on third-party for
delivery of raw material may adversely affect operations.
Companys Financial and Operational Performance
For the Financial Year 2022-23, the Company reported total income of Rs. 74.48 Crores
as compared to Rs. 74.08 Crores in the previous Financial Year. Profit before tax stood at
Rs. 1.58 Crores as compared to Rs. 1.46 Crores reported in the previous Financial Year.
Net Profit stood at Rs. 1.12 Crores as compared to Rs. 1.05 Crores reported in the
previous Financial Year.Total comprehensive income for the year is Rs. 28.54 crores.
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