Anjani Foods Ltd Management Discussions

We submit hereunder Management Discussion and Analysis Report on the business of the company as applicable to the extent relevant. Your Company has explored business enhancement by taking up activities in the bakery and retailing sector in order to meet the competitive market landscape.

Your Company is among the most trusted food brands with a wide and growing portfolio of products in the food segment covering biscuits, breads and buns, cakes and pastries, rusks and other such items, etc.

As per Technopak, the Indian packaged food market is estimated at Rs. 3,619 billion in FY2024, growing at a rate of 9.5% from Rs. 3,306 billion in FY2023. The market is growing at a steady pace owing to shifting lifestyle and urbanization trends, increasing number of nuclear families, growing number of working women, etc., leading to greater consumption of packaged food. The market is expected to reach Rs. 6,310 billion, expanding at a CAGR of 11.8% by FY2029.

One of the key opportunities in the sector is low per capita spend on packaged food in India as compared to developed economies. This trend is changing however and per capita spend on packaged food is increasing gradually. This shift is primarily driven by factors such as rising disposable income, urbanization, changing demographics and a perceptible shift in consumer preference towards convenience and value-added products.

In India, annual per capita spend on all categories of packaged food is estimated at Rs. 4,650, much less compared to China at Rs. 16,000 and USA at over INR 1,12,500, thereby offering significant headroom for growth.

The primary business segment of your Company is food.

Indian consumers with rising disposable income and higher aspirations comprises the biggest opportunity for your Company. Yet another opportunity lies in the constant force of technology change. This provides your Company with the opportunity to differentiate itself against competitors and gain market share. Technology also gives us opportunity to improve efficiency and productivity. Growth of individual product categories is linked to the overall economic growth and India is on a sound economic growth path despite several global challenges.

Business is not without risk however and the primary risk for us is inflation, including volatility in commodity prices, and supply chain disruptions. However, your Company is continuing to build resilience and adaptability to transform risk into sustainable business opportunity, thereby ensuring long-term value creation for all stakeholders.

Your Companys internal control systems are commensurate with the nature, size and complexity of its business and ensures proper safeguarding of assets, maintaining proper accounting records and providing reliable financial information. The Board and Audit Committee regularly evaluate the functioning and quality of internal controls and provides assurance of its adequacy and effectiveness through periodic reporting.

The Directors have laid down internal financial controls to be followed by the Company and such policies and procedures have been adopted by the Company for ensuring orderly and efficient

conduct of its business, including adherence to Companys policies, safeguarding of its assets, prevention and detection of fraud and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information.

(Amount in Rs. lakhs)

Human Resources remain a cornerstone of Anjani Foods growth strategy, with the Company fostering a culture of continuous learning, skill enhancement and resource development. Structured training programmes, on-the-job learning opportunities and knowledge-sharing initiatives are regularly undertaken to equip employees with the competencies required to succeed in a dynamic business environment. Further, industrial relations during the year remained cordial, marked by open communication, mutual respect and collaborative problem-solving, enabling a motivated and performance-driven workforce aligned with the Companys long-term objectives.

The Companys senior management makes disclosures to the Board relating to all material financial and commercial transactions as and when they occur.

Statement in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be ‘forward-looking statements within the meaning of applicable/securities laws and regulations and such forward-looking statements involve risks and uncertainties. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes and economic developments within India and other incidental factors. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements that speaks only as of their dates.

Details of significant changes (i.e. Change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefore, including: