Apis India Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

Being into the business of rearing and hiving honey bees for the purpose of generation and export of honey the Company basically carries on the business of apiculture and falls in the Agricultural Industry. The Companies operated in an unexplored apiculture market and focused for bright growth opportunities in future.

GLOBAL ECONOMY

Global growth began to stabilise in 2024 after three years of persistent challenges, such as heightened policy uncertainty, geopolitical tensions, continued inflation, and climate- related natural disasters. Sweeping policy changes in early 2025, most notably in trade tariffs, are reshaping the global trade system and reigniting uncertainty.

Considering escalating trade tensions and elevated policy-induced uncertainty, global growth is projected to reduce from an estimated 3.3% in 2024 to 2.8% in 2025, before recovering to 3% in 2026 as per the IMFs World Economic Outlook Update April 2025.

In the medium term, the IMF projected global growth to average around 3% over the next five years, which is modest compared to the historical pre-pandemic average (2000-19) of 3.7%. A surge in protectionist measures, such as a new wave of tariffs, could heighten trade tensions, dampen investment, undermine market efficiency and distort trade flows. Multilateral cooperation is essential for limiting fragmentation, maintaining growth and stability, and tackling global challenges.

INDIAN ECONOMY

Despite global uncertainties, India demonstrated steady economic growth, with a real GDP growth of 6.4% in FY2024-25, remaining close to the decadal average. Indias demographic dividend and growing middle- class wealth are driving the countrys resilience in consumption and services, as highlighted in Deloittes India Economic Outlook, January 2025.

According to Morgan Stanley, the Indian economy is projected to expand to $4.7 trillion in 2026 from $3.5 trillion in 2023, making it the fourth largest in the world behind the US, China, and Germany. In 2028, India will overtake Germany as its economy expands to $5.7 trillion, becoming the third largest economy in the world and the most sought-after consumer market with a higher share in global output, driven by macro-stability-influenced policy and better infrastructure.

During 2024-25 rural consumption remained resilient, supported by strong agricultural performance, while the services sector continued to be a major driver of growth. Manufacturing exports, particularly in high- value-added segments, showed robust performance, reflecting Indias expanding role in global value chains. However, infrastructure investments and capital expenditure have been relatively constrained. This, along with elevated input costs, has resulted in moderated growth within the secondary sector.

INDIAN FMCG SECTOR

The Fast-moving Consumer Goods (FMCG) sector, Indias fourth-largest sector, has been expanding steadily over the years, driven by rising disposable income, a growing youth population and increased brand awareness among consumers. While growing awareness, easier access, and changing lifestyles have been key growth drivers for the sector in the past, the year 2024-25 saw the sector come under pressure due to rising inflation, which squeezed consumer spending, particularly in urban India. However, rural continued to be resilient and grew ahead of urban

The India Meteorological Department (IMD) has forecast an above normal monsoon for 2025 which will ease inflationary pressures and further invigorate rural demand. A favorable monsoon typically supports agricultural output, enhances rural incomes, and strengthens consumption in hinterland markets. While urban demand has been under strain, a combination of softening food inflation, recent repo rate cuts, and tax relief

measures announced in the latest budget are likely to revive consumer sentiment and drive a gradual rebound in urban consumption.

2. OPPOTUNITIES AND THREATS

There is a huge opportunities for honey market to grow in India because of availability of raw material and other incentives provided by the Government. The opportunity in honey product will remain high considering enhanced demand in the international market as well as increase in consumption of domestic market. In India there is ample opportunity for new Retail food business taken up by the company as being increase in per capita income and growing spending on leisure activities.

Due to inflationary pressures, the fluctuation in prices of raw material and high prices of packing material will remain a major threat for honey market. But your Company is taking steps by negotiating with the buyers to get the requisite prices. In the Retail Food Division the product category being new in India, Company has to establish it among consumers and match the Taste preference of customers.

Fluctuation in Foreign Currency rates & tariff tension with US may result into both opportunity and threat for us since your Company is predominantly is Export oriented.

3. OUTLOOK

The Company will continue to explore the honey market as a whole and even aims at business expansion and exploration of unhidden areas of work.

4. RISK AND CONCERNS

Due to Increase in demand for the Raw Honey there might be an increase in the price of Raw Material which in turn might affect the margins of the company. The Competition is expected to be more aggressive driving the price pressures. Uncertainty in global economic growth coupled with inflationary pressures & tariff tension with US might impact the growth of the Company. For its Food division company has to compete with already well established Food chain operators and make a niche for its product in the highly competitive market.

5. RISK MANAGEMENT:

Your Company has laid down procedures to

inform the Board members about the risk assessment and risk minimization procedures. The Company is exposed to risk from foreign exchange and price risks.

Foreign Exchange Risk

The Companys policy is to actively manage its long term foreign exchange risk within the framework laid down by the Board. A Volatile dollar rate is always a threat for the business but the Company had minimized such risk by taking dollar based fund facilities from Banks.

Price Risk

There is substantial increase in Raw Material Prices. But your Company is continuously negotiating with the existing vendors to get the requisite price hike.

6. INTERNAL CONTROL & THEIR ADEQUACY:

Your Company believes in formulating adequate and effective internal control system and implementing the same to ensure the protection against misuse or loss of assets and interest of the Company are safeguarded and reliability of the accounting data and accuracy are ensure with proper checks and balances.

The Audit Committee meets periodically reviews the effectiveness and suggests improvement for strengthening them. The culture of self-governance and internal control sustained through varied set of activities including well defined policies and selfcertification on adherence to the policies and procedure. Good governance, sound internal controls forms the habitat in this environment.

The Audit Committee of the Board of Directors, Statutory Auditors and the Business Heads are periodically appraised of the internal audit findings and corrective action taken.

7. SEGMENT WISE PERFORMANCE

Segment wise reporting is not applicable to the Company for the year 2024-25.

8. FINANCIAL OPERATION AND PERFORMANCE:

In the current year, your Company has been successfully achieved the Standalone Net Sales of 35,034.96 Lakh as compare to previous year 31,608.38 Lakh. The Companys Exports

of 16,502.13 Lakhs as compare to previous year 14,342.78 Lakhs during the year under review.

During the year, Companys profit before tax has amounted to 2,856.21 Lakh as compared to previous year 2,785.63 Lakh. Earnings per share were 38.18 as compared to 39.99 for the previous year.

Table: 1: Consolidated Income Statement Summary

Table. 2: The key ratios arising out of the Companys performance comprised:

9. STRENGTH

Core competency in the unexplored market segment and huge growth prospects in honey and honey related products marks the strength of the Companys product.

10. INDUSTRIAL RELATIONS AND HUMAN RESOURCE MANAGEMENT:

In an ever-increasing competitive and

challenging world, Apis India continues to focus on its people pillar as a key to achieve its core objective of sustainable growth and social objectives. The Company acknowledges the role of the Human Resource (HR) community as a strategic business partner in the organization and continues to invest in a wide variety of HR activities.

During the year under review, the Company continued with its HR strategy and a sharp focus on the following themes:

Employee Engagement

With One Family as one of the core values of the Company, it actively engages with the employees at all levels. The Company looks at engagement as beyond the traditional event- based engagement programmes and at a holistic engagement initiative where the endeavor is to provide clear job knowledge; clarity about the scope of opportunities (both horizontal

and vertical); an environment, which promotes learning and sharing; open communication and others. The Company endeavors to provide an engaging environment by ensuring that the above parameters are met. A robust Internal Job Posting system ensures that employees are aware of available prospects. The leadership team actively participates in the quarterly town halls as it answers any and every questions from the employees. Finally, each location has a list of events to continuously engage with the employees and, at times, their families as well. The Hungary plant has a regular programme for employees and their family members called Family Factory Visit and gives an opportunity to the closest relatives of the employees to visit the plant. The Indian plants held various events like festival celebrations, Womens Day celebrations, running and wellness programmes and others.

Performance Management

The performance management process, Horizon, completed its third annual cycle. The Companys performance management system gives ample opportunities to each employee to discuss not only about the performance but also the opportunities available in the organization..

Talent Management

In an increasingly competitive world, talent management has become a key focus area for the HR function in the organisation.

The Company actively endeavors that its employees look at job enlargement and rotation opportunities. For the Company, supporting such a journey is a win-win arrangement wherein employees discover avenues of growth and the organisation can leverage well-inducted candidates with a deep understanding of its business and culture. Multiple people across the organisation were given the opportunity to work in new functions or move to a new location.

As on March 31, 2025, there were 577 employees on the rolls of the Company. Industrial relations situation in units of the Company continued to be cordial and peaceful.

11. CAUTIONARY STATEMENT:

Statement in this report describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. Although we believe our expectations are based on reasonable assumptions, these forwardlooking statements may be influenced by numerous risks and uncertainties which includes raw material availability, prices, cyclical demand and changes in government regulation, tax regimes and other incidental factors that could cause actual outcomes and results to be materially different from those expressed or implied.