Arunjyoti Bio Ventures Ltd Management Discussions

1. Industry Structure, Developments and Performance

The global contract packaging market is moderately fragmented, comprising both domestic and international players. Companies are expanding their footprint through strategic partnerships, mergers, and acquisitions, with outsourcing by both large and mid-sized companies accelerating competition in service reliability, delivery speed, and packaging innovation.

While substitute threats are currently moderate, they are expected to increase due to automation, sustainability requirements, and material innovation.

Indian Food & Beverage Packaging Industry Snapshot:

- Market Size (2022): USD 31.75 billion

- Projected 2029: USD 85.9 billion (CAGR 14.8%)

Drivers:

• Growth in packaged food & beverage consumption.

• Quality-conscious consumer behaviour.

• Government push for food processing and waste reduction.

• Rising organised retail and disposable incomes.

• E-commerce and food delivery growth.

2. Opportunities & Threats

Opportunities:

• Growth in beverage consumption in emerging markets.

• Rising demand for healthy F&B products.

• Scope for expansion through M&A and alliances.

• Increasing bottled water demand.

Threats:

• Rapid changes in consumer preferences.

• Water scarcity affecting production capacity.

3. Segment & Product Performance

Fiscal Year	Revenue (Rs Lakhs)	Net Profit/(Loss) (Rs Lakhs)
FY 2024 –25	2,788.41	(182.15)
FY 2023 –24	2,046.84	(34.89)

• Topline growth achieved despite higher operational costs.

• Loss expanded due to depreciation & finance costs from expansion.

• Single Segment operation: Co-packing (no reportable geographical segments).

4. Outlook

We remain a preferred co-packer for a leading multinational beverage client, producing non-carbonated drinks, juices, and energy drinks.

Manufacturing Footprint:

• Unit 1 – Kallem, Telangana: 4 acres / 60,000 sq.ft. / 4 lines.

• Unit 2 – Annadevarapeta, Andhra Pradesh: 3.2 acres / 70,000 sq.ft. / 3 lines.

Planned Expansions:

• New 160 CPM Juice Line – Unit 1.

• New 120 BPM Water Line – Unit 2.

FY 2025–26 Initiative: Introduced 50 ml Jelly Pouch SKU, aimed at diversifying product range and targeting new markets.

5. Risks & Concerns

Risk Area	Impact
Counterfeit Products	Reduces consumer trust
Rural Market Gaps	Limits penetration
Water Scarcity	Threat to production output

Indias bottled water industry forecast: ?160B (2018)- 403 B (2023) at 20.75% CAGR.

6. Internal Control Systems

• Robust, compliance-oriented internal controls in place.

• Regular system evaluations for fraud prevention, data accuracy, and asset protection.

7. Human Resources & Industrial Relations

Relations remained cordial throughout the year. Focus continues on:

• Talent retention & recruitment.

• Training & skill enhancement.

• Innovation-led work culture.

8. Key Financial Ratios – FY 2024–25
Particulars	As at 31.03.2025	As at 31.03.2024	Change	Remarks
Debtors Turnover Ratio (Revenue ? Trade Receivables)	7.04	4.86	2.18	Faster collections
Inventory Turnover Ratio (Purchase of Stock in Trade ? Avg. Inventory)	1.77	7	-5.23	Higher stock levels
Interest Coverage Ratio ((PBT + Finance Cost) ? Finance Cost)	0.87	-0.06	0.93	Improved operations
Current Ratio (Current Assets ? Current Liabilities)	2.8	2.24	0.56	Strong liquidity
Debt-Equity Ratio (Total Debt ? Equity)	0.79	25.22	-24.43	Debt repayment
Operating Profit Margin (%) ((PBT + Finance Cost) ? Revenue ? 100)	8.06%	-6.22%	14.28%	Efficiency &utilization
Net Profit Margin (%) (Net Profit ? Revenue ? 100)	–6.53%	–1.61%	- 4.92%	Depreciation & finance

9. Return on Net Worth (RoNW)

RoNW has declined due to:

• Significant equity expansion from rights issue.

• Increased asset base from Annadevarapeta plant investment, yet to fully contribute income.

• Higher depreciation & interest burden.

• Wider net loss.

10. Disclosure of Accounting Treatment

The Company has complied with all Ind AS requirements with no changes in accounting policies during the year.

NOTE:

Readers are advised to kindly note that the above discussion contains statements about risks, concerns, opportunities, etc., which are valid only at the time of making the statements. A variety of factors known/unknown expected or otherwise may influence the financial results. We do not expect these statements to be updated or revised to take care of any changes in the underlying presumptions.

Readers may therefore appreciate the context in which these statements are made before making use of the same.

For and on behalf of the Board Arunjyoti Bio Ventures Limited

	Sd/-	Sd/-
	Nadimpalli Vishal	Pabbathi Badari
Place: Hyderabad	Whole-time Director & CFO	Narayana Murthy
Date: 04.08.2025	(DIN: 02745303)	Whole-time Director
		(DIN: 01445523)