Bharat Agri Fert & Realty Ltd Management Discussions

FERTILIZER DIVISION:

During the financial year 2024-25, our Fertilizer Division encountered several operational hurdles. Challenges arose from subsidy-related delays, geopolitical tensions in Gulf countries, and limited support from our existing banking partners, which constrained our working capital and restricted our ability to procure raw materials at competitive rates. Consequently, the units capacity utilization remained sub-optimal.

In response, the management has undertaken a strategic pivot. We have decided to relinquish the working capital limits with our current bankers and explore leasing options for our fertilizer assets. This approach not only eliminates the need for working capital but also allows us to bypass complexities related to subsidy claims and market volatility.

Our focus for the next three to four years will shift towards strengthening our Realty and Hospitality segments. Several leasing proposals are currently under review, and implementation is targeted for 1st October 2025, subject to necessary approvals from the Department of Fertilizers (DOF) and completion of subsidy eligibility requirements.

These strategic realignments underline our resilience and proactive approach in adapting to industry challenges, with the ultimate goal of transforming our Fertilizer Division into a debt-free and revenue-generating unit under a lease model.

REALTY DIVISION:

The Realty Division has made significant progress in its flagship residential project at Majiwada, Thane. The company has secured critical regulatory clearances and approvals from multiple authorities including the Thane Municipal Corporation, Chief Fire Officer, Ministry of Environment & Forest (MOEF), and Civil Aviation authorities. A Commencement Certificate has been obtained for construction up to 35 floors of the proposed G + 60 floors tower.

Construction for the project, Wembley 24, commenced in October 2023 and is advancing swiftly. The show flat is complete and open for buyers. The company has also entered into a Memorandum of Understanding with a reputed agency to facilitate the sale of 200 flats by March 31 2027 (up to the 35th floor).

Wembley 24 will feature 457 premium 2/3 BHK residential units. The project is strategically located in a prime area of Thane West and has already seen strong traction, with 385 flats sold in Phase 1. Based on current market valuations, the project is expected to generate approximately Rs. 800 Crores in revenue.

This development marks a pivotal milestone for the company and reinforces our growing footprint in the Thane region. We remain committed to delivering high-quality living spaces while adhering to the highest standards of compliance and construction excellence.

HOSPITALITY DIVISION (ANCHAVIYO RESORT)

The company has initiated a major expansion at ANCHAVIYO Resort, having secured provisional registration under MTDC Certificate No. DoT/Ince/TP-2024/Appln-113/2025 dated 4th July 2025. This expansion will enable the company to access capital subsidies, GST reimbursements, power tariff concessions, and interest relief benefits as outlined in the MTDC policy dated July 18, 2024.

Upon completion, the resort will boast 250 rooms capable of hosting 500-550 guests, positioning ANCHAVIYO as a key destination for domestic and international tourists under the Honble Prime Ministers "Wedding in India" initiative. This expansion is in line with our vision of diversification and growth. Leveraging our robust infrastructure, we anticipate strong returns from this division in terms of revenue, profitability, and long-term shareholder value.

Our strategic roadmap across all three divisions reflects our commitment to sustainable growth, operational excellence, and value creation for stakeholders.

FOR AND ON BEHALF OF THE BOARD

FOR BHARAT AGRI FERT & REALTY LIMITED