Bikaji Foods International Ltd Management Discussions

Economy

Global Economic Overview¹

The global economy expanded by 3.3% in calendar year 2024, supported by stronger-than-expected performance in the United States and several major emerging markets, along with ongoing fiscal and monetary support measures in China. Advanced economies including the United States, the euro area and Germany recorded GDP growth of 1.8%, while Emerging Market and Developing Economies grew at a more rapid pace of 4.3%. Although growth in advanced economies was more subdued, they continued on a stable path of recovery, which contributed to the overall upward revision of global growth estimates.

Global inflation declined to 5.7% in calendar year 2024, aided by improved supply chain conditions, reduced energy prices and moderate wage increases. With inflation easing and output rising at a steady rate, the risk of a major economic slowdown has diminished. Central banks and governments have started to reduce interest rates gradually, providing support for broader economic activity. Global trade is also rebounding, with projected growth of 3.3% for the year, although volumes remain below historical levels due to persistent supply disruptions and the introduction of new United States tariffs. Nevertheless, resilient demand and improving trade conditions are contributing to growth opportunities across sectors.

Outlook

The global economy is projected at 2.8% CY 2025. This slower growth is being influenced by high interest rates maintained by central banks to control inflation, reduced government spending due to rising debt levels and limited gains in productivity. These broader challenges continue to weigh in on overall global performance.

Global Trade growth is expected to be increase to 3.6% in CY 2025. Advanced economies are projected to grow by 1.4% in CY 2025, while emerging market and developing economies are expected to maintain a growth rate of 4.2% in CY 2025. Within Asia, India is expected to stand out as a key driver of regional growth.

Inflation is projected to gradually decrease to 4.4% in CY 2025 while advanced economies are anticipated to experience faster decrease in inflation rate from 2.6% in CY 2024 to 2.0% in CY 2025. Conversely, Emerging Markets and Developing Economies (EDMEs) are expected to witness a more gradual decline, with inflation projected at 8.1% in CY 2024 and 6.0% in CY 2025. Factors such as changes in local pricing structures and the removal of government price controls are contributing to the uneven pace of disinflation. Despite this, the overall trend points toward a more stable price environment ahead.

Indian Economic Overview

Indias economy recorded steady growth in FY25 with GDP rising by 6.2% aligning closely with the countrys ten-year average. Agriculture expanded by 3.8%, while the industrial sector grew by 6.2%. The services sector remains strong. Inflation in the country has eased and dropped to 4.9% in FY25, compared to 5.4% in the previous fiscal year. The Consumer Food Price Index (CFPI) has increased from 7.5% in FY24 to 8.4% in FY25. Despite global challenges, including geopolitical tensions and supply chain disruptions in the Red Sea region, Indias exports have shown resilience.²

Several other indicators reflect a positive trend for FY25. Gross Foreign Direct Investment inflows recorded a revival in FY25, increasing from USD 47.2 Billion in FY24 to USD 55.6 Billion in FY25. Total exports rose by 6.0% year-on-year during FY25. Capital expenditure saw an 8.2% increase and is likely to grow further. Indias foreign exchange reserves stood at USD 640.3 Billion, enough to cover nearly 11 months of imports and 90% of external debt. The government is also focusing on agriculture and supporting Micro, Small and Medium Enterprises (MSMEs) through initiatives like providing equity funding to enhance their potential and contribution to the economy. Further, the labour market has demonstrated positive developments. Rural consumption has shown steady strength, driven by solid agricultural performance. Agricultural growth reached to 3.5% in FY25, supported by a favourable monsoon season. This has contributed to resilient rural demand, reflected in the rising sales of fast-moving consumer goods (FMCG).

Outlook

The economy is projected to grow at 6.8% in FY26 reflecting a stable outlook. Looking ahead, consumer price inflation is expected to move closer to the Reserve Bank of Indias target of around 4% by FY26, helping to maintain price stability across the economy. Government capital expenditure is expected to pick up pace, especially in infrastructure, with increased fund allocation and improved utilisation by states. Strong tax revenues are helping the government to manage its expenses efficiently. Domestic demand continues to be resilient, driven by a growing middle class and robust rural consumption backed by good agricultural performance. Industrial capacity utilisation remains high, indicating steady production activity.³

PACKAGED FOODS IN INDIA

Industry Overview⁴

Packaged foods are pre-prepared and sealed to extend their shelf life and improve safety. It includes products, such as canned goods, snacks, beverages, frozen meals and ready-to-eat items. These products are popular because they save time and effort in meal preparation. In addition, these products clearly state important product information, such as, nutritional values, ingredients and expiry dates through labels.

This industry has experienced steady growth on the back of changing consumer lifestyles, heightened urbanisation and a growing inclination of consumers towards convenience. The rise of dual-income households is leaving families limited time for traditional cooking. This is leading to a heightened demand for easy-to-prepare and ready-to-eat foods. In addition, increasing disposable income and evolving dietary habits have further expedited the expansion of the packaged food industry.

Indias diverse food culture has encouraged companies to introduce region-specific products. This helps in attracting a wider range of consumers. Moreover, there is a growing shift towards healthier options. Manufacturers are reducing artificial additives and incorporating more natural, organic and nutritious ingredients to cater to the health-conscious consumers. Government support through stricter food safety regulations has also helped improve consumer trust in packaged foods.

Distribution channels have witnessed expansion. Supermarkets, hypermarkets, convenience stores, specialty outlets and online platforms are playing a significant role. However, the packed food industry continues to face strong competition among domestic and international players. To stay ahead of the curve, companies need to improve and innovate consistently.

Mapping the Distribution Reach

The packaged food industry in India is supported by a wide distribution network, which covers both retail and e-commerce distribution channels.

Offline Distribution Channels Local Neighbourhood Stores

These are typically small, family-run general stores that continue to serve as the primary source of daily food essentials for many households.

Big Retail Stores

These include large-format supermarkets and retail chains that offer a broad assortment of products, streamlined store layouts and frequent promotional discounts. They continue to expand their footprint by opening new outlets across both urban and rural regions.

Mini Stores

With the rising demand of quick and convenient shopping, smaller local outlets and mini-stores are gaining prominence. These stores can easily be reached on foot and are focused on convenience.

Non-Traditional Locations

Packaged food is no longer limited to malls or high streets. These products are now available in non-traditional settings such as office complexes, business parks, hospitals, airports and educational institutions, offering greater convenience to consumers.

Food Service Sector

Restaurants, cafes, catering services and other food establishments also serve as a distribution point for certain packaged food items.

Online Distribution Channels Online Marketplaces

Websites like Amazon, Flipkart and Big Basket have significantly augmented the convenience of purchasing packaged food items from home. These platforms offer lucrative pricing, quick delivery and a wide selection, especially in urban areas.

Instant Delivery Apps

Applications like Blinkit, Swiggy Instamart, Zepto and Dunzo offer super-fast delivery—sometimes in just 10 to 30 minutes. These apps are gaining prominence and are increasingly being preferred by consumers in busy urban locations.

Direct-to-Consumer (D2C) Brands

Brands are now selling their products directly to the consumer, skipping the middlemen. This approach is helping in the establishment of a better company-customer relationship.

Omni-channel Retailing

This approach provides customers with a seamless shopping experience across multiple channels, such as physical stores, online websites and mobile apps. It integrates inventory, customer service and sales data to ensure consistency.

Outlook

The Indian packaged food market is expected to grow steadily in the years ahead. It is projected to reach USD 210.81 Billion by 2032, growing at a CAGR of 7.08% during 2024-2032. In FY 2025, the market is likely to gain further momentum as urbanisation continues and busy routines become the norm. Further, the rising awareness of health and nutrition is encouraging food companies to reduce sugar and sodium, utilise clean labels and introduce high-protein, organic and gluten-free products. Online retail is also expected to play a bigger role, with more people turning to digital platforms for their grocery needs. With both domestic and global brands competing in the space, investments in product innovation, packaging and supply chains are set to witness an elevation. Government regulations that promote food safety and quality will further support the packed food industry growth.

Why choose Packaged FoodRs.

Safer and Cleaner to Eat

Packaged foods offer better hygiene through controlled processing and secure packaging. Consumers are increasingly preferring food options that reduce the risk of contamination.

Longer Shelf Life, Less Waste

Modern packaging methods such as freezing, canning and drying help extend the life of food products. This approach significantly reduces household waste and helps in the maintenance of steady availability of products in stores. Consumers can store food for longer periods of time without worrying about spoilage.

Nutrient-enhanced

Many packaged foods are now fortified with vitamins, minerals and functional ingredients to make them healthier, catering to health-conscious buyers. This nutritional enrichment helps promote better eating habits while maintaining the convenience that busy lifestyles demand.

Supports Healthy Lifestyles

With more people focusing on health and wellness, there is a rising preference for foods with less sugar, salt and fat. Packaged foods are evolving to meet these needs with healthier ingredients and minimal processing. This shift helps consumers to make daily better food choices.

Perfect for Busy Lives

Urban lifestyles and packed schedules have increased the demand for quick and easy meal options. Packaged foods like ready-to-eat meals save time and effort. They are especially popular among working professionals and small families.

Reliable Quality

Packaged foods offer consistency of taste, texture and quality, unlike non-packaged or generic items. These packed products provide consumers with the same trusted results on every purchase. This reliability builds confidence and loyalty among buyers.

Ready for Modern Demands

Urbanization, rising dual-income households, and time-constrained lifestyles are driving demand for convenient, shelf-stable food options. Packaged foods address these needs by offering consistent access to everyday essentials and on-the-go snacks, aligning with the consumption habits of a rapidly evolving consumer base.

Easy to Find and Buy

With the rising prominence of online shopping and modern retail outlets, packaged foods are more accessible than ever. Consumers can purchase from their phones or visit well-stocked stores near them. This convenience encourages more people to opt for packaged options.

All consumer Needs in One Place

Big retail stores and supermarkets offer a wide range of packaged foods under one roof. This one-stop solution saves time and simplifies shopping for customers.

Growth Drivers for the Indian Packaged

Food Industry

Government Support and Initiatives:

The Government of India is actively promoting the packaged food sector through various policies and initiatives. These initiatives help reduce logistics costs, improve supply chain efficiencies and create a supportive atmosphere for food processing industries. The governments efforts to enhance infrastructure and reduce logistics costs will also help enhance Indias manufacturing competitiveness. Policy support, such as the 100% FDI allowance in food retail for domestically produced products, has encouraged investment and expansion in the retail sector, including supermarkets selling packaged foods.

Technological Advancements in Food Processing:

The integration of advanced technology in food processing is a key factor driving the industrys growth. These advancements enhance the efficiency of processes, thereby, improving product quality and reducing post-harvest losses and presenting growth opportunities.

Rising Urbanisation:

More people are migrating to urban areas and leading hectic lifestyles. This is propelling the demand of packaged and convenient foods that contribute to greater time-efficiency. Further, urbanisation often leads to changes in dietary habits and cultural preferences, driving the demand for variety among packaged food products.

Improved Promotion by FMCG Companies:

Extensive advertising and promotional activities by FMCG companies, including product sampling and price promotions, are meticulously crafted to attract the consumers. This is resulting in a consistent and steady expansion of the processed food market.

Rising Export Opportunities:

The demand for processed food is particularly high in developed economies. This presents significant export opportunities for the Indian processed food industry. Indias increased integration with the global economy and proximity to key export markets position it as a strong link between trading countries.

Indias Dominance on Snacking

Industry Overview⁵

The Snacks industry of India is witnessing steady growth. This is supported by demographic shifts, rising urbanisation and evolving consumer preferences. As of 2024, the market was valued at H46,571.3 Crore and is expected to reach H1,01,811.2 Crore by 2033, growing at a Compound Annual Growth Rate (CAGR) of 8.63%. This growth is largely expected to be driven by the ascending demand of convenient, ready-to-eat products and a shift from non-packaged, generic snacks to hygienically packaged branded options.

The popularity of traditional Indian snack items, such as Samosas, Bhujia, Sev, Banana Chips and Murukku is on a rise both globally and domestically. Consumers are increasingly preferring regional and ethnic flavours, prompting companies to focus on preserving authenticity while enhancing shelf life. In addition, the health-conscious segment is growing, encouraging the introduction of baked, non-fried and natural ingredient-based snacks.

Retail expansion and digital distribution have played a key role in increasing the availability and visibility of snack products. While western-style snacks have gained some ground, the primary growth within the industry stems from consumers upgrading to branded traditional snack offerings.

Outlook

The Indian snacks market is expected to maintain a strong growth trajectory aided by rising disposable incomes, an expanding middle class and increasing exposure to organised retail. The sector is well-positioned for sustained expansion. Ethnic namkeen, a major category within traditional snacks, is projected to grow at nearly 16% annually over the next four to five years. This segment offers favourable margins and product diversity, making it a key focus for manufacturers.

Consumer demand is expected to shift further towards health-oriented and premium snack offerings. Regional taste preferences will continue to drive differentiation and companies that successfully balance authenticity with convenience are likely to witness sustained growth. The combination of strong domestic demand, an expanding distribution network and product innovation sets a clear path for the sustained development of Indias snack industry.

Segment-wise Organised Indian Snack and Sweet Market

Ethnic Namkeen and Snacks, Ethnic Bhujia and Western Snacks ⁶

The Indian namkeen industry, comprising traditional savory snacks like bhujia, sev, and mixtures, are positioned for significant expansion. According to market estimates, the sector is expected to grow by approximately USD 4.52 Billion (H37,51,600 Lakh) between 2024 and 2029, reflecting a Compound Annual Growth Rate (CAGR) of 10.2%.

Growth is being driven primarily by the expanding footprint of retail outlets in Tier-II and Tier-III cities. These regions are witnessing rising demand for convenient and affordable snack options, making namkeen an accessible choice for a broader consumer base. In parallel, the rise of online shopping platforms is reshaping distribution dynamics, enabling consumers to access a wide range of snack products without relying on traditional retail.

Despite strong growth prospects, the industry faces competitive pressure from alternatives such as potato chips and cottonseed-based snacks, which continue to command consumer interest. Sustaining momentum in this environment will depend on innovation in flavours, packaging, and distribution channels.

Sweets Market

The Indian sweets industry has deep cultural and traditional roots, with classic sweets which include favourites like rasgulla, gulab jamun, barfi, peda, soan papdi and ladoo. Sweets have always held a special place in Indian culture, playing a key role in celebrations and festivals. India is well known for its deep-rooted love for sugary delights. Despite the sustained popularity of these classic sweets, there is a growing trend of blending traditional flavours with modern twists.

The packaged sweets market in India is growing, mainly due to more people working and a growing preference for convenient, ready-to-eat options as it takes more time in preparation of sweets. These sweets come in various types of packaging like boxes, plastic tubs and tins. These products often come with nutritional info cited on the label and have a longer shelf life compared to non-packaged and generic sweets. Growth in sweet industry is also being propelled by improvements in food packaging and greater awareness of hygiene. Easy access through online and offline portals and the cultural tradition adds to the demand. To attract more customers, companies are offering organic, vegan and lactose-free options and are focusing on creative package designs.

Milk and milk-based ingredients form the core of traditional Indian sweets, with own-brand stores serving as the primary sales channel. Regionally, North India accounts for the largest share of the sweets market. As consumer preferences evolve and product offerings diversify, the dessert industry in India is entering a new phase of growth marked by innovation and increased demand.

The Indian bakery market, including desserts is expected to grow at a steady rate of 9.6% each year, reaching USD 17.44 Billion by 2028. This rising demand for sweets has also opened doors for many small businesses and new entrepreneurs to enter the market.⁷

Papad Market

Papad has been a beloved part of Indian meals for generations. It has been adding a crunchy texture and a burst of flavour to the dining experience. With its wide range of tastes and styles, it holds a special place in Indian cuisine, papad remains a staple in Indian households. The industry has embraced innovation and has introduced new flavours and healthier options to cater to evolving consumer preferences. On the export front, India maintains its position as the leading exporter of papad, with significant shipments to countries like Bhutan, US and Australia. This sustained growth highlights the enduring popularity of papad both within India and internationally.

Papad is a ready-to-cook item that is enjoyed as a snack or eaten with meals, either by frying in oil or roasting. It is usually made from ingredients like cereal flour, pulse flours, potatoes, or sabudana and can be prepared by hand or machine. While most papads are round, triangle or square shapes are also prevalent. India has a wide variety of papads, including popular types like Bikaneri Papad, Surti Papad, Chilli Garlic Papad, Appalam, Chana Papad and Kali Mirch Papad.

Major Split of the Industry by Region

The Southern and the Western regions are the primary drivers of demand for Indian snacks, together making up above 60% of the packaged food market, as shown in the segmentation chart. Key states contributing to this trend include Uttar Pradesh, Maharashtra, Gujarat and Madhya Pradesh.

Packaged Food Geographical Segmentation

Company Overview

Bikaji Foods International Limited is a major Company in Indias Fast Moving Consumer Goods (FMCG) sector, especially known for its wide range of traditional Indian snacks and sweets. It is one of the fastest-growing companies in the organised snacks market and has a strong international presence. The Company offers a variety of products including namkeen (savoury snacks), sweets, papad, western-style snacks, chips and cookies ranging from healthy to indulgent options. Bikaji is the top producer of Bikaneri Bhujia, a famous traditional snack that has a special Geographical Indication (GI) tag. Further, it is one of the largest producers of packaged sweets and the second largest in handmade papad production.

Bikaji is well-established in northern and eastern India and is working to expand its reach across the country, aiming to become a truly national brand. In its core markets, it leads in ethnic snacks and is gradually growing in other regions. The Company places significant emphasis on quality, flavour and smart packaging to keep its products fresh and safe, while sustaining their appeal. The family pack versions of its snacks are particularly popular among households.

To enhance its image and attract customers, Bikaji has teamed up with a celebrity ambassador, Amitabh Bachchan. It is also expanding into online shopping, modern retail and institutional sales to keep up with changing consumer habits. Strategically, Bikaji is strengthening its product range and expanding its production facilities across India to improve supply. Besides having a strong domestic market, the Company exports its snacks, sweets and frozen foods to many countries, such as the US, UK, UAE, aiming to expand its international presence.

Business Performance

Category Performance (in Cr.)

Particulars	FY25	FY24
Ethnic snacks	1733.20	1547.20
Packaged sweets	338.70	299.10
Western snacks	215.30	182.90
Papad	150.90	134.90
Others	108.60	62.80
Financial Performance
Particulars	FY25	FY24
Revenue (in Cr)	2,621.85	2,329.34
EBITDA (in Cr)	328.24	391.32
PAT (in Cr)	194.34	263.46
ROCE (in %)8	18.51	31.38
Debtors turnover (in times)	25.65	25.49
Inventory turnover (in times)	18.67	18.79
Interest coverage ratio (in times)8	16.29	31.15
Current ratio (in times)	2.60	2.28
Debt to equity ratio (in times)	0.10	0.10
Operating profit margin (in %)8	9.41	14.22
Net profit margin (in %)8	7.44	11.27
Return on net worth (in %)8	14.52	21.81

 

Risk	Description	Mitigation Strategy
Intense competition	Bikaji faces strong competition from both big brands and local players, especially when entering new markets. The competition is intense as all the players compete for the same shelf space and customer attention.	Bikaji has strengthened its market presence by expanding distribution to over 12.08 Lakh outlets, increasing advertising spend, and focusing on product quality. These efforts are made to achieve consistent growth and establish itself among the top three brands in newly targeted regions.
Price fluctuations	Prices of ingredients like chana dal, oil, spices, potatoes and dry fruits went up, which can reduce profits.	The Company booked raw materials early 11.5%, raised prices 3.6%, improved factory efficiency, with 30.7% margins and remained flexible.
Supply chain disruptions	Long monsoons disrupted papad production, especially in Bihar, causing supply issues.	The Company expanded its manufacturing and CFAs (Clearing and Forwarding Agents) across multiple states to reduce dependency on one region and improve supply.
Change in consumer preferences	The Company needs to keep itself aligned with the evolving snacking choice of consumers.	The Company focused on family packs, launched hit products like Paneer Bhujia, grew its western snacks segment, expanded frozen food for exports and enhanced online and modern trade sales.
Quality control issues	Maintenance of superior quality is critical for trust and brand image.	The Company places strong emphasis on high product quality, ensures legal compliance and has upgraded manufacturing facilities and protected brand value through consistency.
Regulatory Changes	Food regulators in India are mandating clearer labelling of nutritional content—especially for fat, salt and sugar—on the front of packages. This could influence customer choices, particularly for indulgent products like snacks and sweets, which make up most of Bikajis offerings.	Compliance team is working on updates and expects to meet the new requirements. This will result in alterations in packaging. The Company believes that this will not impact its sales and purchasing behaviour of consumers.
Slower Regional Growth	Bikaji observed slower revenue growth in Eastern India (especially Bihar) compared to other regions. This underperformance could affect overall expansion plans if not addressed.	The Company refined its approach in Bihar and heightened its focus on Eastern markets. Further, it made strategic changes in the past 3–4 months and expects improved results in upcoming years.

Future-Readiness and Market Expansion at Bikaji

Bikaji is strategically investing in future-readiness through leadership hiring, automation, and capacity expansion. Over the past 2.5 to 3 years, the Company has made significant capital investments—partially supported by the Production-Linked Incentive (PLI) scheme—to enhance production capabilities in its core markets (Rajasthan, Assam, Bihar) as well as in focus states (Uttar Pradesh, Punjab, Haryana, Delhi, Karnataka, and Chhattisgarh). The cumulative capacity has now reached an estimated 3.25 lakh metric tons, with new manufacturing plants commissioned at Raipur in March24.

To strengthen operational excellence, Bikaji has invested behind getting talent / team across functions and implemented sales automation systems like Distribution Management System (DMS) and Sales Force Automation (SFA). Over next few years, a couple of states currently as part of Focus States should move to the core market list as it continues to scale up.

A strong emphasis on product innovation has led to the successful launch of offerings like Paneer Bhujia and redesigned Western snacks. The Company is also expanding its exports business, particularly in frozen foods across the US and UAE, while testing the QSR space with a few pilot outlets planned over the next 18 months.

Distribution Expansion and Market Penetration

Bikaji has its continues focus on direct distribution, having added over 60,000 direct outlets in FY25, taking the total coverage to 3.11 lakh. The Company aims to add 50,000 outlets year-on-year, targeting a total of over 4.5 lakh direct outlets in next three years, which will further strengthen our penetration in Core & Focus markets.

To support this geographic expansion and enhance the customer service, Clearing and Forwarding Agents (CFAs) have been established in Ghaziabad, Raipur, Varanasi, Ahmedabad, and Pune. On the global front, the distributor network was extended in the UAE.

Bikaji enjoys reasonable presence in the modern trade and is also further strengthening its footprints in e-commerce & Q-comm platforms. Though these segments put together currently contributes around 8% of sales, online revenue has grown about 75%, underscoring strong digital momentum. Across all channels, the Bikaji Brand presence is in 12.08 lakh retail outlets over the year, reflecting a sustained commitment & progress to deepening market penetration by ensuring availability.

Transforming Operations to Boost Operational Efficiency and Revenue

The Company is improving its operations to drive better efficiency and revenue. One major goal is to increase capacity utilisation from the current 45%–46% to around 70% over the next 3–4 years, which would help reduce costs and improve returns like ROE and ROCE. The Company is also investing in automation and has recently merged its wholly-owned subsidiary, Hanuman Agrofood Private Limited, to eliminate duplicate work and streamline operations. In addition, the Company has secured a Production Linked Incentive (PLI) benefit of around H 261 crores from the Indian Government, to be received over six years. The Company has a separate export-related PLI that will reimburse up to H 23 crores for international advertising over six years.

Additionally, the commissioning of new plants in Raipur is expected to boost capacity and improve supply chain efficiency in the area. The Company is focusing on increasing the share of high-margin products, which currently make up about 13.5% of the business, with a target to grow this to 18%. These products typically offer 3% to 5% better margins than staples like Namkeen and Bhujia. The Company is also redesigning its Western snack range to improve performance. Looking ahead, The Company is aiming for a volume growth of 13%–15% over the next few years and expects a 2%–3% value increase this year through strategic price hikes.

Ensuring top-notch quality

The Company places strong emphasis on customer satisfaction by consistently delivering superior product quality. It adheres to all the required regulatory norms, both in India and in international markets and implements regular audits and quality checks to stay compliant. The Company has invested in the integration of advanced technology to ensure to-tier quality of its products, thereby, protecting its image and garnering trust and loyalty from its clientele.

Customer Support

The Company continues to focus on practices that support the health, safety and satisfaction of its customers. The Company believes that maintenance of top-tier standards of quality and hygiene is essential for customer satisfaction. The snacks and sweets are packaged in clean and contaminant free environment, making them a preferred choice over non-packaged and generic snacks. In addition, the manufacturing units are strategically located to ensure freshness and quality of its products.

The Company complies to the food safety rules set by bodies like FSSAI and lists all ingredients clearly on its product labels. This makes it easier for customers to understand what they are purchasing. The Companys neat and informative packaging has garnered the trust of consumers. Further, the Company offers a wide range of pack sizes, including popular family packs, which provide good value and meet the needs of different households. The Company prioritises the taste preference of its customers and provides traditional and Western snacks and regularly updates its product offerings. Additionally, consistent quality and strong branding initiatives implemented by the Company helps it to build trust.

The Company understands the importance of its stakeholders and is investing in building a strong team. The Company has recruited new leaders to manage operations better and is focused on hiring skilled professionals to strengthen the management team. This is part of a bigger plan to improve the operations and growth prospects of the Company. In addition, the Company merged Hanuman Agrofood Private Limited, a wholly owned subsidiary, to make operations smoother and avoid redundance. The merger will augment its efficiency by streamlining tasks.

The Company is investing in advanced tools and systems that will heighten the efficiency of its sales team. These tools support both back-end and front-end teams. This integration further highlights the Companys focus on simplification of procedures, while maintaining productivity levels. The Companys strong business performance and plans to grow across India and make it an attractive place for top talent. Winning awards, like the ‘Supply Chain Leader Award in the food industry, also boosts the Companys reputation as a great employer.

Accounting Treatment

The Audited Standalone and Consolidated Financial Statements of the Company, prepared in accordance with the Section 133 of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014 and the Indian Accounting Standards (Ind AS), along with the Auditors Report, forms integral part of this Annual Report.

Internal Control Systems and their Adequacy

The Company has a dedicated and skilled team that regularly reviews different parts of its operations throughout the year. These reviews cover areas like overall company controls, specific work processes and IT systems. The team also checks key business functions and looks into potential risks to make sure everything is running smoothly.

To support this, the Company also brings in an independent firm of Chartered Accountants, apart from internal auditor. These audits are done at regular intervals and follow proper auditing standards. The aim is to check how well the internal systems are designed and whether they are effective in managing risks, supporting day-to-day operations and ensuring all rules and guidelines are being followed. After each audit, a report is prepared with key findings and suggestions and this is shared with the Audit Committee, along with the Companys response.

The Companys internal controls are built on strong policies and clear procedures for all major activities. There is a clear structure for decision-making, well-planned business strategies, regular audits and timely reviews of the audit plans.

To ensure high standards of governance, the Company has several committees made up mostly of Independent Directors. These committees help oversee how well the internal systems are working and make sure everything stays efficient and effective. Details about these committees can be found in the Corporate Governance Report.

Cautionary Statement

The Management Discussion and Analysis Report contains statements regarding the Companys objectives, projections, estimates, expectations or predictions, which may be considered as ‘forward-looking statements according to the applicable laws and regulations. It should be noted that actual results may differ significantly from those expressed or implied in these statements. The Company is under no obligation to publicly amend, modify, or revise any forward-looking statements, whether due to subsequent developments, new information, events or any other reason.