Management Discussion and Analysis is given in a separate section forming part of the
Directors Report in this Annual Report.
1. Industry Structure & Development:
Indian spices have always been solicited for global use since the ancient times. The
climate of Indian subcontinent makes it an ideal place for spices to get cultivated
without affecting its regular produce. Spices have a variety of end user industries
including bakeries, cosmetics, pharmaceuticals and the most prominent one: food and
beverage industry. Due to increasing demand for spices on account of expanding
urbanization, during the forecast period of 2019-2025, the spices market will experience
growth with a standard compound annual growth rate (CAGR) of 4.80%.
We are engaged into manufacturing and supplying of blended spices, whole spices and
grinded spices. We have been supplying the traditional and delectable range of spices. We
are committed to manufacture and supply different types of spices, meeting highest quality
standards in line with customer requirements.
We have two brands "APPU MASALA" & "GAYATRI MASALA" with more
than 30 types of Spices and Masalas including instant mix range such as Pav Bhaji Masala,
Chaat Masala, Tea Masala, Garam Masala, Sambhar Masala, Punjabi Chole Masala, Biryani /
Pulav Masala, Kitchen King Masala and various Powders like Red Chilli Powder, Jeera
Powder, White Pepper Powder, Turmeric Powder. We are positioned as professional and built
a reliable reputation within Maharashtras spices arena.
2. Opportunities and Threats Opportunities
As growing acceptance by consumers, rise in the demand for Spices worldwide, we are
constantly striving to expand our line of products and we are always on the lookout for
complementary products that will add to our solution bouquet. We would seek product lines,
which have better scope for value addition and therefore offer us higher than average
margins.
Threats
Spices Industry is prone to changes in government policies. Any material changes in the
duty and fluctuations in raw material prices may adversely impact our financials. There
are no entry barriers in our industry, which puts us to the threat of competition from new
entrants. Other factors which may have impact on the performance are intense competitive
pressure, rising labour wages and perishable items. It is difficult to estimate the
revival period of the Company.
3. Future Outlook
Spices are parts of a specific tree that are edible, have medicinal properties and can
completely impact the flavor of a particular dish. Spices market has many different
applications including bakery products, sauces, dressings, beverages, frozen foods and
package foods. Food segment is one of the most promising segments of spices market and is
expected to grow with a compound annual growth rate of 5.10% during the forecast period of
2019-2025. We expect the India spices market to exhibit a CAGR of 11.15% during 2022-2027.
We are focused on achieving continuous, sustainable growth and leadership in the food
industry through manufacturing wide range of finished products. We are into continuous
efforts to provide innovative and deliver quality products to promote a healthy lifestyle.
We are also focused on maximizing profits by increasing sales and reducing production
costs and overheads.
4. Segment Wise Performance
The Company is engaged in manufacturing of masala and spices. The turnover of the
Company for the year ended 31st March, 2022 is Rs. 9.92 Lakhs.
5. Risk & Concern
The Company continuously works towards de-risking its business by adopting preventive
measures. However, there are certain potential risks being more industry oriented and the
management strongly feels the same could be mitigated by having systematic decisions and
measures. These Industry Oriented risks are as listed below:
Procurement Risk: Adequate availability of key raw materials at the right prices is
crucial for the Company. The major raw material being agro based, availability of same
depends on the vagaries of nature. Therefore, any disruption in the supply due to a
natural or other calamity or violent changes in the cost structure could adversely affect
the Companys ability to reach its consumers with the right value proposition. However,
the Company is adopting best possible measures to ensure constant supply at right prices.
Intense competition from unorganized sector: One of the characteristics of this
industry is the presence of unorganized sector offering products in loose unbranded form
which intensifies competition. The Company has invested significantly in building strong
brands which helps differentiate its products.
Credit Risk: The Company has the capability of producing spices and spices products
ware to suit the budget and tastes of customers and hence is optimistic of growth in
domestic market. It also enjoys customer loyalty.
6. Internal Control System and their Adequacy
The Companys well defined organization structure, documented policy guidelines,
predefined authority levels, and an extensive system of internal controls ensure optimal
utilisation and protection of resources, accurate reporting of financial transactions and
compliance with applicable laws and regulations. The Companys internal auditors review
business processes and controls. The Audit Committee of the Board then discusses
significant findings and corrective measures initiated.
7. Financial performance and Operational Performance
The company has achieved a total income of 730.18 Lakhs and net profit is at 9.92
Lakhs during the year ended 31st March, 2022 as compared to 405.50 Lakhs and net profit
8.83 Lakhs respectively for the last financial year.
8. Human Resources/ Industrial Relations:
Your Company considers its intellectual capital as its most valuable asset. Personnel
policies of the Company are designated to ensure fairness to and growth of all individuals
in the organization and aim to provide a challenging work environment. The Industrial
Relations was harmonious cordial during the year under review.
CAUTIONARY STATEMENT:
Statement made in this report in describing the companys objectives, estimates and
expectations are "Forward looking Statement" within the meaning of applicable
laws and regulations. They are based on certain assumptions and expectations of future
events but the company, however, cannot guarantee that these assumptions are accurate or
will be materialized by the company. Actual results may vary from those expressed or
implied, depending upon the economic conditions, Government policies and/ or other related
factors.
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