Management Discussion and Analysis is given in a separate section forming part of the
Directors Report in this Annual Report.
1. Industry Structure & Development:
India is known for its varied culture and abundant heritage, and also one of the key
elements that specify the nations culture is its food. The substantial use spices in
cooking are just one of the specifying features of Indian food, making it special and
tasty. India is among the biggest producers as well as exporters of flavors worldwide,
with a rich history of flavor trading dating back to old times. The country is blessed
with an exotic climate and fertile soil that makes it perfect for the cultivation of a
variety of flavors.
India produces about 75 of the 109 varieties listed by the International Organization
for Standardization (ISO). The most produced and exported spices are pepper, cardamom,
chili, ginger, turmeric, coriander, cumin, celery, fennel, fenugreek, garlic, nutmeg &
mace, curry powder, spice oils, and oleoresins. Out of these spices, chili, cumin,
turmeric, ginger, and coriander makeup about 76% of the total production.
The Indian spices market is a quickly growing market, driven by a number of aspects
such as enhancing need for seasonings in residential and also global markets, the
development of the food as well as beverage sector, and also transforming customer
choices. The market is extremely fragmented, with a large number of gamers operating out
there, as well as is anticipated to expand at a CAGR of greater than 7% during the
projection duration (2020-2025). The growth of the export market for Indian seasonings is
likewise significant as well as is expected to proceed in the coming years.
The Indian spice processing industry have bright future as agro processing units
because India may be a big spice basket for majority of countries in the world as India is
the largest producer and processor of spices. India has been the largest producer of
spices for many years. India accounts for more than one-third of global production with
more than 75 varieties of spices, including cardamom, chilli, coriander, cumin, turmeric,
ginger, garlic, fenugreek, mustard, and pepper.
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
The Indian kitchen spice market provides numerous manufacturing opportunities. The
growing popularity of Indian cuisine around the world, as well as a shift in consumer
preferences towards branded, organic, and natural products are driving up demand for
spices.
Spice processing, blending and packaging, organic spice production, spice oil
extraction, spice export, and spice trading are all manufacturing opportunities in the
Indian kitchen spices market. The investment required for each of these opportunities is
determined by the size of the operation and the profitability is determined by factors
such as the cost of raw materials, machinery, labour, transportation, and product demand.
In addition to the manufacturing sector, there are many opportunities in spice
retailing, distribution, and e-commerce. As more people shop online, e-commerce platforms
provide an excellent opportunity to reach a larger consumer and grow their business.
The Company has already tie up with Reliance Retail Limited (Jio) to sale its products
online. We as a Company constantly puts an effort to on product quality, pricing,
marketing, and distribution and we concentrate on developing a solid business plan,
investing in quality control and research and forming strong partnerships with suppliers,
retailers, and distributors.
Threats
The spice market is becoming a more diverse and complex industry. Consumer demand for
spices is growing in different parts of the world, but there are also many challenges
associated with this expanding market.
The price of spices has been on the rise in recent years, as production has outpaced
demand. This has put pressure on small producers who cannot afford to increase prices. On
the supply side, there are also concerns about sustainability due to climate change and
increasing plant disease. Climate change may also impact yields, making it difficult for
farmers to replant crops after a devastating drought or frost event.
There are specific difficulties that the Indian flavors market is facing, such as the
presence of low- quality and adulterated spices in the marketplace, lack of
standardization and also quality control in the market, and high rates of natural flavors.
Another challenge that countries face when it comes to spice production is logistics.
Many manufacturers do not have enough warehouses or storage facilities to store all of the
spices that are being produced. This creates problems when it comes to transporting these
spices from the producers to the markets which makes it difficult for spices to reach the
markets.
One way to overcome some of these challenges is to develop standardized protocols for
the procurement, storage, and distribution of spices. Additionally, efforts must be made
to ensure that spices are available at an affordable price. Greater awareness among
consumers about the various benefits of using spices could also help increase their
popularity.
3. Future Outlook
The latest report by IMARC Group, titled "India Spices Market: Global
Industry Trends, Share, Size, Growth, Opportunity and Forecast
2023-2028", the India spices market size reached INR 160,676 Crores in
2022. Looking forward, IMARC Group expects the market to reach INR 298,909 Crores by 2028,
exhibiting a growth rate (CAGR) of 10.8% during 2023-2028
The Company plans continuous expansion of its product portfolio and provide
differentiated offerings with the objective to capitalize on the emerging trends and
strengthen its position in the market.
Your Company will adapt, innovate and collaborate with established and emerging
e-commerce players to stay ahead in further evolution of this channel and increase share
of online sales and make its brands available across various e-commerce channels thereby
appealing to consumers need for convenience.
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, 2023 is Rs. 820.20 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 821.03 Lakhs and net profit is at 12.85
Lakhs during the year ended 31st March, 2023 as compared to 731.26 Lakhs and net profit
is at 9.92 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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