CIAN Agro Industries & Infrastructure Ltd Management Discussions

Indias economy grew by 6.5% in FY 2024 25. supported by robust domestic demand, investment momentum, and resilient services. The economy ended the fiscal year strongly, with 04 growth at 7.4%, and entered FY 2025 26 on a firm note with Q1 growth of 7.8%. Global GDP growth in 2024 was recorded at approximately 3.3%. While indicating continued expansion, this figure remained below the 3.6% average growth rate observed between 2000and 2019. Growth patterns were notably de-synchronised, with developed economies generally experiencing a more pronounced slowdown compared to many developing nations, particularly in East and South Asia.

Looking ahead, forecasts for FY 2025 26 remain in the range of 6.3% to 6.8%, reflecting broad consensus among government. IMF. and rating agencies. Risks indude global trade uncertainties, U.S. tariff actions, and domestic inflationary pressures.

Indian economy

According to the Ministry of Statistics and Programme Implementation (MoSPI), Indias real GDP grew 6.5% in FY 2024 25. while nominal GDP rose 9.8% The economy crossed USD 3.9 trillion in size. Growth W3S supported by private final consumption expenditure (+7.2%) and gross fixed capital formation (+7.1%). Sectorally, agriculture expanded by 4.4%, construction by 9.4%, and services retrained strong

In Q4 FY 2024 25. GDP growth accelerated to 7.4%, with nominal GDP up 10.8%. This marked the highest quarterly performance of the year, highlighting resilience despite global headwinds.

Forecasts for FY 2025 26 are moderately optimistic. The Governments Chief Economic Adviser projects growth between 6.3% and 6.8%. Fitch Ratings expects 6.5%, while the IMF forecasts 6.4%. Goldman Sachs has slightly trimmed its projection to 6.4%. while BMI (Fitch Solutions) anticipates slower growth at 5.8%, citing risks from U.S. tariffs.

Consensus expectations therefore place Indias growth close to 6.5%. though performance in Q1 FY 2025 26 (7.8%) suggests the potential for upside if domestic momentum holds.

India recorded strong GDP growth of 7.8% in Q1 FY 2025 26 (Apr Jun 2025). driven by private consumption, capital expenditure, and robust services sector activity This strong start provides a buffer against external risks, although sustaining such momentum will depend on rural demand recovery, monsoon performance, and global conditions.

Outlook

The global economic narrative for 2025 is one of careful navigation through a landscape characterised by both resilience and emerging vulnerabilities. We have seen a period of steady, albeit subdued, growth, but the underlying dynamics are shifting. Policy adjustments worldwide and a resurgence of uncertainty are reshaping the terrain

As Fiscal Year 2026 begins, the Indian economy is at a critical juncture. Having demonstrated notable resilience in the previous year, it now faces a global landscape marked by uncertainty, with both opportunities and challenges shaping its trajectory. Several domestic factors are expected to underpin this growth Government-led infrastructure development 3nd job creation efforts, a strengthening of the manufacturing sector and the continued momentum in services and agriculture are key contributors.

Conclusion

India continues to maintain its position as the fastest-growing major economy, with growth of 6.5% in FY 2024 25 and a projected 6.3 6.8% in FY 2025 26. The structural drivers demographics, domestic demand, and digitalisation remain mtacL However, vigilance is required against risks arising from global trade disruptions, commodity price volatility, and geopolitical tensions.

Ircfcrcnccs

1. MoSPI National Accounts Press Release, May 2025

2. Press Information Bureau (PIB). Government of India

3. Economic Survey 2024 25

4. IMF World Economic Outlook 2025

5. Fitch Ratings and BMI (Fitch Solutions) Reports

6. Detortte India Economic Outlook 2025

7. Goldman Sachs India Growth Forecasts

8. Reuters. Times of India. Economic Times (Q1 FY 2025 26 GDP coverage)

* Industry structure and developments

A) FMCG Sector -

The Fast-moving consumer goods (FMCG) include products that are sold quickly and at relatively low cost such as packaged food, beverages, personal care, household items, and over-the-counter medicines These goods are in constant demand, and the industry plays a crucial role in Indias consumption-driven economy.

FMCG is the fourth-largest sector in the Indian economy, employing over 3 million people, which is about 5% of total factory employment. But now. rural areas are showing stronger purchasing patterns due to increased incomes, better road connectivity, and improved access to goods. Also, in FY 2024 25. over 70% of online grocery orders came through Quick commerce refers to ultra-fast delivery platforms (like Zepto, Blinkit. Swiggy Instamart) that deliver groceries and FMCG products within minutes. This model works well in urban centers with high internet penetration and smartphone use.

Indias food processing industry is rapidly growing. It makes up a significant portion of FMCG and is expected to touch ?40 lakh crore (-US$470 billion) by 2028.Programs like the Prime Minister Dhan-Dhanya Krishi Yojana target low-yield districts to improve farm productivity. Further, increased Kisan Credit Card limit (from 13 lakh to ?5 lakh) gives farmers more credit to spend, which can translate into more FMCG consumption.

Major tax cuts were introduced for FMCG items. GST on products like shampoo, toothpaste, talcum powder, etc., was slashed from 18% to 5%.Over 30 Farmer Producer Organizations (FPOs) started exporting FMCG-refaled agri-products like processed fruits, spices, and grains.

As of 2023, Indias FMCG market was valued at approximately US$167 billion. Its expected to reach upto US$616 billion by 2027, growing at a compound annual growth rate (CAGR) of 27.9% Another projection pegs it growing from USS110 billion in 2020 to about US$220 billion by 2025. at a CAGR of roughly 14.9%. Within FMCG, the food and beverage segment a key contributor accounts for around 3% of Indias GDP

B) Agro industry -

The Indian agro industry saw significant transformation in FY 2024 25. supported by rapid technological adoption, policy reforms, and increased public-pnvate investment These developments aimed to enhance productivity, sustainability, and market access for farmers while boosting the agro-processing sector

Several agritech startups received government support and venture capital funding, offering platforms for real-time weather updates, soil analytics, online marketplaces, and digital lending Expansion of Digital Public Infrastructure for Agriculture (DPI-A) under the governments India Digital Ecosystem of Agriculture (IDEA) initiative provided a unified platform fix farmers to access data, advisory services, and credit

The government introduced and expanded multiple schemes to address productivity, sustainability, and market linkagessuch as PM-Kisan Samman Nidhi. National Mission on Natural Farming (NMNF). Agn-lnfra Fund (AIF). PM Formalization of Micro Food Processing Enterprises (PM-FME), Minimum Support Price (MSP) reforms. Promotion of Millets (Shree Anna). e-NAM Integration, etc.

India retained its position as a top exporter of rice, spices, tea. and marine products, with total agri-exports surpassing $55 billion in FY 2024 25.The government facilitated new trade agreements and improved traceability and quality certification to boost access to high-value global markets.Special emphasis was placed on organic and Gl-tagged products for export promotion.

According to the Economic Survey 2024 25. the agriculture and allied activities sector contributes approximately 16% of Indias GDP at current prices. For FY 2024 25. agriculture showed a strong growth of about 3.8%. supported by favorable monsoon and record Kharif output

According to Statista (2024 data), the global agnculture share of GDP was about 4.02%.The World Bankdata confirms that in 2024. the agriculture, forestry, and fishing sector contributed approximately 4.0209% of global GDP.Long-term data shows that agricultures share globally has hovered around 4% over the past two decades.The average share of agnculture in GDP across ail countries (2023) was around 9.8% 9.9%. with large variation across nations.

C) Aluminium Sector-

Aluminium is the second-most used metal globally after steel, known for its lightweight corrosion resistance, high conductivity, and recyclability. It is a critical input for sectors like Aerospace. Automotive (especially Evs). Construction. Packaging. Consumer electronics. Renewable energy (solar panels, wind turbines).

Indian aluminium demand grew ~10% in FY 2024 25.Global demand growing -3 5% annually. There is rise in value- added product exports (rolled, extruded, anodized aluminium). India has aim to shift toward green aluminium production using renewable energy.Aluminium smelting is energy-intensive; hence, decarbonization is a priority.Projects like Rio Tmtos low-carbon aluminium smelter in India are key milestones.India pushing solar and hydropower integration in smelting plants.

India imposed anti-dumping duties on aluminium foil from China. Taiwan. Russia. BIS (Bureau of Indian Standards) now requires mandatory quality certifications .Aluminium Association of India seeks increased import duties and scrap policy reform

Outlook:

India aims to double aluminium consumption to ~10 million tonnes by 2030.Large investments from Vedanta (*1.28 lakh crore) and NALCO (*30.000 crore) highlight long-term confidence.Gfobal demand is expected to stay robust, driven by energy transition. EV growth, and infrastructure projects.

Business performance

During the Financial year 2024-25 under review, revenue from Agro Division of the Company is Rs. 21.085.06 Lakhs as compared to previous financial year of Rs. 15.045.99Lakhs.

Dunng financial Year 2024-25 under review. Revenue from operation of Health & Personal care division of the Company boost to Rs.651.83 Lakhs as compared lo previous year of financial year of Rs. 253.73 Lakhs.

Particulars	FY 2024-25	FY 2023-24	Explanation for change in the ratio by more than 25%
Current Ratio	0.66%	1.05%	The change in the ratio is due to regrouping of certain balances during the year in accordance with revised classification pnnciples & increase in advances received from customers, which h3s been accounted for under current liabilities
Debt Equity Ratio ratio	1.53%	1.20%	Additional borrowing caused the change in
Debt Service Coverage Ratio	1.47%	0.38%	Additional borrowing caused the change in ratio..
Net Profit Ratio (%)	0.37%	2.87%	The change in the ratio is due to increased profit after tax due to gain on fair valuation of Loan
Return on Equity Ratio (%)	1.04%	5.49%	The change m the ratio is due to increased profit after tax due to gain on fair valuation of Loan
Return on Capital employed (%)	7%	11%	The change is due to increase in Earnings before interest and tax.
Return on Investment (%)	7%	7%
Trade Receivables turnover ratio	7.67%	4.04%	The change is due to increase in trade receivables during the year.
Inventory turnover ratio	1.56%	0.53%	The change is due to increase in sales during the year
Trade payables turnover ratio	2.31%	1.63%	The change is due to a significant increase in the purchase of materials consumed.
Net capital turnover ratio	(1.92)%	10.65%	The change is due to increase in current liabilities.

E) Audit and Internal Controls -

CIAN has well-established processes and clearly-defined roles and responsibilities for people at various levels. This, coupled with adequate internal information systems embedded in business automation software, ensures proper information flow for the decision-making process. Adherence to these processes is ensured through frequent internal audits The Executive Committees monitors business operations through regular reviews of performance vis-a-vis budgets. An extensive program of internal audit conducted by the internal audit team, reviewed by the Audit Committee, and requisite guidelines and procedures augment the internal controls. The internal control system is designed to ensure that financial and other records are reliable for preparing financial statements and other information. These procedures ensure that all transactions are properly reported and classified in the financial records.

F) Risk Management -

The Company has a well-defined process in place to ensure appropriate identification and treatment of risks. Risk identification exercise is inter woven with the annual planning cycle which ensures both regularity and comprehensiveness. The identification of risk is done at strategic, business, operational and process levels. While the mitigation plan and actions for risks belonging to strategic, business and key critical operational risks driven by senior CIAN leadership, for rest of the risks, operating managers drive the conception and subsequent actioning of mitigation plans.

The key strategic, business and operational risks which are significant in terms of their impact to the overall objectives of the Company along with status of mitigation plans are penodicatly presented and discussed in the Board Meetings The Company, through its risk management process, aims to contain the risks within its appetite. There are no risks which in opinion of the Board threaten the operations and existence of the Company.

G) Human Asscts-

The Company continued to make significant progress on strengthening HR Processes and Practices to build organization for current as well as future sustainability during the year. The Company focuses on providing individual development and growth in a professional work culture that ensures high performance. The Company has concentrated on enhancing capability of employees that ultimately helps achieving better standards of operations. The Company organizes various Seminars for the upgradation of Employees working skills and management of workload.

H) Forward Looking Statement*

Cautionary Statement Forward-looking statements in the Management Discussion and Analysts section are based on certain assumptions/ expectations of future events and are stated as required by applicable laws and regulations. Actual results could differ materially from those expressed or implied. Major factors that could make the difference to the Companys operations could be agro climatic conditions, government policy, domestic & international market conditions and such other factors, which are beyond control of the management.

	For and on behalf of the Board
	Jaykumar Varma
Place: Nagpur	Chairperson
Date : OZ" 1 September. 2025	DIN: 00489792