1. This section shall include discussion on the following matters within the limits set by the listed entitys competitive position:
(a) INDUSTRY STRUCTURE AND DEVELOPMENTS :
India is a vast country and inhabitants of several of its regions have developed specific preference for certain oils largely depending upon the oils available in the region. For example, people in the South and West prefer groundnut oil while those in the East and North use mustard / rapeseed oil. Likewise several pockets in the South have a preference for coconut and sesame oil. Inhabitants of northern plain are basically consumers of fats and therefore prefer Vanaspati, a term used to denote a partially hydrogenated edible oil mixture of oils like Soyabean, Sunflower, Rice bran and Cottonseed oils. Many new oils from oilseeds of tree and forest origin have found their way to the edible pool largely through Vanaspati route. Of late, things have changed. Through modern technological means such as physical refining, bleaching and deodorization, all oils have been rendered practically colorless, odorless and tasteless and therefore, have become easily interchangeable in the kitchen.
The global edible oil market size was valued at approximately USD 205 billion in 2023 and is expected to grow to approximately USD 218 billion by 2024. With an estimated compound annual growth rate (CAGR) of 6.79% between 20242032, the market is projected to reach USD 369 billion by 2032. In the trading year (TY) 2024, global oilseed production is expected to reach a record 657 million metric tonnes (MMT), with production forecasted to rise to 682 MMT by TY 2025. This continued growth is due to higher soybean oilseed production and a recovery in sunflower seed output. In TY 2024, global soybean seed production is expected to reach 395 MMT, an increase from 378 MMT in TY 2023. This is attributable to improved yields in Argentina, the worlds leading exporter of soybean oil. While sunflower seed production in Ukraine has recovered Srightly following the RussiaUkraine conflict, growth is expected to remain subdued in TY 2025
Global primary and specialty oil production in TY 2024 is set to reach an unprecedented level of 224 MMT, an increase of 2.5% from 218 MMT in TY 2023. This growth is driven by increased production of soybean and canola oils, with canola oil output rising in Canada and China due to improved crush rates. Over the past decade, Indonesia and Malaysia have been the predominant producers of palm oil, together accounting for 84% of total production. Indonesia has contributed an average of 40 MMT, while Malaysia has produced an average of 19 MMT. Both countries benefit from optimal conditions for palm oil cultivation, making them key producing regions. Conversely, China and the United States have been major sources of soybean oil, together representing 48% of global production. Over the same period, China has averaged 16 MMT of soybean oil, with the US producing an average of 11 MMT. Over the past decade, the European Union (EU) and China have been leading producers of canola oil, accounting for 56% of the global production with an average output of 10 MMT and 7 MMT, respectively. Similarly, Russia and Ukraine have been the major producers of sunflower oil representing 57% of the global production with an average output of 5 MMT and 6 MMT, respectively.
In 2024, oilseed prices have been influenced by several key factors. Soybean prices experienced a Sright decline due to favourable weather conditions in major producing regions like the U.S., and higherthanexpected crop forecasts. However, towards the end of the year, prices showed some recovery due to increasing demand from China and concerns about dry conditions in Brazil. Canola oil prices have also Srightly weakened despite lower production forecasts in the EU and China, driven by seasonal harvest pressures. Sunflower oil prices remained stable, supported by concerns over droughtimpacted production in key regions like the Black Sea. While oil prices have begun to stabilize after volatility in previous years, there are still upward pressures, especially due to biofuel demand and geopolitical uncertainties.
India edible oils market is projected to witness a CAGR of 3.52% during the forecast period FY2025FY2032, growing from USD 19.86 billion in FY2024 to USD 26.19 billion in FY2032.
(b) OPPORTUNITIES AND THREATS :
India currently represents the worlds largest importer of edible oil in the world. Increasing disposable incomes, rising urbanization rates, changing dietary habits and the growth of the food processing sector represent some of the key factors driving the demand of edible oil in India.
In India, the rising consumer health concerns towards the high prevalence of coronary heart diseases, diabetes, obesity, gastrointestinal disorders, etc., are primarily driving the demand for healthy edible oil. Additionally, the market is further catalyzed by the growing awareness towards several health benefits of organic and lowcholesterol edible oil. As a result, various regional manufacturers are launching healthy product variants enriched with omega3, vitamins, and natural antioxidants. Moreover, the changing consumer dietary patterns and their hectic work schedules have led to the increasing consumption of processed food items. The rising demand for edible oil in the food processing sector as food preservatives and flavoring agents is also catalyzing the market growth in the country. Additionally, the elevating consumer living standards coupled with the increasing penetration of international culinary trends are further augmenting the demand for highquality product variants, such as olive oil, sesame oil, flaxseed oil, etc. Apart from this, the expanding agriculture sector along with the launch of several initiatives for enhancing the production of oilseeds in the country is also propelling the market. Furthermore, the Indian government is making continuous efforts to increase the domestic availability of edible oil and reduce import dependency. For instance, the government has proposed the National Mission on Edible Oil (NMEO) for meeting the countrys consumption need for edible oil, such as sesame oil, groundnut oil, safflower oil, palm oil, etc.
The growing popularity of low calorie content oils is one of the market factors for Indias edible oil industry. Indian consumer becomes more healthconscious and they stared preferring edible oil with low cholesterol content such as canola oil, olive oil, and rice bran oil in order to prevent the high risk of coronary heart disease, brain stroke and type 2 diabetes, associated with the transfat consumption. To capitalize on the increasing need for "balanced oils," all of the big oil companies have launched healthier versions of their standard offerings. In addition, edible oil is mostly used for cooking, and increasing customer health consciousness has raised the market for highquality edible oils. Since they are pressed at a lower temperature, coldpressed oils are considered highquality oils because the oils taste and characteristics are preserved, which is likely to fuel the market. Furthermore, the changing dietary patterns along with hectic lifestyle among working people is expected to change the consumer preference and will boost the demand for olive and coconut oil for cooking. Olive oil, which is a staple of the Mediterranean diet, is the healthiest and easiest oil to use. The antioxidant content of extra virgin olive oil is high, and it is completely natural. MUFA are the main fat found in olive oil and are considered a healthy dietary fat. It also helps to avoid heart disease, and as a result, they have become common in Indian markets. Olive oil has attracted significant demand despite its high price, and it is expected to rise exponentially once the domestically produced variant reaches the market.
The RussiaUkraine war, Israel War and war alerts in middle east has had an immense impact on the edible oil market and once again highlighted Indias vulnerability to the global edible market vagaries. Even before the war, global vegetable oil supplies had tightened due to a drought in South America which resulted in the reduction of soybean yield.
The global oilseed supply pattern will remain ample in 2025, but it is difficult for the increase in oilseeds in the crushing field to increase synchronouSry, resulting in the increase in vegetable oil supply to be less than that of oilseeds. The industrial consumption of vegetable oil will continue to increase, further tightening the supply and demand pattern of vegetable oil, and the center of gravity of vegetable oil prices is expected to remain at a high level.
The global soybean production has increased significantly, making the global oilseed supply pattern ample in 2025. However, due to production capacity constraints, it is difficult for the increase in oilseeds in the crushing field to increase synchronouSry, resulting in the increase in vegetable oil supply to be less than that of oilseeds. And under the influence of biodiesel policies such as Indonesia and the European Union, the industrial consumption of vegetable oil will continue to increase, further tightening its supply and demand pattern, and the center of gravity of vegetable oil prices is expected to remain at a high level.
In terms of soybean oil, the global soybean supply and demand has further turned to easing, but there is still uncertainty in SinoUS trade in the later period. Given that the concentrated sales period of US soybeans has passed, the impact on my countrys imported soybean supply in the first half of 2025 is relatively weak, and the overall supply of soybean oil is relatively ample.
As for rapeseed and sunflower oil, China has launched an antidumping investigation on Canadian rapeseed, and the risk point is the SinoCanadian trade issue. Putting aside this risk factor, the decline in rapeseed production in the European Union and sunflower seeds in the Black Sea region may increase the demand for rapeseed oil, and the center of gravity of international rapeseed prices is expected to rise, and rapeseed oil prices are strongly supported.
As for palm oil, there is a supply growth bottleneck caused by aging trees in the long run, and low inventory support brought by El Ni?o in 2024 in the near future. There is also uncertainty on the demand side due to Indonesias B40 plan, and the supply and demand themes are diverse. In the future, we will focus on the inventory rhythm of the production area. As long as the accumulation of inventory in the production area is not obvious, the price of palm oil is expected to remain high.
PET packaging of edible oil is preferred by consumers due to various significant reasons. The volume of a PET bottle is light, making them easy to handle and carry, offering convenience to the consumers. Also, PET packaging is resistant to breakage and is durable, thus eliminating possibilities of spillage and loss of the product, reducing wastage, and enhancing the consumers experience by avoiding leakage of oil.
We can see over last 25 years, how the land area under oilseed production has not grown meaningfully. So, whatever increase in our oilseed production has occurred in India is mainly because of our improvement in the crop yields (kg/ha or tons/ha). However, our yields are still nowhere close to the world average yields, leave aside the world best yields.
REGARDING AVAILABILITY OF COTTON SEED IN ENOUGH QUALITY TO THE COMPANY
It is a big challenge to the Company as to the availability of Cotton Seed in enough quantity at a lower price, unless Cotton growing area is improved. Hence these prices of raw materials have also relative impact basing on edible oil prices in Indian market as well.
(c) SEGMENT WISE OR PRODUCTWISE PERFORMANCE :
Presently the company has dealing in segments of seed processing and Wind turbine generators.
Cottonseed Procurement: The average procurement price of cottonseed increased from 27,530 per ton to 30,425 per ton during the year. This rise was primarily due to lower cotton crop through out the country, which, while beneficial for farmers, resulted in increased raw material costs for our operations. Edible Oil Segment: We experienced a positive uptick in the prices of edible oils, which contributed to improved revenue streams. This increase was driven by a combination of domestic demand and Government action of increasing the import duty which was necessary to augment oil seeds supply in India.
ByProducts: o Hulls and Linters: Prices for hulls and linters saw an upward trend, aligning with the overall market dynamics. o Deoiled Cakes: In contrast, the price of deoiled cakes remained subdued. This was largely due to the availability of lowcost Distillers Dried Grains with Solubles (DDGS) in the Indian market, which served as a competitive alternative in the animal feed sector.
Even though high prices of Cotton Seed, a discriminatory approach was adopted by the company in procurement calibrating sale prices and production costs. We have focused on optimizing operational efficiencies and enhancing product quality, which have been instrumental in sustaining our financial health. The company achieved a turnover of Rs. 15,905.00 lakhs as against Rs. 18,324.00 lakhs in the previous year. The Profit before taxes was Rs. 481.49 lakhs as against Rs. 176.44 lakhs and due to adjustment of differed tax, net profit for the period under review was Rs. 376.48 lakhs against Rs. 130.11 lakhs during the last year. The power project in Gujarat did not do well due to changed wind patterns and generated low income of Rs. 34.78 lakhs compared to Rs. 36.32 lakhs during the previous year.
OUTLOOK :
India edible oil has been witnessing rapid growth in the historical period and is expected to follow a similar growth trajectory in the forecast period as well. Consumers are increasingly switching to healthier oil and demanding pure and virgin oils that have been extracted and processed ethically.
Moreover, consumers prefer multipurpose oils that are odorless and can be used in cooking and baking, expanding the utility of such edible oils. For instance, sunflower oil is less pungent and can be used in both baking and cooking different culinary dishes.
The government initiatives and its various subsidies and programs are driving the growth of edible oil market in India. It is because the government schemes are formulated to increase the consumption of Indian produced edible oil in India and increase the exports of oilseeds at the same time, reducing the potential imports of edible oils from foreign countries. For instance, in March 2024, the Government of India launched initiatives to promote oilseed production and reduce the imports of cooking oils. The government allocated a total amount of USD 1.32 million to reduce the edible oils import and help the country in becoming selfreliant in the oilseeds.
The increase in spending on research and development to improve edible oil farming techniques and oil extraction processes has further helped to enhance the production quality and efficiency of edible oils. The government launches various schemes for farmers and processors for encouraging higher production and efficient supply chain in the India edible oil market.
(d) RISKS AND CONCERNS :
Owing to high import dependence, the edible oil prices in India are directly correlated to Despite decades of policy shifts, Indias edible oil sector has struggled to achieve selfsufficiency, largely due to a growing reliance on imports. The Union Budget 2025 has renewed the governments push towards reducing this dependency, reaffirming the vision of Aatmanirbhar Bharat. A key proposal in the budget involves developing over 600 value chain clusters across 347 districts, covering more than 10 lakh hectares annually. These clusters will be managed through partnerships involving Farmer Producer Organisations (FPOs), cooperatives, and a mix of public and private entities. They will provide quality seeds, training on Good Agricultural Practices (GAP), and advisory support on weather and pest management. Indias journey towards selfsufficiency in edible oils began in the mid1980s with the launch of the National Oilseed Development Project. This initiative, later restructured as the Technology Mission on Oilseeds in 1986, led to a near selfsufficient status by the early 1990s. However, the liberalisation of trade in 1994 marked a turning point. As import duties on edible oils were gradually reduced, cheaper foreign oils flooded the market, and domestic support systems were scaled back. Today, India imports 55 60% of its edible oil needs, mainly from Indonesia, Malaysia, Argentina, and Brazil. This dependency has been exacerbated by population growth, rising incomes, and evolving dietary preferences, pushing demand far beyond what domestic production can meet. With annual edible oil imports valued at around $20 billion, the country remains vulnerable to global price volatility, trade restrictions, and geopolitical tensions. To counter this, the government launched the National Mission on Edible Oils Oilseeds (NMEO
Oilseeds) in October 2024, with an allocation of 10,103 crore. Running from 2024 25 to 2030 31, the mission aims to boost domestic oilseed production from 39 million tonnes to nearly 70 million tonnes. It targets key crops such as mustard, groundnut, soybean, sunflower, and sesame, and promotes oil extraction from secondary sources. The goal: to meet 72% of the nations edible oil demand domestically by 2030 31. However, increasing oilseed cultivation presents a doubleedged sword. Unlike staple crops like wheat and rice, oilseeds are resourceintensive and often drive monoculture farming. This depletes soil nutrients, increases dependence on chemical inputs, and reduces biodiversity. In ecologically sensitive regions, such as Meghalaya, the expansion of oilseed cultivation could accelerate deforestation, disrupt fragile ecosystems, and place additional stress on water resources. The environmental implications extend further. Crops like soybean, mustard, groundnut, and sunflower are linked to largescale land conversion, often involving forest clearance and biodiversity loss. The introduction of oil palm cultivation under the edible oil programme is particularly concerning. Palm plantations have long been associated with soil degradation and destruction of wildlife habitats across Southeast Asia. Replicating this model in India could have irreversible consequences in ecologically vulnerable zones. Moreover, many oilseed crops require high water inputs and are grown in unsuitable regions, worsening groundwater depletion. Their susceptibility to pests demands heavy pesticide use, contributing to soil erosion, water pollution, and a decline in pollinators critical for crops like mustard and sunflower. Without established crop rotation systems, oilseed farming can reduce longterm soil fertility and increase vulnerability to climate shocks. To avoid these pitfalls, regionspecific, climatesmart solutions must be central to the mission. Agroforestrybased oilseed farming is one such strategy. Mustard, groundnut, and sesame can be intercropped with fruit trees like mango and guava or nitrogenfixing species such as moringa and acacia. In Rajasthan and Gujarat, integrating hardy trees with mustard cultivation can combat desertification and enrich soil health. In Tamil Nadu and Karnataka, groundnut intercropped with coconut plantations can reduce evaporation and enhance biodiversity.
Precision agriculture must also be part of the toolkit. AIdriven soil health monitoring, drip irrigation, and the use of biofertilizers can drastically cut water and chemical use critical in states like Maharashtra and Madhya Pradesh, where waterintensive soybean and sunflower cultivation is already straining local resources. Installing sensorbased irrigation systems in such regions could reduce water usage by up to 40%.
Developing climateresilient oilseed varieties tailored to local conditions can further reduce environmental stress. Droughttolerant mustard in Rajasthan and Haryana, floodresistant soybean in Assam and West Bengal, and salinitytolerant groundnut in coastal Andhra Pradesh and Odisha are essential innovations. Similarly, promoting oilseed farming on wastelands and degraded areas such as bund farming of sesame in Bundelkhand or castor intercropping in semiarid Gujarat can boost production without deforestation.
Incentivising organic oilseed farming and implementing beefriendly policies are also critical for ecological sustainability. Protecting pollinator populations in key cultivation states like Punjab, Haryana, and Uttar Pradesh can be achieved through integrated pest management (IPM) and restrictions on beetoxic pesticides. A holistic approach combining agroforestry, precision farming, resilient varieties, sustainable processing, and pollinator protection can enhance yields without compromising the environment.
Your Company continues to place a strong emphasis on the risk management and has successfully introduced and adopted various measures for hedging the price fluctuations in order to minimize its impact on profitability. Also, your Company has initiated settingup of a framework to upgrade itself to a robust risk management system. The key determinants of business risk profile of the company are their ability to overcome the regulatory risk and agroclimatic conditions. Other operational factors include operating efficiency, product diversity, market position, and ability to secure raw material as well as the commodity price and forexrisk management systems.
Thus, your Directors are optimistic in utilizing the production capacities and to overcome the Global and domestic risks and issues, to ensure better working results in the ensuing years.
(e) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY :
The Company has wellestablished processes and defined the roles and responsibilities for people at various levels. The control mechanism also involves well documented policies, authorization guidelines commensurate with the level of responsibility specific to the respective businesses. Adherence to these processes is ensured through frequent internal audits. The internal audits conducted are 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 which ensures that all transactions are properly reported and classified in the financial records.
(f) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE :
Cotton Seed is being processed on scientific basis and producing Edible Oil, Deoiled cake, Hulls and Linters. The Operational revenue of the company for the period under review decreased to
15,905.46 Lakhs as compared to 18,324.03 Lakhs registering a downfall rate of 13% on an annualized basis. The Operational profit before Tax for the financial year under report is increased to Rs. 481.49 Lakhs as against Rs. 176.44 Lakhs in the previous year.
(g) CAUTIONARY STATEMENT :
Statements in the Boards Report and Management Discussion and Analysis describing the Companies objectives, projections, estimates, expectations may be “forward looking statements” within the meaning of applicable security laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make difference to the companys operations include, among others, economic conditions effecting demand / supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and incidental factors.
2. DISCLOSURE OF ACCOUNTING TREATMENT :
Where in the preparation of financial statements, during the year there was no different treatment from that prescribed in an Accounting Standard has been followed, the fact shall be disclosed in the financial statements.
OTHER KEY FINANCIAL INDICATORS :
| Ratios | 202425 |
202324 |
Change |
% Change |
| Debtors Turnover | 18.48 |
25.15 |
(6.67) |
(26.52%) |
| Inventory Turnover | 5.82 |
8.58 |
(2.76) |
(32.17%) |
| Current Ratio ^ | 2.42 |
2.13 |
0.29 |
13.62% |
| Interest Coverage Ratio | 6.05 |
3.04 |
3.01 |
99.01% |
| Debt Equity Ratio | 0.43 |
0.50 |
(0.07) |
(14.00%) |
| Operating Profit Margin (%) ^^ | 3.63% |
1.43% |
2.19 |
152.88% |
| Net Profit Margin (%) ^ | 2.37% |
0.71% |
1.66 |
233.36% |
| Return on Net Worth ^ | 0.13 |
0.05 |
0.08 |
152.13% |
Notes: Decrease in Debtors & Inventory Turnover were primarily on account of lower sales turnover during the year in proportion to the turnover of the company in FY 202324 . ^Current Ratio is increased due to lower amount of other dues payable as on the financial year ending date. Interest Coverage Ratio & Debt Equity Ratio have increased due to increase in profits. ^^Operating Profit Margin (%) has increased due to increase in profits. ^Net profit Margin (%) has increased due to increase in net profit. ^Return on Net Worth has increased due to increase in profits.
Material developments in Human Resources / Industrial Relations front, including number of people employed
Your Company has been putting high emphasis on driving an effective and transparent performance culture with an open mindset. This is evident in the way performance is closely tracked and its impact on your Company
s financial sustainability monitored. Leaders today provide feedback not only on performance but also on demonstration of Core Values and Leadership skills defined for each layer of Organization hierarchy. Top performers and high achievers are recognized for their exemplary performance as part of the rewards and recognition program. In the year gone by, your Company has focused on functional training programs such as Food Safety and Regulations, Energy Management, Lean Sigma, TQM, Industrial Safety, Your Company provides learning opportunities through facilitator led learning, workshops and experiential learning through projects, programs and assignments. Your Company has continued to maintain amicable Industrial Relation footprints by focusing on increased worker level engagement through formal and informal communication and training forums. As of 31st March 2025 , your Company had 112 employees on its rolls.
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