Emmessar Biotech & Nutrition Ltd Management Discussions

Industry Structure and Development:

Emmessar Biotech & Nutrition Ltd (EBNL) operates within the global healthcare and nutritional products industry, which is slowly and steadily witnessing a transformation as compared to previous years, driven by increased consumer awareness, advancements in biotechnology, and a growing preference for holistic and integrative medicine. The integration of traditional and modern medical practices has gained traction, with a notable rise in the popularity of AYUSH (Ayurveda, Yoga, Unani, Siddha, Homeopathy) and other alternative medicine systems. This convergence of different medical disciplines aligns with EBNLs core philosophy and market approach.

Opportunities and Threats:

Opportunities:

- Increasing consumer preference for natural and integrative health solutions presents a significant market opportunity for EBNLs

VedaCeuticals.

- The Industry, in general, holds potential to expand into new international markets where holistic and alternative medicine is gaining acceptance.

- With investment in R&D, it can lead to the development of new products and treatment solutions, enhancing our competitive edge.

- Supportive Government initiatives towards promoting AYUSH and holistic healthcare can provide a favourable regulatory environment for growth.

Threats:

- Varying regulations across different countries can pose challenges to market entry and product approval.

- Increasing competition from both traditional pharmaceutical companies and other holistic healthcare providers.

- Dependence on specific raw materials and potential supply chain disruptions could impact production.

- The need to continuously educate and build trust among consumers about the efficacy of VedaCeuticals.

Segment-wise or Product-wise performance:

EBNLs product portfolio is diversified across seven categories, addressing over 200 different healthcare concerns. We are actively manufacturing CalmCream, while trading the following products through Emmessar Technologies Limited: CalmCream - Resq, Cute-n-Comely, Magicream, and Muscle Flex Gel. This strategic focus on both manufacturing and trading enables us to address a wide range of healthcare needs and expand our market presence effectively.

Our product segments include:

1. Dermatology: Products for obstinate skin problems.

2. Muscular Pains & Functions: Solutions for muscle problems.

3. Osteoporosis: Solutions for bone problems

4. General Health: Treatments for various chronic physical ailments.

5. Anti-Ageing: Products designed to combat the signs of aging.

6. Cosmetics: A range of cosmetic products for various skin types.

7. All types of Burns including Radiation: Treatments for all types of burns, including those caused by radiation.

Outlook:

EBNL is poised for robust growth, driven by our unique approach to healthcare through VedaCeuticals, which is a fusion of Ayurveda, the original science of health and Pharmaceuticals, the modern healthcare system. VedaCeuticals is the result of over 15 years of intense study of proven principles of health supported by R&D. This approach programs food ingredients to work as body-building nutrition and disease-curing medicine. Our focus will remain on expanding our product range, enhancing R&D capabilities and increasing market penetration both domestically and internationally. We are committed to leveraging our expertise in biophysics, biochemistry, biotechnology and AYUSH to create innovative and effective healthcare solutions.

Risks and Concerns:

Key risks and concerns include regulatory changes, potential market resistance to new products, supply chain vulnerabilities, and increasing competition. To mitigate these risks, EBNL will focus on rigorous compliance, strategic partnerships and continuous innovation.

Internal Control Systems and their Adequacy:

The Company has adequate system of internal controls commensurate with its size and nature of its business and ensure proper safeguarding of assets, maintaining proper accounting records and providing reliable financial statements. These systems enable integrity of financial reporting and adherence to guidelines defined for the Company. Internal controls are regularly reviewed by both internal and external agencies for its efficiency and effectiveness.

EBNLs internal control systems are robust and aligned with ISO certifications, including ISO 9001:2015 for Quality Management, ISO 45001:2018 for Occupational Health and Safety, and ISO 14001:2015 for Environmental Management. These systems ensure compliance, operational efficiency, and the highest standards of quality and safety.

Discussion on Financial Performance with respect to Operational Performance:

EBNL has made significant progress in developing a dedicated e-commerce platform for healthcare products. This platform, designed with advanced features and user-friendly functionality, aims to streamline the sale and distribution of our products. In the first phase, we successfully launched five skincare products out of the planned thirty-eight. This strategic initiative is expected to enhance our presence in the healthcare sector, making our products more accessible to a broader range of consumers and strengthening our market reach. The initial market response has been promising, focusing on the potential of this platform to drive future growth and customer engagement. Our products can be accessed through our website at: https://www.ebnl.org/ The following table exhibits, in summary, the financial performance of the Company for the year in relation to previous year.

	F.Y. 2023-24	F.Y. 2022-23
Sales Growth [ % ]	-45.53%	21.29%
Domestic Sales Growth [%]	-3.79%	116.77%
Export Sales Growth [%]	-63.90%	219.94%

Your companys total sales revenue for the year comprises domestic sales of Rs. 29.97 Lakhs [P.Y. Rs. 31.15 Lakhs] and export sales of Rs. 25.55 Lakhs [P.Y.Rs. 70.77 Lakhs].

Human Resources/Industrial Relations:

EBNL places a high priority on human resources and industrial relations. Our team of dedicated professionals drives our innovation and growth.

Industrial relations remain harmonious, contributing to a productive and positive work environment.

The total numbers of person employed in your company as on March 31, 2024 were 17

Environmental Initiatives:

As a responsible corporate entity, EBNL is committed to environmental sustainability and social responsibility. Our ISO 14001:2015 certification

reflects our dedication to minimizing environmental impact.

Key Financial Ratios:

(i) Debtors Turnover: 114.04

(ii) Inventory Turnover: 16.05

(iii) Interest Coverage Ratio: Nil

(iv) Current Ratio: 13.56

(v) Debt Equity Ratio: 0.45

(vi) Operating Profit Margin (%): 12.05

(vii) Net Profit Margin (%) or sector specific equivalent ratios, as applicable.: 28.97

Details of any change in Return on Net Worth as compared to the immediately previous financial year along with

a detailed explanation thereof: NIL

Cautionary Statement:

Certain statements in this Management Discussion and Analysis are forward-looking and involve risks and uncertainties. Actual results, performance, or achievements could differ materially from those expressed or implied in these forward-looking statements due to various factors, including but not limited to changes in regulatory policies, economic conditions, and market dynamics.

Registered office:	For and on behalf of the Board of Directors
Plot No. T-3/2, MIDC Area
Taloja-410208, Raigad, Maharashtra
	Srinivasa Raghavan Mathurakavi Ayyangar
Place: Mumbai	Chairman & Managing Director
Dated: August 14, 2024	DIN No. 00090266