foods & inns ltd share price Management discussions

Global Economy

The global economy is gradually recuperating from the repercussions of the pandemic and the Russia-Ukraine conflict. However, there are also positive developments evident in the short term. The COVID crisis has ended, supply chains have normalised, and the economy has displayed remarkable resilience in early CY 2023 despite all the challenges.

Going forward, the International Monetary Fund (IMF) forecasts a moderation in global growth, tapering from 3.5% in CY 2022 to 3% in CY 2023. Concurrently, projections indicate a decline in global inflation from 8.7% in CY 2022 to 6.8% in CY 2023, with a further decrease to 5.2% in CY 2024, reflecting a slight downward revision. Significantly, the slowdown in economic expansion is mainly concentrated in the advanced economies. It is projected that this decrease will drop from 2.7% in CY 2022 to 1.5% in CY 2023, with a marginal decline to 1.4% in CY 2024. European nations, especially, are encountering difficulties as they navigate through the consequences of the surge in gas prices sparked by the Russia-Ukraine conflict. In contrast, emerging markets and developing economies are poised for accelerated growth, projecting an upswing from 3.1% in CY 2022 to 4.1% in CY 2023. While progress is evident, it is crucial to approach the future with caution, as there are likely to be potential risks that warrant careful consideration.

(Source: https://www.imf.org/en/Blogs/Articles/2023/07/25/ global-economy-on-track-but-not-yet-out-of-the-woods

) indian Economy

India has emerged as one of the worlds fastest-growing economies, surpassing the UK to become the fifth-largest. Despite various global challenges such as liquidity issues, banking crises, and supply chain disruptions, the country has demonstrated remarkable resilience. This growth has been driven by substantial investment initiatives and spurred by the governments focus on capital spending. This has resulted in heightened capital accumulation and a surge in personal spending. Moreover, the private industry has played a vital role in advancing transportation infrastructure, logistics, and the general business landscape, creating an environment conducive for business growth. India comes out as a bright spot in the global economy and the country is marching ahead rapidly to take its place as one of the leading economies in the world. As the fifth-largest economy in the world, India is not only undergoing social and economic transformation but has also set its sight on achieving the USD 5 Trillion GDP mark. However, high inflation rate has been a persistent concern, consistently exceeding the Reserve Bank of Indias (RBI) tolerance level of 6.7% for FY 2022-23. To address this challenge, the RBI implemented quarterly increases in repo rate whenever the situation went out of control. According to the RBI, growth in India is anticipated to be driven by robust domestic demand and an increase in capital formation. The Indian governments focus on taxation measures will lead to higher collections, which will be allocated to financing various infrastructure development initiatives. This includes the production-linked incentive (PLI) schemes and the Saptarishi Budget, aimed at stimulating the economy and fulfilling the vision of the Amrit Kaal. The Indian economys success can be attributed to the active participation of a dynamic private sector and a government committed to creating a conducive business environment while maintaining a long-term perspective on economic stability.

(Source: World Economic Outlook, April 2023: A Rocky Recovery (imf. org) Indias Economy to Grow by 6.4% in FY2023, Rise to 6.7% in FY2024 : Asian Development Bank (adb.org) https://www.bankbazaar.com/home-loan/repo-rate.html https://www.forbes.com/advisor/in/personal-finance/inflation-rate-in india/#:~:text=Latest%20Inflation%20News,rate%20at%20

6.50%25.)

Food Processing industry

Indias food processing sector has emerged as a major catalyst for economic growth, displaying consistent annual growth of approximately 8.38% in FY 2022-23. Driven by robust demand fundamentals, shifting lifestyles, and favorable demographics, the industry is set to expand further and faster in the times to come.

This sector plays a pivotal role in promoting value addition, minimising wastage, enhancing farmer returns, and addressing concerns related to food security and inflation. By improving shelf life, providing role in Indias economic development andnutritious products, and encouraging crop diversification, food processing brings tangible benefits to both producers and consumers alike. The governments facilitation of 100% foreign direct investment (FDI) through the automatic route has attracted significant amounting to USD 5.72 Billion between 2014 and 2022. Indias competitive advantages, including abundant raw materials, cost efficiency, and supportive policy incentives, have further encouraged substantial investments in the sector.

The impact of these endeavors is clearly visible in the value of agricultural and food exports, including that of processed food products. This reached USD 46.11 Billion during 2021-22, contributing to approximately 10.93% of Indias total exports, valued at USD 421.89 Billion. As the food processing industry continues to grow and evolve, it is poised to play an even more global significant trade.

Key drivers

Supply chain infrastructure development through mega food parks and cold chain investments Focus on food safety and quality standards including nutritional labelling and certification Innovative product development using natural ingredients and strong R&D investments Emergence of food-based startups introducing new product categories and business models

Growth drivers

Make in India initiative

The Indian government has identified food processing as a priority sector under the Make in India initiative. The Ministry of Food Processing Industries is promoting Mega Food Parks to provide shared infrastructure like utilities, storage, and logistics in agricultural areas. This aims to boost the food processing industrys growth and attract investments.

Ease of doing business

To improve ease of doing business, the FSSAI shifted from product approval to ingredient-based approval in 2016. Under the Pradhan Mantri Kisan SAMPADA Yojana, the Ministry of Food Processing Industries follows a transparent online selection process for grants through the SAMPADA portal.

This enables real-time monitoring of key performance indicators. The government-led PLI scheme is a gamechanger for the manufacturing/processing companies in India. The governments intent to create manufacturing champions based out of India is expected to further enable the food processing industries.

Business overview

Foods and Inns is thriving in the highly favorable business environment for the Indian food processing industry, capitalising on the increasing demand for processed fruits and vegetables. The Company received its first tranche of incentives from the Government of India under the PLI scheme for FY 2021-22 on July 13, 2023. The Company perceives this as a strong vote of confidencein its vision, potential, execution, and commitment to excellence. The financial support received through these incentives will enable Foods and Inns to expand its operations, invest in cutting-edge technologies, and further strengthen its position as an industry leader. The Company has completed the committed capex and achieved the sales revenue targets committed for FY 2021-22 and FY 2022-23 as role in the growth of the industry, as more per the commitment made under the scheme. The incentives likely to be received over the next 5 years under the scheme are further expected to help the Company grow and multiply over the coming years.

Foods and Inns unwavering commitment to sustainability and ethical manufacturing practices, differentiates it from the commoditised nature of this industry enabling it to become the preferred supplier to top brands globally. The Company actively embraces renewable energy, water conservation measures, and effective waste management initiatives, demonstrating its dedication to minimising its environmental footprint.

The domestic soft drinks industry also experienced a year of robust growth. Some factors for this growth include the resurgence of out-of-home channels and pent-up demand driven by consumers returning to socialising along with increased outreach in rural electrification and increase of capacities by large brands.

The Indian beverages industry presents significant opportunities in the future, driven by deeper penetration into rural markets, an expanding demographic profile, and a growing middle-class population. Furthermore, with the growth in per capita income, consumers are willing to spend more on premium and niche products. Urbanisation is also playing a significant move to urban areas and have greater disposable income. Foods and Inns secured equity commitments to the tune of 210 Crores in FY 2022-23. This was by way of issue of warrants to marquee investors in India to fund the Companys capex and working capital requirements to cater to the incremental demand. The Company will continue to grow through organic and inorganic means to create value for all its stakeholders. The Company has implemented several strategic initiatives to enhance its operational excellence.

Fruits and Vegetable Pulp Vertical

The global fruit and vegetable pulp industry has witnessed steady growth in the recent years. The industry was valued at USD 2.92 Billion in 2022 and projected to expand at a CAGR of 6.4% from 2023 to 2031 to reach USD 4.80 Billion by 2030. The rising popularity of natural and nutritious drinks and juices made from fruit and vegetable pulps is a key growth driver, as consumers increasingly prefer plant-based foods and beverages. Fruit and vegetable pulps appeal to changing dietary preferences as they are derived entirely from plant sources and align well with organic, sustainable, and clean-label trends.

India is emerging as a prominent market for fruit and vegetable pulps, with the industry forecasted to grow by USD 151.3 Million from 2022-27 at an accelerated CAGR of 7.96%. This growth is fueled by rising health consciousness among Indian consumers coupled with increasing spending on processed and convenience food products. The maximum demand is for mango, guava, tomato, and mixed fruit pulps.

Some of the key factors fuelling the consumption of fruit and vegetable pulp globally includes: a widening application in food products, rising private label offerings, investments in pulp processing technology, and capacity expansions by leading players. Developed regions like North America and

Europe are mature markets. The Asia-Pacific

Latin America offer strong growth potential owing to rapid urbanisation, rising incomes, and an increasing middle-class population. Overall, the fruit and vegetable pulp sector is poised for a prosperous future globally backed by a strong health and wellness trend.

(Source: https://www.grandviewresearch.com/industry-analysis/fruit-vegetable-pulp-market-report https://www.researchandmarkets.com/reports/5504882/ india-fruit-pulp-market-2023-2027)

Government initiatives

Providing financial assistance and fiscal incentives to develop common supply chain infrastructure including cold storage, packaging, logistics etc. to lower investment costs, increase viability, and ensure regulatory compliance PLI schemes to support the creation of infrastructure to encourage manufacturing champions based out of India Promoting processing clusters and strong linkages from farm to retail through measures like setting up Mega Food Parks with appropriate incentives Supporting the creation of services for R&D, testing, quality improvement, marketing etc., to enhance innovation, competitiveness, and eco-friendly packaging Creating a 2000-Crores fund in NABARD to provide affordable credit for boosting the food processing sector Assisting new and existing micro food enterprises through capital investment support along with strengthening linkages, common facilities, training etc., through the Pradhan Mantri Formalisation of Micro food Processing Enterprises (PMFME) scheme Supporting the setting up of new micro units and upgrading existing micro food processing units, through the PMFME scheme

outlook

The future looks promising for Indias fruit pulping industry due to rising private equity investments, favourable government policies, growing exports, increasing penetration of organised retail, launch of new brands, entry of large conglomerates in region and the consumer beverage space, and surging domestic demand for pulp-based juices, beverages, and food products. With companies investing in the latest pulping technology, automated plants, new product development, and expanding capacity, the industry is geared to grow. Focus on sustainability, farm linkages, and operational efficiency, and boosting fruit pulp applications in food manufacturing will continue to keep the outlook positive for this sector.

our Edge

Foods and Inns offers a wide range of high-quality, nutritious fruits and vegetables products to health-conscious consumers. The Companys range of fruit pulps, purees, and concentrates is processed using state-of-the-art technology. All fruits and vegetables also undergo stringent quality checks.

The Companys fruits and vegetables portfolio caters to diverse consumer segments. With a loyal customer base and proven expertise in this category, Foods and Inns is well positioned to further capitalise on the growing consumer demand for healthy, natural, and nutritious fruit and vegetable pulps. The Company continues to expand its portfolio and distribution reach to make safe and nutritious fruits and vegetable offerings accessible to more consumers in India and globally.

tailwinds for the Pulping division

Fruit pulp processing is crucial asitadds economic value to fresh fruits,reduces wastage,andminimises losses during commercialisation.

Pulp retains the innate nutrients and fibre content of fruits while enhancing their shelf-life. Fruit pulps can be stored for prolonged periods, which ensures their year-round availability. Pulp processing enables global consumption of region-specificfruits. With evolving dietary habits favouring healthy foods, fruit pulp is being increasingly used in jams, juices, dairy products etc. Some key growth drivers of this demand are extended shelf-life, flavour and nutrient retention, changing diets, and globalisation. Fruit pulp processing thus brings important advantages such as avoiding wastage, nutritional benefits, wider accessibility, and business growth. This business contributed to 91% of total sales for Foods and Inns. Mango pulping took the dominant share with 82% contribution to the total sales. The Companys tomato pulping business is also showing a lot of promise and contributed to 5.5% of the total sales.

spray drying Vertical

Spray drying is a key food preservation technique used across the food industry to transform liquids into shelf-stable powdered solids. The process involves breaking up a liquid or slurry food ingredient into small droplets using a spray nozzle and making it come into contact with hot drying gas to instantly evaporate moisture and yield a dried powder. Some common spray-dried foods include powdered milk, cheese, sauces, soups, eggs, and more. Spray drying allows otherwise perishable foods to be transported and stored at room temperature while maintaining consistent product quality and taste. The global spray-dried food market continues to grow, valued at USD 54,122.2 Million in 2022. North America holds the largest market share at 27.8%, followed by Europe at 24.5%.

(Source : https://www.futuremarketinsights.com/reports/spray-dried-food-market)

Growth Enablers

Demand for diversity in food products - Consumers want more choices and varieties of food products, which spray drying can help ensure through customised powdered ingredients Shelf-life extension - Spray-dried powders have longer shelf lives than their liquid count

erparts, allowing for better preservation and less food waste

New product development - Spray drying allows food companies to innovate with unique flavor and texture combinations in powdered foods

Nutrient protection - The fast-drying process helps retain nutrients, flavours, and colours that may be lost in other drying methods

Customisation - Spray dryers can be customised to handle food ingredients with specific requirements

Food safety - The hygienic enclosed system prevents contamination of dried powders

outlook

The global spray-dried food market is projected to grow at a CAGR of 7.7% between 2023 and 2032, reaching USD 1,13,260.9 Million by FY 2031-32. North America holds the largest market share at 27.8%, followed by Europe at 24.5%. Some key factors for the growth of this market include rising demand for food product diversification, longer shelf life, and convenience food products. The Asia-Pacificregion is also an emerging market for spray-dried foods due to rising incomes and changing lifestyles. Companies continue to innovate with new spray drying technologies to improve efficiency, product quality, and meet consumer demand. The spray-dried food process will continue playing a critical role in food preservation and product development going forward.

(Source: https://www.futuremarketinsights.com/reports/spray-dried-food-market)

our Edge

Foods and Inns specialises in producing high-quality spray dried powders for food and beverage applications. Using state-of-the-art spray drying technology and strict quality control, the Company manufactures vegetable, fruit, herbal, protein, and flavor powders. These innovative powders are widely used in products like cereals, snacks, sports drinks, infant formula, and supplements. The Company is committed to leveraging the latest advancements in spray drying to deliver premium powders that meet the highest standards of its customers.

Frozen Food Vertical

Riding on busy lifestyles and growing preference for convenience, the frozen food market in India is headed for exponential growth. From being valued at 144.3 Billion in FY 2021-22, it is projected to expand at a CAGR of 8.3% to reach

245.5 Billion by FY 2026-27. One of the key factors propelling this growth is the rising demand for ready-to-eat and pre-cooked foods.

Frozen vegetables enjoy the biggest share of the market at over 40%, followed by frozen fruits, snacks, meat, and seafood. To cater to evolving consumer tastes, companies are innovating with exotic frozen meals including parathas, biryani, pizzas, dumplings, and more that can be prepared in minutes. Restaurants also find it cheaper and easier to outsource frozen side dishes. E-commerce is emerging as a preferred distribution channel, enabling easy access to frozen foods. With Indians increasingly seeking convenience, the future looks promising for the countrys frozen food industry.

(Source: Frozen Foods Market in India 2023, Netscribes)

Frozen foods market in India

Growth Enablers

Emergence of nuclear families and solo living leading to greater dependence on processed and ready-to-eat foods

Rising overseas travel by Indians and exposure to global cuisines and foods, driving demand for frozen foods Increasing investments by frozen food companies in advanced cold chain infrastructure for storage and transportation

Entry of international frozen food brands bringing new product options to Indian consumers

Use of social media and digital marketing by brands to increase awareness and trial of frozen products

our Edge

Foods and Inns offers a wide range of premium frozen fruits, vegetables, snacks, and flatbreads made with high-quality, contract-grown ingredients. Using advanced IQF technology, the Company freezes fresh produce at peak ripeness to lock in nutrients and flavour. The frozen offerings like vegetables, fruits, snacks, and flatbreads provide healthy, tasty options for todays busy lifestyles. Foods and Inns leverages state-of-the-art processing for its diverse frozen food line that caters to consumer demand for convenience without compromising on quality. The Company caters to global brands and large-format modern retail by providing frozen fruits and snacks through the private label mode.

outlook

The Indian frozen foods industry is poised for robust growth in the coming years. Some key factors driving this positive outlook include the rising demand for convenience foods, increasing number of working women, growth in organised retail, and improvements in cold chain infrastructure. Companies are also innovating with new product variants and expanding their distribution networks. With growing health consciousness, the demand for organic, gluten-free, and low-calorie frozen foods is expected to rise. Overall, with its young population and rapidly evolving food preferences, India presents a high-potential market for frozen foods.

spices and masala Vertical

India is the undisputed global leader in the spice and masala segment, being the largest producer, consumer, and exporter. The country exported spices to 180 nations in FY 2021-22, with key importers being China, the US, Bangladesh, Thailand, and UAE. India accounts for over 75 of the 109 spices listed by ISO, with chilli, cumin, turmeric, ginger, and coriander dominating production and exports.

market size

50,000 Crores

Market Size by 2023

(Source : https://www.financialexpress.com/industry/ sme/msme-exim-spice-exports-doubled-in-the-last-nine-years-tweets-piyush-goyal/3101773/ https://timesofindia.indiatimes.com/business/india-business/indias-branded-spices-market-set-to-double-to-rs-50000-crore-by-2025-avendus-capital/ articleshow/85216625.cms)

Growth Enablers

Increasing demand from the food processing sector Export promotion and overseas market expansion Technology integration for improved productivity and quality Government support through policies and incentives Emergence of organic and value-added spices Investments in supply chain infrastructure Leveraging e-commerce and digital commerce Launch of eight crop-specific in key production and market centers by the

Spices Board outlook

The future looks bright for the Indian branded spices industry backed by production optimisation using technology, sustainability initiatives, online distribution, and foreign tie-ups. However, there is a need to address challenges like climate change, pest attacks, and regulatory issues. Overall, India is poised to retain its supremacy in spices globally by leveraging its internal strengths. The branded spice market in India has seen a lot of action in the last couple of years with ITC acquiring Sunrise Foods, A91 partners acquiring Pushp Masala, Dabur acquiring a majority stake in Badshah Masala, Wipro acquiring Nirapara, Tata entering the luxury spices market and Foods and Inns acquiring Kusum Masala. All the acquisitions barring that of Foods and Inns has happened at a ballpark of 3x of sales as the enterprise value.

our Edge

In FY 2018-19, Foods and Inns acquired Kusum Spices, gaining a foothold in Indias large and growing spice and masala market under the brand name Kusum Masala. Focusing on creating a distribution network, it offers essential spices like red chili, turmeric, coriander, and cumin powder along with garam masala, jeera powder, and a variety of other blended, value-added spices. Using advanced technology at its Nashik facility, the Company manufactures high-quality, authentic spices and masalas. It is gearing up to cater to untapped global markets where there are stringent food quality requirements.

B2c and B2B

To bolster its consumer division, Foods and Inns has taken strategic initiatives, including the establishment of a dedicated vertical and recruitment of professionals with expertise from the FMCG industry. Under this new approach, consumer products will be marketed under three distinct brands: Greentop, Kusum, and Madhu. The Company has successfully developed an enticing product range encompassing frozen foods, plant-based protein foods, fruit and vegetable pulps, and convenient ready-to-eat meals.

With a well-defined brand, product, and targeted market approach, coupled with the strategic foray into QSRs, the consumer division is now well-positioned for accelerated growth and increased market success.

tetra Recart

Tetra Recart is an innovative and sustainable carton packaging solution, providing a sustainable alternative to conventional tin cans and glass jars. Embracing its commitment to environmental stewardship, the Companys Tetra Recart offers packaging with a significantly reduced carbon footprint. Its rectangular design and lighter weight ensure efficient storage and transportation, maximising the potential of the products while aligning with the eco-friendly objectives of Foods and Inns.

To further strengthen its dedication to sustainable practices and capitalise on the advantages of Tetra Recart, the Company has taken a momentous step by securing an agreement for producing Tetra Recart in India. This will commence with the manufacturing facility in Vankal, Gujarat. The establishment of this facility is a part of the Companys investments under the PLI scheme This strategic decision to manufacture Tetra Recart in milestone in the Companys Indiamarksasignificant efforts to expand its sustainable packaging offerings and further reinforces its commitment to environmental responsibility. By seizing this opportunity, Foods and

Inns aims to pave the way for a more sustainable future while delivering superior packaging solutions to its valued customers.

(Source : https://www.tetrapak.com/en-in/solutions/packaging/ packages/tetra-recart)

Pectin

Pectin is a vegetarian alternative to gelatin. It is used as a gelling agent in various food products such as jams, jellies, pickles, and frozen items. India has traditionally relied on the import of Pectin, with 95% of the requirements being sourced from other countries.

Recognisingtheopportunitytoaddressthisdependence and contribute to Make in India, the Company has taken a strategic initiative by establishing a domestic pectin manufacturing facility in Chittoor, Andhra Pradesh the largest mango pulping belt in India.

At present, an overwhelming 95% of Indias Pectin demand is fulfilled through imports from prominent sources such as Brazil, China, and Mexico. Pectin, sourced from plants and fruits, holds tremendous potential in India, offering a vegetarian alternative unlike Gelatin, a similar substance derived from animal fat. Its remarkable attributes as a thickening and gelling agent find including food and beverages, pharmaceuticals, as well as personal care and cosmetics. Endorsed by the World Health Organization, Pectin stands as a safe and benign food additive, acclaimed for its harmlessness to the human body. The Indian Pectin market currently approximates 2500 MT, valued at around 300 Crores , while on a global scale, the pectin market is anticipated to attain a valuation of about 7,500 Crores by 2027, underscoring a trajectory of remarkable growth and underscoring its strategic significance.

Foods and Inns is setting up a manufacturing unit which will process fruit waste including mango waste and manufacture Pectin, Oils and Butter. The total cost estimated is approximately 8-10 Crores and the facility is expected to be ready by September 2023.

Government initiative

The Indian government has introduced the PLI scheme for the manufacturing and processing industries as part of its self-reliant India initiative and to make the country the manufacturing hub of the world. This scheme aims to strengthen domestic manufacturing capabilities and boost exports in the food processing sector. The primary objective is to incentivise and bolster food manufacturing entities by offering incentives tied to specific sales, employment, and investment targets.

Through the support provided by PLI, the scheme aims to expand/upgrade processing capacities and promote Indian food brands on a global scale. The ultimate vision is to nurture global food manufacturing champions originating from India. Additionally, the scheme focuses on increasing off-farm employment opportunities and ensuring favoruable returns for farmers by encouraging food companies to source raw materials locally.

The overarching goals of PLISFPI include enhancing Indias competitiveness in global food trade, establishing distinctive Indian food brands with wider international acceptance, and propelling the food manufacturing industry through capacity building and adoption of advanced technologies. Furthermore, the scheme is timely in encouraging Indian food brands to seize the opportunities arising from the China+1 policy, which involves global buyers seeking to diversify their sourcing locations.

With its comprehensive approach and strategic objectives, PLISFPI servesassignificantcatalyst in fortifying Indias position in the global food industry and fostering a thriving and dynamic food processing sector in the country.

standalone Financial Performance Review

Particulars	2022-2023	2021-2022	2020-2021	2019-2020	2018-2019	2017-2018	2016-2017	2015-2016	2014-2015	2013-2014
Revenue from operations	97,734.86	61,648.56	35,657.27	38,429.62	33,738.43	33,534.79	34,686.26	33,548.91	36,076.79	30,492.04
Other Income	669.75	762.48	1,200.81	462.66	285.18	735.95	1,439.16	378.6	270.28	603.64
Manufacturing & Other Expenses	88,388.73	56,833.07	33,694.01	35,419.68	31,373.42	30,946.31	31,675.58	30,608.67	31,499.31	28,088.99
Gross Profit/(Loss)	10,015.88	5,577.97	3,164.07	3,472.60	2,650.19	3,324.43	4,449.84	3,318.84	4,847.76	3,006.69
Interest	2,727.43	1,889.09	1,443.42	1,140.69	1,338.69	1,805.56	1,818.22	1,970.36	2,219.11	1,936.96
Depreciation	1,394.32	1,323.68	1,243.82	1,240.39	1,150.76	1,044.92	940.15	800.58	1,058.85	493.47
Profit/(Loss) Before 6,426.45 2,365.20 Tax	476.83	1,091.52			11,841.91	473.94	982.95	547.90	1,569.80	576.26
Taxation	1,825.00	820.00	71.00	310.46	2,800.00	270.00	275.00	156.42	343.65	8.99
Deferred Tax	(122.27)	(56.67)	16.96	(322.41)	(1,895.04)	(149.14)	156.09	330.00	(44.20)	52.11
Profit/(Loss) After	4,723.72	1,601.87	388.87	1,103.47	10,936.95	353.08	551.86	61.48	1,270.35	515.16
What the Company Owned
Fixed Assets *
Net Fixed Assets	23,372.16	18,724.51	14,396.95	13,587.36	12,039.76	10,815.57	9,809.97	10,749.29	10,461.57	10,554.46
Investments	1,934.33	678.48	503.86	266.91	7.70	2,212.97	2,053.15	203.32	211.37	211.64
Other Assets, Loans & Advances	55,276.93	36,580.95	26,780.75	27,086.48	23,232.42	22,373.18	21,771.25	19,809.22	17,463.02	19,286.16
Deferred Tax	0.00	957.85	896.39	919.51	814.17	0.00	0.00	0.00	0.00	0.00
* includes Capital work in progress
total	80,583.42	56,941.79	42,577.95	41,860.26	36,094.05	35,401.72	33,634.38	30,761.83	28,135.96	30,052.26
What the Company Owed
Long Term Funds	5,517.25	4,331.52	1,228.86	1,198.54	853.07	548.90	384.88	706.79	964.91	1715.77
Short Term Funds	28,213.59	16,906.00	15,070.41	11,806.95	8,941.63	24,923.79	23,495.96	21,467.01	18,010.69	19,305.23
Other Liabilities & Provision	15,324.38	15,951.31	8,016.65	10,900.00	9,289.33	1,048.65	2,036.28	2,461.52	3,380.56	4,435.05
Deferred Tax	155.15	0.00	0.00	0.00	0.00	1,082.14	1,105.79	822.07	492.07	536.27
	49,210.37	37,188.83	24,315.92	23,905.49	19,084.03	27,603.48	27,022.90	25,457.39	22,848.23	25,992.32
Net Worth of the Company
Equity Share Capital	509.38	503.38	503.38	503.38	167.79	164.19	160.59	145.10	145.10	145.10
Amount for Preferential	6,145.10	0.00	0.00	0.00	0.00	78.30	143.10	0.00	0.00	0.00
Warrents
Reserves And Surplus	24,718.57	19,249.58	17,758.65	17,451.39	16,842.24	7,555.75	6,307.79	5,159.34	5,142.63	3,914.83
	31,373.05	19,752.96	18,262.03	17,954.77	17,010.03	7,798.24	6,611.48	5,304.44	5,287.73	4,059.93
total	80,583.42	56,941.79	42,577.95	41,860.26	36,094.06	35,401.72	33,634.38	30,761.83	28,135.96	30,052.26

in Lakhs

Key Ratios

metrics		standalone
Particulars	as at March 31, 2023	as at March 31, 2022	% change increase/ (decrease)	as at March 31, 2023	consolidated as at March 31, 2022	% change increase/ (decrese)	Reasons if the change has been more than 25%
current Ratio	1.26	1.11	13.33%	1.26	1.11	13.22%
Debt Equity Ratio	1.08	1.08	0.00%	1.08	1.09	(0.90%)
Debt Service Coverage Ratio	0.43	0.28	52.53%	0.43	0.28	51.34%	Improved profitability has led to a better
							debt service coverage ratio.
Return On Equity (ROE)	18.5%	8.4%	119.27%	18.8%	8.4%	123.32%	mproved P i at led to an increase in RoE
							due to increased sales tonnage, better
							realisations, and improved EBITDA.
Return On Capital Employed (ROCE)	13.24%	10.38%	27.60%	13.47%	10.53%	27.95%	mproved EB i itda margins because of
							operating leverage on the total capital
							Employed has helped increase the
							ROCE. Deferred tax liability has not been
							considered for computation of ROCE.
Return On Investment (ROI)	(3.48%)	(17.31%)	(79.88%)	(3.48%)	(17.31%)	(79.88%)	the decrease in the market value of
							investments in quoted equity shares has
							led to a decrease in return on investment.
Inventory Turnover Ratio	2.61	2.41	8.15%	2.58	2.40	7.56%
Inventory Holding Period (Days)	140.06	151.47	(7.54%)	141.21	151.89	(7.03%)
Debtors Turnover Ratio	8.05	7.05	14.15%	8.11	7.12	13.79%
Debtor Days	45.35	51.77	(12.40%)	45.02	51.23	(12.12%)
Creditors Turnover Ratio (On Average	5.57	4.24	31.50%	5.51	4.27	29.10%	Equity infusion and increase in Working
Creditors Of 2 Years)							capital loans helped us pay off creditors
							in time which inturn helped us in
							improving EBIDTA.
Creditor Days	65.50	86.13	(23.95%)	66.26	85.54	(22.54%)
Creditors Turnover Ratio (On Closing	5.79	3.14	84.01%	5.63	3.17	77.83%	Equity infusion and increase in Working
Creditors Of The Period)							capital loans helped us pay off creditors
							in time which inturn helped us in
							improving EBIDTA.
Creditor Days	63.09	116.09	(45.66%)	64.79	115.22	(43.77%)
Net Capital Turnover Ratio	8.84	17.86	(50.51%)	8.64	16.92	(48.93%)	the creditor days decreased at a faster
							rate than the debtor days decrease which
							resulted in Lower Net Capital Turnover Ratio.
Net Profit Ratio	4.83%	2.60%	86.01%	4.82%	2.53%	90.37%	Improved demand for existing products
							and the addition of new products have
							increased operating leverage, which has
							helped to improve the ratio.

outlook for Fy 2023-24

With favorable industry tailwinds and the execution of strategic initiatives underway, Foods and Inns will continue expanding its portfolio and distribution reach to serve the growing demand for nutritious, convenient foods. The Companys focus areas include new product innovation, enhancing manufacturing capacity, and furthering sustainability practices across operations.

Human Resources

Employee Stock Ownership Plan (ESOP)

The Company has granted ESOPs to all employees who have finished at least one year of service as on a particular date and have ensured that their interests are aligned with that of the Companys growth.

The Company has one of the lowest attrition rates in the industry and it aims to create a caring, compassionate, and inclusive work culture, recognising that the dedication of its employees will shape its bright future.

swot

strengths

Market Leader in Mango Pulping Segment

Cross-Selling Opportunities: Diversifying new product Sales to Existing Customers Focus onGrowthandDiversification: Expanding into Other Fruits and Vegetables Strong Customer Engagement: Efficient Delivery Process and Customer Satisfaction Platform for Future Businesses: Creating a Foundation for Organic and Inorganic Growth

Weakness

Weakness	mitigation strategy
Working capital intensive	Diversification of
structure	Offerings: Moving away
	from the commoditised
	nature of business by
	adding ‘value added
	products in the portfolio
	Improving Financial
	:Efficiency Implementing
	strategies to reduce debtor
	and inventory days

opportunities

Growing Packaged Food and Beverage Consumption: Large and Expanding Indian Market International Market Expansion: Introducing Products to Cater to Indian Diaspora and Ethnic Food Aisles Premium Product Development: Targeting Consumers Seeking High-Quality Offerings Strengthening Supply Chain and Business Practices: Enhancing Operational Efficiency and Cost Reduction

External Threats

External Threats	mitigation strategy
Volatility in Commodity and Currency Rates: Led by	Passing Cost Pressures to Customers: Managing
inflationary pressures and mobility restrictions	inflationary impact by adjusting product prices
Broad-Based Cost Pressures: Including commodity prices,	Hedging Strategies: Using financial instruments to mitigate
input cost inflation, and freight challenges forex risks
	Cost-Plus Model Implementation: Dealing with inflation in
	input costs by adopting a cost-plus pricing approach
	Economies of Scale in Procurement: Leveraging business
	size to drive down procurement costs
	Diversifying Regional Presence: Reducing concentration
	risk by expanding into multiple geographies
	Extended Product Offerings: Adapting to changing
	consumer demands and uncertainties in nature

cautionary statement

The Management Discussion and Analysis contains ‘forward-looking statements, identified by words like ‘plans, ‘expects, ‘will, ‘anticipates,‘ believes, ‘intends, ‘projects, ‘estimates, and so on within the meaning of applicable securities laws and regulations concerning Foods and Inns future business prospects and business profitability. All statements that address expectations or projections about the future, the Companys strategy for growth, product development, market position, expenditures, and financial results, are forward-looking statements. All these prospects are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, ability to manage growth, competition (both domestic and international), economic growth in India and the target countries worldwide, ability to attract and retain highly skilled professionals, time, and cost

overruns on contracts, ability to manage international operations, Government policies and actions with respect to investments, fiscal deficits, regulations, interest, and other fiscal costs generally prevailing in the economy etc. Past performance may not be indicative of future performance. The Company does not undertake to make any announcement in case any of these forward-looking statements become materially incorrect in future nor shall the Company update any forward-looking statements made from time to time by or on its behalf.