Foods & Inns Ltd Management Discussions

Indias Economic Overview

India continues to consolidate its standing as the worlds fastest-growing major economy, with the National Statistical Office (NSO) estimating real GDP growth at 6.5% for FY 2024-25. This trajectory is driven by the enduring strength of the domestic demand, sustained investment momentum, and a policy environment designed to affirm macroeconomic stability and inclusive development.

(Source: PIB - https://www.pib.gov.in/PressReleasePage. aspx?PRID=2132688)

The resilience of Indian economy is further supported by strong performance across key sectors. In particular, agriculture continues to play an instrumental role in stimulating rural demand and ensuring national food security. The sector is projected to grow by 3.8% in FY 2024-25, with foodgrain production rising 4.8% to 330.9 Million tons. The enablers of this steady performance include a favorable monsoon, 6.8% growth in Kharif crop, and a 2.8% increase in Rabi harvest. Strategic policy interventions, including a higher Minimum Support Prices (MSPs), expanded crop insurance coverage, improved irrigation infrastructure, and greater agri-tech adoption, are catalyzing rural economic vibrancy. This, in turn, is amplifying consumption and contributing to the overall economic stability.

(Source: PIB -Agriculture Outlook)

Inflation dynamics demonstrated marked improvement over the years. Headline CPI inflation eased to a six-year low of 3.2% in April 2025, with the average annual inflation for FY 2025-26 projected at 3.7%, comfortably within the Reserve Bank of Indias (RBI) target range. In response to this favorable inflation outlook, the RBI reduced the policy repo rate to 5.50% in June 2025, creating further headroom for growth-oriented monetary transmission.

(Source: PIB -Repo Rate & Inflation)

Indias macroeconomic strength is also reflected in buoyant capital markets, record-braking export performance, and a steadily improving investment climate. While global headwinds, particularly geopolitical tensions persist, the countrys strong fundamentals, sectoral depth, and prudent policymaking continue to position it as a reliable engine of global growth.

(Source: PIB -Manufacturing & Exports)

(Source: PIB-Resilient GDP Growth)

Indias return to a stable growth curve of over 6% reaffirms the strength of its economic architecture and its ability to maintain momentum amidst an increasingly complex global environment.

Outlook

Looking ahead to FY 2025-26, India is projected to grow between 6.3% and 6.8%, propelled by an adept convergence of structural reforms, expanding digital footprint, and rising domestic consumption. Government initiatives like Make in India and PLI schemes are boosting manufacturing competitiveness, while drawing strategic investments into high-growth sectors, including electronics, semiconductors, and renewables. Simultaneously, ongoing infrastructure projects across transport and urban development are expected to serve as strong enablers of productivity and economic scale. With strong policy backing and innovation-led momentum, India is well-positioned to unlock its long-term growth potential and chart a course of inclusive and sustainable development.

Industry Overview

Food Processing Industry

FY 2024-25 marked a pivotal year for Indias food processing industry, as the sector gained renewed traction on the back of strong Government support and focused infrastructure investments. Demonstrating the Governments commitment to harnessing agri-value chains, the Ministry of Food Processing Industries (MoFPI) increased its budgetary outlay by over 30%. This is a significant step forward for accelerating sectoral growth and strengthening Indias position as a global food processing hub.

As of February 2025, the MoFPI sanctioned the following under the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), a flagship scheme transforming Indias agri-food landscape.

To date, over 76,198.76 Crores has been disbursed as grants and subsidies, driving value addition, reducing post-harvest losses, and creating crucial backward and forward linkages across supply chains.

The sectors momentum is further boosted by:

> Continued expansion of cold chain infrastructure

> Targeted financial incentives

> Sustained skill development programs to build a future- ready workforce

(Source: https://www.pib.gov.in/PressNoteDetails. aspx?NoteId=154063&ModuleId=3)

As a key pillar of the Make in India vision, the food processing industry plays a central role in elevating Indias global competitiveness, promoting food security, advancing quality standards, and aiding inclusive economic growth. With sustained policy support and a solid pipeline of projects, the sector is poised to deliver long-term value to both domestic stakeholders and global agri-food supply chains.

Industry Trends

The food processing industry is undergoing an evolution, propelled by rapid technological innovations, shifting consumer preferences, and a growing focus on quality, safety, and convenience. These emerging trends are recalibrating operational models and unlocking new avenues for growth, investment, and competitiveness.

UHT Processing and Aseptic Packaging

Extending product shelf life and quality through advanced processing.

Rising Horticulture Demand

Increasing consumption of fruits and vegetables creating opportunities for market expansion.

Contract Farming and Direct Procurement

Strengthening farm-to-factory linkages for supply chain efficiency.

Modern Mechanical Systems:

Growing adoption of sophisticated heat exchangers and pasteurization for enhanced safety and consistency.

Frozen and Processed Foods:

Rising appetite for convenient, nutritious food solutions.

Digital-First Consumers:

Accelerating digital adoption reshaping the way consumers access products and interact with brands.

Fruit and Vegetable Pulp Market

The global fruit and vegetable pulp market, valued at US$ 3.31 Billion in 2024, is projected to reach US$ 4.80 Billion by 2030, recording a compound annual growth rate (CAGR) of 6.4%. Encompassing a diverse range of product formats - frozen, canned, and aseptically processed - the market covers multiple forms, including purees, juices, and concentrates. Its diverse applications across food & beverages, pharmaceuticals, and cosmetics highlight its strategic relevance in the global value chain.

The sustained growth of this market is driven by a rising preference for convenient, health-forward, and nutrient- rich products, alongside advancements in processing and preservation technologies that enhance shelf life and nutritional retention.

India is rapidly carving out a distinct position within this evolving global ecosystem. The domestic market is gaining momentum due to urbanization, rising disposable incomes, and a decisive transition towards plant-based diets and processed foods. Extensive use of pulps in juices, smoothies, bakery items, and ready-to-eat meals is driving sustained demand across urban and semi-urban consumer segments. Coupled with this, the Government support for food processing and cold chain infrastructure is further augmenting Indias competitiveness in domestic consumption and export markets.

The Foods & Inns Edge in Pulp

Foods & Inns Limited (Foods & Inns or F&I or The Company) is a differentiated force in the global food ingredients industry, well-known for its robust portfolio of premium-quality, nutrient- rich fruit and vegetable pulps, purees, and concentrates. Manufactured through leading-edge processing technologies and governed by stringent quality protocols, F&Is products cater to the worlds most precise standards across food & beverage categories. What sets the Company apart is the strategic ecosystem it has cultivated over decades. Foods & Inns longstanding partnerships with leading Fortune 500 beverage brands and strong focus on sustainability are the pivotal differentiators. Its proactive alignment with ESG and BRSR compliances is allowing the Company gain incremental market share from global beverage manufacturers, further boosting stakeholder trust while acting as a competitive filter. At the core of F&Is sourcing model lies a network of multi-generational farming relationships, cultivated on trust, transparency, and shared value. This continuity ensures a consistent supply of fresh produce round-the-year. Together, these pillars, including sustainability leadership, resilient sourcing infrastructure, and global customer loyalty create a powerful and defensible moat for the Company.

Spray Drying Vertical: Market Overview

The Indian spray dried foods market, valued at approximately US$ 60.1 Billion in 2024, is witnessing a phase of accelerated growth with projections indicating a market size of US$ 87.5 Billion by 2033, expanding at a CAGR of 7.7%. Spray drying, a precision technique that converts liquid or slurry into powdered form, offers distinct advantages such as preservation of color, aroma, and flavor, while ensuring extended shelf life and microbial safety. The surge in demand for ready-to-eat and convenience foods, coupled with urbanization, rising disposable incomes, and growth in the foodservice and bakery sectors, are driving the growth of this vertical.

Despite competition from freeze-drying alternatives, spray drying continues to dominate due to its economic and operational advantages. As digital distribution channels expand and evolving sourcing strategies bring fresh export opportunities, India is poised to strengthen its role as a key player in the global spray-dried foods landscape.

The Foods & Inns Edge in Spray Drying

Foods & Inns commands a competitive edge in the spray drying industry, driven by robust manufacturing capacity, a diverse product range, and alignment with shifting global demand dynamics. With an installed capacity of 1,100 MT and a calibrated expansion roadmap underway, the Company is ideally placed to capitalize on rising demand, especially as production continues to pivot towards Asia amidst the European energy crisis. Our broad portfolio, including vegetable, fruit, dairy, specialty powders, and natural colors address a wide spectrum of applications. This offering is further strengthened by value-added innovations like honey and cheese powders, tailored to the evolving needs of bakery, confectionery, and convenience food segments.

Frozen Food Market

The global frozen food market was valued at US$ 298.06 Billion in 2024. According to projections, the vertical is expected to reach US$ 363.07 Billion by 2028, registering a CAGR of 5.1% between 2023 and 2028.

Global Market Size (US$ in Billion)

Indias Frozen Food Market:

Perspective & Growth Drivers

Indias frozen food market is gaining strong momentum, reflecting global consumption trends and the evolution of urban lifestyles. Several structural drivers are shaping its upward trajectory as listed below:

> Rising urban middle class seeking quick, high-quality meal solutions

> Growing adoption of frozen ingredients through the rapid expansion of QSR outlets, dairy, and bakery sectors

> Surging proliferation of e-commerce, improving access to frozen foods

> Accelerating usage of IQF technology to retain taste, texture, and nutrition

> Increasing Government investment in cold chain and food processing infrastructure

> Widening demand for healthier, clean-label frozen products including fruits, vegetables, snacks, and ready-to-eat meals

The Foods & Inns Edge in Frozen Foods

Foods & Inns is strategically positioned to lead the premium frozen foods segment through a differentiated portfolio of frozen fruits, vegetables, snacks, and flatbreads crafted from high-quality, contract-grown produce. Harnessing the cutting- edge IQF technology, the Company ensures product integrity across freshness, taste, and nutrition. With growing demand for convenient, healthy options, F&I combines innovative processing and strict quality controls. This convergence, coupled with its enduring partnerships with global brands and retailers through private-label supply, continues to bolster its dominance in domestic and international markets.

Spices & Masala Market Overview

Indias spices and masala market, valued at US$ 9.16 Billion in 2024, is anticipated to reach US$ 20.49 Billion by 2033, expanding at a CAGR of 9.7% during 2025-33. This trajectory signifies a powerful blend of rising global appetite for authentic Indian flavors, growing demand for health-conscious and premium spice formulations, and the sectors increasing relevance in global export markets. A definitive shift toward packaged, contamination-free, and organic offerings is reshaping domestic preferences, driven by heightened awareness of hygiene and wellness. Simultaneously, innovation in spice processing, packaging, and distribution is enhancing product quality and extending shelf life. Indias global leadership in spice cultivation, backed by consistent Government support for the food processing ecosystem, is spearheading the sustained growth and product innovation within the spices industry, cementing the dominance in long run.

The Foods & Inns Edge in Spices

Building on its legacy of quality and innovation, Foods & Inns is an emerging player in the high-growth spices and masala segment. The acquisition of Kusum Spices and the subsequent launch of Kusum Masala brand mark major milestones in the Companys expansion strategy. With a growing distribution network across Western and Northern India and cutting- edge processing infrastructure at its Nashik facility, the Company delivers authentic, high-quality spice blends. To align with international safety and quality benchmarks and fuel global market entry, Foods & Inns is planning to invest in a sophisticated steam sterilization facility, highlighting its exportreadiness and product excellence.

Business Overview

Foods & Inns Limited continues to advance its leadership in Indias food processing sector with a diversified portfolio across pulps, spices, spray-dried powders, frozen foods, pectin, Ready-to-Eat (RTE), and Ready-to-Cook (RTC) products. Leveraging over five decades of domain expertise, the Company is scaling high-growth segments, such as Tetra Recart and pectin through a combination of targeted investments and strategic joint ventures.

In FY 2024-25, Foods & Inns broadened its global footprint by venturing into new international markets, including Finland, Canada, Hong Kong, and the Gulf region. Simultaneously, it strengthened its branded portfolio with increased market traction for its flagship brands, Madhu, Green Top, and Kusum, further enhancing visibility and consumer trust across key geographies. The receipt of ? 25.08 Crores in FY25 under the Government of Indias PLI Scheme served as a strategic boost to the Company and reinforced its stature within the countrys food processing value chain.

F&Is strong sustainability credentials, including certifications under SAI and Rainforest Alliance, along with its alignment to ESG, CDP and BRSR, continue to enhance its appeal as a trusted partner in the global agri-food ecosystem. Consistent absolute EBITDA improvements further demonstrate the Companys operational discipline, resilience, and readiness for a scalable, sustainable trajectory.

Product Portfolio

Foods & Inns offers a diverse and evolving portfolio of processed food solutions across multiple high-growth verticals. Each product line is built on a foundation of quality, innovation, and end-market versatility.

Business Verticals	What It Is	Key Applications
Aseptic Products	Sterile, preservative-free fruit and vegetable purees and concentrates with extended shelf life and high nutritional retention	; Beverages, dairy formulations, confectionery, and baby food
Canned Products	Ready-to-eat fruits and vegetables preserved in cans for ambient storage and global distribution	Retail, exports, and institutional catering
Frozen Products	Individually Quick Frozen (IQF) and blast-frozen fruits, vegetables, snacks, and flatbreads produced using high-quality inputs	Modern retail, HoReCa, and global private labels
Spray-Dried Powders	Low-moisture dehydrated powders made from fruits, vegetables, dairy, and specialty ingredients	Bakery, seasoning blends, nutraceuticals, and food innovation
Spices	High-quality ground, blended, and whole spices sourced from certified farmers and processed under global standards	Culinary preparations, health supplements, and personal care
Pectin	Plant-based gelling, thickening, and stabilizing agent derived from fruit waste, offering a sustainable gelatine alternative	Confectionery, dairy, personal care, and wellness products
Tetra Recart Products	Sustainable, shelf-stable carton packaging for a wide range of ready- to-eat and cook applications	Convenience foods, eco-conscious retail and export segments, RTE and RTC products

Brand Portfolio

Foods & Inns continues to strengthen its consumer-facing portfolio through a curated set of proprietary brands, each strategically positioned to serve distinct market segments with a sharp focus on quality, convenience, and authenticity.

A modern, premium brand offering a varied range of frozen fruits, vegetables, snacks, RTE, and RTC meals in sustainable Tetra Recart packaging. Designed for todays health-conscious, convenience-driven consumers, Green Top is gaining strong visibility across new-age retail channels.

Commitment to Quality

At Foods & Inns, quality excellence is a foundational element that is embedded long before production starts, ingrained through packaging processes, and sustained well beyond delivery culminates. Abiding by stringent quality control protocols, the Company operates through its seven state-of- the-art facilities, backed by globally recognized certifications in food safety, hygiene, and sustainable manufacturing.

These best-in-class standards are upheld by a seasoned leadership team with over 300 years of collective industry experience in the food processing sector. Their guidance fosters a culture defined by operational excellence, ethical responsibility, and continuous improvement.

By consistently delivering safe, traceable, and high-quality products, Foods & Inns continues to build enduring trust across global value chains.

Future Growth Opportunities for Foods & Inns

Amidst an ever-evolving consumption pattern across India and global markets, Foods & Inns is poised to scale its presence in fastgrowing, value-accretive segments. The following is the depiction of how emerging opportunities align seamlessly with its core strengths.

Opportunity Segment	Market Outlook	The Companys Strategic Play
Baby Food and Infant Nutrition	Global market projected at US$ 212.5 Billion by 2034; India expected to reach US$ 1.8 Billion by 2030	The Company aims to become a preferred ingredient partner for infant food makers by supplying aseptic fruit pulps and high-purity spray- dried powders, tailored for rigorous safety and nutrition standards of this sensitive segment
Quick-Service Restaurants (QSR)	Indian QSR segment expected to touch 71.78 Lakh Crores by 2032, expanding at a CAGR of 9.5%	The Company offers a sound portfolio of IQF vegetables, smoothie bases, and frozen snacks designed for rapid turnaround time - an essential requirement of QSR chains, cloud kitchens, and cafe formats expanding across metros and Tier 2 cities
Ready-to-Cook (RTC) Meals	India\u2019s RTC market anticipated to reach 76,800 Crores by 2030, clocking in a CAGR of 15	The Company is expanding the Green Top brand into RTE and RTC kits, offering instant curry bases, spiced gravies, Ready-to-Eat and semi-cooked snacks for modern consumers seeking speed without compromising on taste, quality and safety
Vegan and Plant- Based Foods	Global market heading toward US$ 65 Billion and India to touch US$ 1.2 Billion by 2030	The Company is set to capitalize on the plant-based wave through a new vegan frozen line, currently at the development stage, under the Green Top brand. It is going to feature products like tikkis, curries, and meal bowls tailored for health-conscious millennials and export markets
Strategic B2B and Institutional Channels	Sustained sectoral tailwinds across FMCG, aviation, railways, and D2C platforms	The Company is developing solutions for diverse applications, including pectin supply for clean-label FMCG brands, Tetra Recart meal formats for airline and railway catering, and custom blends for D2C baby food brands

Financial Highlight: ( in Lakhs)

Particulars	FY 2024-25	FY 2023-24	FY 2022-23	FY 2021-22	FY 2020-21	FY 2019-20	FY 2018-19	FY 2017-18	FY 2016-17	FY 2015-16
Revenue from Operations	97,291.93	99,731.33	98,117.29	61,648.56	35,657.27	38,429.62	33,738.43	33,534.79	34,686.26	33,548.91
Other Income	1,396.39	774.10	287.32	762.48	1,200.81	462.66	285.18	735.95	1,439.16	378.60
Manufacturing & Other Expenses	90,857.53	87,907.17	88,388.73	56,833.07	33,694.01	35,419.68	31,373.42	30,946.31	31,675.58	30,608.67
EBITDA	7,830.79	12,598.26	10,015.88	5,577.97	3,164.07	3,472.60	2,650.19	3,324.43	4,449.84	3,318.84
Interest	5,780.33	4,547.69	2,727.43	1,889.09	1,443.42	1,140.69	1,338.69	1,805.56	1,818.22	1,970.36
Depreciation	2,050.46	1,629.39	1,394.32	1,323.68	1,243.82	1,240.39	1,150.76	1,044.92	940.15	800.58
Profit/(Loss) Before Tax	5,216.58	6,421.18	6,426.45	2,365.20	476.83	1,091.52	11,841.91	473.94	982.95	547.90
Taxation	1,049.57	2,155.00	1,825.00	820.00	71.00	310.46	2,800.00	270.00	275.00	156.42
Deferred Tax	(266.59)	595.68	(122.27)	(56.67)	16.96	(322.41)	(1,895.04)	(149.14)	156.09	330.00
Profit/(Loss) After Tax	4,433.60	3,670.50	4,723.72	1,601.87	388.87	1,103.47	10,936.95	353.08	551.86	61.48
What the Company Owned	FY 2024-25	FY 2023-24	FY 2022-23	FY 2021-22	FY 2020-21	FY 2019-20	FY 2018-19	FY 2017-18	FY 2016-17	FY 2015-16
Net Fixed Assets*	33,349.23	28,154.11	23,372.16	18,724.51	14,396.95	13,587.36	12,039.76	10,815.57	9,809.97	10,749.29
Investments	1,928.38	1,519.51	1,934.33	678.48	503.86	266.91	7.70	2,212.97	2,053.15	203.32
Current Assets, Loans & Advances	93,226.10	72,178.06	55,276.93	36,580.95	26,780.75	27,086.48	23,232.42	22,373.18	21,771.25	19,809.22
Deferred Tax	0.00	0.00	0.00	957.85	896.39	919.51	814.17	0.00	0.00	0.00
Total Assets	1,28,503.71	1,01,851.68	80,583.42	56,941.79	42,577.95	41,860.26	36,094.05	35,401.72	33,634.38	30,761.83
What the Company Owed
	FY 2024-25	FY 2023-24	FY 2022-23	FY 2021-22	FY 2020-21	FY 2019-20	FY 2018-19	FY 2017-18	FY 2016-17	FY 2015-16
Long-Term Funds	6,543.09	7,920.70	5,517.25	4,331.52	1,228.86	1,198.54	853.07	548.90	384.88	706.79
Short-Term Funds	36,193.66	38,375.29	28,213.59	16,906.00	15,070.41	11,806.95	8,941.63	24,923.79	23,495.96	21,467.01
Current Liabilities & Provision	30,411.18	14,215.01	15,324.38	15,951.31	8,016.65	10,900.00	9,289.33	1,048.65	2,036.28	2,461.52
Deferred Tax	1,052.53	1,332.52	155.15	0.00	0.00	0.00	0.00	1,082.14	1,105.79	822.07
External Liabilities	74,200.46	61,843.52	49,210.37	37,188.83	24,315.92	23,905.49	19,084.03	27,603.48	27,022.90	25,457.39
Equity Share Capital	734.15	567.64	509.38	503.38	503.38	503.38	167.79	164.19	160.59	145.10
Amount for Preferential Warrants	0.00	0.00	6,145.10	0.00	0.00	0.00	0.00	78.30	143.10	0.00
Reserves and Surplus	53,569.10	39,440.52	24,718.57	19,249.58	17,758.65	17,451.39	16,842.24	7,555.75	6,307.79	5,159.34
Networth	54,303.25	40,008.16	31,373.05	19,752.96	18,262.03	17,954.77	17,010.03	7,798.24	6,611.48	5,304.44
Total Liabilities	1,28,503.71	1,01,851.68	80,583.42	56,941.79	42,577.95	41,860.26	36,094.06	35,401.72	33,634.38	30,761.83

Financial Ratios (Standalone)

Particulars	FY 2024-25	FY 2023-24	% Change	Reasons if Change is >25%
Current Ratio	1.39	1.36	2.53	-
Debt-Equity Ratio	0.79	1.16	(31.99)	Equity subscription by warrant holders increased the equity capital base, resulting in an improvement in the debt-equity ratio.
Debt Service Coverage Ratio	1.59	1.64	(2.79)	-
Return on Equity (ROE)	9.40%	10.28%	(8.58)	-
Return on Capital Employed (ROCE)	11.21%	12.52%	(10.43)	-
Return on Investment (ROI)	(2.03)%	9.01%	(122.48)	Quoted non-strategic equity and mutual funds have delivered subpar returns.
Inventory Turnover Ratio	1.53	2.00	(23.56)	-
Inventory Holding Period (Days)	238.62	182.39	30.82	Slower call-offs against confirmed orders resulted in increased inventory holding days.
Debtors Turnover Ratio	4.84	5.92	(18.34)	-
Debtor Days	75.48	61.64	22.46	-
Creditors Turnover Ratio	4.30	7.05	(38.93)	Slower call-offs against confirmed orders resulted in delayed cash realization, which in turn led to slower payments to creditors.
Creditor Days	84.79	51.78	63.74	-
Net Working Capital Turnover Ratio	4.20	5.29	(20.61)	-
Net Profit Ratio	4.56%	3.68%	23.82	-

SWOT ANALYSIS

Leadership in Mango Pulping

A dominant player in Indias mango pulping industry, leveraging over five decades of domain expertise, strategic sourcing capabilities, and deep-rooted relationships with farmers.

Diversified and Evolving Portfolio

Strategic diversification beyond mango into guava, tomato, frozen snacks, spray-dried powders, spices, and pectin, driving category expansion and de-risking the portfolio.

Customer-Centric Approach

Well-known for quality excellence, product customization, and responsiveness, leading to long-standing relationships with marquee clients in India and abroad.

Sustainability Leadership

Voluntary disclosures, demonstrating the Companys proactive ESG orientation, strengthening its position as a partner of choice for sustainability-conscious global brands.

Cross-Selling Synergies

A widening product suit unlocking the opportunities to deepen wallet share with existing clients through bundled offerings and innovation-led collaboration.

Growing Demand for Packaged Foods

Rising urbanization, nuclear households, and a growing tilt towards hygienic RTE/RTC formats present strong domestic tailwinds.

Export Market Expansion

Ethnic food categories and diaspora-driven demand in global markets, coupled with F&Is stringent quality benchmarks, provide room for scale.

Private Label and Premiumization

Growing prevalence of premium frozen foods, pectin, and Tetra Recart formats, along with expansion in private-label manufacturing, offers opportunities to improve margin realization.

Supply Chain Digitalization

Integrating automation and digital tools across procurement, production, and distribution boosts traceability, reduces costs, and strengthens operational resilience.

High Working Capital Intensity

Seasonal procurement cycles, volatility in raw material prices, and diverse product mix lead to elevated working capital requirements, particularly in pulping and frozen segments.

Brand Transition Complexity

Moving from bulk processing to value-added, branded products demand continued investments in marketing, distribution, and consumer engagement.

Inventory and Debt Optimization

Balancing shelf-life management across perishable and longlife products, while containing financing costs remains a key operational priority.

Commodity and Currency Volatility

Fluctuating input costs, exchange rates, and freight expenses can exert margin pressure and impact pricing strategies.

Intensifying Price Competition

Rising competition in domestic and global markets necessitates sharp cost management, while maintaining product excellence - a key balancing act to stay agile.

Global Economic Uncertainty

Export exposure brings sensitivity to geopolitical disruptions, trade restrictions, and macroeconomic shocks.

Evolving Consumer Preferences

Shifting dietary trends, including demand for clean-label, plant- based, and functional foods, require sustained investments in R&D and innovation to remain relevant and future-ready.

Cautionary Statement

This Management Discussion and Analysis may contain forward-looking statements, which can be identified by terminology such as plans, expects, anticipates, believes, intends, projects, estimates, and similar expressions. These statements reflect the Companys current expectations regarding future business performance, strategy, product development, market positioning, expenditure, and financial outcomes.

Such forward-looking statements are inherently subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied. These include, but are not limited to economic volatility, fluctuations in earnings, increased competition, regulatory changes, ability to attract and retain talent, currency and interest rate variations, geopolitical developments, and delays or cost overruns in operations.

The Company undertakes no obligation to publicly revise or update any forward-looking statements, whether because of new information, future developments, or otherwise. Readers are advised not to place undue reliance on these statements, as past performance is not necessarily indicative of future results.