Foods & Inns Ltd Management Discussions.

At Foods and Inns, we have focused on safeguarding our people, customers, and balance sheet while recalibrating our strategies to seize emerging opportunities. We are concentrating on newer products and markets, on creating a stronger digital backbone and focusing on greater customer- centricity for making the best of the infinite possibilities that this never normal world has to offer. We are strengthening our existing market presence and venturing into newer avenues which will help us develop a concrete path for a stronger tomorrow.

Global Fruit and Vegetable Processing Market

The global fruit and vegetable processing market was valued at USD 304.50 Billion in 2020 and is expected to witness CAGR of 7.3% during 2020-2028. The global food processing market can be primarily divided into Frozen, Canned, Dried, Dehydrated and others. Canned Fruits and Vegetables own the highest share as it is the most preferred choice both in developing and developed countries.

Key Growth Drivers

• Changing lifestyles and dietary patterns have led to the rise in demand for the Processed Fruits and Vegetables industry

• The Ready-to-drink market is estimated to register a CAGR of 6.1% over 2021-2026

• Growing health awareness and rising demand for convenience food and beverages is anticipated to drive future growth

• Longer shelf life without much alteration in taste and nutrient content encourages producers to increase the production of pulp

Geographically, the region of North America is expected to witness the fastest growth rate owing to rising demand from countries like the US, Canada and Mexico and rapid changes in consumer lifestyles.

Sources: https://www. fruit-and-vegetable-processing-market vegetable-processing-market


Rising working population and change in lifestyles are responsible for the steady growth in demand for Processed Fruits and Vegetables. The shift in consumer mindset towards healthy organic options is further expected to augment the value-added products demand going ahead. It will also open up enormous opportunities for the countries producing fruits and vegetables.

India holds an immense potential to capitalise on this growth opportunity. Our country is the second-largest producer of fruits and vegetables after China and the largest producer of fruits such Mangoes, Bananas, Papaya, and Guavas. India is also the second-largest producer of vegetables such as Onions, Potatoes, Green peas, Tomatoes, Cabbage, and Cauliflower. The Governments allowance of 100% FDI in Food Processing sector coupled with setting up 41 Mega Food Parks (of which 22 are already operational) is anticipated to boost the sector majorly. Further, steps are also being taken to boost the investments in this sector through the Production Linked Incentive (PLI) Scheme of the Central Government and other State Government-led initiatives. The intent of the Government is to create global manufacturing champions out of India, strengthen Indian brands abroad, increase off-farm jobs and ensure remunerative prices of farm produce to increase the income of farmers. Together, all of these hold great potential for the food processing sector.

Source:https://www. in vestin in/sector/ food-processing/fruits-vegetables

Fruit-Vegetable Pulp, Concentrate & Chutneys: Foods and Inns


At F&I, we are constantly striving for selfimprovement and looking for ways to grow from who we are today to who we can be tomorrow.

We commenced our journey with Mango Processing business 50 years ago. Today, we are one of the leaders in manufacturing Mango and Guava pulp in India. We cater to the Fortune 500 FMCG companies globally. This business is the bread-and-butter segment of the organisation. Under this segment, we have introduced other fruits and vegetables like Tomato, Ginger, Garlic, Banana, Chilli, Tamarind, and Papaya among others. These products have been added over the last couple of years to help augment our operating margins by absorbing fixed cost incurred during the non-peak season. We have been able to manufacture these products with minimal alterations to our existing lines. As we create markets for these new products, we are further adding value by extensively expanding our product portfolio.

Pulp & Puree


• Alphonso/Sweetened Alphonso j

• Hand Peeled Premium Sweetened Alphonso

• Totapuri

• Kesar/Sweetened Kesar

• Green Mango

• Sindhura

• Rajapuri Raspuri

• Neelam Dusheri Hanisa

• Blended Mango


White Guava (Grit/Grit Free)

Pink Guava

Black Grape

Red Papaya

Yellow Papaya




Red Chilli

Green Chilli

Dry Chilli (with Seed & Skin)

Chutneys & Pickles

Sweet Mango Chutney

Mango Slices for Pickles

Paste & Concentrations

* Totapuri

* Rajapuri


* Multi Fruit

* White Guava

* Red Papaya

* Tomato

Tamaring Beetroot



Operations Green

The Ministry of Food Processing Industries (MoFPI) launched the Operations Green scheme. This was initially introduced for a few fruits and vegetables only. The idea was to help reduce post-harvest losses for farmers by creating farm gate infrastructure, supporting suitable agro-logistics and help create storage capacity linking consumption centres.

Under the AtmaNirbhar Bharat Abhiyaan, the scheme witnessed extension for integrated growth and development of all fruits and vegetables. Thereby, ensuring fair prices to all farmers.

Being one of Indias largest Mango processors, the Ministry of Food Processing has written to Foods & Inns to be the anchor for the fruit Mango. The Government has requested to share inputs under Operation Greens for setting up value chain development projects.

Operations Green is anticipated to create significant value for the farmers. It will also offer accessibility of farming technology and selling opportunities for farmers to sell fresh produce at attractive prices. As per the Scheme, inter-state trade will become barrier-free, and the Government will facilitate the e-trade of farm produce.


This segment is anticipated to demonstrate a steady growth in demand. The addition of products under our portfolio will add to our growth. We enjoy a marquee clientele for Mango and Guava and gradually, our other products are also gaining traction. We are undertaking greenfield expansion in Vankal for fruit and vegetable pulp processing, tetra recart and cold chain facilities. The new state-of-the-art facility is expected to be operational by the end of calendar year 2022 and is expected to provide support to our Tetra Recart initiatives.

Global Spray Drying Powder Market

With burgeoning population growth, the demand for food and beverages have also increased significantly. Easy access to the internet and growing awareness has made people know about several aspects of food. Thus, opening many opportunities in this segment. Spray Dried Powder is one such market. Spray Drying is a widely used process for converting fruit and vegetable liquids into powder form. It is used for enhancing taste and adding flavours and colour to the final product. The process results in good quality, low water activity, easier transport, storage, handling and increased shelf life of fruits and vegetables.

Key Growth Drivers

• Rising demand for ready-to-eat foods coupled with convenience foods

• Increasing opportunities in the Food and Beverage sector, including bakery, snacks and confectionery segments

• Increasing need for extension of shelf life of food products for prolonged periods


The region of Asia Pacific enjoys the maximum share in the global Spray Dried Food market. The growing population and the increasing consciousness towards health and nutrition are expected to propel the global Spray Dried Food market further in emerging economies like China and India, which are expected to drive demand in the Asia Pacific. North America and Europe are expected to hold a significant proportion of the global Spray Dried Food market.

Source: spray-dried-food-market

Spray Dried Powder: Foods and Inns


At F&I, we are constantly allowing ourselves to grow and adapt to the changing requirements. We are continually scaling up today to meet the needs and requirements of future.

We are constantly looking for opportunities to add value to our offerings. Today, it is the fastest-growing segment of our organisation. We enjoy the capability of making Spray Dried powder from most of the fruits and vegetables, which is a rapid, cost-effective and scalable process. The high-quality powders with low moisture content result in higher shelf life and improve the foods taste.


Our extensive and robust customer base has led to a robust order book under this segment. This segment would be a significant value driver for F&I going ahead. Currently, our capacities are running full. We have planned a brownfield expansion at our Gonde (Nashik) Spray Drying facility. We will be more than doubling our existing capacity of 500 MTPA to 1,050 MTPA by the end of March 2022 in order to cater to the growing demand for spray dried products.

Global Frozen Food Market

The global Frozen Food industry was valued at USD 292 Billion in 2019 and is likely to witness a CAGR of 4.2% over 2020-2027, reaching USD 405 Billion by 2027. Frozen Food is defined as food products preserved under low temperature and used over a long period. It comprises various food products like Ready Meals, Vegetables & Fruits, Meat-Poultry and Soup. The segment also includes packaged ready-to-eat foods, bakery, snacks, and desserts.

Source: market

Key Growth Drivers

• Increase in consumer spending on convenience food and ready-to-eat meals

• Growing popularity of vegan, plant-based nutrition food as well as frozen fruits and vegetables

Increasing number of convenience stores along with cold chain logistics infrastructure


With the changing lifestyles and rapidly increasing working population, the demand for Frozen Food is rising consistently. Frozen Plant-based Nuggets, Strips, and Cutlets, among others, are likely to register a growth of 25%. This is expected to be closely followed by growth in Plant-based Burgers, Frozen Vegetables and Fruits by 10%, 8% and 5%, respectively.

Source: frozen-food-market

Frozen Food: Foods and Inns


At F&I, we believe continuous development is essential to uncovering our true potential. Our focus is on growing through every opportunity we get to change into what our capabilities shape us into.

We have been in the business of packaging Frozen Food since 1992. We co-pack Frozen Food for international brands across Frozen Snacks & Breads as well as Frozen Vegetables & Fruits. We recently launched innovative products in the Frozen Food segment and co-pack for some large retailers in Canada and witnessed remarkable success.

Frozen Foods

Purees & Pulp

Alphonso Mango

Totapuri Mango

Kesar Mango


Naan & Flatbreads

Plain, Garlic, Chilli Coriander

Aloo Stuffed Naan

Onion Stuffed Naan

Laccha Naan


Aloo, Onion, Mix Veg Paratha

Cheese Herbs

Cheese Onion

Malabar Paratha

Punjabi Samosa Aloo Tikki
Mix Veg Samosa Cocktail Samosa
Paneer Tikka Samosa Veg Burger
Paneer Chilli Samosa Veg Nuggets
Veg Roll Cheese Corn Nuggets
Onion Bhaji Cheese Pop pons
Veg Pakora Veg Cheese Fingers
Frozen Vegetables
Okra Sweet Corn
Beetroot (Slices, Dices, Spaghetti) Chick Peas
Onion Red and White-Whole & Diced
Green Peas
Carrot Pumpkin
Broccoli Tomato
French Blocks Capsicum Red & Yellow
Spanish Blocks
Green Chilli Whole and Chopped Zucchini Noodles (Spaghetti)
Frozen Meal Kits
Combo: Naan/Paratha With Chana Masala/Palak Paneer/Aloo Paratha
Combo: Stuffed Naan /Stuffed Paratha With Chole/ Rajma/Mutter Paneer
Combo: Rice with Rajma/Muttar Paneer/Palak Paneer/ Mix Vegetable


With sustained demand in this segment, we will sell our frozen food through the brand names GreenTop, Triveni Foods and ZatPat Zaldee. We plan to expand the SKUs in this Frozen Food segment once we launch our Tetra Recart vertical.

Global Spices and Masalas

The global Spices and Masala market is valued at USD 5.86 Billion in 2019 and is expected to register CAGR of 6.5% over 2020-2027. The rising fondness towards various flavours in Foods and Snacks is likely to prompt manufacturers to produce high-quality, appealing, and reliable products that can maintain consistent standards globally.

Source: analysis/spices-market

Key Growth Drivers

Seasoning and spices have been witnessing remarkable demand from the commercial and household sectors due to their taste and flavour, and associated health benefits + Pre-mix packages provide consistency in the food taste with minimum effort


Powdered spices account for more than 50% of the global spices revenue. Asia Pacific accounts for the highest contribution share in terms of being a leading producer and exporter. Growing consumer preference worldwide is likely to propel the demand and open considerable opportunities in this segment.

Spices & Masalas: Foods and Inns


At F&I, we understand the role and power of diversification in sustained growth. We strongly feel that strength lies in diversity and holds the key to a more secure future.

We acquired a 49-year-old partnership firm Kusum Masala, in October 2019 to take our first step towards implementing our strategy to shift from a pure-play B2B company to a company with presence across B2B and B2C. When acquired, it had a turnover of around Rs.18 Crores and positive Operating Cash Flows along with double digit EBITDA margins and positive PAT. The brand enjoys presence in the Western suburbs of Mumbai and the Middle Eastern markets as of today and we have recently invested creating a wider market presence for the brand and are hopeful of scaling the brand to greater heights in times to come.

Product Portfolio
Aloo Chat Masala
Bhadhani Hing Powder
Biryani Masala
Black Pepper Powder
Black Salt Powder
Cardamom Green Powder
Chane Ka Masala
Chat Masala
Chicken Masala
Chilly Kasmir Powder
Garlic Flakes
Garlic Powder
Ginger Powder
Jaljeera Mix
Kitchen King Masala
Madras Sambhar Powder
Meat Masala
Noodle Masala
Nutmeg Powder
Onion Flacks
Onion Garlic Dry Chutney Powder
Onion Powder
Pani Puri Masala
Papdi Chat Masala
Pav Bhaji Masala
Chilly Powder-Red
Chilly Powder- Red * Hot
Chilly Reshampatti Powder
Cinnamon Powder
Cloves Powder
Coriander Powder
Cumin Powder
Curry Powder - Hot
Curry Powder - Madras
Dabeli Masala
Dhan Shak Masala
Dry Mango Powder
Fish Fry Masala
Fish Masala
Garam Masala
Punjabi Garam Masala
Pickle Ready Mix Masala
Sandwich Masala
Tandoori Chicken Masala
Turmeric Powder
White Pepper Powder
Usal Misal Mix Masala
@ Cumin
@ Mustard
@ Chilly Birdeye
@ Fenugreek
Pack Size: 50g, 10Og, 200, 250g, 400g, 500g and 1 kg


To continue meeting the growing demand, we are expanding our capacities and will be shifting our plant from the currently rented facility to our owned land in Gonde (Nashik) where we will have a separate Spice building on the existing campus. The increased capacities will be commercialised latest by the end of calendar year 2022. We have plans to expand distribution across European, Middle Eastern & the US markets.

We are committed to achieving progress through prudence and creating sustainable long-term value, keeping in mind the environments needs and the Companys growth. Aligned with this mindset, we have set up two more divisions as follows:

Tetra Recart

Tetra Recart is a sustainable carton packaging offering a new solution to canned foods. It is environment friendly and also helps maximise the products potential while generating new business opportunities. Tetra Recart has lower carbon emissions than steel cans and glass jars. It is efficient to store and transport due to its rectangular shape and lower weight.

We have an exclusive agreement in India for a couple of years and would be the 10th Company globally with the technology to install such machinery. It is expected to commence operations by end of calendar year 2021. Our existing product range usecase is expected to increase rapidly with this form of packaging. We are also confident of associating with prominent brands to fulfil their packaging needs in this form. This technology can be a potential game changer for F&I. We are putting up this machine in our greenfield plant at Vankal with an investment of around Rs. 18 Crores. The plant is slated to commence operations by the end of calendar year 2021.

Product Portfolio

Tetra Recart

. Alphonso Mango Pulp
. Kesar Mango Pulp
. Blended Mango Pulp
. White/Pink Guava Pulp
. Red/Yellow Papaya Pulp
. Tomato Pulp/Paste
. Veg. Soup
. Sweet Corn Soup
. Manchurian Soup
. Coriander & Lemon Soup
Dal Makhani . Fruit Salad
Paneer Tikka . Indian Curry Paste
Dal Tadka Carrot Halwa
Oatmeal Veg. Momos
Surti Undhiyu Sarso Da Saag
Mumbai Usal Gulab Jamun
Sheer Korma Rossogolla
Pasta Pizza Sauces
Paprika Paste
Schezwan Sauce Hummus
Red Green Chili Sauce
Garlic Paste
Coriander & Chilli Chutney Ginger Paste
Garlic & Ginger Paste
Tamarind Paste Squeezed Lemon
Cheese Spreads Fermented Black Beans
Raw Mango Chutney Paste
Mango Slices Mix Veggie Salad
Pineapple (Cubes/ Slices/Chunks) Mushroom
Lychee (Whole-Peeled) Egg Plant (Brinjal)
Cherries Pumpkin
Peaches (Halves) Chole
Carrot Drum Sticks
Green Peas Bitter Gourd (Karela)
Sweet Baby Corn
Chick Peas
Okra (Bhindi) Black Beans
Beetroot Olives
Chopped Onion Jalapeno (Sliced)
Chopped Tomato Bamboo Shoots


Under our project Waste to Wealth, F&I has entered into joint venture agreement with a Food technology company to convert the waste we generate in the form of mango peels and kernels into pectins, oil and butter. Pectin is a vegetarian alternative to gelatin and 95% of Indias Pectin requirement is imported from Brazil, China & the US. It is used as a thickener and widely used in jams, jellies, frozen foods and more recently, as a fat/sugar replacer.

We are putting up a pectin manufacturing facility in our Chittoor plant, one of Indias largest mango pulping belt. Some large MNCs and a few companies in India have approved our lab test results. We are expecting the plant to be up and running before the next Mango season. When pulped, 50% of a Mango gets into waste and has to be disposed off. Managing the waste also comes with cost. With this initiative, we have created a significant value- added segment for us, which will help us mitigate our challenge of managing waste and ensuring sustainability.

Government Initiatives

The Government of India has announced an outlay of Rs.10,900 Crores under the Production Linked Incentive (PLI) scheme for the Food Processing Industry. The scheme has been formulated based on the Governments vision for a AatmaNirbhar Bharat for enhancing the nations manufacturing capabilities and exports. Fruit & Vegetable processing is one of the pet areas for all the Governments in India - Centre or State. The Ministry of Food Processing has promised Production Linked Incentives for Fruit & Vegetable processors under the scheme and it can be potentially beneficial for F&I, if selected under the scheme. The Government intends to create global manufacturing champions, strengthen Indian brands abroad, increase off-farm jobs, ensure remunerative prices of farm produce and increase farmers income. The selected applicants will be required to undertake investment in the years 2021-22 and 2022-23 and will get incentives based on sales over six years from 202122 to 2026-27.

The Government of Andhra Pradesh has approached Foods & Inns to bid and operate one of their proposed state-of-the-art integrated Fruit Processing Unit. The Government intends to develop this unit where the entire capex investment will be made by the Andhra Pradesh Government in its Parliamentary Constituencies. The successful bidder in each constituency will run these facilities based on lease rentals to be paid to the Government for 10 years extendable by mutual consent. These units are intended to create a continuous demand for the farmers produce and provide minimum sales price guarantee to the farmers.

F&I has applied under both the PLI Scheme and the Andhra Pradesh Economic Development Board Scheme. If we get selected under the Production linked Incentive scheme of the Govt. of India, then it can give fillip to the marketing initiatives of the Company as the subsidy received can be used to further our market reach and gain market share. We expect this to be a game changer to the fortunes and initiatives of the Company going ahead.


The FY 2020-21 was impacted due to COVID-led lockdowns across the world. Since it coincided with the peak Mango production season from April to July 2020, our production was impacted and stood around 78% of that of the previous years. Largely, our premium segment of naturally ripened Alphonso Mango Pulp faced the major production impact. The lockdowns in India from April to October 2020 affected our domestic sales as the entire HORECA segment was shut down, resulting in lower demand across Hotels, Restaurants, Catering and Tourism sectors. Exports did well for us during this period and helped balance out the drastic lower demand in the domestic market. The second half of the year was impacted by a steep increase in container freight cost to an extent never seen before, wherein, the freight cost increased anywhere between 1.6x to 4x. F&I had to absorb the incremental shipping cost due to the Delivery Duty Paid based shipping quotes given to B2B customers. Unavailability of containers and higher shipping costs led to lower exports in the second half of the FY 2020-21. Thankfully the domestic markets opened up and we gained market share in local markets due to problems with competitors affected by COVID-19 and other issues. HORECA and tourism sectors were back with a bang and we recorded our highest-ever Q4 sales historically.

As we head into FY 2021-22, we continue seeing traction in our sales and market share gains despite partial effects of the second wave of COVID. We have emerged stronger and have changed our ways for the better.

Metrics Standalone Consolidated
Particulars March 31, 2021 March 31, 2020 % change increase/ (decrese) March 31, 2021 March 31, 2020 % change increase/ (decrese)
Current ratio 1.14 1.16 -2.32% 1.15 1.17 -1.86%
Debt equity ratio 0.85 0.72 17.34% 0.85 0.73 17.40%
Net profit margin 1.17% 2.87% -59.45% 1.14% 2.83% -59.77%
Return on net worth 2.23% 5.94% -62.38% 2.27% 5.97% -61.98%
Interest coverage ratio 219.21% 305.40% -28.22% 224.45% 310.41% -27.69%
Inventory turnover ratio 175.63% 197.84% -11.23% 178.71% 200.57% -10.90%
Trade receivables turnover ratio 430.57% 510.94% -15.73% 442.75% 518.81% -14.66%
Trade payables turnover ratio 337.52% 434.17% -22.26% 345.18% 440.47% -21.63%
Net capital turnover ratio 191.62% 206.54% -7.23% 199.57% 211.21% -5.51%
Return on capital employed 1.21% 3.44% -64.93% 1.23% 3.46% -64.57%
Return on investment 1.30% 3.60% -64.02% 1.32% 3.62% -63.62%

The reason for deterioration in Net Profit Margins, Return on Net Worth, Interest Coverage Ratio, ROCE and ROI is all primarily because of COVID-led lower production leading to lower sales and lower absorption of fixed cost. It was also impacted due to Merchandise Export Incentive Scheme (MEIS) withdrawal which was reduced from the 1st of October 2020 and was withdrawn completely from the 1st of Jan 2021 which used to be around 5% to 7% of FOB sales. The other reason for the impact was because of exponential increase in shipping costs across the world leading to absorption of shipping cost by our company as most of our quotes were on DDP (Delivered Duty Paid) basis. Our production was impacted as the mango season from April to July coincided with the peak lockdown period in India. Our production was 78% of the year before and the production of our most premium Alphonso mangoes got impacted, whose lower contribution further led to lower profitability. Capex being incurred for the ongoing Greenfield and Brownfield expansions further bought down the RONW, ROCE and ROI ratios. This capex sits in our capital work in progress line item of our balance sheet and we are hopeful of commercial operations of all these investments latest by the end of calendar year 2022.

Human Resources

F&I initiated employee friendly policies in terms of providing medical facilities, financial help to affected employees and their families, reimbursement of vaccine costs, family care policies like- extending periods of sickness leaves, death compensation benefits to nominee of the deceased employee for a period of 1 year in terms of Gross Salary of the deceased, education to the children of the deceased up to S.S.C, 7 Lakhs of EDLI benefits etc.

The attrition rate of permanent employees at Foods & Inns has been very low historically due to the career growth opportunities that are provided to the employees in terms of responsibilities and on the job training.

We have initiated a plan for an ESOP program which can be subscribed to by any employee of Foods and Inns - no matter the grade if he/she fulfils certain conditions. These are plans put in to retain the employees and make them partners in our growth.

Risk Management

Economy Risk: Extended lockdown, resulting in weak economies and muted consumer spending.
Mitigation Measure: This risk was partially mitigated in the year 2020-21 by balancing out our sales in the export and domestic markets. Wider reach will lower this risk going forward.
Fluctuation in Raw Material: Fluctuation in input costs, resulting in higher cost of production.
Mitigation Measure: This is a cost which needs to be passed on to most of the B2B companies that we manufacture for whether there is an increase or decrease. This can be partially mitigated by economies of scale as we grow further and by growing our presence in the B2C market.
Fluctuation in Currency: With volatile economy conditions the currency fluctuations are drastic and can lead to forex losses.
Mitigation Measure: This can be partially mitigated through the forex trading and hedging desk that we run inhouse.
Regulatory Laws: Change in regulatory norms in the food space both in Indian and global markets.
Mitigation Measure: Diversity in markets can help us mitigate this risk.
Regulation: Any shortage of quality can lead to significant negative repercussions.
Mitigation Measure: .We have our SOPs and have been able to mitigate this problem through consistent quality over the last 40 plus years with our Fortune 500 clients.

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.

Tomorrow Starts Today

The greatest threat to our planet is the mindset that takes sustainability to be an abstract idea. Today, sustainability is about doing more good and is about being mindful of how we use and reuse our limited resources. Now is the time to lead as a good example and inclusively progress focusing on the people and planet.

At F&I, sustainability initiatives and sustainable agriculture are both deeply rooted in our organisational culture since 2011. It is an ongoing activity that goes beyond certifications. For us, sustainability is about having a holistic impact on farmer welfare and environment whilst positively impacting the society.

Sustainable agriculture entails environment protection, responsible farm management and human and workplace rights. Our sustainable agricultural interventions aim to transform Indias fruit and agricultural value chain and the lives of lakhs of farmers who are part of our ecosystem. However, the execution of sustainable activities at scale remains challenging, with bottlenecks and high entry costs but our sustainability efforts are persistent.

At F&I, a better tomorrow entails 4 key pillars:

The Backbone of the Indian Economy-Smallholder and Marginal Farmers

We believe that more than 80% of Indian farmers are smallholders i.e. those who own or operate less than 2 hectares of land. From our on-the-ground experience, smallholder farmers have structural constraints and are getting sub-optimal amounts of resources, technology and support schemes keeping their livelihoods and sustenance at risk.

Indian farm yields for fruit and vegetables stand at 10.1 MT/ha compared to Asian and world yields at 14.4 MT/ha and 15.7 MT/ha, respectively. Although Indian agriculture needs to be streamlined, there is immense opportunity for a positive change.

At F&I, we are trying to build out our direct and smallholder farmer base to optimise value chains and source responsibly. This entails having traceability, pesticide control and consistency in quality when it comes to raw materials.

Over the last year, F&I completed various projects with regard to sustainable sourcing with our EU customers. We have worked with a clutch of smallholder farmers for procurement of specialised produce for one of the most significant FMCG players. This formalised our ethical and human rights outreach programme in partnership with one of the UKs largest food manufacturers, all aligned via the UN SDGs.

Additionally, through 2021 and 2022, we are executing KPI-led projects for sourcing Mango from smallholder farmers with the intention to promote sustainable farming (best farming practices), access certified produce, better manage the use of pesticides, monitor and reduce carbon emission at farm level and promote women farmers.

Farmer Profitability and Resilience

Foods and Inns is building a bottom-up farm approach. The intention is to increase both the output and also increase income for the farmer. Through this, we are encouraging higher farm yields, leading to higher farm realisation and profits by training farmers with best farming practices. Additionally, we support higher incomes by encouraging farmers to use honey bees, increasing cross-pollination and intercropping with other fruits and vegetables, yielding additional income through the year.

Farmer profitability should be at the forefront since they are among the few market participants who buy inputs at retail prices but sell at wholesale prices. Many crops such as Tomato and Onion sometimes have bumper offerings. But the only winner is the brand owners since farmers get the lowest price and in many cases, have to throw away their hard-earned produce.

In many ways, the Indian Farm Bill Act accelerates the modernisation of Indian agriculture and transforms rural India. More importantly, it is rebalancing economic power from the middlemen to the farmers, leading to better farmer profitability.

We run direct farmer-based programs and sourcing. We focus on building farm resilience by ensuring our direct smallholder farmers are padded to tackle volatility by leveraging crop insurance and bank funds. This, whilst being supported by minimum support prices to ensure farmers gain confidence in the market.

Farmer Sustainability

Sustainability as part of farming in India covers a massive gamut of activities. However, we are making extensive efforts to control harmful pesticides, which inadvertently leads to harmful chemicals in our food. This again leads to export restrictions due to strict pesticide controls in the western markets.

Extensive use of pesticides is contributing to the increasing level of cancer (circa 12% pa) cases in India coupled with degrading soil fertility, depleting water tables, increasing the risk of pests and pathogens from mono-cropping. We support farmers with integrated pest management techniques. Thereby, reducing the use of harmful pesticides and controlling carbon emissions.

To increase our sustainability initiatives at the farm level, we are also running soil nutrient and irrigation programmes via training, demonstrations and distributions of manuals to farmers.

We are bringing science and mathematics back to agriculture by focussing on value-additive farming and regenerative agriculture.

Circular Economy

Waste Management

Foods and Inns procures more than 2,00,000 MT of fruit, vegetables and spices, leading to a large amount of waste that is proactively and consciously diverted away from landfills and nearby villages. All efforts are made to circulate most of our waste in peels, stones and butter into briquettes (combustible biomass material) and organic compost, which we hand back to our direct smallholder farmers driving a circular economy and protecting biodiversity.

Upcycling: Creative Reuse of Waste

Being a front runner in food innovation, Foods and Inns is trying to leverage its waste towards more innovative and value-additive finished products such as pectins, butter, oils, leathers and paper. We are driving waste to wealth products for todays more conscious consumer. All these projects are under surveillance and are expected to be rolled over the next 2 to 3 years. These unique offerings could differentiate Foods and Inns and make us more purpose driven.

Carbon Emissions and Renewable Energy:

There is no doubt we have a climate crisis on our hands. We have all hands on deck to ensure we are not only minimising our climate impact but doing our utmost best to reduce our emissions over time.

Foods and Inns has played advocate and filed its first GHG (Greenhouse Gas) Inventory and carbon emission data via the Carbon Disclosure Project (CDP) in 2021. We have made firm commitments to reduce our emissions by 2030.

We are constantly evaluating our position regarding decarbonisation and are working towards Science Based Targets (SBTs). We are driving open dialogues with our customers regarding our environmental impact and evaluate how we fit into your climate action story for A Better Tomorrow.

Linking Communities via Data and Technology:

At Foods and Inns, we believe backward integration is the only sustainable way forward. We want to increase our links to the farmer to transform and scale our product offerings whilst improving farm yields and farmer income.

We are driving the theory of change regarding Indian farmers and are monitoring the outputs, outcomes and impacts from our efforts. AgriTech uptake is strong, and going forward, we expect 50% of farmers to rely on technology. This will help us better monitor and increase farm productivity whilst reduce costs and improve overall food security.

We are building data pools regarding farmers and crops to leverage big data and AI to make better decisions related to production, incentives, pricing and crop surveillance.

The combination of AgriTech and Data will help us link the farmer and the consumer, optimising the farm value chain.

Our sustainability is modelled on UNSDGs, and our Company is aligned with the following SDGs