Halder Venture Ltd Management Discussions

(a) Industry Structure and Development: Halder Venture Limited (HVL) is engaged in the processing, trading, and branded sales of rice and edible oils—key staples in Indias agri-economy. Rice, the staple food for over 65% of Indias population, remains vital for both domestic consumption and exports. India cultivates rice over approximately 44 million hectares, producing around 144 million tons annually. HVL continues to leverage this foundation, positioning itself as a significant player in the agri-processing domain. In response to growing domestic demand and government encouragement through the National Mission on Edible Oils, HVL has expanded into this high-potential segment. The global edible oil market is projected to grow by USD 16.2 billion from 2024 to 2028, driven by evolving consumer preferences, health-conscious choices, and increased demand for fortified and organic oils. The Company has completed the amalgamation with its own five subsidiary companies, creating a stronger and unified entity. The amalgamation includes the integration of JDM Commercial Private Ltd, P K Agri Link Private Ltd, P K Cereals Private Ltd, Reliable Advertising Private Ltd, and Shri Jatadhari Rice Mill Private Ltd. The amalgamation brought into existence a single entity with larger capital size along with an enlarged combined asset base. The amalgamation shall also help in enhancing the scale of operations, reducing overhead expenses, including administrative, statutory compliance, managerial and other expenditure, rationalizing operations, achieving organizational efficiency, and utilizing resources optimally by avoiding duplication of efforts.

Furthermore, it has also strengthened its manufacturing capabilities through the acquisition of a new edible oil processing unit at Haldia, West Bengal. The facility offers significant operational advantages, including port proximity and larger production capacity, and is expected to enhance HVLs imported edible oil processing capacity. Plans are in place to make the unit operational, contributing to long-term revenue growth and efficiency.

(b) Opportunities andThreats: HVL benefits from a favorable policy environment, with the Indian government prioritizing agricultural productivity and market access. Measures such as the Minimum Support Price (MSP) scheme, Pradhan Mantri Fasal Bima Yojana (PMFBY), Pradhan Mantri Krishi Sinchai Yojana (PMKSY), and the Soil Health Card Scheme (SHCS) are driving growth in the rice sector. Export opportunities are further supported by the lifting of restrictions on non-basmati white rice and duty adjustments on parboiled rice—developments welcomed by industry participants including the HVL leadership. HVL is well-placed to scale in the edible oil domain, aided by the governments push for import substitution and self-sufficiency in edible oils. Nevertheless, the business remains exposed to competitive pressures from large multinational firms and regional players. Volatility in raw material prices and policy changes—especially concerning exports and import tariffs—are key areas of concern. (c) Segment–wise or product-wise performance: Halder Venture Limited (HVL) operates across multiple segments. The performance has been bolstered through diversification. The acquisition of the edible oil refinery in Haldia, expansion of edible oil processing capacity, and launch of premium quality parboiled rice varieties like Banskathi, Jeerakathi, etc. through the premium domestic brand Bhojmoti have strengthened the product mix and market positioning.

(d) Outlook: The business outlook remains positive, underpinned by operational expansion, growing demand for processed foods, and increasing export potential. The integration of newly acquired refining infrastructure is expected to boost production capacity and open up new revenue channels, especially in the edible oil space by helping HVL cater to consumers across the entirety of East and North-Eastern India. Domestically, the brand presence in Tier 1 and Tier 2 cities is growing, while globally, HVL continues to expand across markets in Asia, Africa, and Latin America. With consumer preferences shifting toward healthier, sustainable options, HVLs investments in organic products, renewable energy (including rice husk biofuel), and sustainable farming methods (such as Alternate Wetting and Drying) align well with future trends.

(e) Risks and concerns: Key risks include price volatility in raw materials, climatic factors affecting crop yields, and regulatory changes that could impact export or import dynamics. The companys performance is also influenced by currency fluctuations in international markets. Additionally, HVLs leverage levels remain an area for monitoring. While strong earnings growth was recorded in FY 2024–25, financial prudence will be critical to ensuring long-term resilience.

Competitive intensity in the rice and edible oil segments continues to be a significant challenge, requiring constant focus on innovation, branding, and supply chain optimization. The Company is committed to adhere to all applicable environment regulations and improve upon the environmental performance on a continued basis.

(f) Internal control systems and their adequacy: The Company has an adequate system of internal control procedure as commensurate with the size and nature of business, which ensures that all assets are safeguarded and protected against loss and all transactions are recorded and reported correctly.

(g) Discussion on financial performance with respect to operational performance: The Management is pleased to report that the Companys business plan is progressing as per the Managements satisfaction. The year in review reflects a stable performance by the Company, supported by consistent demand in the agricultural sector. The present order position is healthy and we are expecting the markets to improve both in terms of liquidity and also demand in the coming years.

The Company believes that human assets constitute the driving force behind the Companys growth plans and has healthy management and worker relationships and pledges to strengthen the same to improve quality of work culture and productivity. The human resource and industrial relations functions remained cordial throughout the year.

An overview of the key financial ratios for FY 2024-2025 and 2023-2024 is given below:

** The change in Operating profit margin, Net Profit Margin and Return on Net Worth as compared to the immediately previous financial year is mainly due to increase in other income resulting in higher net profit.