Healthy Life Agritec Ltd Management Discussions

In compliance of Regulation 34(3) and 54(f) read with Schedule V of Securities Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015, please find Management Discussion and Analysis Report forming part of Annual Report.

The Management Discussion and Analysis has been included in consonance with the Code of Corporate Governance as approved by The Securities and Exchange Board of India (SEBI). Investors are cautioned that these discussions contain certain forward-looking statements that involve risk and uncertainties including those risks which are inherent in the Companys growth and strategy. The company undertakes no obligation to publicly update orrevise any of the opinions or forward-looking statements expressed in this report consequent to new information or developments, events or otherwise.

INDUSTRY OVERVIEW

The Indian Dairy industry is at the cusp of another revolution, moving towards increased contribution from various value-added milk products. India, in its quest to become a matured dairy industry, is aggressively transitioning from unorganized to more of an organized and branded market. These two structural shifts from unorganized to organized market and from traditional products to value-added dairy products will provide long-term growth visibility to the organized dairy sector.

The demand for value-added products will be driven by changes in macro-economic factorslike increase in urbanization, nuclear families, increasing number of dual income households with working women and improved per capita spending.

BUSINESS OVERVIEW

At Healthy Life Agritec, we specialize in to carry on business as manufactures, importers, exporters, wholesalers, retailers and dealers in all types of Agri-inputs, like fertilizers, Micronutrients, Pesticides & insecticides, veterinary and livestock feeds and feed supplements, fish feeds and plant and machinery, implements, accessories, tools, goods or things and all types of modern agricultural implements, veterinary, livestock and poultry equipments and also to carry on the business of poultry, farming, agricultural farming, fish rearing and allied activities.

To carry on the business of process, produce, mix, pack, preserve, freeze, extract, refine, manufacture, import, export, buy, sell, trade and deal in processed foods, health foods, protein foods, food products, Argo foods, fast foods, packed foods, poultry products, seafoods, milk foods, health and diet drinks, extruded oods, all kinds and in particular milk, cream, butter, ghee, cheese, poultry eggs, fruits ,vegetable oils, vegetable ghee, artificial ghee, sausages, brawn patted meat, table delicacies; loaves, bread manures etc., and any other food products in and outside India.

To undertake and carry on poultry farms, fishery, piggery and dairy farming and for the purpose to prepare stables, dens, sheds, kennels, nests, burrows, dwelling places and grazing pastures,

veterinary hospitals for keeping and rearing animals, livestock for safe custody and for improving their breed by cross breeding or otherwise deal in all kinds and classes of animal products including meat, ham, pork, steak, beef, chicken, oils, fats, skins, nails, teeth, hair, hooves, horns, etc.

Expansion of Business Operations: Company has taken a significant step forward in its business expansion by establishing a state-of-the-art, fully integrated, and automated manufacturing facility The facility, commissioned on 23rd December 2024, marks a strategic milestone in the Companys growth journey. Under the new brand "Magic Flavours", the facility is set to produce over 50 high- quality, international-standard food products, including pasta and pizza sauces, salad dressings, desi chutneys, mayonnaise, sweet syrups, and tomato puree. Additionally, the unit offers canning services aimed at the export market.

This expansion is aligned with the Companys long-term vision to become a leading player in the food processing industry. By targeting retail, institutional, and export segments, the Company expects to capitalize on emerging opportunities in domestic and global markets. Emphasis on sustainability, innovation, and quality production is expected to drive revenue growth and enhance the Companys brand positioning in the highly competitive food processing sector.

Opportunities and Threats

The long-term outlook of Indian dairy sector is favorable on account of increasing population, increase in per capita consumption, increase in expenditure on package food, brand awareness, urbanization & increase in nuclear families and government support. The growth would be primarily driven by increase in the demand for value-added milk products, which is also margin improver for the players. We believe that the principalfactors affecting competition in our business include client relationships reputation, the abilities of employees, market focus and the liquidity on the Balance Sheet.

Anticipating and responding to the changing consumer preferences in a timely manner helps building a strong consumer demand for the brand. Therefore, continuous investments in research and development as well as introduction of new products with different variants of existing products becomes very important for the industry.

Risk and Concerns

Climate change and scarcity of water are the major threats to the dairy industry. A drought or a rainfall deficit results in increased cost of cattle feed and reduced availability of green fodder for cattle thereby constraining milk supply. Such adverse weather and seasonal conditions may lead to a decline in supply and a spike in raw milk prices.

Adequacy of Internal Control System

To provide reasonable assurance that assets are safeguarded against loss or damage and that accounting records are reliable for preparing financial statements, management maintains a system of accounting and controls including an internal audit process. Internalcontrols are supported by management reviews.

The Board of Directors have an Audit Committee that is chaired by an Independent Director. The Committee meets periodically with Management, Internal Auditor, Statutory Auditors to review the Companys program of internal controls, audit plans and results, recommendations of the auditors and managements responses to thoserecommendations.

Human Resources Development/Industrial Relations

Human resources are valuable assets for any organization. The employees of the Company have extended a very productive cooperation in the efforts of the management to carryingthe Company to greater heights. The Company is giving emphasis to upgrade the skills of itshuman resources and continuous training down the line is a normal feature in the Companyto upgrade the skills and knowledge of the employees of the Company.

Risk Management

In the dairy industry, managing risks effectively is crucial to ensuring product quality, supply chain stability, and financial performance. The Company has implemented a structured risk management framework to identify and mitigate risks across procurement, production, distribution, and compliance functions. Key risks include fluctuations in raw milk prices, seasonal variations in milk supply, livestock health issues, regulatory changes, and quality control challenges. To address these, the Company engages in strategic sourcing, works closely with farmers to ensure sustainable milk production, and maintains stringent quality assurance systems. Investments in cold chain logistics and automation further reduce operational disruptions. Regular internal audits and monitoring of food safety standards ensure compliance with FSSAI and other regulatory bodies. This proactive approach allows the Company to respond swiftly to emerging risks and maintain consumer trust.

Competition

The dairy industry in India is highly competitive and fragmented, with the presence of large national players, regional cooperatives, and a vast unorganized sector. The Company operates in an environment where competition is driven by factors such as product quality, pricing, brand trust, distribution reach, and innovation. Growing consumer preference for value-added products like flavored milk, curd, paneer, and probiotics has intensified the race for differentiation and market share. Additionally, increasing entry of private labels and multinational brands into the dairy segment has further heightened competitive pressures. To stay ahead, the Company continues to focus on product innovation, expanding its rural and urban distribution network, maintaining stringent quality standards, and strengthening its brand positioning. By leveraging its deep farmer relationships and integrated supply chain, the Company is well-equipped to compete effectively and sustain its leadership in key markets.

Discussion on Financial Performance with respect to Operational Performance

The details of the financial performance of your Company are reflected in the Balance Sheet, Profit

& Loss Account and other Financial Statements, appearing separately. Highlights are provided below:

(Amount in Lacs)

Particulars	Standalone 2025	Consolidated 2025
Revenue from Operations	6,445.06	17,187.06
Other Income	-	-
Total Income	6 ,445.06	17,187.06
Profit/(Loss) Before Tax	2 49.79	435.25

The financial performance of your Company has been further explained in the Directors Report of your Company for the year 2025, appearing separately.

Cautionary Statement

This Management Discussion and Analysis contain certain forward-looking statements relating to the Companys expectations, objectives, projections, and outlook for the industry and its operations, which are based on current estimates and assumptions in accordance with applicable laws and regulations.

These statements are subject to inherent risks and uncertainties. Actual results may differ materially from those expressed or implied due to various factors including, but not limited to, fluctuations in market demand and supply, changes in input costs and availability, regulatory changes, taxation policies, judicial or governmental decisions, industrial relations, and broader economic and political developments.

The Company advises investors and stakeholders to exercise caution in interpreting and relying on these forward-looking statements, as they are not guarantees of future performance.

		For and on behalf of
		Healthy Life Agritech Limited
	Sd/- Mohammed Sadiq Director	Sd/- Divya Mojjada Managing Director
	DIN: 08612733	DIN: 07759911
Date: 01.09.2025 Place: Thane