himalaya food international ltd share price Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The Management Discussion and Analysis Report has been prepared in accordance with the provisions of Regulation 34(2)(e) of Listing Regulations, read with Schedule V(B) thereto, with a view to provide an analysis of the business and Financial Statement of the Company for FY 2022-23 and should be read in conjunction with the respective Financial Statements and notes thereon.

GLOBAL ECONOMIC OVERVIEW

Global growth is at its lowest ebb in last two decades and there still remain head winds and chances of falling in recession. However, there is cautious optimism as Ukraine-Russia war seems to be self-exhausting. Expected to moderate from 5.9 in 2021 to 4.4 percent in 2022 half a percentage point lower for 2022 than in the October World Economic Outlook (WEO), largely reflecting forecast markdowns in the two largest economies. Supply chain remains a challenge and World has learnt bitter lessons from Covid on predominant dependence on China.

INDIAN ECONOMIC OVERVIEW

The Indian economy has emerged as the brightest star on the horizon with highest rate of growth that is expected to continue long term. The investment rate is increasing incessantly, and the capacity utilization is improving in continuity. India under strong leadership of last 10 years is much more confident and is expected to touch newer heights for several decades to come.

FOOD INDUSTRY

The Indian agriculture & food processing industry is working overtime to not only feed its 1.4 billion people but is generating surplus for growth in exports that amounts to 32% of the countrys aggregate food market. In India, the food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry. The government through the Ministry of Food Processing Industries (MoFPI) is making all efforts to encourage investments in the business. It has approved proposals for joint ventures (JV), foreign collaborations, industrial licenses, and 100 per cent export-oriented units.

OPERATIONS DURING THE FINANCIAL YEAR

The Companys primary business has been Growing of Mushroom (agriculture Activity) & fry-frozen potato & appetizer products, snacks, sweets etc. However; as we were emerging out of Covid, we had devastating fire in Gujarat plant and have been facing multiple challenges.

Our Banks led by SBI has continuously helped and we expect resolution / payment of balance debt in current financial year. Himalaya has already paid more than 60% of the settled debt and hopes to pay balance amount in FY 2023-24.

OUTLOOK

Company has planned various steps including hiving off of non-core assets and raising further capital in the current year. Company has decided to focus on two major streams; Mushrooms & Potato based fried-frozen products. Company is working overtime on two major objectives; Payment of balance debt and resurrection of fire destroyed fried-frozen business by installing 62,000 TPA French fries & potato specialty business to emerge as phoenix from the ashes. Management remains infectiously optimistic of turnaround from its most intimidating phase of life.

RISKS AND CONCERNS

The Company is mainly exposed to liquidity risk and payment of balance debt. While risk is an inherent aspect of any business, the Company is conscious of innovative thoughts and effective monitoring mechanism and has put in place appropriate measures for its mitigation including business portfolio risk, financial risk, legal risk and internal process risk.

DEVELOPMENT OF HUMAN RESOURCE / INDUSTRIAL RELATIONS

The Company firmly believes that an able, disciplined, motivated, trained and skilled manpower is the key for sustaining growth of an organization. Post Covid and fire, Company is working on inducting new blood and younger team.

CAUTIONARY STATEMENT

"Management Discussion and Analysis" report contains forward looking statements, which may be identified by the use of the words in that direction or connoting the same. All the statements that address expectations or projections about the future, including but not limited to statements about the Companys strategy for growth, product development, market position, expenditure and financial results are forward looking statements. The Companys actual results, performance or achievements could thus differ materially from those projected in such forward-looking statements. The Company assumes no responsibility to public, to amend, modify or revise any forward-looking statements on the basis of subsequent developments, information or events.

For and on behalf of the Board of Directors Himalaya Food International Limited

	Sd/-	Sd/-
	Man Mohan Malik	Sangita Malik
Date: August 14, 2023	Managing Director	Director
Place: New Delhi	(DIN: 00696077)	(DIN: 02428506)