Himalaya Food International Ltd Management Discussions

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 2024-25 and should be read in conjunction with the respective Financial Statements and notes thereon.

Global economic activity is expected to maintain modest but uneven momentum, with GDP growth projected at 3.0% in 2025, down from 3.2% in 2024 Six themes to redefine the global outlook: policy uncertainty, financial shifts, inflation dynamics, fiscal policy, monetary policies and labor market changes. Business leaders should prioritize agility and shock absorption to build resilience amid economic volatility and supply fragilities.

In developed markets, real GDP growth is expected to moderate to around 1.3% in 2025 and 2026, following a 1.8% advance in 2024. The US economy will no longer be the outperformer, with real GDP growth expected to decelerate from 2.8% in 2024 to 1.5% and 1.3% in 2025 and 2026, respectively. The impact of higher tariffs will be on full display in coming months with subdued private sector sentiment, higher inflation, softening labor market conditions, margin pressures, reduced business investment and weakening consumer demand

INDIAN ECONOMIC OVERVIEW:

Indias economy is the fastest-growing major economy globally, positioned as the worlds fourth-largest economy by nominal GDP (around $4.2 trillion) and the third-largest by purchasing power parity. Growth is driven by strong domestic demand, public infrastructure investment, and policy reforms, with the services and manufacturing sectors showing significant expansion. The economy also boasts a stable fiscal deficit, a downward trend in inflation, and a surge in digital payments, positioning it for continued growth despite global uncertainties.

Food industry surveys for 2025 highlight a growing global food and beverage market reaching approximately $9.4 trillion by 2029, driven by urbanization and shifting consumer preferences for health, sustainability, and convenience. Key trends include a strong demand for plant-based and functional foods, clean labels, personalized nutrition, and innovative flavors like umami and complex spices. Consumer focus on mental wellbeing, portion control, and a renewed interest in seasonal and local ingredients are also prominent factors shaping the market. Market Growth & Projections The global food and beverage market is predicted to grow significantly, with the Business Research Company projecting it to reach $9.42 billion by 2029. In India, the food processing sector is a significant growth area, with strong FDI and projected growth to $535 billion by 2025-26. Key Consumer Trends Health & Wellness Consumers prioritize health- focused products, leading to a rise in personalized nutrition and functional foods supporting mental wellbeing.

The Companys primary business is Growing of Mushroom (agriculture Activity) & fry-frozen potato & appetizer products, snacks, sweets etc. During the year under review, the total income of your Company was Rs. 4074 Lacs as compared to Rs.4725 Lacs in the previous year. The net Profit of the company for the current financial year is of Rs.390 Lacs as compared to profit of Rs. 489 Lacs in the previous year.

Although the company has successfully completed INR 21.50 Crore of payments towards our balance OneTime Settlement (OTS) obligations — fulfilling 50% of the final additional amount of INR 43 Crore, Company plans to repay balance amount of OTS to Banks in current financial year. although Company has taken steps to hiving off of non-core assets and raising further capital in the current year by way of right issue of INR 40CR. Besides an amount of Rs 70 Cr is proposed to be raised from sale of non core assets of the Company; mainly from sale of Lands at Behror Rajasthan & ShubhKhera Himachal Pradesh.

Company has decided to Focus on two major streams of products ; Mushrooms & Potato based fried-frozen products.

The Company is mainly exposed to market risk (including liquidity risk), interest risk and credit risk. While risk is an inherent aspect of any business, the Company is conscious of the need to have an 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.

The Company firmly believes that an able, disciplined, motivated, trained and skilled manpower is the key for sustaining growth of an organization. Company had laid off employees after series of setbacks (Covid & Fire) and plans to invite knowledgeable professionals during the current year to manage the Focussed stream of production & reach new markets of Gulf, SAARC & Far East.

The Company organizes and provides requisite training to its employees from time to time. Periodical appraisal and rewarding systems are in place, Industrial Relations at both the plants. (i.e. Paonta Sahib, Himachal Pradesh and Vadnagar, Gujarat)

“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.