HMA Agro Industries Ltd Management Discussions

Advanced economies are expected to manage inflation
faster than emerging markets, but persistent wage
pressures, geopolitical tensions, and supply chain shifts
could keep inflation elevated.

Growth in advanced economies is diverging. The U.S.
is forecast to grow 2.7% in 2025, supported by strong
consumer demand and resilient labor markets, though
growth is expected to moderate by 2026. In the euro
area, growth is revised down to 1.0% for 2025 amid
geopolitical uncertainty, improving to 1.4% in 2026
as confidence rebounds. Emerging markets are set to
maintain stable growth through 2025 and 2026. Chinas
growth is revised slightly higher to 4.6% for 2025,
supported by fiscal stimulus, and is expected to hold
steady at 4.5% in 2026. India is projected to sustain
robust 6.5% growth over both years, in line with its
long-term potential.

Growth in the Middle East and Central Asia will improve,
though tempered by a 1.3 percentage point downgrade
to Saudi Arabias 2025 forecast due to extended OPEC+
cuts. Latin America is expected to grow 2.5% in 2025,
despite slowing in major economies. Sub-Saharan Africa
anticipates stronger growth, while emerging Europe
faces a likely slowdown.

Outlook

According to the IMF, factoring in recent market trends
and the impact of rising trade policy uncertainty, the
uncertainty surrounding the global economy is expected
to persist throughout 2025. However, the probable
impact of any potential policy changes that are still
under discussion. In 2025, energy commodity prices
are expected to decline by 2.6%, largely due to weaker
oil demand from China and increased supply from non-
OPEC+ countries (which includes Russia), though rising
gas prices - caused by colder weather, supply disruptions,
and ongoing conflicts in the Middle East - partly offset
the decline. Meanwhile, non-fuel commodity prices are
projected to rise by 2.5%, mainly driven by higher food
and beverage costs due to adverse weather affecting
major producers. On the monetary front, major central
banks are expected to continue lowering interest rates,
though at different speeds, depending on their respective
economic growth and inflation outlooks. Fiscal policies
in advanced economies, including the U.S., are expected
to tighten in 2025-26, with a lesser degree of tightening
in emerging and developing markets.

INDIAN ECONOMY OVERVIEW

Even in FY25, the Indian economy continued to emerge
as one of the fastest growing economies in the world,
but at a sluggish pace compared to the previous years.
The Reserve Bank of India has revised Indias annual
GDP growth projection to 6.6% (lowered from an earlier
projection of 7%), owing to slower growth in the initial
six months of the fiscal year 2025 (6%). However,
according to the first advance estimates, Indias real GDP
is expected to grow at 6.4% in FY25.

Some of the key factors which helped drive the growth
of the Indian economy include, rural consumption has
remained robust, supported by strong agricultural
performance, while the services sector continues to be a
key driver of growth. Manufacturing exports, particularly
in high-value-added components (such as electronics,
semiconductors, and pharmaceuticals), have displayed
strength, underscoring India’s growing role in global
value chains.

Indian GDP growth

India’s current account deficit (CAD) stood at $11.5
billion (1.1% of GDP) in Q3 FY25, narrowing from $16.7
billion (1.8% of GDP) in Q2, despite a wider merchandise
trade deficit. A surplus of $4-6 billion is expected in
Q4, driven by stronger exports and services. For FY25,
CAD is projected at ~0.8% of GDP. Forex reserves rose
to $676.3 billion as of April 4, 2025, the highest in five

Growth of MSME Exports (in ^ lakh crore)

months, positioning India as the world’s fourth-largest
holder. These reserves continue to reinforce market
confidence and economic stability.

India’s economy remains resilient, with real GVA
expected to grow 6.4% in FY25. Agriculture is set to
expand 3.8%, industry 6.2%, and services 7.2%. However,
manufacturing exports face headwinds from weak global
demand and protectionist policies. The IMF revised
India’s FY25 GDP growth to 6.5%, down 0.5 points, due
to a sharp decline in government capital expenditure
and slower investment growth. Nonetheless, net exports
are contributing positively, aided by lower crude prices.

Export scenario¹

Despite geopolitical headwinds, Indias goods and
services exports are poised to surpass $800 billion
in FY 2024-25, exceeding the previous record of
$776.68 billion in FY24. Total exports grew by 67%
over the past decade, reaching $778 billion in FY
2023-24, driven by strong performance in sectors
like electronics, pharmaceuticals, engineering
goods, iron ore, and textiles. Merchandise exports
contributed $437.10 billion and services $341.11
billion, reflecting balanced growth. The positive
momentum continues in FY 2024-25, with
exports for April-December 2024 rising 6.03% to
$602.64 billion. Strategic policy support, enhanced
competitiveness, and expanded market access are
making Indias export ecosystem more resilient and
globally integrated.

Indias share in world merchandise exports also
improved from 1.66% to 1.81%, with the country

advancing in rankings from 20th to 17th position. The
feat was achieved as the government implemented
several initiatives to sustain and accelerate export
growth.

Net direct tax collections grew 13.57% to ^22.26 lakh
crore in FY25, exceeding initial estimates and reflecting
improved tax buoyancy (1.57), sustaining strong fiscal
momentum.

Indian MSME sector

The Indian Micro, Small, and Medium Enterprises
(MSME) sector is a key driver of Indias socio-economic
growth, fostering innovation, employment, and local
development, particularly in semi-urban and rural
areas. It forms the backbone of the industrial ecosystem,
contributing significantly to manufacturing, exports,
and GDP. With 5.93 crore registered MSMEs employing
over 25 crore people, the sector accounted for 45.73%
of Indias exports in 2023-24, cementing its role in
advancing Indias global manufacturing ambitions.
Recent budget initiatives aim to further empower
MSMEs through innovation, enhanced competitiveness,
and improved resource access.

MSME exports have surged from ^3.95 lakh crore in
2020-21 to ^12.39 lakh crore in 2024-25, while the
number of exporting MSMEs has more than tripled.
Their growing share of Indias total exports, rising to
45.79% in 2024-25 (up to May 2024), highlights the
sectors expanding role in global trade and its potential
to strengthen Indias export-driven growth.

Key Budget takeaways for the Indian MSME
Sector¹

Empowering MSMEs and startups

The revised MSME classification criteria now allow
2.5x higher investment and 2x higher turnover limits,
promoting efficiency, technology adoption, and
employment. Credit guarantees for micro and small
enterprises have doubled to ^10 crore, unlocking ^1.5
lakh crore in credit over five years. Startups benefit from

a ^20 crore guarantee cover and reduced fees, while
exporter MSMEs gain enhanced term loan access.

A new Credit Card scheme offers ^5 lakh to Udyam-
registered micro enterprises, with 10 lakh cards to be
issued in the first year. A ^10,000 crore Fund of Funds
is planned to bolster startups. Additionally, 5 lakh first-
time women, SC, and ST entrepreneurs will receive term
loans of up to ^2 crore, fostering financial inclusion and
entrepreneurship.

Sectoral growth and clean tech push

Targeted schemes for footwear, leather, and toys aim
to drive innovation, manufacturing, and job creation,
while a National Institute of Food Technology in Bihar
will advance food processing in the east. The National
Manufacturing Mission will provide policy support
to industries under Make in India, with a strong focus
on clean tech, promoting domestic production of solar
PV cells, EV batteries, wind turbines, and transmission
equipment.

Outlook

India is poised to sustain a robust 6.5% GDP growth
in FY 2026, driven by favorable monsoons and stable
commodity prices. This momentum is supported by a
resilient manufacturing sector, moderated inflation, tax
incentives, and strong urban consumption. Additionally,
continued infrastructure expansion and economic

reforms are reinforcing Indias ability to navigate global
uncertainties.

Looking ahead, India is expected to maintain its potential
real GDP growth of 6.5% YoY from FY26 to FY28,
positioning itself as the worlds third-largest consumer
market by 2026 and the third-largest economy by 2027,
trailing only the United States and China. The countrys
nominal GDP is projected to rise from USD 4 trillion
in FY25E to over USD 6 trillion by FY30E. This growth
trajectory is likely to be fueled by a manufacturing and
export push, increasing services exports, and accelerated
digitalization, all contributing to higher productivity
and efficiency gains. However, challenges persist,
including the need to create productive employment for
the expanding workforce, a less favorable global trade
environment, and the impact of automation on jobs.

GLOBAL MEAT MARKET OVERVIEW

As we stepped into 2025, the global meat industry stands
at a defining moment, one shaped by both exciting
opportunities and evolving uncertainties.the global
meat industry finds itself at a pivotal crossroads marked
by opportunity and uncertainty. Political realignments,
economic fluctuations, evolving trade regulations, and
region-specific challenges are reshaping the dynamics
for producers, traders, and consumers alike. Despite
the concerns, the global meat industry remains a
cornerstone of the worlds food supply, with billions of
people relying on meat as a primary source of protein.

Valued at around USD 398.6 billion in 2025, the global
processed meat market is poised for robust and
sustained growth, and is expected to grow to USD 756.3
billion by 2035, reflecting a healthy CAGR of 6.7%. This
upward trajectory is being driven by evolving consumer
lifestyles shaped by rapid urbanization, rising disposable
incomes, and a growing appetite for convenient, high-
protein, ready-to-eat meals. From time-strapped
professionals to older adults seeking easy-to-prepare
nutrition, processed meat products are meeting the
diverse needs of today’s consumers.

Changing dietary habits, coupled with innovations in

food preservation and packaging, are reshaping the
global food landscape. Markets across North America,
Europe, and Asia-Pacific are undergoing significant
shifts, with increasing demand for organic, plant-based,
and functional meat alternatives that offer longer shelf
life and improved food safety. Bolstered by supportive
government policies, enhanced retail infrastructure, and
ongoing technological advancements across the supply
chain, the industry is on a strong path of expansion.

Key trends shaping the global processed
food industry

Increased convenience and busy lifestyles: With fast-
paced lifestyles becoming the norm, ready-to-eat meats
like sausages and ham have emerged as a convenient,
time-saving solution for modern meals. Their quick
prep, nutritional value, and wide availability across
retail channels make them a popular choice. Backed
by innovations in food processing, these products now
offer improved taste, safety, and shelf life—delivering on
convenience without compromising on quality.

Growing demand for protein-rich diets: With
rising health consciousness globally, consumers are
increasingly prioritizing protein-rich diets, placing
meats at the core of their nutritional choices. As a
complete protein source vital for muscle development,

recovery, and overall health, meat continues to gain
prominence. In response, the industry is innovating
with diverse offerings that retain nutritional value while
enhancing flavor and shelf life. Advances in processing
are also minimizing the use of unhealthy additives,
aligning products with the expectations of today’s
health-focused consumers.

Technological advancements in food processing:
Innovative methods like High-Pressure Processing
(HPP), curing, and vacuum packaging are redefining

meat processing, boosting shelf life, preserving taste and
nutrition, and reducing food waste. These advancements
not only meet rising demand with consistent quality
but also build consumer trust in food safety and
sustainability.

Demand for sustainable meat: Consumers across
North America and Europe are showing a growing
preference for sustainably sourced meat. In response,
companies are stepping up their efforts by investing
in carbon-neutral and regenerative livestock farming
practices, marking a shift towards more responsible and
climate-conscious food production.

Rise of alternative proteins: Although traditional meat
still holds the lion’s share of the market, plant-based and
cultivated alternatives are steadily gaining momentum
as more consumers prioritize health and sustainability.
Industry disruptors like Beyond Meat and Impossible
Foods are rapidly expanding their global footprint,
while established giants such as Tyson and Cargill are
strategically branching out into the alternative protein
landscape to stay ahead of the curve.

Key challenges faced by the industry

Climate change and environmental concerns:

Livestock farming continues to face growing scrutiny
due to its significant carbon footprint, contribution
to deforestation, and intensive water consumption.
In response, governments are tightening emissions
regulations, prompting meat producers to step up with
innovations such as methane-reducing feed solutions
and more efficient waste management practices.

Supply chain disruptions: Persistent global logistics
disruptions, from port congestion and feed shortages
to disease outbreaks like African Swine Fever (ASF) and
Avian Influenza, are continuing to strain and destabilize
meat supply chains worldwide.

Rising production costs: Rising inflation is driving
up the costs of essential inputs like feed, labor, and
transportation, placing a growing burden on producers.
To stay afloat, many companies are left with little choice
but to pass on these costs to consumers, impacting both

affordability and overall demand. Feed prices, especially
for staples like corn and soybeans, have surged due
to the dual pressures of climate change and ongoing
geopolitical tensions. At the same time, escalating energy
costs are compounding challenges across production
and logistics.

Regulatory pressures: Governments across the globe
are tightening regulations around emissions, animal
welfare, and food safety, driving up the cost of compliance
for businesses. These evolving standards reflect growing
societal expectations but they also demand greater
accountability, transparency, and investment from the
industry.

Consumer perception: Growing ethical concerns
around animal welfare and the environmental toll of
livestock farming are encouraging many consumers
to explore plant-based alternatives. At the same time,
negative media coverage surrounding livestock diseases
and foodborne outbreaks is eroding public trust in
traditional meat products.

Outlook

The processed meat industry is poised for dynamic
transformation, fuelled by innovation, evolving consumer
demands, and regulatory evolution. Companies are
intensifying investments in research and development
to deliver cleaner-label, health-conscious meat products,
while simultaneously enhancing processing efficiencies
through cutting-edge technologies. A growing shift
toward plant-based alternatives by traditional meat
producers and the rise of private-label brands in retail
signal changing market dynamics. The adoption of
smart packaging solutions, AI-driven automation,
and sustainable manufacturing practices is becoming
a strategic imperative, as firms navigate heightened
regulatory scrutiny and consumers’ increasing focus on
health, transparency, and environmental impact. This
forward momentum positions the industry for resilient
growth and continued reinvention.

INDIAN MEAT INDUSTRY OVERVIEW

Animal products are deeply woven into the socio-
economic fabric of India, playing a crucial role in
ensuring both livelihood security for millions and the
nation’s nutritional well-being. As one of the world’s
leading producers, India offers a rich and varied supply
of high-quality animal products such as milk, meat,

and eggs. These not only provide essential proteins
and vital nutrients for a balanced diet but also fuel
rural economies by generating employment and steady
income for countless households.

The Indian meat industry has undergone a remarkable
transformation in recent years, emerging as a significant
contributor to the national economy and a key source
of employment, especially in rural regions. In 2023-
24, the country’s total meat production reached 10.25

million metric tons (MMT), marking a 4.95% growth
over the previous year. Poultry continues to lead the
sector, accounting for over 5 MMT, while buffalo meat
(carabeef) contributed 4.57 MMT. Today, India ranks as
the fifth-largest meat producer in the world, contributing
approximately 4.57 million metric tonnes, about 7% of
the global output. This reflects the country’s growing
role in meeting global food demand while supporting
millions of livelihoods across its livestock sector.

India’s meat industry is witnessing dynamic and
varied growth patterns across its segments. The red
meat market is leading the charge with an impressive
projected CAGR of 7.5%, closely followed by processed
beef products at 7.55%. Fresh processed meats and
the broader edible meat category are expected to grow
at a moderate pace, registering CAGRs of 6.28% and
2.23%, respectively. These figures reflect the evolving
dietary preferences, cultural influences, and regional
consumption habits shaping the industry.

India continues to hold its position as the world’s
largest exporter of buffalo meat (carabeef), with exports
forecasted to grow by 4% in 2025. This growth is
primarily fuelled by increasing demand from the Middle
East, South-East Asia, and Africa. As per United States
Department of Agriculture (USDA) estimates, India’s
beef (largely carabeef) production is projected to reach

4.64 million metric tons (MMT) in 2025, with exports
rising to 1.64 MMT. While demand from South-East Asia
remains tepid, emerging opportunities in Egypt and
the Middle East are expected to drive export growth.
Interestingly, India does not import bovine meat,
although it does allow restricted imports of animal
genetics to strengthen domestic livestock breeding.

The Indian meat landscape is as diverse as the country
itself, deeply intertwined with cultural norms and
religious beliefs. Buffalo meat has emerged as a viable
alternative to beef, which faces religious restrictions in
many parts of the country. Chicken, the most commonly
consumed meat, is a staple in everyday and festive
cooking alike. Mutton (goat meat) enjoys cultural
importance and is especially popular during festivals.
Regional preferences further enrich this diversity —
pork and other meats are widely consumed in the north-
eastern states. Consumption patterns are also shaped
by faith: for instance, many Muslims prefer halal meat,
while large sections of the Hindu population abstain
from beef, contributing to the popularity of buffalo meat.

The government has been instrumental in nurturing
this sector’s growth through supportive policies and
infrastructure initiatives. From nationwide vaccination
programmes aimed at disease prevention to allowing
100% FDI under the automatic route, the intent is
clear — to professionalise and scale up the sector.
Infrastructure development is being catalysed through
tax incentives, grants, and subsidies, supporting cold
chains, Mega Food Parks, and modern slaughterhouses.
These initiatives not only boost productivity but also
enhance meat hygiene standards and food safety.

However, challenges remain. The industry continues to be
largely unorganised, with fragmented supply chains and
underdeveloped infrastructure. Issues such as subpar
hygiene, lack of awareness, and the use of aged or spent
animals undermine meat quality. Limited adoption of
advanced breeding technologies and an under-invested
cold chain network further restrict the industry’s
scalability and efficiency. Overcoming these hurdles
is essential to unlocking the sector’s full potential and
strengthening India’s foothold in global meat markets.

Key challenges faced by the Indian meat industry

Red Sea Crisis resulting in trade disruptions: The

ongoing geopolitical unrest in the Red Sea region
has severely disrupted key global shipping lanes,
particularly those linking Asia, Europe, and the Middle
East. For Indias meat export industry, which depends
heavily on maritime logistics, these disruptions have
translated into longer transit durations, unpredictable
delivery schedules, and mounting challenges in fulfilling
international orders on time. This has not only impacted
supply chain efficiency but also introduced new layers
of uncertainty in a market where consistency, freshness,
and timeliness are critical.

Abrupt freight cost escalation: The Indian meat export
industry has faced significant logistical headwinds, with
freight charges soaring to nearly four times the usual
rates. This spike has been driven by vessel rerouting,
container shortages, and soaring insurance premiums in
high-risk zones. These disruptions have not only strained
operating margins but also made it increasingly difficult
for Indian exporters to maintain price competitiveness
in global markets, impacting the overall viability of
international trade in the sector.

Increase in raw material and input costs: In addition
to persistent logistics challenges, the Indian meat
industry has been grappling with a sharp rise in input
costs. The prices of key raw materials, such as livestock,

packaging, and energy, have escalated noticeably. This
surge has been driven by higher procurement rates
at the farm gate, broader inflationary trends, and the
continued rise in fuel prices. Together, these factors
have not only strained production costs but also affected
the overall efficiency and competitiveness of the supply
chain.

Outlook

Indias meat industry is poised for significant growth,
driven by rising demand for ready-to-cook and
marinated products, expanding retail networks including
supermarkets and online platforms, and increasing
investments in cold chain infrastructure. The adoption
of automation, AI-powered quality checks, and high-
pressure processing is enhancing hygiene, efficiency,
and product longevity. Strong global demand for Indian
buffalo meat is pushing exporters to comply with
stringent international safety standards, while a growing
focus on sustainability is leading companies to embrace
eco-friendly packaging, water-efficient operations,
and antibiotic-free production. Stricter enforcement
of FSSAI norms is accelerating modernization across
processing units, and interest in plant-based and lab-
grown alternatives is encouraging diversification. As
large players drive consolidation through mergers and
strategic investments, the industry is set to become
more competitive, efficient, and aligned with evolving
consumer preferences and global benchmarks.

COMPANY OVERVIEW

Established in 2008, HMA Agro Industries Limited has
emerged as one of Indias most dynamic players in the
global food industry, earning a reputation for delivering
high-quality packaged meat products. Powered by
cutting-edge processing and packaging facilities, HMA
stands among the countrys top exporters of halal buffalo
meat and a diverse range of agricultural products. With
an impressive portfolio of products covering meat
products and agro-products, the Company operates
through an integrated production and processing
ecosystem.

HMAs globally recognised brands, Black Gold, Fresh
Gold, and HMA Gold, have carved a strong presence in
over 40+ countries worldwide. These flagship names are
now synonymous with premium meat and agri products
across key international markets. Over time, HMA has
developed a curated and specialised range of meat-
based offerings, catering to renowned institutional
clients globally. Its unwavering commitment to quality
has earned it deep trust and recognition within the
global food landscape.

At HMA, our mission goes beyond business, we strive
to deliver excellence while staying true to our values
of innovation, sustainability, and social responsibility.
With a passionate team and a forward-looking mindset,
we are well-positioned to expand our global footprint
and continue creating lasting value for our customers,
partners, and stakeholders.

Our core strengths

O Niche business model, helping HMA to deliver
consistent value to the stakeholders.

O The company has an undivided focus on quality
management, which has allowed the Company
to to effectively grow its market presence in the
international market.

O We have a competitive advantage over our peers
thanks to our strong technological competency and
superior offering capability.

O Multi-decadal experience in procuring, processing
and assembling various agro products to enable
the company a wide range of customers within the
global food industry.

Quality focus

At HMA, we embrace the belief that "Quality is the
cornerstone of Sustainability." To uphold this principle,
we have established a meticulous validation and
qualification framework. This ensures that our systems,
facilities, and processes are meticulously designed
and developed to meet the requirements of our
valued customers, while also complying with the strict
regulations set by the authorities.

Certifications endorsing HMAs quality
quotient

Financial review

HMA AGRO INDUSTRIES LIMITED(SFS) (Rs. In Millions)

HMA AGRO INDUSTRIES LIMITED(CFS) (Rs. In Millions)

RATIO ANALYSIS AND ITS ELEMENTS

Risk management

HMA strongly emphasises implementing a
comprehensive system for managing risks, aiming to
achieve its objectives while ensuring the organisation’s
sustainability. The Company management actively
identifies, analyses, assesses, manages and controls
risks that may impact operations. This process is led
by the company’s senior management, with support
from various committees that regularly review and
monitor risks in line with governance standards. HMA’s
risk management approach aligns with its strategy and
contributes to its successful implementation.

Key risks and their mitigation strategy

Exposure to trade policies and government
regulations

Changes in the trade policies of key importing countries
or government regulations, such as export bans or
alterations in export duties, can impact the HMA’s export
revenues.

Risk mitigation:

O HMA has a diversified presence, both domestically
and globally, and exports product to more than 40+
countries thereby reducing risk by not depending on
any single customer or country.

O India is the largest exporter of buffalo meat and
therefore, countries looking to purchase buffalo
meat have favourable policies.

O HMA has established a process for the team to
identify regulatory changes and their associated
impacts to stay abreast of compliance requirements
globally.

Exposure to foreign currency risk
As a significant portion of its turnover comes from
exports, the Company is exposed to foreign currency
fluctuations. To manage this risk, the Company has a
hedging policy in place.

Risk mitigation:

O Foreign exchange risk is mitigated through a thought-
out and well-structured foreign exchange risk

management policy, which safeguards the Company
from any unwanted foreign currency fluctuations by
competently hedging all foreign currency exposures.
O HMA can leverage its strong brand position in the
market in case of price increases and pass on the
costs to the customers.

Competition risk

The Indian meat industry is highly fragmented, with
numerous players competing for market share. This
intense competition limits pricing flexibility for industry
participants, including HMA.

Risk mitigation:

O A strong brand presence in both domestic and
export markets serve as a mitigation strategy.

O The availability of HMA products across multi-
channels, such as general trade, e-commerce, and
modern trade, ensures broader market reach and
reduces reliance on a single distribution channel.

O HMA has put in place processes that help monitor
the competitors and take the necessary actions.

Geographical risk

A high dependency on any single country can lead to a
decline in profitability.

Risk mitigation:

O HMA has a product presence in over 40+ countries
across the world. This diversified presence across
multiple countries is expected to mitigate risks
associated with geopolitical instability in certain
regions.

O HMA holds a significant market share in some of the
core markets.

O HMA is one of the leading players in the branded
meat market in key markets, such as Vietnam,
Malasia, Egypt, and Saudi Arabia among others.

Human capital risk

The Company’s growth could be adversely affected if it
cannot attract and retain talented individuals.

Risk mitigation:

O HMA Limited invests in recruiting talent that aligns
with the organisation’s values, as well as in talent

development and employee engagement. This
approach helps create fulfilling career opportunities
at HMA Agro Industries Ltd.

O The Company strengthened its robust talent value
proposition as one of the key focus areas to drive
sustainable growth.

IT risk

The Company faces risks from cyber threats, data
breaches, and system disruptions that may impact
operations and data integrity. Mitigation measures
include strong cybersecurity protocols, regular audits,
and ongoing IT infrastructure upgrades.

Risk mitigation

To address rising digital threats, HMA Agro Industries
Limited has implemented robust IT risk management
practices. A multi-tiered firewall system and advanced
endpoint security solutions protect against malware and
unauthorized access. Daily server-based data backups
ensure business continuity, while regular IT audits and
continuous system monitoring help identify and address
potential vulnerabilities proactively.

Opportunities and Challenges

Opportunities:

HMA Agro Industries is well-positioned to leverage
India’s strong global reputation in halal meat exports

and rising demand from new and emerging international
markets. Expansion into value-added products, growing
presence in processed food segments, and enhanced
automation and infrastructure investments offer
significant headroom for scalable, sustainable growth.
Government support for the agro-processing sector and
trade diversification strategies further strengthen the
growth outlook.

Challenges:

The industry continues to navigate challenges such as
volatile export policies, currency fluctuations, and rising
input and logistics costs. Additionally, maintaining
stringent international quality and regulatory
compliance standards across diverse markets requires
continuous operational vigilance. Ensuring consistent
raw material availability amid changing agricultural
patterns also remains a key area of focus.

Outlook

Looking ahead, we remain firmly focused on building
a resilient and diversified business foundation that
can withstand industry-specific challenges and unlock
new avenues of growth. With sustainability and long-
term value creation at the core of our strategy, we are
thoughtfully expanding beyond our traditional buffalo
meat portfolio. Our entry into the poultry segment,
through our wholly-owned subsidiary HMA Natural
Foods Private Limited, marks a major milestone in this
journey. The launch of a modern poultry processing
plant in Jabalpur, Madhya Pradesh, complete with
advanced machinery and a fully integrated cold chain,
enables us to deliver safe, hygienic, and quality-assured
chicken products to a growing consumer base.

Our global ambitions have also taken a meaningful
step forward with a strategic partnership with the
Selangor Agricultural Development Corporation (PKPS),
a government entity in Malaysia. This collaboration is
set to foster trade ties, joint ventures, and technology
exchange, particularly across the Southeast Asian region.
Simultaneously, we are creating new value streams by
entering the leather processing industry through our
group company, HMA Leather Export Private Limited.
A fully integrated, state-of-the-art facility is being
established at the Leather Technology Park in Unnao,

Uttar Pradesh, to convert meat by-products into high-
quality leather, further reinforcing our commitment to
circular economy principles. Together, these initiatives
signal not just expansion, but evolution—positioning
HMA Agro for robust, responsible growth in the years
ahead.

Human resource

Our intellectual capital is the foremost asset of our
business and the satisfaction of workers within the
organisation is a major factor in its prosperity. HMA
thinks that the Company is governed by its people
resources and our success is directly dependent on the
success and growth of our people. Our commitment
is to create an environment where personal growth is
encouraged and supported in a secure atmosphere.
In addition, the Company has often emphasized the
importance of having a diverse team on board and
cherishes each individual’s input. Our human capital is
our greatest tool for shaping the future of the Company
and is also critical for our smooth functioning.

The group’s strength resides in working and growing
as a team. Training and skill development are critical
for contributing to the overall growth of personnel and
the organisation. The Company organises training and
development sessions for its workforce, motivating and
empowering them to unleash their full potential. Further,
we focus on following a flat communication structure

to make it a lucid one when it comes to the employees
sharing their view with the management. Such initiatives
aid in the recruitment and retention of top talent across
the sector and this has helped the Company enjoy the
support of committed and well satisfied human capital.
The Company has implemented important HR initiatives
and people management practices effectively. As of
March 31, 2025, the total workforce of HMA is well over
1100 employees.

Health and safety measures

At HMA Agro Industries Limited, the health, safety, and
overall well-being of our workforce are fundamental to
how we operate. We have embedded a culture of safety
into every layer of our organisation by strictly following
Good Manufacturing Practices (GMP) and Standard
Operating Procedures (SOPs) to uphold the highest
standards of hygiene and workplace safety. Employees
are equipped with appropriate Personal Protective
Equipment (PPE), and ongoing training programs
ensure that every team member remains well-informed
and compliant with evolving safety protocols.

To further safeguard our people, we have implemented
strong occupational health systems, including regular
medical check-ups and well-defined emergency
response mechanisms. All eligible employees are
covered under the Employees’ State Insurance (ESI)
scheme, which provides essential medical support,
sickness benefits, and accident coverage. Routine safety
audits and hygiene inspections across our facilities help
us identify potential risks and maintain strict regulatory
compliance. These measures underscore our unwavering
commitment to fostering a safe, healthy, and supportive
work environment where our people can thrive.

Internal control systems and adequacy

The Company has put in place a robust framework of
Internal Financial Controls, thoughtfully designed to
match the size, scale, and complexity of its operations.
The Board of Directors is entrusted with the
responsibility of ensuring these controls remain both

adequate and effective. At its core, this framework aims
to offer reasonable assurance regarding the accuracy
of financial and operational reporting, compliance
with applicable laws and regulations, protection of
assets from unauthorised use, proper authorisation of
transactions, and adherence to internal policies.

Aligned with the provisions of the Companies Act, 2013,
the internal control systems are well-suited to the
nature and scale of the business. To support operational
consistency and accountability, Standard Operating
Procedures (SOPs) have been laid out across functions,
with business heads responsible for ensuring adherence
within their respective domains.

The Internal Audit function operates with a clearly
defined mandate and scope. To maintain its
independence and objectivity, it reports directly to
the Chairman of the Audit Committee. Based on audit
findings, process owners are expected to take timely
corrective actions, thereby continuously improving the
control environment.

Cautionary statement

The Management Discussion and Analysis (MD&A)
section contains forward-looking statements concerning
the Company’s future prospects. These statements entail
various known and unknown risks and uncertainties that
could significantly impact actual results. Additionally,
the Company faces unforeseen and ever-evolving risks
in its operating environment. The report’s assumptions
rely on both internal and external information, forming
the basis for specific facts and figures. However, it is
crucial to acknowledge that these assumptions may
change over time, leading to corresponding adjustments
in the estimates. These forward-looking statements
represent the Company’s current intentions, beliefs, or
expectations and are applicable as of their original date.
Please note that the Company is under no obligation
to revise or update these forward-looking statements,
regardless of any new information, future events, or
changing circumstances.