Your Board of Directors is pleased to share the present Management Discussion and Analysis Report based on the business of the company i.e. FMCG Business (including Winery Business), Textile Business, Infrastructure Business and Energy Business, and the business performance under each of its strategic pillars along with the Financial Statements for the financial year ended March 31, 2024.
CURRENT/CONVENTIONAL BUSINESS:
On the ideology of Roti, Kapda or Makan your company has dealing into four business segments namely agro products, clothing, infrastructure, and energy. Your Company is mainly in the business of trading of agricultural commodities, life necessities, items of basic human needs, organic and natural products and processed foods etc. and other essential goods, infrastructural products among others. Our Company now strives to be the ultimate one-stop-shop for all life essentials goods be it ‘Roti, ‘Kapda or ‘Makan.
‘Fast Moving Consumer Goods forms the fourth largest sector in the Indian economy. The FMCG companies exist in the rural and urban markets and the expected potential of the sector is huge. FMCG companies operate the business through a wide distribution network and the range of fast-moving consumer products helps to fetch the revenue fast. The FMCG Industry is rapidly expanding around the world. With the increase in population, the demand for consumer goods is rising, thus providing businesses room for growth. Investing in a growing economy like India is a golden chance for organizations to reap the benefits of its expanding FMCG sector. Thus, companies planning to enter this market should consider availing assistance from market experts to plan their forray effectively.
The FMCG sector in India expanded due to consumer-driven growth and higher product prices, especially for essential goods. FMCG sector provides employment to around 3 million people accounting for approximately 5% of the total factory employment in India. FMCG sales in the country grew 7-9% by revenues in 2022-23. The key growth drivers for the sector include favourable Government initiatives & policies, a growing rural market and youth population, new branded products, and growth of e-commerce platforms. Resilience needs to be the key factor in the manufacturing process, daily operations, retail and logistic channels, consumer insights and communication that will help FMCG companies to withstand the test of time and create more value for consumers in the long run. Indias fast-moving consumer goods (FMCG) sector grew 7.5% by volumes in the April-June 2023 quarter, the highest in the last eight quarters, led by a revival in rural India and higher growth in modern trade.
Fast-moving consumer goods (FMCG) sector is Indias fourth-largest sector and has been expanding at a healthy rate over the years because of rising disposable income, a rising youth population, and rising brand awareness among consumers.
Market Size
Total revenue of FMCG market is expected to grow at a CAGR of 27.9% through 2021-27, reaching nearly US$ 615.87 billion. In 2022, urban segment contributed 65% whereas rural India contributed more than 35% to the overall annual FMCG sales. Good harvest, government spending expected to aid rural demand recovery in FY24. The sector had grown 8.5% in revenues and 2.5% in volumes last fiscal year. In the January-June period of 2022, the sector witnessed value growth of about 8.4% on account of price hikes due to inflationary pressures. In third quarter of FY23, the FMCG sector clocked a value growth of 9.0% YoY — lower than the 9.2% YoY value growth seen in third quarter of FY22.
According to NielsenIQs report, in 2024, the FMCG industry in India is expected to grow between 4.5-6.5%, owing to
strength in the sector and Indian economy.
Indian food processing market size reached US$ 307.2 billion in 2022 and is expected to reach US$ 470 billion by 2028, exhibiting a growth rate (CAGR) of 9.5% during 2023-2028.
The Union government approved a new PLI scheme for the food processing sector, with a budget outlay of Rs. 109 billion (US$ 1.46 billion). Incentives under the scheme will be disbursed for six years to 2026-27.
Digital advertising grew to reach US$ 9.92 billion by 2023, with the FMCG industry being the biggest contributor at 42% share of the total digital spend.
India includes 780 million internet users, where an average Indian person spends around 7.3 hours per day on their smartphone, one of the highest in the world. Number of active internet users in India will increase to 900 million by 2025 from 759 million in 2022. In 2022, Indias consumer spending was US$ 2,049.57 billion. Indian villages, which contribute more than 35% to overall annual FMCG sales, are crucial for overall revival of the sector. E-commerce now accounts for 17% of the overall FMCG consumption among evolved buyers, who are affluent and make average spends of about Rs. 5,620 (US$ 677.11 million).
The Indian e-commerce market is anticipated to grow from US$ 83 billion in 2022 to US$ 185 billion in 2026. By 2030, it is expected to have an annual gross merchandise value of US$ 350 billion. Fuelling e-commerce growth, India is expected to have over 907 million internet users by 2023, which accounts for ~64% of the total population of the country.
The market has grown exponentially over the past five years due to the surge in internet and smartphone users, improved policy reforms, and increase in disposable income. Mobile wallets, Internet banking, and debit/credit cards have become popular among customers for making transactions on e-commerce platforms. The total value of digital transactions stood at US$ 300 billion in 2021 and is projected to reach US$ 1 trillion by 2026.
The India online grocery market size has been projected to grow from US$ 4,540 million in 2022 to US$ 76,761.0 million by 2032, at a CAGR of 32.7% through 2032.
FMCG giants such as Johnson & Johnson, Himalaya, Hindustan Unilever, ITC, Lakm? and other companies (that have dominated the Indian market for decades) are now competing with D2C-focused start-ups such as Mamaearth, The Moms Co., Bey Bee, Azah, Nua and Pee Safe. Market giants such as Revlon and Lotus took ~20 years to reach the Rs. 100 crore (US$ 13.4 million) revenue mark, while new-age D2C brands such as Mamaearth and Sugar took four and eight years, respectively, to achieve that milestone.
Key Initiatives:
Some of the major initiatives taken by the Government to promote the FMCG sector in India are as follows:
The Union government approved a new PLI scheme for the food processing sector, with a budget outlay of Rs. 109 billion (US$ 1.46 billion). Incentives under the scheme will be disbursed for six years to 2026-27.
The governments initiative to promote millets for its health benefits would increase the consumption and production of the millets in the nation. To support this, the government declared that the Indian Institute of Millet Research in Hyderabad will become a worldwide centre of excellence for the exchange of best practices, knowledge, and innovations.
In 2022, Government announced that the food processing industry has invested Rs. 4,900 crore (US$ 593 million) so far under the PLI scheme, which was approved in March 2021, with a budget outlay of Rs. 10,900 crore (US$ 1.3 billion), likely to increase sales and exports of food products.
A total of 182 applications have been approved under the PLI scheme for the food processing industry. This includes
30 applications for millets-based products under the PLI scheme (8 large entities and 22 SMEs)
In 2022, a total of 112 food processing projects were completed and operationalized, leveraging the private
investment of Rs. 706.04 crore (US$ 85.4 million) and generating direct and indirect employment for 25,293 people.
To boost the food processing sector, the Centre has permitted under the Income Tax Act a deduction of 100% of profit for five years and 25% of profit in the next five years in case of new agro-processing industries set up to package and preserve fruits and vegetables.
Excise Duty of 16% on dairy machinery has been fully waived off and excise duty on meat, poultry and fish products has been reduced from 16% to 8%.
An amount of Rs. 1,000 crore (US$ 120.7 million) is being set up initially in NITI Aayog for SETU for setting up of incubation centres and enhance skill development to facilitate the startup ecosystem in the country while improving the ease of doing business.
The governments incentives and the FDI funds have helped the FMCG sector strengthen employment, establish a
more robust supply chain, and capture high visibility for FMCG brands across established retail markets.
Union Budget 2023-24 has allocated US$ 976 million for PLI schemes that aims to reduce import costs, improve the
cost competitiveness of domestically produced goods, increase domestic capacity, and promote exports.
The governments production-linked incentive (PLI) scheme gives companies a major opportunity to boost exports with an outlay of US$ 1.42 billion.
GST is expected to transform logistics in the FMCG sector into a modern and efficient model as all major corporations
are remodelling their operations into larger logistics and warehousing.
ROAD AHEAD
Rural consumption has increased, led by a combination of increasing income and higher aspiration levels. There is an increased demand for branded products in rural India. On the other hand, with the share of the unorganised market in the FMCG sector falling, the organised sector growth is expected to rise with an increased level of brand consciousness, augmented by the growth in modern retail. Another major factor propelling the demand for food services in India is the growing youth population, primarily in urban regions. India has a large base of young consumers who form most of the workforce, and due to time constraints, barely get time for cooking.
Online portals are expected to play a key role for companies trying to enter the hinterlands. The Internet has contributed in a big way, facilitating a cheaper and more convenient mode to increase a companys reach. The number of internet users in India is likely to reach 1 billion by 2025. It is estimated that 40% of all FMCG consumption in India will be made online by 2030. E-commerce share of total FMCG sales is expected to increase by 11% by 2030. It is estimated that India will gain US$ 15 billion a year by implementing GST. GST and demonetisation are expected to drive demand, both in the rural and urban areas and economic growth in a structured manner in the long term and improved the performance of companies within the sector.
Source: Media Reports, Press Information Bureau (PIB), Union Budget 2023-24
https://www.ibef.org/industry/fmcg
WINERY BUSINESS
Wine refers to an alcoholic beverage made with the fermented juice of grapes. It consists of additional condiments,
such as potassium sorbate, water, aromatics, potassium metabisulfite, acids, alcohol, tannins, and sugar, to inhibit
enzymatic browning. Wine is rich in antioxidants that are beneficial in treating a common cold, lowering bad cholesterol, regulating blood sugar levels, reducing the risk of cancer, and protecting against cell damage. It is widely consumed directly or used in cooking applications to intensify the flavor and aroma of finished dishes. Commonly available in still, fortified, sparkling, and vermouth variants, moderate consumption of wine further prevents circulatory and heart diseases, such as atherosclerosis, coronary heart disease, heart attack, failure, and stroke.
The wine market in India is growing due to the availability of online stores and speciality retailers, providing consumers with a wide range of choices and convenient online shopping experiences. Strong online distribution channels and platform providers like WineWell and LiquorKart are boosting online sales. This expansion creates opportunities for vendors to target customers without geographical limitations, enhance operational efficiencies, and offer customized products. The evolving retail landscape allows vendors to develop online strategies and eliminate middlemen, resulting in competitive pricing and increased profit margins. Factors such as rising disposable income, changing attitudes towards alcohol consumption, wines perception as a sophisticated drink, and the growth of wine bars and tourism contribute to this market growth. The Indian wine market is expected to continue its upward trajectory and become a significant player in the global industry.
The Indian wine market size is estimated to grow at a CAGR of 30.92% between 2022 and 2027. The size of the market is forecast to increase by USD 688.16 million. In 2017 the size of the market was valued at USD 68.80 million.
This wine market in India report extensively covers market segmentation by Type (domestic and imported) and Product (red, fortified, white, and sparkling). It also includes an in-depth analysis of drivers, trends, and challenges.
Trends
The rising population of millennials worldwide is the key trend in the market. The spending power of millennials is tremendous and is anticipated to grow. Millennials made up over 40% of Indias working-age population in 2022 and were among the groups highest salary earners. Alcoholic beverages, including wine, are becoming popular among millennials, as millennials are more enthusiastic to try out new variants and flavors than other consumer segments. The millennial population accounted for one-third of the total population in India in 2022, providing a huge opportunity for domestic players to expand their geographical presence and increase their customer base. The millennial population is expected to play an essential role in the growth of the India wine market during the forecast period.
Wine Market in India Size
appreciation for wine culture.
The India wine market size reached US$ 164.1 Million in 2022. Looking forward, IMARC Group expects the market to reach US$ 477.9 Million by 2028, exhibiting a growth rate (CAGR) of 18.9% during 2023-2028.
The widespread product adoption in the food and beverage (F&B) industry across the country is creating a positive outlook for the market. Wine is widely used to impart delicate flavors and bring out the richness of products. Additionally, the increasing product demand among young consumers due to the emerging trend of socializing at restaurants and bars is favoring the market growth. Apart from this, the introduction of organic wines that restrict the use of chemicals in their harvest and preparation is propelling the market growth. The practice of such sustainable methods by growers offers various health and environmental benefits, such as higher concentration of antioxidants, better heart health, easier to process by the liver, and lower carbon footprint. In line with this, the increasing demand for gluten-free alcoholic beverages due to the rising health consciousness among the masses and the increasing incidences of celiac disease is propelling the market growth. Furthermore, the rising demand for premiumization of wine manufactured with high-quality ingredients and the launch of new flavored fortified wines are positively impacting the market growth. Other factors, including increasing expenditure capacities of consumers, improving lifestyles, and easy product availability across e-commerce platforms, are supporting the market growth.
Domestic and imported wine brands in India have a bright future ahead of them as cultural shifts create beneficial
consumer trends and penetration into less tapped demographics, such as younger LDA drinkers and men.
An increased focus on higher quality offerings by the dominant domestic wine industry and increased consumption without food are also likely to boost demand – but imported wines face familiar hurdles in the shape of high taxes and tariffs, and a cumbersome regulatory system.
In the short term, the Covid-19 pandemic had a significant impact on wine sales during 2020. The on-trade is an important channel for wine in India, and closures and lockdowns led to sales volumes plummeting by about -20% in
12 months, according to IWSR data. Imports were also adversely affected by supply disruption and the scaling back of distribution, as well as challenges with international logistics and liquidity.
But longer-term pre-pandemic trends show wine becoming more approachable and acceptable in Indian society. "In both TV and film, young and discerning characters are drinking wine, most importantly without food, beginning to break a connection in many consumers minds," reports IWSR research analyst Jason Holway. "These characters are both male and female, subtly questioning the conventional view that wine is more of a womans drink."
Domestic producers account for 70% of still wine consumption, 80% of the sparkling wine category, and over 80%
of the total wine category in India.
The pandemic afforded these domestic brand owners an opportunity to rethink their strategies, focusing more on their higher-margin products and concentrating more on their retail routes to market as on-trade opportunities contracted. "Consumer education remains a key priority, but there is a sense that the category has attracted new consumers within more affluent, metro households," says Holway.
This has also encompassed the creation of innovative, more egalitarian products, including wine in cans. Sula and Fratelli, for example, have launched canned products in the still and sparkling wine spaces with Dia and Tilt respectively.
"There is a sense that local players, deprived of on-trade opportunities for much of 2020, have taken a step back and reassessed their priorities," says Holway. "They have focused on better-quality yet still very much affordable wines and sought to weaken associations with food and female customers, without entirely breaking connections to what will remain important consumer drivers."
For imported wines, 2020 was an immensely challenging year, thanks to Covid-19 restrictions and disruptions to supply and distribution. All origins and price bands registered volume declines during the year – except for premium wines from South Africa, which owed their increase to the anomalous stocking and promotion of one brand.
Nonetheless, international wine companies are eyeing growth in India as a key strategic goal in the longer term, with the country named as a target market in trade body Australian Grape & Wines 2021-22 Pre-Budget Submission to the Australian Government.
The submission identifies India as a "significant growth opportunity" for Australian wine, which it says is "already the primary importer of wine in the relatively small wine market", outlining a 10-year plan of short-, medium- and long-term objectives.
"As long as all parties – domestic producers, imported brands and their distribution partners – get the balance right between educating consumers and offering choice at accessible price-points, and invest in distribution – both at home and overseas – the prospects are bright for growth."
Source: https://www.theiwsr.com/will-wine-take-off-in-india/
Source: https://mma.prnewswire.com/media/2030739/Technavio_Report_titled_India_Wine_Market.html
Indias textiles sector is one of the oldest industries in the Indian economy, dating back to several centuries.
The industry is extremely varied, with hand-spun and hand-woven textiles sectors at one end of the spectrum, while the capital-intensive sophisticated mills sector on the other end. The decentralised power looms/ hosiery and knitting sector forms the largest component in the textiles sector. The close linkage of textiles industry to agriculture (for raw materials such as cotton) and the ancient culture and traditions of the country in terms of textiles makes it unique in comparison to other industries in the country. Indias textiles industry has a capacity to produce wide variety of products suitable for different market segments, both within India and across the world.
Indias Textiles industry has around 4.5 crore employed workers including 35.22 lakh handloom workers across the country. The industry contributed 7% to the industry output (by value) in 2018-19. The Indian textiles and apparel industry contributed 2% to the GDP, 12% to export earnings and held 5% of the global trade in textiles and apparel in 2018-19. Exports of textiles (RMG of all textiles, cotton yarns/fabs./made-ups/handloom products, man-made yarns/fabs./made-ups, handicrafts excl. handmade carpets, carpets and jute mfg. including floor coverings) stood at US$ 22.89 billion between April 2021 and October 2021.
The Indian textile and apparel industry is expected to grow at 10% CAGR from 2019-20 to reach US$ 190 billion by 2025-26. India has a 4.6% share of the global trade in textiles and apparel. Moreover, India is the worlds 3rd largest exporter of Textiles and Apparel.
The Indian Technical Textile market has a huge potential of a 10% growth rate, increased penetration level of 9-10% and is the 5th largest technical textiles market in the world. Indias sportech industry is estimated around US$ 1.17 million in 2022-23.
The Indian Medical Textiles market for drapes and gowns is around US$ 9.71 million in 2022 and is expected to grow at 15% to reach US$ 22.45 million by 2027.
The Indian composites market is expected to reach an estimated value of US$ 1.9 billion by 2026 with a CAGR of 16.3% from 2021 to 2026 and the Indian consumption of composite materials will touch 7,68,200 tonnes in 2027.
India is the worlds largest producer of cotton. Estimated production stood at 343.4 lakh bales during the cotton season 2022-23. Indias demand for domestic consumption of cotton is estimated to be 5.29 million metric tonnes in 2022-23. Domestic consumption for the 2021-22 cotton season was estimated to be 338 lakh bales. Cotton production in India is projected to reach 7.2 million tonnes (~43 million bales of 170 kg each) by 2030, driven by increasing demand from consumers. In FY23, exports of readymade garments (RMG) including accessories stood at US$ 16.2 billion. It is expected to surpass US$ 30 billion by 2027, with an estimated 4.6-4.9% share globally.
In 2022-23, the production of fibre in India stood at 2.15 million tonnes. While for yarn, the production stood at 5,185 million kgs during the same period. Natural fibres are regarded as the backbone of the Indian textile industry, which is expected to grow from US$ 138 billion to US$ 195 billion by 2025.
Exports of readymade garments including cotton accessories stood at US$ 6.19 billion in FY22.
Exports for 247 technical textile items stood at Rs. 5,946 crore (US$ 715.48 million) between April-June (2023-24).
Global Industry Overview:
The COVID-19 pandemic has challenged the textile industry drastically in 2020. Asia, which is one of the largest markets for the textile industry in the world, has suffered from the prolonged lockdowns and restrictions in the majority of Asian countries along with the sudden drop in international demand for their products. The loss was particularly high in countries where the textile industry accounted for a larger share of the exports. According to the study by the International Labour Organization (ILO) the global textile trade collapsed during the first half of 2020. Also, exports to the major buying regions in the European Union, the United States, and Japan fell by around 70%. The industry also suffered several supply chain disruptions due to the shortages of cotton and other raw materials.
The textile industry is an ever-growing market, with key competitors being China, the European Union, the United States, and India. China is the worlds leading producer and exporter of both raw textiles and garments. The United States is the leading producer and exporter of raw cotton, while also being the top importer of raw textiles and garments. The textile industry of the European Union comprises Germany, Spain, France, Italy, and Portugal at the forefront with a value of more than 1/5th of the global textile industry. India is the third-largest textile manufacturing industry and is responsible for more than 6% of the total textile production, globally. The rapid industrialization in the developed and developing countries and the evolving technology are helping the textile industry to have modern installations which are capable of high-efficient fabric production. These factors are helping the textile industry to record more revenues during the study period and are expected to help the industry further in the forecast period.
The global textile industry impacts nearly every human being on the planet. The global textile industry is a manufacturing sector thats currently worth nearly three trillion dollars (in U.S. dollars) and includes the production, refinement, and sale of both synthetic and natural fibers used in thousands of industries.
Its estimated anywhere between 20 million and 60 million people are employed in the textile industry worldwide. Employment in the garment industry is particularly important in developing economies such as India, Pakistan, and Vietnam. The industry accounts for approximately two percent of global gross domestic product (GDP) and accounts for an even greater portion of GDP for the worlds leading producers and exporters of textiles and garments.
The fashion application segment led the market and accounted for more than 73% of the global revenue share in 2021 owing to the increased consumer spending on clothing and apparel. In addition, high consumer demand for crease-free suiting & shirting fabrics, as well as quality-dyed & printed fabrics across the globe will drive the segment growth further.
Figure: Global market size by application; source: https://www.databridgemarketresearch.com/reports/global-textile-market
In addition, increasing application in the construction, transportation, medical, and protective clothing applications have boosted the use of the same, which is consequently driving the textiles market. The use of textiles in different areas of a household is one of the prominent growth driving factors for the household application segment.
The textile industry works on three major principles, designing, production, and distribution of different flexible materials, such as yarn and clothing. Several processes, such as knitting, crocheting, weaving, and others, are largely used to manufacture a wide range of finished and semi-finished goods in bedding, clothing, apparel, medical, and other accessories.
Increasing demand for online shopping is expected to drive the textile manufacturing market. Manufacturers can now sell their products on a larger platform than before, which will increase their customer base geographically driving the growth of the textile manufacturing market. In countries such as India, for instance, e-commerce portals have boosted the sales of traditional garments by giving larger exposure to producers who were confined to one geography.
GOVERNMENT INITIATIVES
The Indian government has come up with several export promotion policies for the textiles sector. It has also
allowed 100% FDI in the sector under the automatic route.
Other initiatives taken by the Government of India are:
sector.
The future of the Indian textiles industry looks promising, buoyed by strong domestic consumption as well as export demand. India is working on various major initiatives to boost its technical textile industry. Owing to the pandemic, the demand for technical textiles in the form of PPE suits and equipment is on the rise. The government is supporting the sector through funding and machinery sponsoring.
Top players in the sector are achieving sustainability in their products by manufacturing textiles that use natural recyclable materials.
With consumerism and disposable income on the rise, the retail sector has experienced a rapid growth in the past decade with the entry of several international players like Marks & Spencer, Guess and Next into the Indian market. The growth in textiles will be driven by growing household income, increasing population and increasing demand by sectors like housing, hospitality, healthcare, etc.
Indias high growth imperative in 2023 and beyond will significantly be driven by major strides in key sectors with
infrastructure development being a critical force aiding the progress.
Infrastructure is a key enabler in helping India become a US$ 26 trillion economy. Investments in building and upgrading physical infrastructure, especially in synergy with the ease of doing business initiatives, remain pivotal to increase efficiency and costs. Prime Minister Narendra Modi also recently reiterated that infrastructure is a crucial pillar to ensure good governance across sectors.
The governments focus on building infrastructure of the future has been evident given the slew of initiatives launched recently. The US$ 1.3 trillion national master plan for infrastructure, Gati Shakti, has been a forerunner to bring about systemic and effective reforms in the sector, and has already shown a significant headway.
Infrastructure support to nations manufacturers also remains one of the top agendas as it will significantly
transform goods and exports movement making freight delivery effective and economical.
The "Smart Cities Mission" and "Housing for All" programmes have benefited from these initiatives. Saudi Arabia seeks to spend up to US$ 100 billion in India in energy, petrochemicals, refinery, infrastructure, agriculture, minerals, and mining.
Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling Indias overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. Infrastructure sector includes power, bridges, dams, roads, and urban infrastructure development. In other words, the infrastructure sector acts as a catalyst for Indias economic growth as it drives the growth of the allied sectors like townships, housing, built-up infrastructure and construction development projects.
In order to meet Indias aim of reaching a US$ 5 trillion economy by 2025, infrastructure development is the need of the hour. The government has launched the National Infrastructure Pipeline (NIP) combined with other initiatives such as ‘Make in India and the production-linked incentives (PLI) scheme to augment the growth of infrastructure sector. Historically, more than 80% of the countrys infrastructure spending has gone toward funding for transportation, electricity, and water& irrigation.
While these sectors still remain the key focus, the government has also started to focus on other sectors as Indias environment and demographics are evolving. There is a compelling need for enhanced and improved delivery across the whole infrastructure spectrum, from housing provision to water and sanitation services to digital and transportation demands, which will assure economic growth, increase quality of life, and boost sectoral competitiveness.
MARKET SIZE
In Interim Budget 2024-25, capital investment outlay for infrastructure has been increased by 11.1% to Rs. 11.11 lakh crore (US$ 133.86 billion), which would be 3.4 % of GDP. As per the Interim Budget 2023-24, a capital outlay of Rs. 2.55 lakh crore (US$ 30.72 billion) has been made for the Railways, an increase of 5.8% over the previous year.
Starting with 6,835 projects, the NIP project count now stands at 9,142 covering 34 sub-sectors, as per news
reports. Under the initiative, 2476 projects are under the development phase with an estimated investment of US$
1.9 trillion. Nearly half of the under-development projects are in the transportation sector, and 3,906 are in the roads and bridges sub-sector.
During FY 2023-24, Total revenue of Indian Railways stands at US$ 28.89 billion (Rs 2.40 Lakh Crore) as on 15th March. Last year on 15th March, total Revenue was US$ 26.84 billion (Rs 2.23 Lakh Crore).
Indias logistics market is estimated to be US$ 317.26 billion in 2024 and is expected to reach US$ 484.43 billion by 2029, growing at a CAGR of 8.8%.
India intends to raise its ranking in the Logistics Performance Index to 25 and bring down the logistics cost from
14% to 8% of GDP, leading to a reduction of approximately 40%, within the next five years.
In December 2022, AAI and other Airport Developers have targeted capital outlay of approximately Rs. 98,000 crore (US$ 11.8 billion) in airport sector in the next five years for expansion and modification of existing terminals, new terminals and strengthening of runways, among other activities.
India currently has the fifth-largest metro network in the world and will soon overtake advanced economies such as Japan and South Korea to become the third-largest network. Metro rail network reached 810 kms and is operational in 20 cities.
In the last 10 years, 697 km have been added to Metro Rail Network across the country. In 2024, about 945 km of
metro rail lines are operational in 21 cities and 919 km is under construction in 26 different cities
At almost 20 kms, Mumbai monorail is the third largest route in the world after China with 98 kms and Japan with 28 kms.
FDI in construction development (townships, housing, built-up infrastructure and construction development projects) and construction (infrastructure) activity sectors stood at US$ 26.61 billion and US$ 33.91 billion, respectively, between April 2000-March 2024.
Indian logistics market is estimated to touch US$ 320 billion by 2025. The overall infrastructure capex is estimated to grow at a CAGR of 11.4% over 2021-26 driven by spending on water supply, transport, and urban infrastructure. Investment in infrastructure contributed around 5% of the GDP in the tenth five-year plan as against 9% in the eleventh five-year plan. Further, US$ 1 trillion investment in infrastructure was proposed by the Indias planning commission during the 12th five-year plan, with 40% of the funds coming from the private sector.
1
Figure: Global Steel bar market by application; Source: www.grandviewresearch.com
Government Initiatives
Under Interim Budget 2024-25:
11.11 trillion) for the fiscal year beginning April 1, 2024, with a focus on advancing Indias infrastructure, as part of a strategic move to stimulate economic growth. An increase of 11.1% from the previous year, the FY25 interim budget allots US$ 133.9 billion (Rs. 11.11 trillion) for capital expenditures, or 3.4% of GDP.
for 2024-25.
Affairs.
The energy industry also includes secondary sources such as electricity. Energy prices—along with the earnings performance of energy producers—are largely driven by the supply and demand for worldwide energy.
Oil and gas producers tend to perform well during periods of elevated oil and gas prices. However, energy companies earn less when the price of energy commodities falls. Oil refiners, on the other hand, benefit from the falling cost of feedstock to produce petroleum products like gasoline when crude oil prices drop. Furthermore, the energy industry is sensitive to political events, which historically have led to volatility—wild fluctuations—in the price of oil.
The power or energy industry is the sector responsible for generating, transmitting, and distributing electricity to homes, businesses, and industries. It encompasses various types of energy sources, including fossil fuels like coal, oil, and natural gas, as well as renewable sources like solar, wind, hydroelectric, and nuclear power.
The industry plays a critical role in providing the energy needed to power our modern lives, from lighting and heating our homes to running factories and charging electric vehicles. Additionally, it is undergoing significant transformations as efforts are made to transition to cleaner and more sustainable energy sources to address environmental concerns and combat climate change.
Indias energy demand is expected to increase more than that of any other country in the coming decades due to its sheer size and enormous potential for growth and development. Therefore, most of this new energy demand must be met by low-carbon, renewable sources. Indias announcement India that it intends to achieve net zero carbon emissions by 2070 and to meet 50% of its electricity needs from renewable sources by 2030 marks a historic point in the global effort to combat climate change.
India was ranked fourth in wind power capacity and solar power capacity, and fourth in renewable energy installed capacity, as of 2023. Installed renewable power generation capacity has increased at a fast pace over the past few years, posting a CAGR of 15.4% between FY16 and FY23. India has 125.15 GW of renewable energy capacity in FY23. India is the market with the fastest growth in renewable electricity, and by 2026, new capacity additions are expected to double.
With the increased support of the Government and improved economics, the sector has become attractive from an investors perspective. As India looks to meet its energy demand on its own, which is expected to reach 15,820 TWh by 2040, renewable energy is set to play an important role.
MARKET SIZE
As of March 2024, Renewable energy sources, including biomass, waste to power and waste to energy, have a combined installed capacity of 143.64 GW. As of February 2024, 42.25% of the total power installed capacity is from non-fossil-based sources.
Indias installed renewable energy capacity is expected to increase to about 170 GW by March 2025 from the level of 135 GW as of December 2023, according to research agency ICRA.
The country is targeting about 450 Gigawatt (GW) of installed renewable energy capacity by 2030 – about 280 GW (over 60%) is expected from solar.
The non-hydro renewable energy capacity addition stood at 4.2 GW for the first three months of FY23 against 2.6 GW for the first three months of FY22. According to research by the Council on Energy, Environment and Waters Centre for Energy Finance (CEEW-CEF), Indias total installed power generation capacity reached 416 GW in FY23, of which 125 GW (30%) came from renewable energy (RE) and 47 GW (11%) comes from hydro.
The electricity generation target (Including RE) for the year 2023-24 has been fixed as 1750 Billion Units (BU). i.e. growth of around 7.2% over the actual generation of 1624.158 BU for the previous year (2022-23). The generation during 2022-23 was 1624.158 BU as compared to 1491.859 BU generated during 2021-22, representing a growth of about 8.87%.
The installed solar energy capacity has increased by 26 times in the last 9 years and stands at 73.32 GW as of December 2023. In 2023, India has added 7.5 GW of solar power capacity. During January 2024, the capacity addition from solar energy stood at 9008.47 MW.
Solar power accounted for 16.9% of the total installed power capacity and 40.1% of the total installed renewable capacity at the end of December 2023. Solar powers share increased by 0.3% from the last quarter, when it accounted for 39.5% of the total renewable capacity.
India has hydroelectric power projects with a total capacity of 15 GW under construction, which will increase the countrys total hydro capacity from 42 GW to 67 GW by 2031-32, supported by IMDs prediction of higher rainfall and the governments proactive stance towards accelerated hydropower development.
Figure: Energy business market size by the type; Source: alliedmarketresearch.com
By end use, the residential segment acquired the top position of the global market in 2020, and it is anticipated to grow at a CAGR of 8.4% during the forecast period. Increase in use of geothermal heat pump in residential heating application is expected to drive the growth of the market.
The requirement of geothermal power is expected to increase significantly with rise in demand for electricity. This factor is expected to drive the growth of the market. Several companies in the market offer geothermal power to the residential sectors.
1
Figure: Renewable energy Market size by end use; Source: www.alliedresearch.com
Indian Industry Overview:
sector including grid, off-grid, and PM-KUSUM projects.
Mission (NSGM), with a further 61.13 lakh to be deployed.
1
Figure: Sector Composition of Renewable Energy Sector
Key Market Movements:
power in Rajasthan.
in the renewable energy sector.
1
Figure: Key trends of electricity generation from renewable energy sector; Source: www.ibef.org
COMPANY OVERVIEW:
Your Company was incorporated as "Five Star Mercantile Private Limited" on August 6, 2007, as a private limited Company under the Companies Act, 1956 and was granted the Certificate of Incorporation by the Registrar of Companies, Mumbai. Subsequently, our Company was converted into a public limited company and the name of your Company was changed to "Five Star Mercantile Limited" on January 3, 2012, and a fresh Certificate of Incorporation was issued by the Registrar of Companies, Mumbai. Subsequently, your Company, Five Star Mercantile Private Limited entered into a Composite Scheme of Arrangement and Amalgamation with the division of Morarjee Textiles Limited called ‘the Integra Division and Morarjee Holdings Private Limited.
This Composite Scheme of Arrangement and Amalgamation was approved by the Honble Bombay High Court vide its order dated June 29, 2012. Consequently, the name of your Company was changed to "Integra Garments and Textiles Limited" and a fresh Certificate of Incorporation was issued on August 2, 2012, by the Registrar of Companies, Mumbai.
Pursuant to this amalgamation, the main object of your Company shifted to carry on the business of manufacturing,
along with trading, dealing, importing, exporting, and selling textiles and fabrics. Your Company dealt with mens,
womens and childrens clothing and wearing apparel garments and dresses of every kind, nature and description
as per the market trends.
On July 14, 2021, your Company was acquired by Mr. Vishesh Gupta upon completion of the open offer, and pursuant to the Share Purchase Agreement dated March 31, 2021 and the management of our Company underwent a change. Our Company with effect from August 7, 2021, appointed and composed a new Board of Directors and Key Managerial Personnel. After the change in the management and control of our Company, the objects were broadened.
The present objects of your Company comprises of manufacturing, trading and dealing in garments and textiles, ventured into dealing, trading of agricultural commodities, life necessities, items of basic human needs, organic and natural products and processed foods and other essential goods, Energy and infrastructural products among others. Accordingly, the name of our Company was changed to "Integra Essentia Limited" on February 16, 2022, and a fresh Certificate of Incorporation was issued by the Registrar of Companies, Mumbai.
Integra Essentia Limited is a Delhi based company engaged in business of Life Essentials i.e. Agro Business (including Winery), Clothing (Textiles and Garments), Infrastructure (Materials and Services for Construction and Infrastructure Development) and Energy (Materials, Products and Services for the Renewable Energy Equipment and Projects) and many more Products and Services required sustaining the modern life. The company is promoted and managed by a core team of experts of diverse experience relevant to the company businesses.
Current Business Segments
Our business is divided into different major segments which include Food (Agro Products), Clothing (Textiles and Garments), Infrastructure (Materials and Services for Construction and Infrastructure Development) and Energy (Materials, Products and Services for the Renewable Energy Equipment and Projects).
Agro Product Business Division:
Your Company deals in trading of agro products comprising of certified organic agro products and general agro products such as rice, wheat, flour, grains, pulses, tea, coffee, sugar, dry fruits, spices, vegetables, exotic and general fruits and a variety of other products of the same nature such as juices and nectars, organic herbs, essences, agro nutraceuticals and dairy products.
Further company has also working on a new venture which is Winery Business Details of this business are separately provided in this Annual report in brief.
Clothing Business Division:
Your Company deals in the clothing and textile segment comprising of clothing and furnishing fabrics, linen material. Our product portfolio in this segment consists of bed linen, table linen for domestic use, hotels and hospitals supplies, upholstery materials, curtains & curtain fabrics, carpets and rugs and apparels for men, women, and children.
Infrastructure Business Division:
Your Company is engaged in the business of trading of materials for construction and infrastructure development such as steel products comprising of TMT bars, girders, and hollow sections; construction materials comprising of cement, bricks, tiles, mortar, bitumen; pipes & plumbing systems; electrical conduits, switches, circuit breakers etc; irrigation pipes and sprinkler systems, drip irrigation systems and hybrid irrigation systems, borewell pumps etc; and rainwater harvesting systems.
Energy Business:
Your Company offer materials, products and services for renewable energy equipment and projects such as solar
power generators, hydrogen cell power generators, and batteries for solar & hydrogen cell power generators.
Opportunities for sustainable growth:
with customers by catering to their needs and demands in a timely, efficient and cost-effective manner.
Financial Performance
The financials of the Company as on 31st March, 2024 in comparison with the previous year figures along withthe key financial indicators are discussed as under:
Net worth
The Companys net worth viz. paid-up share capital, general reserves and retained earnings stood at Rs. 13218.40 Crore as against the previous year where it stood at Rs. 8195.16 Crore.
Borrowings
The Companys borrowings aggregated to Rs. 724.56 Crore in comparison to the previous year figures being
2847.50 Crore.
The total debt - equity ratio of the Company as on 31st March, 2024 was -0.06:1
Trade Receivables & Trade Payables
Trade receivables at the end of financial year was Rs. 3903.73 Crore and trade payables aggregated to Rs.4668.35 Crore as against the previous year where Trade receivables and trade payables stood at 1034. 79 and 2408.26 Crore respectively.
Current Assets & Current Liabilities
The Current Assets of the Company stood at Rs. 5870.00 Crore whereas the current liabilities aggregated to Rs.7702.04 Crore as against the previous year where the Current Assets and Current Liabilities were 1794.77 Crore and 5708.33 Crore respectively. The Current Ratio of the Company as at 31st March, 2024 was 0.76:1.
Earnings per Share
The basic and diluted Earnings per Share (EPS) as at the end of financial year was 0.27 as ag ainst the previous year where the Earnings per Share (EPS) was 0.14.
Research & Development
The Company is well aware of the only improvisation and the product quality is the vital for the growth and sustainability of the Company for that company is continuously working on the research and development aspect of the sector.
R&D is one of the driving forces for expansion in the company. Research and development is one of our key strengths and is integral to our growth. Our in-depth expertise in process research, process development and analytical references enables us to provide integrated solutions to our global customers.
Disclaimer
Statements in the Management Discussions and Analysis describing the Companys objectives, projections, estimates, expectations are "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax, corporate and other applicable laws together with the other incidental factors.
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