Integrated Industries Ltd Management Discussions

1. Industry Structure, Developments and outlook

The global biscuits market was valued at USD 108.75 billion in 2024 and is projected to grow at a CAGR of 5.70%, reaching USD 167.69 billion by 2032. The market is experiencing steady growth, driven by evolving consumer preferences, increased snacking habits, and product innovations. The Asia Pacific region dominated the market with a 32.74% share in 2024, highlighting the regions significance in global demand. The U.S. market is also witnessing a strong growth trajectory, with projected market size reaching USD 17.02 billion by 2032, attributed to the presence of multiple brands offering a wide variety of biscuit products across diverse flavours, formats, and functional benefits.

Biscuits, traditionally consumed as convenient snacks or accompaniments to tea and coffee, are available in a wide range of variants including plain, cream-filled, shortbread, wafer-style, digestive, and sandwich biscuits. The basic ingredients comprise flour, sugar, fat (butter or vegetable oil), eggs, leavening agents, and flavourings, with the scope for added inclusions like chocolates, fruits, nuts, and spices.

One of the notable trends is the rising consumer inclination towards clean-label, gluten-free, high-fibre, and low-calorie offerings. The growing prevalence of coeliac disease estimated to affect 1 in 100 people in the U.K. alone has further propelled the demand for gluten-free alternatives. In line with this, manufacturers and government bodies are promoting healthier biscuit options. For instance, in April 2022, the Agricultural & Processed Food Products Export Development Authority (APEDA) launched a range of 100% natural and patented gluten-free millet-based biscuits in flavours such as milk, cream, and salted varieties, aimed at the Indian market.

Additionally, the surge in out-of-home snacking, driven by urban lifestyles and expanding working populations, continues to boost the demand for packaged biscuit products. As snacking becomes a more integral part of daily routines, biscuits remain one of the most preferred options due to their taste, portability, and long shelf life.

Source: Fortune Business Insight, a global research firm

The Indian packaged food industry continues to show strong growth, driven by rising urbanization, changing lifestyles, increasing disposable incomes, and greater awareness of hygiene and food safety. Within this sector, the biscuits segment remains one of the most consumed and competitive categories. The industry is characterized by a large unorganized segment but is increasingly shifting towards organized branded players due to quality concerns and evolving consumer preferences.

Innovations in flavour, packaging, and health-focused variants (such as multigrain, sugar-free, high-fibre biscuits) have contributed to market expansion. Regulatory improvements, including the enforcement of FSSAI norms and clearer labelling guidelines, have enhanced transparency and consumer trust.

2. Opportunities and Threats

Opportunities:

Rising demand for healthy snacking alternatives, particularly among urban and health-conscious consumers. Expansion in Tier II and Tier III cities where penetration is still growing. Increasing exports potential, particularly in Middle East, Africa, Asia-Pacific and Central America. Growth of e-commerce and D2C (direct-to-consumer) platforms, enabling wider market access.

Threats:

Volatility in prices of key raw materials such as wheat flour, sugar, and palm oil.

Intense competition from regional and multinational players, often leading to pricing pressures. Evolving consumer preferences towards alternative snacking options (e.g., protein bars, baked snacks). Regulatory risks, including changes in FSSAI norms or import-export restrictions.

3. Segment-wise or Product-wise Performance

The Company operates predominantly in the biscuits segment, offering products across categories like glucose, cream, digestive, and premium cookies. During the year under review, the premium and health-oriented biscuit categories registered higher growth compared to the traditional glucose segment.

The Company has diverse range of biscuit SKUs under the brand names Richlite, Funtreat, and Crunchy Kraze, which include variants such as Borbon, Butter, Cashew, Coconut, Cream, Digestive, Glucobite, Marie, Milk, Puff, Salty and Sweet & Salty.

4. Risks and Concerns

The key risks facing the business include:

Input cost inflation: Fluctuating prices of raw materials may impact margins despite cost-optimization measures. Supply chain disruptions, particularly due to geopolitical factors or transportation/logistics challenges. Changing consumer habits may pose a risk to traditional product lines. Regulatory compliance remains a constant area of focus, particularly in labelling and nutrition disclosures. Climate-related risks affecting agricultural raw material supply.

The Company is proactively managing these risks through long-term supplier contracts, dynamic pricing models, product portfolio diversification, and continuous compliance audits.

5. Internal Control Systems and their Adequacy

The Company has an established framework of internal controls, commensurate with the size and nature of its operations. These controls ensure the integrity of financial reporting, compliance with applicable laws and regulations, and efficient operations.

Regular internal audits are conducted by independent professionals and reviewed by the Audit Committee. During the year, key control enhancements were undertaken in the areas of:

Inventory management and warehousing efficiency.

IT system upgrades to support real-time sales and distribution data. Strengthening of vendor onboarding and payment controls.

Internal audits are conducted periodically to assess the effectiveness of controls and ensure compliance with regulatory requirements. The Audit Committee reviews significant audit observations and corrective actions taken.

The Compliance Certification from CEO and CFO provided in Annual Report confirms the adequacy of our internal control system and procedures.

6. Discussion on Financial Performance with Respect to Operational Performance A. Overview

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) and comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with rule 7 of the Companies (Accounts) Rules, 2014

The Company operates in a single primary business segment, namely the manufacture of biscuits and accordingly the financials relate to this segment.

(Rs in Crores)

Particulars	Standalone		Consolidated
	For the Financial year ended March 31, 2025	For the Financial year ended March 31, 2024	For the Financial year ended March 31, 2025	For the Financial year ended March 31, 2024
Total Income	67.84	57.64	769.35	331.26
Total Expenditure*	64.86	55.92	697.07	301.82
Profit before Finance	2.98	1.72	72.28	29.44
Costs, Depreciation, Tax Depreciation &	0.16	0.02	2.76	2.26
Amortization
Finance Costs	0.07	0.44	1.09	0.44
Profit before Tax	2.75	1.26	68.43	26.74
Income Tax (including deferred tax)	0.66	0.38	1.86	1.85
Net Profit after Tax	2.09	0.88	66.57	24.89
Other Comprehensive	-	-	1.25	0.05
Income (net of tax)
Total Comprehensive Income	2.09	0.88	67.82	24.94
EPS (Basic)	0.10	0.06	2.64	1.82

*Excluding Depreciation & Amortization and Finance Cost.

B. Review of Operations

During the financial year ended March 31, 2025, the Company demonstrated strong operational and financial performance.

On a consolidated basis, the total income of the Company stood at Rs. 769.35 crores, as compared to Rs. 331.26 crores in the previous financial year ended March 31, 2024, marking a substantial growth of over 132%. This increase was primarily driven by enhanced business volumes, strategic expansion, and improved operational efficiencies across key business segments.

On a standalone basis, the total income for the year amounted to Rs. 67.84 crores, as against Rs. 57.64 crores in the previous financial year, reflecting a year-on-year growth of approximately 17.71%.

The Company continues to focus on sustainable growth, strengthening its market position, and improving stakeholder value. The management remains committed to exploring new business opportunities, optimising costs, and investing in innovation to drive long-term performance.

C. Capital Markets

The Capital Market Information relating to the Companys shares such as Stock Exchanges in which they are listed/traded, trading volume, stock price movements etc., has been provided in the Report on Corporate Governance (under the heading “General Shareholder Information”) which forms part of the Annual Report 2024-2025.

D. Key Financial Ratios

The following are analytical ratios for the year ended March 31, 2025 and March 31, 2024

	Standalone
Particulars	March 31, 2025	March 31, 2024	Variance Reason for variance (where the change in the ratio is more than 25% as compared to the preceding year)
Current Ratio	1.35	2.13	-36% Company has realised their advances made to vendors. Therefore, there is significant change in ratio.
Debt-Equity Ratio	0.01	0.00	653% Company has purchased multiple vehicles on loan. Therefore, there is significant change in ratio.
Debt Service Coverage Ratio	10.20	0.09	11110% Company has purchased multiple vehicles on loan. Therefore, there is significant change in ratio.
Return on Equity Ratio	0.02	0.01	13% Not applicable
Trade Receivable Turnover Ratio	1.50	2.51	-40% Companys operations increased. Therefore, there is significant change in ratio.
Trade Payable Turnover Ratio	1.57	2.51	-38% Companys operations increased. Therefore, there is significant change in ratio.
Net Capital Turnover Ratio	4.75	1.17	306% Company has realised their advances made to vendors. Therefore, there is significant change in ratio.
Net Profit Ratio	0.03	0.02	121% Companys net profit increased due to increase in sales during the year. Therefore, there is significant change in ratio
Return on Capital Employed	0.02	0.01	27% Company has purchased multiple vehicles on loan. Therefore, there is significant change in ratio.
Return on Investment	0.01	0.01	37% Companys net profit increased due to increase in sales during the year. Therefore, there is significant change in ratio

7. Material Developments in Human Resources and Employee Relations.

Managing human resources effectively and efficiently plays a critical role in ensuring that a satisfied, motivated work force delivers quality services. It also plays an important role in increasing staff performance and productivity, enhancing an organizations competitive advantage, and contributing directly to the organizational goals. Satisfied, highly motivated and loyal employees represent the basis of competitive company. The growth of satisfaction is to be reflected in the increase of productivity, improvement of the products quality or rendered services and higher number of innovations. The Company is highly employee oriented, and the focus is on the development of employees.

The Company believes in promoting and nurturing work environment which is conducive to the development and growth of an individual employee, by employing the best HR practices such as performance management, reward and recognition policy, leadership development program, open work culture and effective employee communication.

The Company committed to embedding a culture of diversity and inclusion across the Group. This includes ensuring opportunity for all and embraces the positive effect that the diverse workforce brings

The Company does not tolerate any form of discrimination, and the employment policies and practices focus on ensuring that all the employment processes are free from unlawful discrimination on any grounds.

The Company (consolidated basis) has a total of 179 employees on its rolls as of March 31, 2025.