Integrated Proteins Ltd Management Discussions

1. This section shall include discussion on the following matters within the limits set by the listed entitys competitive position :

India is a vast country and inhabitants of several of its regions have developed specific preference for certain oils largely depending upon the oils available in the region. For example, people in the South and West prefer groundnut oil while those in the East and North use mustard / rapeseed oil. Likewise several pockets in the South have a preference for coconut and sesame oil. Inhabitants of northern plain are basically consumers of fats and therefore prefer Vanaspati, a term used to denote a partially hydrogenated edible oil mixture of oils like Soyabean, Sunflower, Rice bran and Cottonseed oils. Many new oils from oilseeds of tree and forest origin have found their way to the edible pool largely through Vanaspati route.

India edible oils market is projected to witness a CAGR of 3.52% during the forecast period FY2025-FY2032, growing from USD 19.86 billion in FY2024 to USD 26.19 billion in FY2032.

The Indian economy continued to witness stable growth during the year under review despite global economic uncertainties, inflationary pressures, geopolitical developments, and volatility in commodity markets. Domestic demand, government policy support, infrastructure spending, and improving business sentiment continued to support economic activity across various sectors.

The agro commodity and edible oil industry plays an important role in the Indian economy owing to rising consumption demand, population growth, urbanization, and increasing focus on food processing and agricultural activities. India remains one of the major consumers of edible oils and agricultural commodities, thereby providing growth opportunities for businesses engaged in processing and trading activities.

The industry continued to experience fluctuations in prices of agricultural commodities and raw materials during the year due to climatic conditions, international market trends, supply chain disruptions, and policy-related developments. However, stable domestic consumption and continued demand for essential commodities supported overall industry performance.

Opportunities

• Growing domestic demand for agricultural commodities and edible oil products.

• Expansion opportunities in agri commodity trading and related business activities.

• Favorable long-term outlook for consumption-driven sectors in India.

• Increasing focus on organized and efficient supply chain management.

• Government initiatives supporting agriculture, infrastructure, and economic growth may create long-term opportunities for the industry.

• Scope for improving operational efficiencies and strengthening business relationships.

Threats

• Volatility in prices of agricultural commodities and raw materials.

• Climatic uncertainties affecting agricultural production and supply.

• Intense competition within the industry.

• Regulatory and policy changes impacting business operations.

• Inflationary pressures and increase in transportation and operational costs.

• Global economic uncertainties and geopolitical developments affecting commodity markets and business sentiment.

Integrated Proteins Limited deals into multiple segments i.e. Real estate , securities Agro and Trading , Textile and there has been significant sales from each segment which has been shown in segment wise reporting as required under IndAS108 in the section of Financial statements.

The Agro & Trading segment includes activities relating to trading and dealing in agricultural commodities, edible oils, oil seeds, oil cakes, and allied products. The Textile segment comprises activities relating to textile business operations. The Real Estate segment includes activities associated with real estate and related business activities. The Securities segment includes investment and dealing activities in securities and capital market instruments.

The Company continues to evaluate opportunities across its business segments in line with market conditions and business requirements.

India edible oil has been witnessing rapid growth in the historical period and is expected to follow a similar growth trajectory in the forecast period as well. Consumers are increasingly switching to healthier oil and demanding pure and virgin oils that have been extracted and processed ethically. Moreover, consumers prefer multi-purpose oils that are odorless and can be used in cooking and baking, expanding the utility of such edible oils. For instance, sunflower oil is less pungent and can be used in both baking and cooking different culinary dishes. The government initiatives and its various subsidies and programs are driving the growth of edible oil market in India. It is because the government schemes are formulated to increase the consumption of Indian produced edible oil in India and increase the exports of oilseeds at the same time, reducing the potential imports of edible oils from foreign countries.

During the year under Report, the company explored other activities as listed as the main object of the company i.e. dealing and trading in agri commodities and diversified into

multiple segments i.e. Real estate , securities, Medical, Agro and Trading ,Textile, the combined total revenue (i.e Revenue from Operations plus Other Income) of the company is Rs 994.07 Lakhs against the total cost of Rs 965.74 Lakhs. Net profit of the company for the year under review is Rs 22.50 Lakhs.

The Company has implemented proper and adequate systems of internal control to ensure that all assets are safe guarded and protected against loss from any unauthorized use or disposition and all transactions are authorized, recorded and reported correctly. The System ensures appropriate information flow to facilitate effective monitoring. The internal audit system also ensures formation and implementation of corporate policies for financial reporting, accounting, and information security.

All statements made in Management and Discussion Analysis has been made in good faith. Many unforeseen factors may come into play and affect the actual results, which could be different from what the Management envisages in terms of performance and outlook. Market data, industry information etc. contained in this Report have been based on information gathered from various published and unpublished reports and their accuracy, reliability, and completeness cannot be assured. Factors such as economic conditions affecting demand/supply and priced conditions in domestic & international markets in which the Company operates, and changes in Government regulations, tax laws, other statues, and other incidental factors, may affect the final results and performance of the Company.