Jay Shree Tea & Industries Ltd Management Discussions

OVERVIEW

All India tea production dipped by 6% from 1368 mn kg to 1285 mn kg. However the Company increased its crop from 13.85 mn kg to 13.94 mn kg (except South India). Out of this own crop is 13.22 mn kg and 0.72 mn kg is bought leaf. Indian tea secured the third position in global tea exports in 2024, surpassing Sri Lanka. The Indian tea market size is around Rs.1 Trillion and likely to grow at a CAGR of 3.10% from 2025.

SEGMENT ANALYSIS AND REVIEW

The Company is engaged in the manufacture of tea, sugar, ethanol and fertilizers besides tea warehousing and export business. Tea accounts for 56%, sugar accounts for 28 % and

fertilizers 16% of the gross turnover during 2024-25.

TEA

Your Company s district wise production compared to All India production is enumerated below:

(Quantity in million kg.)

	Tea Manufactured by the Company (April to March)			All India Production* (Jan. to December)
District	2024-25**	2023-24**	Increase/ Decrease (%)	2024	2023	Increase/ Decrease (%)
Cachar	6.31	5.60	12.68	39.32	38.81	1.31
Assam Valley	4.68	4.67	0.21	610.52	636.05	(4.01)
Total Assam	10.99	10.27	7.01	649.84	674.86	(3.70)
Darjeeling	0.32	0.31	3.22	5.60	6.18	(9.38)
Dooars	0.80	0.89	(10.11)	209.43	230.20	(9.02)
Terai	1.83	2.35	(22.13)	158.45	186.26	(14.93)
Total West Bengal	2.95	3.55	(16.90)	373.48	422.64	(11.63)
Others	-	-		34.66	34.21	1.31
Total North India	13.94	13.82	0.86	1057.98	1131.71	(6.51)
Tamil Nadu	1.22	1.39	(12.23)	163.92	167.02	(1.86)
Kerala	-	-	-	58.38	63.45	(7.99)
Karnataka	-	-	-	4.50	5.52	(18.48)
Total South India	1.22	1.39	(12.23)	226.80	235.99	(3.89)
Total Production	15.16	15.21	(0.33)	1284.78	1367.70	(6.06)

* All India figures on calendar year basis and estimated for 2024 **The above production includes tea manufactured from bought leaf.

District wise price realised by the Company for own produce compared to previous year is as under:

(Quantity in million kg.)

Tea Areas	This year			Previous year
	Qnty.	Rate ( Rs)	Dist. Average ( Rs)	Qnty.	Rate ( Rs)	Dist. Average ( Rs)
Cachar	6.24	225.98	195.14	5.41	180.16	169.19
Assam	4.43	299.61	244.66	4.50	255.78	200.35
Darjeeling	0.31	644.97	391.74	0.35	585.88	324.27
Dooars/Terai	2.35	234.24	191.10	3.24	186.00	158.86
South India	1.24	158.01	154.14	1.33	133.92	127.16
Total	14.58	252.92		14.83	209.77

OUTLOOK

The total Indian tea market is expected to reach US $15 Billion by 2033, with the branded business constituting 75% of the overall market (by value). Tea is most favourite and cheapest beverage with consumer preference of boiled milk tea with ginger and cardamom. Tea provides numerous health benefits as well. Rapid growth of digital platforms and e-commerce, have revolutionized access to Indian tea worldwide. Social media, influencer marketing and content driven campaigns have played a vital role in expanding consumer base.

Strengths

• Leading quality tea producer with varieties of tea

• Bagicha-by Jay Shree Tea is providing garden fresh teas to consumers

• Strengthening back-end operations with a number of initiatives including rationalization of labour and input costs ^•

• Leveraging Birla Brand name as it inspires trust into categories of mass consumption

SUGAR

REVIEW OF OPERATIONS

The recovery in sugar season was 9.91% compared to 9.80% in the previous year i.e an increase of 0.11%. The Company continued with its cane development work and enthused farmers to cover further areas under autumn planting to increase the availability of sugarcane in the coming season. The sugar refinery project set up is the only in Bihar producing organic sugar with high demand.

OUTLOOK

Trade body ISMA has projected a positive industry outlook for the 2025-26 season, backed by favourable weather conditions and improved planting. The estimated consumption in India is 31 mt in the current year. So with ethanol, the industry outlook is very positive.

OPPORTUNITIES AND THREATS Strengths

• Encouraging long term Government policy on increasing the use of ethanol in India vehicular fuel mix

• Ethanol prices delinked from crude or petrol prices and price of sugar and FRP of sugarcane considered for its fixation by the Government every year

Threats

• Lower availability and diversion of cane, and shortage of molasses for full year running of ethanol plant

CHEMICALS & FERTILISERS REVIEW OF OPERATIONS

"Annapurna" brand of Single Super Phosphate (SSP) is one of the first choice of farmers in West Bengal for increasing their crop. Your Company is trying to increase its market share by maintaining very high standard of quality.

OUTLOOK

There is increased emphasis on use of NPK fertilizer by the Government. The subsidy has been revised by Rs.2142 per M.T. w.e.f. 01.04.2025. However the sulphuric acid prices have gone up with rise in prices of Sulphur. Your Company takes farmers friendly measures to improve the availability of SSP in all areas.

OPPORTUNITIES AND THREATS Strengths

• Annapurna SSP is the best quality of SSP made available to farmers in West Bengal

• Cheapest fertilizer available for the agriculture sector Threats

• Continuing price disparity between urea and phosphatic fertilizers resulting in imbalance use of fertilizer.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Company continuously monitors its debt position and working capital utilization. It has strict check on capex to save interest. These measures are yielding good results.

BUSINESS RESPONSIBILITY STATEMENT (BR)

HEALTH, SAFETY, SECURITY AND ENVIRONMENT

Health, safety, security and environment (HSSE) is a key priority for the Company. We are committed to the safety of our people and assets and towards the protection of the environment. Your Company follows industry-accredited best practices in health, safety, and environment related aspects to constantly set higher benchmarks and strives to exceed the same.

The fertiliser factory of your Company is following full Environment Management System and Occupational Health & Safety Management System.

All the tea estates follow green environment policy. Afforestation is being carried out on regular basis.

DEVELOPMENT IN HUMAN RESOURCES MANAGEMENT

Our integrated People agenda is focused on shaping a Future-Ready Wpe organization that delivers value, yMj without compromising on our core Values. Training on job is an essential part of your Organization. ™ Rs

Tea industry is highly labour intensive and your Company considers people as its biggest assets. With regular communication and sustained efforts, it ensures that employees are aligned on common objectives and have the right information on business evolution.

The total number of people employed in your Company as on 31st March, 2025 was 18162.

CAUTIONARY STATEMENT

The statements in the report of the Board of Directors and the

Management Discussion and Analysis report describing the company projections, estimates, expectations or predictions may be forward looking statements \ vwithin the meaning of applicable securities laws iffif and regulations. Actual results could differ materially from those expressed or implied since the Company ^<ws^ operations are influenced by many external and internal factors beyond the control of the Company. Further tea and chemicals industries depend upon the vagaries of nature and any adverse/ favourable situation can change the whole situation.