Krishival Foods Ltd Management Discussions

The company has commenced operations in 2014 under the name and style of the brand "Krishival". The company was incorporated in 2014 and is engaged in processing nuts and dried fruits in plain, roasted and in different flavours. The nuts and dried fruits under brand "Krishival Nuts" are sold in more than 100 tier II and tier III towns and cities in India. We focus on quality of our products to increase our presence across the country.

The subsidiary of company, Melt N Mellow Foods Private Limited, is expanding its operations into ice cream, dairy products and bakery segments. These offerings cater to diverse consumer preferences across age groups and occasions, enabling the company to tap into both mass-market and premium demand segments. The expansion into this segment aligns with the Companys broader vision to become a diversified, integrated food brand.

Industry Structure and Development

India, the worlds fourth-largest economy, is expected to be the fastest-growing G20 nation with 6.4% GDP growth in FY25. The food processing sector is a key economic driver, contributing 8.80% to manufacturing Gross Value-added ("GVA"), 8.39% to agriculture GVA, 13% to exports, and 6% of industrial investment.

With Indian Economy growing, the consumption story is intact with robust consumption especially in packaged food segments. Post covid, there has been surge in preference for healthy foods and this tailwind is helping company while scaling up. Nuts and dried fruit industry has been growing continuously in recent times and this year was not exception. The ice cream industry is a fast- growing segment, driven by urbanization, rising incomes, and evolving consumer preferences. The market is expanding beyond seasonal consumption, with growth in premium, vegan, and low-sugar categories, and deeper penetration into tier 2 and 3 cities, leveraging Indias strong dairy base and improved cold chain logistics.

Discussion on financial performance with respect to operational performance

Krishival Foods Limited incorporated in 2014, is among Indias fastest-growing FMCG companies, specializing in premium nuts, dried fruits, and ice cream.

The Company operates under two distinct and rapidly expanding consumer brands:

‘Krishival Nuts – A trusted name in high-quality dry fruits and nuts, offering a diverse product range including cashews, almonds, pistachios, figs, and flavored varieties.

‘Melt N Mellow – An emerging ice cream brand known for its unique flavors and strong retail footprint, especially in Western and Southern India.

Internal control system and adequacy

The system of internal control has been established to provide reasonable assurance of safeguarding assets, maintenance of proper accounting records in compliance with applicable Laws and Regulations to ensure reliability of financial statement and reports. The Statutory Auditors and the Audit Committee review all financial statement and ensure adequacy of internal control systems.

Opportunities and Threats

India has been witnessing good jump in discretionary spend. This trend will continue as Indias per capita income will maintain its upward trajectory from USD 2700 to USD 6000. India is on the cusp of new consumption boom from aspirational middle class. This augurs well for nuts and dried fruit segment. Company has been expanding its reach in tier 2 and tier 3 towns across India. The brand ‘Krishival has been present in more than 100 towns and places across India. The company will keep expanding its presence across India. The company has started export of its nuts and dried fruits to Singapore. The products like Almonds, Salted Almond, Cashew, Salted Cashew, Salted & Roasted Pistachio have been made available across many retail stores and super markets in Singapore. These products are being sold under the brand name ‘krishival across Singapore.

Ice cream has been sold under brand "Melt n Mellow" across 20,000 + retail touch points in Maharashtra, Telangana, Karnataka and Goa.

Susceptibility of the Companys profitability to volatility in foreign exchange fluctuations, The Company operates in a highly competitive FMCG segment, particularly in the nuts, snacks, dairy, and ice cream categories, Highly Competitive Market with low product differentiation and value addition can be considered as threat. The epidemic like Covid-19 and external global security situation like Ukraine war, Israel war can be attributed as major threats.

Risks Management

Risk evaluation and management of risk is an ongoing process in the company.

Human Resources

The company needs criticality of talented man-power and their retention needs no emphasis. Your company is in the process of working out a comprehensive plan to attract, motivate and retain highly skilled and technically competent man-power.

Details of ratio as on March 31, 2025

• Debtors Turnover: 12.87%
• Inventory Turnover: 3.51%
• Interest Coverage Ratio: 23.84%
• Current Ratio: 21.82%
• Debt Equity Ratio: 0.04%
• Operating Profit Margin: 24.30%
• Net Profit/Loss Margin: 7.81%

-Return on networth

FY 2022-23: 8.04%

FY 2023-24: 12.63%

FY 2024-25: 10.50 %

Cautionary Statement

Statements in the Management discussion and analysis describing the companys objectives, projections, estimates and expectations may be "forward looking statements" within the meaning of applicable 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 prices, conditions in the domestic and overseas markets in which the company operates/ going to operate, changes in government regulations, tax laws and other statutes and other incidental factors.

For and on Behalf of the Board of Directors of