Mahaan Foods Management Discussions


India has been the leading producer and consumer of dairy products worldwide since 1998 with a sustained growth in the availability of milk and milk products. Dairy activities form an essential part of the rural Indian economy, serving as an important source of employment and income. Moreover, nearly all of the dairy produce in India is consumed domestically, with the majority of it being sold as fluid milk. On account of this, the Indian dairy industry holds tremendous potential for value-addition and overall development.

Indias dairy sector is one of the fastest growing in the world. It offers a very white, bright and freely flowing opportunity due to its size and growth. We believe this scale and underlying momentum will throw up even more possibilities. The main reasons for the backbones of the Indian Dairy market growth over the years are:

A huge unorganized market led by fresh dairy product.

A consumption and market shift to Value added Dairy products.

Large vegetarian population These factors are set to escalate the opportunities for investment and value addition in line with the consumer expectations.

The dairy industry is one of the largest and most dynamic global agricultural industries. Dairy farming and processing are integral to national economies and individual livelihoods.

Dairy farming is an agricultural activity that refers to the production of milk from farm animals. The dairy industry encompasses businesses from the farm gate through to food manufacturing. Dairy products include any food product originally derived from animal milk. Dairy production occurs throughout the world with varying degrees of sophistication, ranging from peasant subsistence production to commercially astute, automated and integrated corporations.

The fast-moving consumer goods (FMCG) sector is Indias fourth-largest sector. It grew at 16% in FY21 and is expected to increase at a CAGR of 14.9% to reach USD 220 billion by 2025 (Source: IBEF: FMCG Industry in India). The biggest drivers in the growth of Indias FMCG industry are the growing youth segment and working women population, rising incomes and purchasing power, higher brand consciousness, changing consumer preferences, growing urbanisation and an increase in the number of upper middle class consumers. Rising internet penetration and digital connectivity in rural areas are leading to significant demand for FMCG products through e-commerce portals. Rapid real estate infrastructure development, easy credit, increasing efficiency due to supply chain expansion and rising investor interest are all aiding the growth of Indias FMCG industry.

There are many Opportunities and Challenges in the Indian Dairy Industry. Dairy products are a major source of cheap and nutritious food to millions of people in India and the only acceptable source of animal protein for a large vegetarian segment of the Indian population. The laws regulating the safety and quality of food are in existence since 1899. The number of legislations and quality standards has also increased substantially with the passage of time and growth of the industry. The food sector in India is governed by a multiplicity of laws under different Ministries. The "Food Safety and Standards Act, 2006", aims to integrate the food safety laws in the country in order to systematically and scientifically develop the food processing industry and shift from a regulatory regime to self-compliance. Organized dairy sector is growing and investor interest in dairy industry is also quite high. The main aim of the Indian dairy industry is to enhance milk production and upgrade milk processing system by using innovative technologies.

Along with offering profitable business opportunities, the dairy industry in India serves as a tool of socioeconomic development. Keeping this in view, the Government of India has introduced various schemes and initiatives aimed at the development of the dairy sector in the country. For instance, the "National Dairy Programme (Phase-I)" aims to improve cattle productivity and increase the production of milk expanding and strengthening and expanding the rural milk procurement infrastructure and provide grea ter market access to the farmers. On the other hand, the private participation in the Indian dairy sector has also increased over the past few years. Both national and international players are entering the dairy industry, attracted by the size and potential of the Indian market. The focus is being given to value-added products such as cheese, yogurt, probiotic drinks, etc. They are also introducing innovative products keeping in mind the specific requirements of the Indian consumers. These players are also improving their milk procurement network which is further facilitating the development of the dairy industry in India .



? Farmer income increased as a result of the strong demand.

? Market maturity and knowledge of the value of receiving high-quality packaged goods has increased (though slowly). ? Large companies are joining the retail market, which could lead to increased investment.

? There is a lot of space to strengthen dairy farmer organizations governance and thus allow dairy farmers to demand better prices. ? Because of the low cost of production, there is scope for exports. ? Overall, the economy is doing well, encouraging the government to invest in infrastructure. ? A successful marketing channel is already active to help meet the dairy needs of city dwellers.


? A significant portion of the population is ignorant about milk quality problems.

? People are reluctant to pay for quality because of the high price sensitivity of dairy products. ? Feed prices will rise significantly if maize prices rise considerably. ? Farmers have constraints of massive informal credit markets. ? Low productivity and distribution result in high transportation costs. ? Maintaining comparatively lower milk prices by concentrating on milk fat rather than SNF quality.


Your Company does not have the segment or product wise performance.


The Indian economy is the fastest growing major economy and is projected to grow faster in the coming years.

The dairy sector continues to have a positive long-term outlook. The consumer demand for convenient and healthy on-the-go snack options is the primary attribute for the sales of dairy products worldwide. Dairy-based products are naturally high in calcium content and are perceived as a healthy snacking option. The health benefits of probiotic drinks, especially their ability to improve digestion and the immune system, have been attracting consumers worldwide. Health and wellness trends have led to the inclination of consumers toward low-fat, lactose-free variants and calcium-rich variants of dairy snacks. Additionally, during the past several decades, as incomes have increased and nations have become increasingly urbanized, individuals have preferred to eat more proteins (including dairy), rather than basic carbohydrates (primarily grains), as a result of rising incomes and urbanization.

Rapid urbanization has led to a major increase in the demand for packaged/processed foods, favorably impacting the dairy industry in the country. In the era of digitization and increased access to actionable information, the Indian populace is becoming health and product quality conscious, which has led to the improved variety of food products available in the country. The increase in working population is leading to increased demand for convenient healthy and tasty products by the consumers.

Milk production as well as production of milk products by organized sector is expected to grow at a robust pace. Higher rate of growth is expected in value added dairy products. Western dairy products, which currently occupy a small space, are likely to grow on a faster clip. Packaged milk and products are likely to progressively replace loose milk and products.

As milk is one of the most crucial commodities of the industry, it demands better provisions for end-to-end handling. Right from the process of extraction to when the milk reaches a consumer there is an ever growing need for minimum wastage, maximum safety and increased shelf life. To address this critical need, it is expected that the milk storage or chilling infrastructure, milk testing facilities especially at the village level and improved packaging processes be provisioned to strengthen the backbone of the supply chain. In order to cater timely to the growing demand for healthier food options along with that of the processed variants it is imperative that technologies, such as Ultra-High Temperature (UHT) processing, aseptic packaging, intelligent packaging with biosensors or controlled atmosphere, and so forth be implemented widely to improve the shelf life of products.


With rise in education level of rural population, young generation of farmers is showing apathy for their ancestral profession. There is a tendency in them to prefer white collar jobs over dairy farming in its present form. Government - both Central and State - have increased their focus on ensuring safe food products including milk products to the consumer. However, due to the lack of adequate testing equipments in Government labs, lot of fear and confusion has been created in the minds of industry as well as consumers.


The Company has internal control system commensurate with the size and nature of the business which is monitored for its effectiveness on continuous basis. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use, executing transactions with proper authorization and ensuring compliance with corporate policies.

The Company has appointed M/s N K N & Associates., Chartered Accountants, (FRN 028140N), New Delhi to oversee and carry out internal audit of its activities.

The internal audit reports are reviewed by the Audit Committee periodically. Based on its evaluation (as defined in section 177 of Companies Act, 2013 and Clause 18 of SEBI Regulations 2015), the Audit Committee has concluded that, as of March 31, 2023, the Companys internal financial controls were adequate and operating effectively.


The Company achieved gross turnover including other income of Rs.114.39 Lakhs and post net profit of Rs.58.05 lakhs for the financial year ended on 31st March, 2023 as against gross turnover including other income of Rs.52.17 Lakh and net profit of Rs.15.41 Lakhs in the previous financial year.


Your Company views its human capital as a key source of competitive advantage and is in the process of creating a multi-skilled team that shall capitalized on the available opportunities.

There were 2 employees on the rolls of the Company as on 31st March, 2023.




FY 2023 IND-AS FY 2022
1. Debtors Turnover Ratio Times 0 0
2. Inventory Turnover Ratio Times 0 0
3. Interest Coverage Ratio Times 0 0
4. Current Ratio Times 46.28 69.25
5. Debt-Equity Ratio Times 0 0
6. Operating Profit Margin % 0 0
7. Net Profit Margin % 29.60 10.8
8. Earnings Per Share 1.66 0.44


As compared to previous year (0.85%), the change in ‘Return on Net Worth in the current year (3.08%) amounts to increase of 2.23%. This is primarily due to increase in net worth for the year under review.


In the preparation of the financial statements, the Company has followed the Accounting Standards referred to in Section 133 of the Companies Act, 2013. The significant accounting policies which are consistently applied are set out in the Notes to the Financial Statements


Certain statements made in this report relating to the Companys objectives, projections, outlook, expectations, estimates, among others may constitute ‘forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, projections etc., whether express or implied.

Several factors could make a significant difference to the Companys operations. These include climatic conditions, economic conditions affecting demand and supply, government regulations and taxation, natural calamity, currency rate changes, among others over which the Company does not have any direct control.

For and on behalf of the Board

Mahaan Foods Limited

Sanjeev Goyal
Date: June 23, 2023 Chairman cum Managing Director
Place: New Delhi (DIN: 00221099)