Mrs Bectors Food Specialities Ltd Management Discussions

Management Discussion & Analysis

GLOBAL ECONOMIC SCENARIO

In 2025, the global economy was initially projected to grow at a moderate but steady pace with the International Monetary Fund (IMF) forecasting a global growth of 3.3%, a slight uptick from previous estimates, driven by stronger-than-expected US economy performance. However, towards the latter part of the year, the landscape shifted significantly due to reciprocal tariffs and geopolitical disruptions in the Middle East, introducing new uncertainties and challenges. Further, with an impending trade deal and threat of higher tariffs, the uncertainty has translated into a wait-and-watch strategy, resulting in slowing growth.

Thishasledtoareassessmentofglobalgrowthprojections. Economists now warn of a potential slowdown, with some forecasting a downward projection in global GDP growth. The uncertainty surrounding trade policies is causing businesses to delay investment decisions, further dampening economic momentum.

GDP growth (%)	2024	2025(P)	2026 (P)
WORLD OUTPUT	3.3	2.8	3.0
ADVANCED ECONOMIES	1.8	1.4	1.5
EMERGING MARKET AND DEVELOPING ECONOMIES	4.3	3.7	3.9

Source: World Economic Outlook, IMF

INDIAN ECONOMIC LANDSCAPE

India, the worlds fourth-largest economy, has emerged as the fastest-growing major economy and is on track to become the worlds third-largest economy with a projected GDP of USD 7.3 trillion by 2030. This transformation is the result of a decade of decisive governance, visionary reforms and global engagement. Driven by robust domestic demand, a dynamic demographic profile and sustained economic reforms, India is asserting its rising influence in global trade, investment and innovation.

The economic momentum highlights the countrys resilience amid global geopolitical uncertainties, with this economic buoyancy expected to be driven by substantial infrastructure investments and a consumption surge, propelled by a rapidly expanding middle-class with rising disposable income. This consumption boost is further supported by strategic tax benefits introduced by the government.

Indias journey towards becoming a developed nation by 2047 hinges on building sustainable and modern infrastructure through advanced transportation networks, including roads, railways, ports and airports, and the development of urban clusters which would drive economic growth. The governments commitment to nation-building is evident through its allocation of 3.1% of GDP to capital expenditure in 2025-26, with a particular focus on the transport and logistics segments.

Growing private consumption and government spending supported the GDP growth momentum of 6.5% in 2024-25. The services sector demonstrated robust GVA (gross value added) growth and continues to be the growth driver, increasing its sectoral contribution from 52.2% of the GVA in 2021-22 to 55% in 2023-24. Notably, while FDI inflows into India reached a record high of USD 84.8 Bn in 2021-22, flows continued to remain steady with FDI inflows of USD 81.1 Bn in 2024-25 despite geopolitical disruptions, rapid rise in global interest rates and widespread changes in the global economy over this period. India continues to remain an attractive destination for FDI flows in 2025-26 too.

Given the strong fundamentals, the country is projected to be the worlds fastest growing major economy, with a growth rate estimated at 6.3% to 6.8% in 2025-26.

INDIAN PACKAGED FOOD INDUSTRY

The Indian packaged food market is estimated at INR 3,619 Bn in FY2024, growing at a rate of 9.5% from _ 3,306 Bn in FY2023. The market is growing at a steady rate owing to changing lifestyle and urbanization trends, increasing nuclear families, etc., leading to higher packaged food consumption. The market is expected to reach a value of _ 6,310 Bn, growing at a CAGR of 11.8% by FY2029. The packaged food market is largely unorganized with a share of 70% in FY2024.

The packaged food segment is further divided into biscuits, bakery, snacks, ready-to-cook/ready-to-eat, baby food and other categories. Savory snacks, biscuits and bakery are the two largest segments of packaged food market, with a share of 20.7% and 16.9%, respectively, (FY2024).

Growth drivers of the packaged food market

Rising Disposable Income

Rising disposable income and increasing women participation in the workforce has led to dual-income households. Due to the increase in purchasing power, out-of-home consumption spend is increasing and the increased willingness to spend on quality and convenient products at home is increasing the demand for packaged food products that are often perceived as more convenient and hygienic.

Low Per Capita Spend

Per capita spend on packaged food is relatively less compared to developed economies. The trend is changing however, driven by rising disposable income, urbanization, changing demographics and shift in consumer preference toward convenience and value-added products. Annual per capita spend on all categories of packaged food in India is estimated at _ 4,650, much lower than Chinas at _ 16,000 and US at _ 1,12,500, thereby offering headroom for growth (figures are not adjusted for purchasing power parity).

Urbanisation and Growing Working Population

As more people move to cities for jobs and adopt busier lifestyles, the demand for convenient food options has increased. With a large portion of Indias population being young and working and often living in nuclear families, there is lesser time for meal preparations. This shift has led to a growing preference for packaged food items.

Increasing Brand Awareness

With increased online access, people are more exposed to advertisements and promotions, making them more familiar with branded packaged foods. This familiarity and trust encourages them to choose branded products over unbranded/loose items.

E-commerce

The rise of online shopping has made it easier for consumers to access products. Thanks to websites and mobile apps, consumers can quickly search for and access a wide range of packaged food products. Q-commerce platforms also offer the 10-minute delivery promise, further fuelling online shopping for packaged foods.

Health and wellness

With increasing health awareness, consumers are focusing on healthier lifestyles. As people become more aware of their overall health, they are now focusing on what they are consuming and reading packaging labels to know what the product is made of, its ingredients, nutritional value, etc., leading to a rise in conscious consumption.

INDIAN BISCUITS MARKET OVERVIEW

Biscuits are a widely consumed product in India, holding the second largest share in the packaged foods industry behind the dairy segment. This segment includes a diverse range of products, from traditional biscuits, crackers and cookies to innovative health-focused options. The Indian biscuit market is growing steadily, driven by changing consumer preferences, health trends and launch of new and innovative products.

The Indian biscuits retail market was valued at _ 513 Bn in FY2023 and has grown at a CAGR of 7.4% to reach _ 551 Bn in FY2024. Over the next five years, the market is projected to reach a size of _ 903 Bn, growing at a projected CAGR of 10.4%.

Low per capita spend on biscuits in India

The per capita consumption of biscuits in India is low and lags as compared to developed economies. However, due to factors like increasing disposable income, product innovation, demand for various product types and favourable consumer perception, there exists significant room for growth.

Per capita spend annually on biscuits

(IN _)

Country	Per capita spend (_)
UK	4,333
USA	2,972
JAPAN	2,209
INDIA	425

Source: Secondary Research, Technopak analysis

Indian branded biscuits market

In the Indian biscuit market, branded players continue to drive growth and the organised market is expected to constitute 96% of overall biscuit category by FY2029 due to changing consumer preference for branded products, premiumization, large product varieties and rising disposable incomes. The branded biscuit market was valued at _ 526 Bn (FY2024) and is expected to grow at a CAGR of 10.5% to reach _ 867 Bn by FY 2029.

Indian branded biscuit market

(_ Bn) (FY)

Classification of biscuits

The biscuit market in India is primarily categorised on two factors: product type and price. By product type, it is divided into glucose and non-glucose (NG) segments. By price, it is segmented into mass, mid-premium and premium categories. The NG segment includes cookies, cream, Marie, digestives and others. The growth of the glucose segment has also picked up in recent years due to inflation and rising prices.

Cookies

Cookies hold the largest share of 29.2% of the total branded biscuit market, with a value of _ 154 Bn (FY2024) and expected to occupy the dominant category till FY2029, growing at a CAGR of 11.5% to reach a value of _ 265 Bn by FY2029.

Cream Biscuits

Cream-filled biscuits have the second largest share of 19.2% of the total branded biscuit market, with a value of _ 101 Bn (FY2024). The segment is growing at a CAGR of 11.1% and is expected to reach a value of _ 171 Bn by FY2029.

Non-salted Crackers

Non-salted crackers held a share of 11.5% in the total branded biscuit market, with a value of Rs. 61 Bn (FY2024). The segment is growing at a CAGR of 10.5% and is projected to reach _ 100 Bn by FY2029.

Salted Crackers

Salted crackers segment held a share of 5.5% in the total branded biscuit market, with a value of _ 29 Bn (FY2024). The segment is growing at a CAGR of 6.2% to reach a value of _ 39 Bn by FY2029.

Marie

Marie biscuits occupy a share of 12% of the total branded biscuit market with a value of _ 63 Bn (FY2024). The segment is growing at a CAGR of 10.1% and is estimated to reach _ 102 Bn by FY2029.

Digestive

Digestive biscuits occupy a share of 2.4% in the total branded biscuit market, with a value of _ 13 Bn (FY2024). This is the fastest growing segment in the biscuit market with a CAGR of 15.5% from FY2024-FY2029.

Channel-wise sales

In the branded biscuit market, the retail channel is dominated by general trade stores. The modern trade channel accounts for around 8%, while e-comm holds about 4-5% of branded biscuit sales. Modern trade and e-comm channels are rapidly expanding, driven by growth of supermarkets and hypermarkets, as well with the rise of q-comm, especially in metro areas.

It is projected that the modern trade channel will be around 24%, while q-comm at about 10% as of FY2029.

Biscuit exports

The global export value for biscuits stood at US$ 11,632 Mn in CY2023, growing at a rate of 8% from CY2019 by value. The market was valued at US$ 10,421 Mn in CY2022. The share of Indian exports has increased from 2% in CY2019 to 3% in CY2023, and while global exports grew at a CAGR of 8%, Indian exports by value saw a CAGR of 16% for the same period. Key export markets for India are the US, African countries and the Middle East.

Key growth drivers for Indias biscuit exports:

Cultural Exports

Brands selling their own products in the international markets are targeting the global Indian diaspora, which has created a steady demand for Indian-flavoured products, including biscuits. This cultural export has contributed to the sustained growth in biscuit exports from India.

Government Support

The government has launched schemes to support companies to increase exports, including the Financial Assistance Scheme (FAS) comprising an export promotion scheme for agricultural and processed food products.

Quality and safety standards

Indian biscuit manufacturers have significantly improved adherence to international quality and safety standards. This compliance with global norms has enhanced their acceptance in demanding markets.

Biscuits market outlook

The biscuits market is expected to grow at a CAGR of 10.4% over the next 5 years, owing to consumer demand for convenient and nutritious snacks, rising income levels, availability of innovative product options, etc. The market is expected to see further innovation, with manufacturers focusing on health-conscious products and premium offerings. Expanding into new markets and leveraging modern trade retail channels and e-comm platforms will also play a significant role in the industrys growth.

BREADS AND BUNS INDUSTRY OVERVIEW

Market size and growth

The Indian breads and buns retail market was valued at

_ 62 Bn (FY2024), growing at a CAGR of 5% from _ 47 Bn in FY2019. The market is estimated to reach _ 67 Bn in FY2025. The market is further projected to grow at a CAGR of 11% to reach a size of _ 103 Bn in FY2029.

Indian breads and buns retail market size

(_ Bn) (FY)

Per capita bread consumption

Per capita consumption of bread in India was 1 kg in CY2015, which increased to 1.75 kg in CY2023, growing at the CAGR of 7.2%. However, it remains significantly lower compared to other key markets like China, USA, UK, Germany, etc.

Country-wise per capita bread consumption

(In kg) (CY2023)

Branded v/s unbranded categories

The branded segment is estimated at 64% of the breads and buns industry at _ 40 Bn for FY2024. The unbranded segment is estimated at _ 22 Bn for the same period. The branded segment consists of national, regional and local brands that produce a variety of breads and buns under their brand. Larger brands operate at a large scale with modern production facilities, in strict adherence to quality controls, and have wide distribution networks. The branded segment has been expanding its reach beyond the metros and Tier-1 cities, with distribution and reach in Tier-2 regions and beyond. The segments product portfolio encompasses a variety of options such as wholewheat bread, multigrain, gourmet and specialty breads, etc,. apart from basic breads.

Breads and bun varieties and price segmentation

The Indian breads and buns market offers a diverse product range, catering to varying regional preferences and consumption habits. Various types of breads include white bread, brown bread, wholewheat and multigrain bread, nutritional breads, gourmet and specialty breads, sweet breads, pizza bases, kulchas, etc. Breads and buns are available across price ranges and are classified as mass-economy, mid-premium and premium-plus, depending on the type and cost. Premiumisation trend is visible in this product category as value-added, flavourful and artisanal breads are finding favour among the upwardly mobile, with products such as multigrain, sourdough, garlic, nutritional breads, etc.

Mid-premium and premium-plus segments are expected to grow at a CAGR of 16% and 20%, respectively, for the period FY2024-FY29. These segments are expected to grow faster than the overall market due to shift in customer preference for healthier and speciality options, higher disposable income and propensity to spend, etc.

Market share of breads and buns based on price

(_ Bn) (FY 2024)

Distribution channels

Growth of modern retail channels has been crucial in shaping the availability of bread products in India. Increase in supermarkets, hypermarkets, convenience stores and online grocery platforms has made various bread options more accessible to consumers, offering them more choices and convenience. Organized retail provides improved branding opportunities, enabling companies to increase product visibility and capture consumer attention. Between FY2024-29, the share of modern trade and e-comm is projected to expand 5 percentage points. Being a perishable commodity, q-comm is the preferred channel of purchase in the online segment for breads and buns. In FY2024, q-comm held a share of 75% within the e-comm market.

Market outlook

Health and Wellness Focus

There is an increasing demand for multigrain, whole grain and nutritional breads as consumers focus on health and well-being. There is a notable shift towards breads that are enriched with additional nutrients such as vitamins, minerals, high-fibre flours, etc.

Convenience and Value-added Products

Convenience is a growing trend in consumption, with increasing preference for easy snack and breakfast options such as ready-to-eat sandwiches, pre-sliced breads and buns.

Artisanal and Gourmet Breads

In urban areas, there is a surge in desire for artisanal and gourmet breads, including sourdough, pita and other speciality variants. This is further amplified by the rise in bread manufacturers and bakeries offering a diverse range of premium and premium-plus bread options.

Innovation and Product Differentiation

Innovation and product differentiation with new flavours and varieties, such as herb-infused, spiced breads and flavoured buns appeal to broader consumer segments.

Urbanisation and Lifestyle Changes

With increasing disposable income, there is a shift towards convenient and ready-to-eat food products. The easy accessibility and convenience of eating bread drive both single and multi-pack consumption. Rising disposable income, especially among the middle-class population, boosts the consumption of premium and premium-plus bread varieties, further fuelling market growth.

Internal control systems and their adequacy

The company maintains adequate internal control systems commensurate with the nature of its business and size and complexity of its operations. These are regularly tested for their effectiveness by statutory as well as internal auditors. The internal control systems have been designed to provide reasonable assurance with regards to providing reliable financial and operational information.

Discussion on financial performance with respect to operational performance

In FY2025, the company delivered a resilient financial performance backed by steady operational efficiencies and strong brand momentum. Revenue growth was supported by optimal volumes in both the branded biscuits and bakery segments,aidedbyexpandeddistribution,premiumizationand product mix. Furthermore, operational performance benefited from cost optimization, better procurement strategies and enhanced manufacturing efficiencies. This reflected growing institutional strength, demonstrating management focus on balancing growth with operational discipline.

Human resource management

Our human resource (HR) management is centered on building a skilled, motivated and future-ready workforce that supports the companys growth and innovation. The focus remains on attracting and retaining top talent, enhancing employee capabilities through continuous training and fostering a culture of collaboration and performance. Special emphasis is placed on employee engagement, workplace safety and promoting diversity across all levels. Aligning people practices with organizational goals, the company ensures its workforce remains agile and empowered to deliver value in a competitive and rapidly evolving industry environment. As on 31 March 2025, the company had 2611 employees on its rolls.

Details of significant changes in key financial ratios

Particulars	As at 31 Mar 2025	As at 31 Mar 2024	Variance	Reasons for Variance
Current ratio	2.16	1.61	33.89%	Increase in current assets in the year has resulted in increase in the ratio
Debt equity ratio	0.12	0.37	-67.25%	Repayment of borrowings has resulted in decrease in the ratio
Debt service coverage ratio	23.36	6.87	239.97%	Repayment of borrowings has resulted in decrease in the ratio
Return on equity ratio (%)	14.21%	21.99%	-35.38%	The increase in equity due to issue of equity share capital has resulted in decrease in the ratio
Net capital turnover ratio	6.34	10.43	-39.19%	Improvement in working capital has resulted in increase in the ratio
Returnon capital employed ratio (%)	14.18%	20.95%	-32.32%	Increase in tangible net worth has resulted in decrease in the ratio

Details of any change in return on net worth as compared to the immediately previous financial year

Particulars	As at 31 Mar 2025	As at 31 Mar 2024	Variance	Reasons for Variance
Return on equity (%)	14.21%	21.99%	-35.38%	Increase in equity due to issue of equity share capital has resulted in decrease in the ratio