narmada agrobase ltd share price Management discussions

OVERVIEW

Global economic activity is experiencing a broad-based and sharper-than-expected slowdown, with inflation higher than seen in several decades. The cost-of-living crisis, tightening financial conditions in most regions, Russias invasion of Ukraine, and the lingering COVID-19 pandemic all weigh heavily on the outlook. Global growth is forecast to slow from 6.0 percent in 2021 to 3.2 percent in 2022 and 2.7 percent in 2023. This is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the COVID-19 pandemic. Global inflation is forecast to rise from 4.7 percent in 2021 to 8.8 percent in 2022 but to decline to 6.5 percent in 2023 and to 4.1 percent by 2024. Monetary policy should stay the course to restore price stability, and fiscal policy should aim to alleviate the cost-of-living pressures while maintaining a sufficiently tight stance aligned with monetary policy. Structural reforms can further support the fight against inflation by improving productivity and easing supply constraints, while multilateral cooperation is necessary for fast-tracking the green energy transition and preventing fragmentation.

The baseline forecast is for growth to fall from 3.4 percent in 2022 to 2.8 percent in 2023, before settling at 3.0 percent in 2024. Advanced economies are expected to see an especially pronounced growth slowdown, from 2.7 percent in 2022 to 1.3 percent in 2023. In a plausible alternative scenario with further financial sector stress, global growth declines to about 2.5 percent in 2023 with advanced economy growth falling below 1 percent. Global headline inflation in the baseline is set to fall from 8.7 percent in 2022 to 7.0 percent in 2023 on the back of lower commodity prices but underlying (core) inflation is likely to decline more slowly. Inflations return to target is unlikely before 2025 in most cases.

The natural rate of interest is important for both monetary and fiscal policy as it is a reference level to gauge the stance of monetary policy and a key determinant of the sustainability of public debt. Chapter 2 aims to study the evolution of the natural rate of interest across several large advanced and emerging market economies. Public debt as a ratio to GDP soared across the world during COVID-19 and is expected to remain elevated. Chapter 3 examines the effectiveness of different approaches to reducing debt-to-GDP ratios. Supply-chain disruptions and rising geopolitical tensions have brought the risks and potential benefits and costs of geo-economic fragmentation to the center of the policy debate. Chapter 4 studies how such fragmentation can reshape the geography of foreign direct investment FDI and how it can affect the global economy.

The sustained resilience of Indian economy amidst global uncertainties is expected to continue in FY 2023- 24 as well. As per consensus forecasts, Indias GDP growth in FY 2023-24 is expected to be in the range of 6.0% - 6.5%. The primary growth drivers include robust private consumption, Governments firm focus on infrastructure spending and enhanced credit growth supported by deleveraged corporate balance sheets coupled with improved asset quality of the banks. Strong infrastructure push under the Gati Shakti (National Master Plan for Multimodal Connectivity) initiative and logistics & industrial corridor development is expected to drive industrial competitiveness in the long term and support future growth.

In FY 2022-23, the world also witnessed end of quantitative easing by all the major central banks. Major central banks in fact resorted to Quantitative Tightening to rein in the soaring inflation. Following aggressive rate hikes by US Federal bank from 0.4% in April22 to 4.9% in March23, RBI also raised the repo rates by 250 bps from 4.0% to 6.5% during the same period. Inflationary pressures have now started easing with a transmission of softening WPI inflation expected soon on CPI inflation. Forecasts by various international agencies show moderating inflation in India in FY 2023-24 in the range of 5.0%- 6.0%, within RBIs target range.

MARKET DRIVERS & RESTRICTIONS

The global market for cattle feed is being driven by the increasing demand for animal-based products, such as dairy and meat products. According to the EMR, this can be attributed to the increasing world population and the benefits associated with animal-based products. In addition, in order to meet the rising demand for animal-based products, the number of cattle stocks are rising, subsequently invigorating the demand for cattle feed. This is contributing to the growth of the market. Furthermore, due to the increase in herd sizes, scientific methods of organising and managing farms are propelling farmers to embrace cattle feed, which is high in nutrition, thereby promoting larger yields and hence supporting the overall growth of the market. Moreover, trends surrounding the gradual shift from unorganised livestock farming to the organised sector in developing countries, majorly due to the growth of the industrial sector, is boosting the market for cattle feed. In addition to the aforementioned factors, regulations centred around sustainability are expected to boost the market growth of cattle feed. Restrictions on nitrogen run-off are expected to stimulate lower protein diets, and precision diets evaluated by data-driven technology in order to boost the green economy, promote animal health, and increase animal yields which are expected to drive the market growth of cattle feed over the forecast period.

Drawing attention to similar factors in its report, DataBridge Market Research also touches on restrictions. According to the report, volatility in the prices of raw material along with stringent regulatory policies which will likely to inhibit the growth of the cattle feed market in the 2022-2029 forecast period. Monitoring mycotoxin contamination will become the foremost challenge in the market growth.

Indian Agricultural Sector Overview

According to Inc42, the Indian agricultural sector is predicted to increase to US$ 24 billion by 2025. Indian food and grocery market is the worlds sixth largest, with retail contributing 70% of the sales. Indias agricultural and processed food products exports stood at US$ 43.37 billion in FY23 (April 2022- January 2023). As per Second Advance Estimates for 2022-23 (Kharif only), total foodgrain production in the country is estimated at 153.43 million tonnes. At current prices, agriculture and allied sectors account for 18.3% of Indias GDP (2022-23). As per the third Advance Estimates of National Income, 2021-22 released by the National Statistical Office (NSO), Ministry of Statistics & Programme Implementation, the agriculture and allied sectors contributed approximately 18.6 % of Indias GVA at current prices during 2021-22. Between April 2000-December 2022, FDI in agriculture services stood at US$ 4.43 billion

Rapid population expansion in India is the main factor driving the industry. The rising income levels in rural and urban areas, which have contributed to an increase in the demand for agricultural products across the nation, provide additional support for this. In accordance with this, the market is being stimulated by the growing adoption of cutting-edge techniques including blockchain, artificial intelligence (AI), geographic information systems (GIS), drones, and remote sensing technologies, as well as the release of various e-farming applications.

In terms of exports, the sector has seen good growth in the past year. In FY22 (April 2022-February 2023)

• Exports of marine products stood at US$ 7.4 billion.

• Exports of rice (Basmati and Non-Basmati) stood at US$ 10.2 billion.

• Buffalo meat exports stood at US$ 2.88 billion.

• Sugar exports stood at US$ 5.28 billion.

• Tea exports stood at US$ 759.96 million.

• Coffee exports stood at US$ 1.01 billion.

Agriculture and allied sectors continue to remain one of the most important sectors of the Indian economy and is the main source of livelihood for ~55% of Indias population (Source: India Brand Equity Foundation). India is the largest producer of milk and pulses globally and continues to be the second-largest in production of rice, wheat, sugarcane, cotton, groundnuts and fruits & vegetables. India also ranks amongst the top economies in production of fish, spices, poultry and livestock. The agriculture and allied sectors have remained resilient throughout the several external disruptions and is estimated to have grown by 4.0% in FY 2022-23, as per third advance estimates by Central Statistical Office (CSO). The sector accounted for 18.3% of the total gross value added (GVA) during the FY 2022-23.

While headline rainfall numbers for FY 2022-23 reflects above average monsoon, the season was marked by highly erratic spatial distribution, extended withdrawal of monsoon and instances of flooding & crop damages. Out of 36 subdivisions, 12 (40% of total area) received excess rainfall and 6 (17%) received deficient rainfall. Southern and Western parts of the country received excess rains while Eastern region witnessed rainfall deficit for the entire season. Uneven monthly as well as geographic spread of south

west monsoon led to lower sowing of Kharif crops, mainly paddy and foodgrains. Rabi season was also delayed due to extended withdrawal of southwest monsoon and untimely & heavy rainfall in October.

Nonetheless, Indias total food grains production was estimated to reach all-time high of 330.53 Million MT in FY 2022-23, a growth of 4.7% year-on-year led mainly by rice, wheat and cereals (as per third advanced estimates). Backed by remunerative prices globally, Indias agri export also reached all-time high of ? 32 billion in FY 2022-23, a growth of 11% year-on-year. In 2023, overall monsoon is

expected to be normal with expected rainfall at 96% of Long-period average (LPA), despite delayed start (Source: Indian Meteorological Department). While it is too early to predict evolving El-Nino conditions, any kind of impact is likely to be in the end-stages of monsoon.

According to Agri-Food Outlook 2023 report, prepared by Alltech, global feed tonnage totaled 1.266 billion metric tons in 2022. 251.9 million tons of this is cattle feed. This corresponds to about 20 percent of the total compound feed production in the world. On the other hand, the global commercial scale of the cattle feed market is estimated to be between US$ 80 and 90 billion. According to the report of Future Market Insights, the value size of the global cattle feed market was US$ 81.7 billion in 2022. The market is anticipated to reach a market valuation of US$ 125.8 billion in 2032 reaching a CAGR of 4% during 2022-2032 forecast period.

The Indian animal feed market size reached US$ 956.7 Billion in 2022. As per the analysis by IMARC Group, the top companies in the Indian animal feed market are focusing on improving the nutritional content and sustainability of animal feed. Moreover, the increasing adoption of precision feeding, which utilizes technology to precisely measure the nutrient requirements of individual animals and provide them with tailored feed, resulting in reduced feed waste and improved animal health and productivity, is favoring the market growth. In line with this, manufacturers are employing common feeds, such as cereal grains, hay and silage crops, pasture grasses, and other by-products of food crops like brewers grains, pineapple bran, and sugar beet pulp. These feeds are fortified with nutritional additives, such as vitamins and minerals, to maintain the overall health of animals and improve the quality of various end-products, including eggs, meat, and milk, which, in turn, is favoring the market growth. Besides this, several key players are promoting the use of probiotics and prebiotics in animal feed to improve gut health and digestion. Additionally, the use of alternative protein sources, such as insects, algae, and single-cell proteins, is gaining significant popularity in the animal feed industry, thus contributing to the market growth. Furthermore, several companies are adopting sustainable sourcing of ingredients that helps reduce the reliance on soy and other commodity crops that are associated with deforestation and other environmental issues. Other factors, including the widespread utilization of plant-based proteins, the development of specialized feed products, the enhanced focus on research and development (R&D) activities, rising environmental concerns, and the implementation of various government initiatives and schemes that are acting in favor of the animal feed market, such as E-Pashu Haat, Livestock Insurance Scheme, Rashtriya Gokul Mission, and National Livestock Mission, are presenting remunerative growth opportunities for the market. Looking forward, IMARC Group expects the market value to reach US$ 1,578.2 Billion by 2028, growing at a CAGR of 8.2% during the forecast period (2023-2028).

EXTERNAL ENVIRONMENT

I. Macroeconomic condition

Asia-Pacific is known to be the dominant region in the cattle feed market share. Asian countries have witnessed higher rate of traction for dairy products, owing to its increased demand from vegan consumers. Some key macroeconomic factors such as rise in social media usage and surge in per-capita income also play an important role in contributing toward the overall growth of the cattle feed market. However, LAMEA is expected to exhibit significant growth in the future, owing to rise in demand for meat and dairy products in child nutrition. In addition, the region has witnessed considerable surge in number of millennials, who are forefront consumers of new food & meat products. Therefore, rise in millennial population is anticipated to offer remunerative cattle feed market opportunities.

DataBridge Market Research also draws attention to the role of the Asia-Pacific region in the market. According to the report of the research company, Asia-Pacific is widely recognized as the dominant region in terms of cattle feed market share. Dairy products have gained traction in Asian countries as a result of increased demand from vegan consumers.

II. Economic Outlook

The accelerating rollout of COVID-19 vaccines in many advanced economies has set the stage for rapid recovery in the second half of this year and into 2022. Advanced economies will remain less affected by the virus this year and beyond, with low-income countries and emerging markets suffering more which is a contrast to 2009. While, the global economy is expected to recover to its pre-pandemic level of output in 2022, the emerging-market and developing economies are expected to take until 2023 to recover to the pre-pandemic level. Policy rates in the United States, Eurozone, United Kingdom, and Japan will remain near zero, well beyond 2021. Emerging market and developing economies may take until 2023 to recover to the pre-pandemic level. Divergent recovery paths are likely to create wider gaps in living standards across countries compared to pre-pandemic expectations.

III. Indian Economy

India currently represents one of the largest feed producers in the world. Animal feed includes various raw, processed and semi-processed products that are fed to livestock. Some of the most common feeds include pasture grasses, cereal grains, hay and silage crops, and other by-products of food crops, such as brewers grains, pineapple bran and sugar beet pulp. These products are carefully formulated with the help of nutritional additives, like vitamins and minerals, to maintain the overall health of animals and improve the quality of various end-products, including eggs, meat and milk. In this country, there has been a rise in public concern regarding the safety of animal-origin food products due to the prevalence of food-borne bacterial infections, bovine spongiform encephalopathy (BSE) and dioxin contamination. These concerns have prompted regulatory organizations to inspect and improve feeding practices in the country.

IV. Market Trends

Recently, it was noted that raw materials used in the production of animal feed, like soybean meal, sorghum and maize, are being diverted for the consumption of humans, leading to a shortage in the feed

industry. Furthermore, the expensive nature, and price and supply volatility of these raw materials is encouraging industry players to switch to sustainable and lower-cost ingredients for livestock production. Some of these novel ingredients include insect meal and Distillers dried grain with solubles (DDGS). Besides this, currently has a separate set of livestock policies that focus on increasing the overall productivity. Some of the schemes that are acting in favor of the animal feed market include E-Pashu Haat, Livestock Insurance Scheme, Rashtriya Gokul Mission, and National Livestock Mission.

INDUSTRY STRUCTURE AND DEVELOPMENTS

According to Agri-Food Outlook 2023 report, prepared by Alltech, global feed tonnage totaled 1.266 billion metric tons in 2022. 251.9 million tons of this is cattle feed. This corresponds to about 20 percent of the total compound feed production in the world. Cattle feed is also divided into two groups as beef and dairy feed. In its report, Alltech explains that globally, decreases in feed tonnage were reported in the beef and dairy sectors. According to the data in the report, global dairy feed production, which was 135.6 million tons in 2021, decreased by 1.3% in 2022 to 133.8 million tons. Beef feed production decreased by 0.3% in 2022 compared to the previous year and amounted to 118 million tons.

Dairy Feed Production on Regional Basis

Europe has the largest share in world dairy feed production with a production of 42.1 million tons in 2022. In the region, many countries among others had reductions in dairy feed tonnage, including the Netherlands, Turkey, Spain, Poland, Sweden, Belgium, Ukraine and Bulgaria. There was a 6% increase in feed production in Ireland, where summer droughts necessitated the need for supplementary feed. Increases also were reported in Portugal, the Czech Republic, Austria, Lithuania, Hungary and others.

Market Growth Expectations

There are different forecasts of the global commercial scale of the cattle feed market. For example, according to the Future Market Insights (FMI) report, the value size of the global cattle feed market was US$ 81.7 billion in 2022. The market is anticipated to reach a market valuation of US$ 125.8 billion in 2032 reaching a CAGR of 4% during 2022-2032 forecast period.

According to the Expert Market Research (EMR), the global cattle feed market attained a value of about US$ 63.95 billion in 2020, driven by the increasing demand for animal products. Impact of rising concerns regarding animal welfare, the market is expected to grow at a CAGR of 3.80% in the forecast period of 2023-2028 to reach approximately US$ 79.8 billion by 2026.

According to another report by IMARC Group, the global cattle feed market size reached US$ 84.9 billion in 2022. IMARC Group expects the market to reach US$ 104.3 billion by 2028, performing a growth rate (CAGR) of 3.28% during 2023-2028.

Data Bridge Market Research also expects the global compound cattle feed market to grow at a rapid pace during the forecast period of 2022-2039. Data Bridge Market Research analyses that cattle feed market was valued at US$ 80.73 billion in 2021 and is expected to reach the value of US$ 117.47 billion by 2029, at a CAGR of 4.80% during the forecast period of 2022-2029.

The Indian animal feed market is driven by the rising dairy industry, backed by the White Revolution 2.0, which has resulted in the rapid growth of the cattle population. Currently, India has the largest cattle population in the world, thereby becoming a significant market for cattle feed. The demand for commercial cattle feed is projected to increase in India, as the dairy industry structure is becoming more organized. In addition to this, the government is also planning to launch schemes and policies under the 12th Five Year Plan, which are aimed at improving the overall status of the animal feed industry to provide for future demand.

The market is further aided by the emergence of non-traditional feed ingredients and technological advancements as well as innovations, such as the creation of genetically modified animal feed ingredients. The market is finding obstruction due to frequent disease outbreaks and high import duties on feed ingredients.

The cattle feed business is experiencing rapid growth as the milk producers have started replacing the traditional cattle feed with more nutritionally balanced compound feed, as they have realized the tangible benefits of nutritional feed in terms of yield improvement. In Asia, the livestock industry is the most crucial part of agricultural development and has been growing at an unprecedented pace in the last few decades. Livestock products contribute for around 40% of the total agricultural output in global sales, and are experiencing growth faster as compared to any other agricultural sub-sector. Due to population growth and increased living standards, rapid growth in consumption of animal products has also forced the livestock industry to adapt and expand to satisfy the expectations of the society by feeding nutritious animal feed to the livestock animals. Hence, this factor proves beneficial for the growth of the cattle feed market

India is the worlds largest producer and consumer of milk, with rapidly growing demand. Our Cattle Feed products are prepared with a understanding of Indian feeding practices of gwalas and the breed and milk production levels of cows and buffaloes.

These products contain proteins, energy, minerals and vitamins in adequate quantity and proportion to meet the nutritional requirements of dairy cattle. We offer a variety of Cattle Feed to enhance milk production, reproductive ability and the overall health of cattle. We also work closely with gwalas to help them achieve higher yields.

OPPORTUNITIES AND THREATS

Approximately 90% of the Indian broiler industry utilizes compound feed whereas the rate of manufactured feed use in the layer industry varies from 5% to 25%. However; the overall poultry industrys (broiler and layer) consumption of compound feed is only 65%, with home mixtures fulfilling the remaining requirement. The feed consumption in this segment has been growing at the rate of 7 - 8% over the last five years. Even though India is turning out to be the worlds largest milk producer, the dairy feed industry remains highly unexplored and cattle feed comprises only 11% of the total feed industry. The surprise factor in the compound feed industry is aqua feed, which has gained huge momentum in recent years. With Shrimp production registering a strong growth of 16%, feed consumption has also grown at 13% per annum in the past five years.

The challenges are:

A. Best Optimum solutions with low energy consumption and high production output with minimum breakdowns.

B. Scarcity of raw material & alternate options of raw material as per availability and cost.

C. Awareness for bio-security & feed mill hygiene.

According to National Dairy Development Board (NDDB), the livestock feeding systems in India is categorized into six major types:

1. Dry Fodder + Compound Feed + Concentrate Feed

2. Dry Fodder + Green Fodder + Compound Feed + Concentrate Feed

3. Dry Fodder + Homemade Concentrate Mix + Grazing

4. Green Fodder + Compound Feed + Concentrate Feed

5. Silage + Dry Fodder + Concentrate Feed

6. Silage + Compound Feed + Concentrate Feed

COVID-19 IMPACT ON CATTLE FEED MARKET

Even though the demand for animal feed has been relatively stable in 2020, the supply was greatly hit by the coronavirus crisis. To control the spread of the disease, many countries had taken various measures for people, industries, businesses, factories, and even for consumers. Researchers had predicted reduction in use of soybean, corn, and wheat in animal feed.

After almost two years since COVID-19 was declared a global health emergency, the FDA, U.S. Department of Agriculture and Centers for Disease Control and Prevention continue to underscore that there is no credible evidence that food or food packaging could be a source of viral transmission of severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), the virus that causes COVID-19. COVID-19 is mostly spread through human-to-human transmission via direct or indirect exposure to respiratory droplets. Consumers should feel reassured that based on this currently available scientific information, which is supported overwhelmingly by international scientists, that the foods they eat and food packaging they touch, including feed or pet food packaging, are highly unlikely to spread SARS-CoV-2, the virus which causes COVID-19 disease. The CDC says that one of the best ways to protect yourself from the virus is frequent hand washing.

Projected demand and availability of fodder in India

The availability of feed and fodder remains a major area of concern; there is a gap between its demand and supply in the country. As per the estimates of the Indian Council for Agricultural Research (ICAR)- affiliated National Institute of Animal Nutrition and Physiology (NIANP), the deficit in the requirement and the availability of dry fodder, green fodder and concentrates during 2015 was to the extent of 21 per cent, 26 per cent, and 34 per cent, respectively. This is likely to increase to 23 per cent, 40 per cent, and 38 per cent, respectively, by 2025. The fodder deficit in India in terms of green fodder, dry fodder, and concentrates was 26 million tonnes (MT), 21 MT, and 34 MT in 2015, which is expected to reach 40 MT, 21 MT, and 38 MT by 2025, respectively (Table 1).

	Demand Projections (2025) (million MT)	Availability Projections	Shortfall (% age)
:Dry Fodder	550	433	21
Green Fodder	1000	600	40
Concentrate Feed	105	65	38

(million MT) (2025) (%age)

India is the largest milk producer in the world, producing 133 million tonnes in 2012/13 and is driving the feed industry at 7.5 million tonnes for dairy. However the compound feed for dairy industry in highly underpenetrated.

Outlook

India is blessed with a huge resource of livestock wealth. In fact, India has the largest population of cattle and buffalo in the world and ranks number one in milk production in the world. India ranks 3rd in egg production, 4th in broiler production and 2nd in aquaculture in the world. Currently, poultry feed production (layer + broiler) is 20 MMT that will grow to 40 MMT in the next 10 years. Also, Cattle feed production is at 10 MMT/ year, whereas the present need is roughly 45-50 MMT of pellet feed.

Feed sector in India is clearly at an inflection point currently and is poised for a glorious future.

• The emergence of modern dairies ranging from 50 animals to upwards of 500 animals is progressing across India.

• Exports of aqua products are on the increase and India is a leading player of South Asia currently.

• Poultry segment is seeing a high growth trajectory due to increase of home consumption as well as Quick Service Restaurants.

• All these have led to an increased usage of high quality raw material for feed across all sub segments in India

The NIANP in its reports on ‘requirement and ‘availability of fodder, 2012, had stated that “this shortage is due to increasing pressure on land for growing food grains, oil seeds and pulses and inadequate attention being given to the production of fodder crops.”

The critical issue currently faced by the Indian dairy sector is that since the NIANPs estimate, the government has not yet compiled any report on fodder availability in the country.

According to a parliamentary panel report in 2016, fodder shortage is due to increasing pressure on land for growing food grains, oil seeds, pulses and inadequate attention being given to the production of fodder crops.

Risks and areas of concerns

However the following points have to be factored in:

• Disease outbreaks are common and remain the single largest challenge for the poultry, cattle and seafood segments

• Indigenous dairy breeds may not respond to compound feed effectively, which leads to farmers reluctance to use formulated rations for their cattle.

• Lack of awareness and low hygiene conditions add up to the overall health of livestock

Internal control systems and their adequacy

The company has internal financial control systems which are adequate in the opinion of board of Directors.

The Company has a proper system of internal controls to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and that transactions are authorized recorded and reported correctly.

The internal control system is supplemented by an extensive program of internal and external audits and periodic review by the management.

This system is designed to adequately ensure that financial and other records are reliable for preparing financial information and other data and for maintaining accountability of assets.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE:

The Company works only in one segment i.e. manufacturing of delinted cotton seeds.

MANAGERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

The Company believes and recognizes that its employees are important resource in its growth and to give competitive advantage in the present business scenario. The Company takes pride in the commitment, competence and dedication shown by its employees in all areas. The Company has always worked to give opportunity to its people irrespective of their education background at shop floor. Subordinates mentoring and responsible candidature goes a long way in ensuring companys success.

Professional with required amount of experience and knowledge are hired on need to need basis by the Company. The Industrial relation of the Company with various clients, supplier, financial lenders and employees is cordial. There are total 10 employees on the payroll of the Company.

FUTURE PROSPECTS

Company has initiated three new maxim to be complied for better growth and progress of the company. Owing to the progressive growth and the competition in the cattle feed industry, company has focused on core business strategies for the development of business.

The focus area of future planning has been segregated into following heads.

The cattle feed business is experiencing rapid growth as the milk producers have started replacing the traditional cattle feed with more nutritionally balanced compound feed, as they have realized the tangible benefits of nutritional feed in terms of yield improvement. In Asia, the livestock industry is the most crucial part of agricultural development and has been growing at an unprecedented pace in the last few decades. Livestock products contribute for around 40% of the total agricultural output in global sales, and are experiencing growth faster as compared to any other agricultural sub-sector. Due to population growth and increased living standards, rapid growth in consumption of animal products has also forced the livestock industry to adapt and expand to satisfy the expectations of the society by feeding nutritious animal feed to the livestock animals. Hence, this factor proves beneficial for the growth of the cattle feed market.

Company is planning to expand its operation and cover Asia-Pacific region for export of its products. At present our Company is marketing its product through a network of commission agents, brokers, distributors, etc spread across Gujarat & Rajasthan but our Company majorly get its sales from Rajasthan.

Asia-Pacific is known to be the dominant region in the cattle feed market share. Asian countries have witnessed higher rate of traction for dairy products, owing to its increased demand from vegan consumers. Some key macroeconomic factors such as rise in social media usage and surge in per-capita income also play an important role in contributing toward the overall growth of the cattle feed market. However, LAMEA is expected to exhibit significant growth in the future, owing to rise in demand for meat and dairy products in child nutrition. In addition, the region has witnessed considerable surge in number of millennials, who are forefront consumers of new food & meat products. Therefore, rise in millennial population is anticipated to offer remunerative cattle feed market opportunities.

The Cattle Feed Market size is expected to grow from USD 84.50 billion in 2023 to USD 100.36 billion by 2028, at a CAGR of 3.50% during the forecast period (2023-2028).

Cattle Feed Market Size Value in 2023	US$ 84.50 billion
Cattle Feed Market Forecast Value in 2028	US$ 100.36 billion
Global Growth Rate (2022 to 2032)	3.50%
Forecast Period	2023-2028
Cattle Feed Market Share of India in South Asia	~25%

The Indian animal feed market size reached US$ 956.7 Billion in 2022. As per the analysis by IMARC Group, the top companies in the Indian animal feed market are focusing on improving the nutritional content and sustainability of animal feed. Moreover, the increasing adoption of precision feeding, which utilizes technology to precisely measure the nutrient requirements of individual animals and provide them with tailored feed, resulting in reduced feed waste and improved animal health and productivity, is favoring the market growth. These insights are included in the report as a major market contributor. We intend to expand our geographical reach and enter the large domestic market for growth opportunities of our business. We plan to deepen our presence in the existing market and expand our reach and penetrate into the large available market by giving scale down low price solution and grab major market share.

Commercial poultry feeding is a highly perfected science that ensures a maximum intake of energy for growth and fat production. High-quality and well-balanced protein sources produce a maximum amount of muscle, organ, skin, and feather growth. The essential minerals produce bones and eggs, with about 3 to 4 percent of the live bird being composed of minerals and 10 percent of the Calcium, phosphorus, sodium, chlorine, potassium, sulfur, manganese, iron, copper, cobalt, magnesiu m, and zinc are all required. Vitamins A, C, D, E, and K and all of the B vitamins are also required. Antibiotics are widely used to stimulate appetite, control harmful bacteria, and prevent disease. For chickens, modern rations produce about 0.5 kg (1 pound) of broiler on about 0.9 kg (2 pounds) of feed and a dozen eggs from 2 kg (4.5 pounds) of feed.

With the increasing Demand for poultry feeding company is focusing to expand its operations to cover poultry feeding section among the cattle feeds.

Our Company has introduced Multigrain Meal High Protein cattle feed. Multi Grain Meal is highly rich in protein and fibres. This is free from any foul smell and highly suitable for poultry feeding as well. This feed is best for the development for the improve health of the cattle. The minerals, vitamins and protein in the Multi Grain Cattle Feed are enough for their good health.

FINANCIAL PERFORMANCE OVERVIEW

The discussions in this section relate to the financial results pertaining to the year that ended March 31, 2023. The financial statements of Narmada Agrobase Limited (‘the Company) are prepared in accordance with the Applicable Accounting Standards and the provisions of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, as amended from time to time. Significant accounting policies used in the preparation of the financial statements are disclosed in the notes to the consolidated financial statements.

Companys Revenue from operations has shown the growth in the initial years after its listing which represents the companys commitments towards its operations, however as depicted in the graph above the revenue from operations has shown the sudden fall in the revenue due to outbreak of Covid-19 pandemic leading to an unprecedented health crisis and disrupting economic activities and global trade, while weighing on customer sentiments situations after the Financial Year 19-20. The Businesses, had just started moving back to normalcy after the end of the first wave, were hit hard by the second wave during the year 2020-21 which impacted the revenue from operations of the company in the Financial Year 21-22. In the current year company has again paced with the growth prospects and streamlined its operations. The manpower issue was the major hurdle in these situations which led to shortfall in the production and hence affected sales. However company has initiated its focus on the revenue generation and has initiated new plans for progressive growth.

The revenue from Operations of the company is detailed below:

Financial Year

Revenue From Operations (millions)	18-19	19-20	20-21	21-22	22-23
	477.83	616.2	583.3	350.3	500.7