Narmada Agrobase Ltd Management Discussions

Feed industry in India is about 50 years old. It primarily consists of cattle feed and poultry feed segments. Cattle feed industry in India is gradually evolving into an organized sector and the feed manufactures are increasingly using modern and sophisticated methods that seek to incorporate best global practices. Indian cattle feed industry has got high growth potential, given the countrys top position among the world nations in respect of livestock population and also the high expected growth rate of about 4 per cent. Compounded Cattle Feed (CCF) products, particularly the branded ones is fast gaining popularity India, including in rural areas. Earlier research studies by the present author jointly with another researcher, based on the feedback from the farmers, have revealed the high growth prospects of the branded cattle feed industry, the feed consumption pattern based on product types, composition of cattle feed market and the relative shares of major brands, the major factors influencing the purchasing decisions etc. As a continuation of these studies, this macro level study analyses the growth prospects of cattle feed industry in India and hence suggests strategies for its faster growth

There is a huge scope for the growth in the sector, with industry becoming more organized. With this growth rate India will soon become the largest feed market in the coming years.

PRODUCT & ITS APPLICATION

The focus is on the production of superior-quality cattle feed, meticulously designed to cater to the dietary requirements essential for dairy and beef farming. The crafted feed will be versatile, accommodating the needs of different cattle breeds and age categories, aiming to support their growth, enhance milk yield, and foster their general well-being. The application of this specially formulated cattle feed spans several key areas: it plays a pivotal role in amplifying milk production among dairy cows, elevating meat quality, and accelerating growth rates in beef cattle, thereby improving their overall health. Furthermore, it delivers vital nutrients necessary for the development of healthy calves, strengthens the immune system of the cattle, and ultimately, contributes to the elevation of farm productivity and profitability. This holistic approach not only promotes the health and efficiency of the cattle but also aligns with the goals of maximizing output and ensuring the sustainability of farming operations.

India Cattle Feed Market Size was estimated at 7.24 (USD Billion) in 2023. The India Cattle Feed Market Industry is expected to grow from 8.5(USD Billion) in 2024 to 13.5 (USD Billion) by 2035. The India Cattle Feed Market CAGR (growth rate) is expected to be around 4.295% during the forecast period (2025 - 2035). This growth is driven by increasing demand for animal protein and advancements in feed production technology.

Cattle feed is a very important factor in animal agriculture and it contributes to the majority cost of the raising animals. Farmers usually try to reduce cost for this food by supplementing expensive feeds with substitutes, such as food waste like spent grain from beer brewing. Animal wellbeing is one of the prime factors that decide the future of livestock industry. Wellbeing of animals is highly dependent on well-balanced nutritional feed. The cattle feed industry is expanding into the market of feed-acidifiers, feed-enzymes, feed-antibiotics, and feed-microbial. The demand for these trends goes parallel with the increase in consumption of meat protein and increased importance on the quality of the ingredients used in the animal feed.

India Cattle Feed Market Overview

It contributes 4.11% of the Indian total GDP and 25.6% of total agriculture GDP of the country. The ongoing growth of major consuming industries creates conditions for a further development of animal feed industry of India, although several problems continue to prevent its more active growth. India traditionally faces a shortage of fodder in the range of 20% to 25% from its overall annual needs, which is mainly due to seasonal and regional factors. However, this year these figures are significantly higher due to shrinking land resources of the country. Due to this, the government plans to take measures to expand the areas of grazing lands and to ensure their more sustainable and careful use.

Key India Cattle Feed Market Trends

The awareness of the nutritional value of livestock feed among producers is driving a significant shift in the India Cattle Feed Market toward the adoption of high-quality feed ingredients. The demand for milk, meat, and other dairy products in the country is on the rise, and producers are increasingly choosing scientifically formulated cattle feeds that increase productivity. This change is also influenced by government initiatives that encourage sustainable agricultural practices and animal husbandry, which have led to an investment in improved feed formulations. As consumers become increasingly concerned with the quality of food products, there are substantial opportunities to be investigated in the production of organic and non-GMO cattle supplies.

I. Macroeconomic condition

There is an increasing awareness among cattle farmers in India regarding the importance of nutrition in improving livestock health and productivity. Various organizations, including the Indian Council of Agricultural Research (ICAR), have been conducting workshops and training sessions to educate farmers about the benefits of quality feed in enhancing milk and meat production. This has resulted in a shift from traditional feeding practices to adopting scientifically formulated cattle feed. Consequently, the demand for specialized cattle feeds, which are tailored to meet the specific dietary requirements of livestock, is on the rise, driving the growth of the India Cattle Feed Market Industry.

II. Economic Outlook

The Organized Animal feed manufacturers are producing around 30 Million tonnes of commercial feed. Out of total production, Commercial production of cattle feed is about 8 million tonnes (organized manufacturers, as for eg Godrej Agrovet is manufacturing 1 million tonne of animal feed and is the largest compound feed manufacturer in India). Godrej Agro vet has tie-up with some of major diary companies like Creamline Dairy, Heritage Dairy, Hatsun Dairy for cattle feed distribution). India exported 2000 tonnes of cattle feed (mainly maize basal) in current year and imported 9000 tonnes of copra based cake and feed supplement.

India is exporting 74% of cattle feed to Pakistan and 21%to Belgium and importing 37% of cattle feed from Indonesia and 17% from Srilanka. However, in value terms China is the largest exporter to India. Mainly vet supplement like- Folic acid based medicines, Vitamins are imported into India from China.

III. Indian Economy

The Indian compound feed market plays a critical role in supporting the countrys livestock sector, which includes poultry, cattle, aquaculture, and swine. The market has experienced substantial growth, driven by increasing demand for animal-based products such as meat, eggs, and dairy. India is a global leader in livestock production, ranking first in milk and buffalo meat production, second in goat meat, and third in poultry. According to FAOSTAT data from 2023, Indias livestock population includes 194.4 million cattle, 112.0 million buffaloes, 154.2 million goats, and over 878.5 million poultry, demonstrating the significant demand for quality animal feed.

IV. Market Trends

The India Compound Feed Market size is estimated at USD 28.89 billion in 2025, and is expected to reach USD 38.85 billion by 2030, at a CAGR of 6.1% during the forecast period (2025-2030).

The growing demand for high-quality animal-origin food products in India is driving a shift toward nutritionally advanced and scientifically formulated feed solutions. Consumers are increasingly concerned about the safety, traceability, and nutritional content of meat, dairy, and eggs, prompting livestock producers to adopt premium feed formulations enriched with vitamins, minerals, amino acids, and probiotics. Additionally, there is rising interest in species-specific feeds tailored to different growth stages, which further improves animal performance and ensures optimal nutrient utilization and contributes to the animal feed market size in India.

Market Growth Expectations

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 cattle feed market in India is expected to reach a projected revenue of US$ 11,732.4 million by 2030. A compound annual growth rate of 6% is expected of India cattle feed market from 2023 to 2030.

Globally, the market has benefited from the industrialisation of cattle products including meat and dairy products as well as the rising population. The main factor driving market expansion is the rise in consumer knowledge of the nutritional value of food as well as the safety of meat and milk products. Young ruminants and mature ruminants are two categories of cattle. Amino acids, vitamins, feed acidifiers, antibiotics, feed enzymes, antioxidants, and other supplements are used depending on the age of these ruminants. Products containing vitamin A and minerals, such as Availa-4 and 20-10 Plus Mineral, are frequently used to boost cattles immune system, reproductive ability, and vision as well as to fill nutritional gaps.

India is glaring at a critical fodder problem over the past few years, according to market reports. According to a recent coverage, India is facing a major challenge in terms of producing adequate feed and fodder for its livestock, given its shrinking land resource. Erratic fodder supply during summer/ drought creates a further gap in the supply chain. The deficit in green fodder is estimated at 11.24%. Currently, fodder is being cultivated on 8.4 million hectares (nearly 4% of gross cropped area), whereas experts suggest a share of 14-17%.

Projected demand and availability of fodder in India

According to this study, by 2020 India would require a total 526 million tonnes (Mt) of dry matter, 855 Mt of green fodder, and 56 Mt of concentrate feed (comprising 27.4 Mt of cereals, 4.0 Mt of pulses, 20.6 Mt of oilseeds, oilcakes and meals, and 3.6 Mt of manufactured feed).

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.

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

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 is total 11 employees on the payroll of the Company.

The future of the cattle feed industry looks promising, with a projected significant increase in market value over the next decade. This growth is driven by rising global demand for meat and dairy products, increasing awareness of the nutritional value of animal feed, and advancements in feed technology. The industry is also expected to benefit from supportive government policies and a focus on sustainable and cost-effective raw materials. Consumers are becoming more aware of the importance of nutrition in both human and animal food, leading to a greater focus on high-quality feed for livestock. 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.

The cattle feed market will grow from USD 133.5 billion in 2025 to USD 193.7 billion by 2035 at a CAGR of 3.8%. Concentrate foods lead with 62.2% share, hay holds 23.8%, and pelleted feed contributes 33.9%, driven by demand for efficient, high-nutrition livestock feeding solutions.

The global cattle feed market is projected to expand from USD 133.5 billion in 2025 to USD 193.7 billion by 2035, growing at a CAGR of 3.8%. This growth is fueled by rising global demand for beef and dairy products, increasing livestock population, and advancements in animal nutrition.

Cattle feed plays a critical role in ensuring optimal weight gain, milk yield, and overall animal health. With greater focus on productivity and sustainability, farmers are transitioning to precision feeding methods and customized feed formulations that meet specific nutritional requirements for beef and dairy cattle.

The discussions in this section relate to the financial results pertaining to the year that ended March 31, 2025. 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 standalone financial statements.

In the current year company has again paced with the growth prospects and streamlined its operations.

For the financial Year 2024-2025, your Company recorded net sales of Rs. 656.8 million as against Rs. 503.2 million in the previous year and thereby recording the increase in the net sales. Despite the tough market conditions faced by the industry, Company is striving hard to achieve the better results and the assured progressive growth in future.

Details of Significant Changes in Key Financial Ratios

(Total current assets/Current liabilities)

(Net debt/equity)

[Net debt: Non-current borrowings- Deposits/Margin Money against Long Term Borrowings [Equity: Equity share capital + Other equity]

(EBIT/(Net finance charges + Scheduled principal repayments of non current borrowings (excluding prepayments) during the

[EBIT: Profit before taxes +/(-) Exceptional items + Net finance charges]

[Net finance charges: Finance costs ]

Profit after tax (PAT)/Average Equity)

[Equity: Equity share capital + Other equity]

(Cost of Goods sold/Average Inventory )

(Average trade receivables/Turnover in days)

[Turnover: Revenue from operations]

(Average Trade Payables/Expenses in days)

[Expenses: Total Expenses - Finance Cost - Depreciation and Amortisation Expense - Employee Benefit Expenses in respect of Retirement Benefits

working capital/Turnover in days

[Working capital: Current assets - Current liabilities]

[Turnover: Revenue from operations]

(Net profit after tax/Turnover)

[Turnover: Revenue from operations]

(EBIT/Average capital employed)

[Capital Employed: Equity share capital + Other equity + Non current borrowings + Current borrowings]

[EBIT: Profit before taxes +/(-) Exceptional items + Net finance charges]

(Net gain/(loss) on sale+fair value changes of mutual funds)/Average investment funds in current and non-current investments)

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, or predictions may be “forward-looking statements” within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors including changes in economic, political, and regulatory environments, natural calamities, and market conditions.