Nijjer Agro Foods Ltd Management Discussions

NIJJER AGRO FOODS LIMITED ANNUAL REPORT 2009-2010 MANAGEMENT DISCUSSION AND ANALYSIS A) Industry structure and Development. i) Fruit and Vegetable processing unit. Fruits and vegetable processing is the main thrust and profitable area of the Company. In the Fruit and Vegetable processing unit the Company processes fresh vegetables i.e. tomatoes, chilli and also produces ketchup. For fruit processing the Company has developed pulps and juices of pear, apple and also juices of kinnu and other citrus fruits. It is very important to add that the raw material for these products is fully dependent on weather conditions, which prevail during the growing period, and the success or failure of a particular season is fully dependent on rain and prevailing temperature during growing and harvesting period. ii) Milk processing unit. Due to shortage of working capital the Company could not run the plant during the current accounting year. However as a result some modifications made in the plant this plant can now be used for processing of fruit juices a new line of business being added by the Company. B) Business Strategy During the year 2008-09 the world economic environment deteriorated. However considering the nature of our products and customers this down trend is not likely to have a major effect on our products, however some impact on our products cannot be ruled out. C) Risks anConcerns Availability of basic raw material of the Company is influenced by vagaries of nature, monsoon, and prevailing temperature during growing period. However due to tough quality parameters being followed during growing and manufacturing process, the Company expects to be in a position to compete with the imported products and will always have advantage over them. Your Company being the supplier of intermediate products to large food companies/chains expects improvement & demand of the products D) Outlook and Cautionary Statement With the all round expectation of good monsoon, increase in per capita income, changing consumer habits, and opening up of mega stores we expect better times during the years to come. The above statement describing the Companys objectives may be forward looking but the actual results may differ materially from those expressed. Important factors that could make a difference to the Companys operations include availability of raw material at right price, availability of adequate working capital, cyclic demand of Companys products, change in Government regulations and tax regimes, economic development in India and other incidental factors. On behalf of the Board of directors SATBIR NIJJER NAVDEEP NIJJER Managing Director Director Place: Regd. Office, Vill: Meharbanpura, PO. Jandiala Guru, Amritsar Date : 15.08.2009