Nijjer Agro Foods Ltd Share Price 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