nutricircle ltd share price Management discussions

Global Nutraceutical : Industry Structure & Developments:

Nutraceuticals are used in the prevention of potential disease and the healing of already existing diseases. According to Transparency Research, the nutraceuticals product industry is classified broadly according to functional beverages, functional food, and dietary supplements. Market growth is fuelled by dietary supplement segment expansion. The protein and peptides sector of the dietary supplement market is expected to record strong growth in the coming years. The non-herbal market segment of the dietary supplement sector is also forecast to record strong growth in the coming years. The non-herbal market segment of the dietary supplements ectoris also forecast to record strong growth. In the functional food market sector, the omega fatty acid fortified food market segment is predicted to record moderate growth.

Key Market Segments:

Nutrients represent the market segment with the highest sales within the nutraceutical ingredients market. According to Frost & Sullivan, Indian nutraceutical market is projected to grow to US$4 billion in 2018 at a compound annual growth rate (CAGR) of 17 percent. The United States, Europe and Japan account for 93 percent of the total global nutraceutical market, and overall, the market has attained maturity in all the three regions. India, China and other South east Asian countries are considered key growth regions with their current low per capita spending on nutraceutical products.

As a matter of fact, according to the Indian statistical data, obesity rates in India have increased by 20 percent, and 40 percent of deaths in this country is associated with cardio vascular diseases (CVDs). Moreover, with 67 million diabetic patients and 30 million in a pre-diabetic condition, India is projected to be the capital of diabetes by 2030. All of these factors portray the penetration potential of nutraceutical products in India Increasing food security concerns by Indian consumers have also lead to the development of more fortified foods in the Indian market.

Regional Markets

Transparency Research forecasts the Asia pacific and Indian nutraceutical market will hold just over 30% and almost 40% respectively of the global market in 2017.Dietary supplements represents the market predicted tore cord the highest rate of growth over the five-year period

Quinoa or quinua (chenopodium quinoa Willd), is native to the Andes Mountains of Bolvia, Chile, and Peru. This crop (pronounced KEEN-WAH), has been called 41 vegetable caviar" or Inca rice, and has been eaten continuously for 5,000 years by people who live on the mountain plateaus and in the valleys of Peru, Bolivia, Ecuador and Chile. Quinua means "mother grain" in the Inca language. This crop was a staple food of the Inca people and remains an important food crop for their descendants, the Quechua and Aymara peoples who live in rural regions.

The present from the heavens has always been a base of the Andean diet, but only recently did the crop begin its international journey. In 1993, NASA researchers recommended it as part of a potential space-colony diet. Over the following decade, the food gained wider appeal, going from hippie hype to Costco convenient practically overnight. "Quinoa was in the eye of the storm," says Bolivian-born Sergio Nunez del Arco, founder of Andean Naturals, the U.S.s largest quinoa importer, explaining that the product fit almost every recent health craze: whole grain, gluten-free, fair trade, organic.

Uses:

Quinoa is a highly nutritious food. The nutritional quality of this crop has been compared to that of dried whole milk by the Food and Agriculture Organization (FAO) of the United Nations. The protein quality and quantity in quinoa seed is often superior to those of more common cereal grains. Quinoa is higher in lysine than wheat, and the amino acid content of quinoa seed is considered well-balanced for human and animal nutrition.

Quinoa is made into flour for baked goods, breakfast cereals, beer, soups, pastas, desserts and even livestock feed. The seeds can be boiled, added to soups or even fermented. The cooked seeds have a nutlike flavor and remain separate, fluffy and chewy. Quinoa breads and flours are popular products for their gluten-free, high-protein qualities. Quinoa seeds and flour can be found in the health food section of many grocery stores, on menus at gourmet restaurants, and marketed directly to consumers over the Internet.

Our company is determined to make quinoa products due to the current market and its good growth potential.

Opportunities:

• As As the world faces the challenge of increasing the production of quality food to feed a growing population in a changing climate, quinoa offers an alternative food source for those countries suffering from food in security.

• Today, quinoa has found a place in the gourmet kitchen and a role in the pharmaceutical and other industries. Cultivation of quinoa now extends beyond the Andean region and - besides Bolivia, Peru, Ecuador, Chile, Colombia and Argentina,it is also produced in the United States, Canada, France, the United Kingdom, Sweden, Denmark, Italy, Kenya and India

• Promote cultivation of medicinal plants.

• Implement good agricultural practice, good pre and post harvesting practices and good storage practices

• Promote single point sourcing of raw materials

• Promote sustainable harvesting of minor forest produces

Threats:

• Shortage of raw materials

• Escalation in raw materials price

• Lowering of standards in the products

• Lowering of standards in the products

Our Strategy:

• Maximise the potential of its position as a prominent player in Nutraceutical sciences.

• Encourage and support the development of Quinoa cultivation using its network to create a long-term sustainable supply.

• Expand the Groups Operations in other jurisdictions outside India;

• Continue the Groups development of Quinoa R&D in order to improve their economic yield potential for farmers.

• In addition to improving the Quinoa yield , the company will look to enhance its current production capacity through geographical expansion.

• Improving processing technologies.

OUTLOOKAND FUTURE PLANS:

The Company has entered into strategic tie up with National Academy of Agricultural Research Management (NAARM), for establishment of Incubation center and demonstration center for "QUINOA" cultivation and also another stratagic tie up with "Professor Jayashankar Telangana State Agricultural University" for use of technology for production of various kinds of nutritional value flours and noodles. These associations are aimed at giving a fillip to the activity of the company.

In line with its efforts to promote the wonder grain "QUINOA" the Company has established a Research and demonstration unit of 1.8 acres land in the campus of NAARM, and has further taken up cultivation of in about 30 acres in tie up with some farmers at Nagar Karnool on Contact farming basis. The Company is expecting phenomenally good yield from this activity.

The Companys internal control system keeps a regular check on the movable and immovable assets of the Company in order to protect them from loss or damage which may occur due to unauthorized usage/access.

CAUTIONARY STATEMENT

Statements made in the Management Discussion and Analysis report which describes the Objectives, projections, estimates, approximations, predictions etc., may be considered to be forward looking statements and are stated as per the applicable laws and regulations. Actual results may defer from those expressed or speculated and are determined by many factors both domestic and global demand - supply conditions, processes, raw material availability, tax laws, government policies and other statutory obligations and implications which may affect the actual results which may be different from what the Directors envisaged in terms of future performance and outlook.

	For and on behalf of the Board of Directors Sd/-
Dated: 29-08-2023	Hitesh Patel
Place: Hyderabad	Managing Director
	(DIN - 02080625)