Ramdevbaba Solvent Ltd Management Discussions

ECONOMIC SCENARIO Global Economy

During Financial Year 2025-26, the global economy demonstrated moderate growth despite a challenging macroeconomic environment characterised by persistent inflationary pressures, elevated interest rates, geopolitical conflicts and continuing trade realignments. Global supply chains continued to normalise; however, volatility in commodity prices, currency movements and freight costs remained significant factors influencing international trade.

The global edible oil industry experienced heightened price volatility during the year owing to fluctuations in production levels across key producing nations, including Indonesia, Malaysia, Argentina, Brazil, Russia and Ukraine. Weather-related disruptions, evolving biofuel policies, export regulations and changing geopolitical dynamics continued to influence the availability and pricing of major vegetable oils such as palm oil, soybean oil and sunflower oil. Nevertheless, long-term demand fundamentals remained resilient, supported by population growth, urbanisation, rising disposable incomes and increasing demand for quality food products.

Indian Economy

India continued to maintain its position among the worlds fastest-growing major economies during FY 2025-26, supported by robust domestic consumption, sustained public infrastructure investment, sound macroeconomic fundamentals and policy reforms. Government initiatives aimed at improving manufacturing competitiveness, enhancing agricultural productivity and strengthening infrastructure continued to support economic growth despite global uncertainties.

The food processing and FMCG sectors remained resilient throughout the year, driven by stable consumer demand across both urban and rural markets. Rising disposable incomes, increasing health awareness, rapid urbanisation and growing preference for branded food products continued to support demand for quality edible oils.

The Government of Indias continued focus on achieving self-reliance in edible oils through enhanced domestic oilseed cultivation, promotion of oil palm plantations and productivity improvement initiatives is expected to reduce import dependency over the medium to long term while creating significant growth opportunities for the domestic edible oil industry.

Looking ahead, Indias favourable demographic profile, expanding middle-income population, increasing consumer spending and ongoing policy support are expected to provide a strong foundation for sustained economic growth, thereby creating favourable opportunities for businesses operating in the edible oil and food processing sectors.

INDUSTRY OVERVIEW

The edible oil industry constitutes one of the most significant segments of Indias food processing sector and plays a vital role in ensuring the countrys food security. India is among the worlds largest consumers as well as importers of edible oils, with demand continuing to outpace domestic production due to changing dietary patterns, population growth, urbanisation and rising household incomes.

The domestic edible oil market comprises a diverse range of products, including palm oil, rice bran oil, soybean oil, sunflower oil, mustard oil, groundnut oil and specialty oils. Palm oil continues to account for a significant share of total consumption owing to its affordability and extensive industrial applications, while rice bran oil, sunflower oil and soybean oil continue to gain consumer acceptance because of increasing awareness regarding healthier cooking alternatives.

The Indian FMCG sector, one of the largest contributors to the countrys economy, continues to witness strong growth supported by rising consumer aspirations, organised retail expansion, digital commerce and increasing penetration into rural markets. The evolving retail landscape has further strengthened the demand for branded and packaged edible oils, encouraging manufacturers to focus on quality, product differentiation and brand development.

During FY 2025-26, the edible oil industry experienced considerable volatility driven by fluctuations in international crude edible oil prices, changes in import duties, currency movements, geopolitical developments and variations in freight costs. Despite these challenges, domestic demand remained resilient, supported by stable consumption patterns and increasing preference for packaged edible oils.

India continues to rely substantially on imports to meet its edible oil requirements. While domestic production of oilseeds has shown gradual improvement, the demand-supply gap remains significant. Accordingly, Government initiatives aimed at enhancing domestic oilseed production, improving crop productivity, expanding oil palm cultivation and strengthening processing infrastructure are expected to play a crucial role in improving long-term self-sufficiency.

Growing consumer awareness regarding nutrition and healthy lifestyles is expected to accelerate demand for premium, fortified and value-added edible oils. Increasing emphasis on food safety, quality assurance and traceability is also encouraging industry participants to adopt modern manufacturing practices, advanced refining technologies and robust quality management systems.

Overall, the long-term outlook for the Indian edible oil industry remains positive, supported by favourable demographic trends, increasing per capita consumption, expanding organised retail, growing e-commerce penetration and continued Government policy support.

BUSINESS OVERVIEW

The Company Ramdevbaba Solvent Limited is engaged in the business of manufacturing, distribution, marketing, selling, trading, packing and repacking of Physically Refined Rice Bran Oil, Ground nut oil, sunflower oil, soybean oil under our own brands Tulsi and Sehat to FMCG Companies, Wholesalers, Retailers, Distributors etc. The company also deals in institutional selling of Physically Refined Rice Bran Oil to various institutional customers and industrial users.

The Company also produce De-oiled Rice Bran (DORB), which is a by-product in the extraction of Rice Bran Oil and sell the same as cattle feed, poultry feed and fish feed in the States of Maharashtra, Goa, Gujarat, Madhya Pradesh, Andhra Pradesh, Telangana, Karnataka, Kerala and Tamil Nadu. Other by-products such as fatty acid, lecithin, gums, spent earth and wax are sold in the open market. we remain cautiously optimistic about the future of the Edible Oil industry.

We have two (2) Manufacturing Facilities out of which one is situated at Bramhapuri and another one is situated at Mahadula near Nagpur, Maharashtra. Our Manufacturing Facilities comprise of three (3) solvent extraction facilities and two (2) oil refinery facilities with an aggregate installed capacity of around 2,55,000 MTPA and 48,000 MTPA, respectively. Our Manufacturing Facilities spread across 1,28,000 sq. metres. of land. The company is in the process of Setting up a corn oil plant at Bramhapuri unit to extract oil from corn also, it will help to further explore the oil segment.

As part of the oil extraction and refining process, we consume a high amount of power and steam. We purchase electricity from state electricity authority which is our electricity provider. We have installed solar power plants at our Manufacturing Facilities having an aggregate installed capacity of 2,000 kilowatts reducing our reliance on our power requirements from public/state electricity authorities and promoting green energy. Each of our processing plants also has a backup diesel generator to supplement our electricity requirements in the event of power interruptions. We purchase diesel primarily from major state-owned petrochemical suppliers. All of our steam requirements are satisfied by our steam boilers. Each of our processing plants has a steam boiler. Our boilers are primarily dependent on biomass fuel such as husk, which is available in abundance from traders and rice mills in the Vidarbha region of Maharashtra.

The Company remains committed to delivering sustainable value through operational excellence, product quality, innovation and customer satisfaction. During the year, management continued to focus on the following strategic priorities:

• Strengthening brand equity and enhancing market penetration across existing and new geographies.

• Expanding the distribution network and improving customer reach.

• Enhancing operational efficiencies through process optimisation and technology adoption.

• Diversifying the product portfolio with greater emphasis on value-added and premium offerings.

• Maintaining the highest standards of product quality, food safety and regulatory compliance.

• Building long-term and mutually beneficial relationships with customers, suppliers and other stakeholders.

Supported by integrated manufacturing capabilities, an established brand portfolio, robust distribution network and prudent business strategies, the Company is well positioned to capitalise on emerging opportunities in the Indian edible oil industry while creating sustainable long-term value for all stakeholders.

FINANCIAL REVIEW

The company has achieved overall turnover of Rs. 82,990.23 /- (In Lakhs) in Financial Year 2025-26 as against the turnover of Rs. 93,559.24 /- (In Lakhs) in the previous year. The EBIDTA is Rs. 3,419.28/- (In Lakhs) in the financial year 2025-26 as compared to Rs. 3,298.79/- (In Lakhs) in the previous year. The Profit after tax is Rs. 1,448.21/- (In Lakhs) in the financial year 2025-26 as against Rs. 1,503.14/- (In Lakhs) in the previous year.

GROWTH DRIVERS

The long-term growth prospects of the Indian edible oil industry continue to remain favourable, supported by structural demand drivers and favourable demographic trends.

The key growth drivers for the Company include:

• Growing population and increasing per capita consumption of edible oils.

• Rising disposable incomes and changing consumption patterns.

• Increasing consumer preference for branded, hygienically processed and packaged edible oils.

• Growing awareness regarding health, nutrition and premium edible oil products.

• Expansion of organised retail, modern trade and e-commerce platforms.

• Government initiatives aimed at enhancing domestic oilseed production and reducing import dependency.

• Increasing demand for value-added, fortified and specialty edible oils.

• Continuous investments in manufacturing capacity, technology and operational efficiencies.

The Companys diversified product portfolio, established brands, integrated manufacturing facilities and expanding distribution network provide a strong platform to capitalise on these emerging opportunities.

Opportunities

The Company believes that several structural factors will continue to create long-term opportunities for the edible oil industry. These include:

• Sustained growth in domestic consumption of edible oils.

• Increasing penetration of branded edible oil products in semi-urban and rural markets.

• Expansion of organised retail and digital commerce.

• Rising demand for healthier and premium edible oil products.

• Government initiatives promoting domestic oilseed cultivation and self-reliance in edible oils.

• Product diversification into value-added and specialty edible oils.

• Capacity expansion through the proposed Corn Oil Extraction Plant.

• Increasing export opportunities for processed edible oil products and by-products.

Threats

While the industry offers significant growth opportunities, it also remains exposed to certain external risks and uncertainties, including:

• Changes in Government policies, duties and regulatory framework.

• Climate change and adverse weather conditions impacting agricultural production.

• Intense competition from organized as well as regional market participants.

• Rising logistics and freight costs.

The Company continues to adopt appropriate mitigation strategies through diversified sourcing, prudent inventory management, efficient procurement practices and continuous monitoring of market developments.

RISK MANAGEMENT

The Company encourages an open channel of communication and collaboration across departments to ensure organization-wide risk preparedness and responsibility. We have developed a comprehensive risk management framework, integrated into its strategic planning and decision-making processes.

Our integrated framework addresses risks arising from both the external environment and internal operations. We are continuously evolving our approach to proactively address emerging risks and uncertainties in a dynamic business environment, strengthening our ability to make informed and future-ready decisions.

Risk management is embedded into the Companys strategic planning and decision-making processes and is periodically reviewed by the management, the Audit Committee and the Board of Directors. The framework facilitates timely identification of emerging risks while strengthening the Companys ability to respond proactively to changing business conditions. The key risks faced by the Company include:

• Volatility in prices of crude edible oils and agricultural commodities.

• Dependence on raw material requirements.

• Changes in Government policies, customs duties and regulatory framework.

• Supply chain disruptions arising from geopolitical developments or logistical constraints.

• Climate change and adverse weather conditions affecting agricultural output.

• Intense competition within the edible oil industry.

• Cyber security and information technology-related risks.

• Operational, environmental and safety risks associated with manufacturing activities.

The Company continues to strengthen its risk mitigation strategies through diversified sourcing, prudent inventory management, continuous monitoring of market developments, financial discipline, robust internal controls and technology-driven business processes. The Company remains committed to building organisational resilience and enhancing long-term stakeholder value through proactive risk management.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has established an adequate and effective system of internal controls commensurate with the size, nature and complexity of its operations. The internal control framework is designed to ensure the safeguarding of assets, reliability of financial reporting, operational efficiency and compliance with applicable laws, regulations and internal policies.

The Company has implemented appropriate internal financial controls over financial reporting, supported by well-defined policies, standard operating procedures and authority matrices. These controls facilitate the orderly and efficient conduct of business, ensure the accuracy and completeness of accounting records and promote timely preparation of reliable financial information.

The Internal Auditor conducts periodic audits covering operational, financial and compliance aspects across various business functions based on a risk-based internal audit plan approved by the Audit Committee. Audit observations and recommendations are reviewed periodically by the management, and appropriate corrective actions are implemented in a timely manner. Significant audit findings are placed before the Audit Committee, which monitors the effectiveness of the internal control environment.

During the financial year under review, the Company did not identify any material weakness in the design or operating effectiveness of its internal financial controls. The internal control framework primarily focuses on:

• Safeguarding the Companys assets.

• Ensuring accuracy, completeness and reliability of financial records.

• Compliance with applicable statutory and regulatory requirements.

• Efficient utilisation of resources.

• Prevention and detection of frauds and irregularities.

• Timely identification and mitigation of operational risks.

• Continuous improvement through periodic reviews and monitoring.

The Board believes that the Companys internal control systems provide reasonable assurance regarding the effectiveness of operations and financial reporting.

HUMAN RESOURCES

The Company firmly believes that its employees are its most valuable asset and a key driver of longterm business success. The Company remains committed to fostering a performance-oriented, inclusive and collaborative work environment that promotes innovation, continuous learning, integrity and employee well-being.

The Company continues to invest in developing the capabilities of its workforce through structured learning initiatives, technical training programmes and leadership development interventions aimed at enhancing organisational effectiveness. The Company focuses on:

• Employee training and skill development.

• Safe and healthy work environment.

• Performance management and employee engagement.

• Equal opportunity and diversity.

• Leadership development and succession planning.

INFORMATION TECHNOLOGY

Technology continues to play a critical role in improving operational efficiency, strengthening business processes and enabling informed decision-making. The Company continues to invest in digital technologies to enhance operational excellence, strengthen internal controls and improve customer responsiveness.

During the year, the Company continued to strengthen its information technology infrastructure through various initiatives, including:

• Enhancement of Enterprise Resource Planning (ERP) systems.

• Digitisation of procurement, inventory and supply chain processes.

• Automation of finance and operational workflows.

• Strengthening cyber security measures and data protection practices.

• Leveraging business intelligence tools and data analytics for improved forecasting and decision-making.

The Company remains committed to adopting emerging technologies that improve productivity, optimise business processes and enhance overall competitiveness.

OPERATIONAL PERFORMANCE

During FY 2025-26, the Company continued to focus on operational excellence by optimising procurement strategies, improving refining efficiencies and strengthening distribution capabilities. The Company undertook various initiatives including:

• Improvement in plant utilisation and operational efficiencies.

• Optimization of inventory levels and working capital.

• Strengthening of procurement and sourcing channels.

• Enhancement of product quality standards.

• Expansion of distribution reach across key markets.

• Increased focus on automation and digitization of processes.

The Company remains committed to achieving sustainable growth through continuous process improvement and operational discipline.

SUSTAINABILITY AND ENERGY CONSERVATION

Sustainability remains an integral component of the Companys long-term business strategy. The Company is committed to conducting its operations in an environmentally responsible manner while optimising the utilisation of natural resources and promoting sustainable manufacturing practices.

The Company has undertaken several initiatives to improve energy efficiency and reduce its environmental footprint. Solar power plants with an aggregate installed capacity of approximately 2.5 MW have been installed across its manufacturing facilities, reducing dependence on conventional sources of electricity and promoting the use of renewable energy.

The manufacturing facilities utilise biomass-based boilers primarily fuelled by rice husk, an agricultural residue that serves as a renewable source of energy. The Company also continues to implement energy conservation measures, optimise resource utilisation and enhance operational efficiencies through continuous process improvements.

Going forward, the Company will continue to explore opportunities for improving energy efficiency, reducing emissions, conserving natural resources.

CORPORATE GOVERNANCE AND COMPLIANCE

The Company remains committed to maintaining the highest standards of corporate governance, transparency, ethical business conduct and regulatory compliance. The governance framework is guided by principles of accountability, integrity, fairness and responsible decision-making.

The Board of Directors, supported by its various Committees, provides strategic oversight and ensures effective governance across all business functions. The Company continuously reviews and strengthens its governance practices in line with evolving regulatory requirements and stakeholder expectations.

FUTURE OUTLOOK

The long-term outlook for the Indian edible oil industry continues to remain positive, supported by favourable demographic trends, increasing household incomes, growing urbanisation, expanding organised retail and rising consumer preference for branded and healthier edible oil products.

The Company remains optimistic about future growth and is well positioned to leverage emerging opportunities through its established brands, integrated manufacturing capabilities, expanding distribution network and continued focus on operational excellence. The ongoing capacity expansion through the Corn Oil Extraction Plant is expected to further strengthen the Companys product portfolio and enhance its long-term growth prospects. The Companys strategic priorities for the coming years include:

• Strengthening its market presence across existing and new geographies.

• Expanding its portfolio of value-added and premium edible oil products.

• Enhancing manufacturing efficiencies through technology and automation.

• Continuing investments in renewable energy and sustainable manufacturing practices.

• Strengthening supply chain resilience and procurement capabilities.

• Driving digital transformation across business functions.

• Maintaining financial discipline and prudent capital allocation.

• Delivering sustainable value creation for shareholders and other stakeholders.

The management remains confident that the Companys strong operational foundation, experienced leadership team, customer-centric approach and prudent risk management practices will enable it to achieve sustainable and profitable growth in the years ahead.

CAUTIONERY STATEMENT

Statements in this Management Discussion & Analysis sections describing the Companys objectives, projections, future plans, estimates and expectation may constitute certain statements, which are forward looking within the meaning of applicable laws and regulations. The statements in this management discussion and analysis report could differ materially from those expressed or implied / actual outcomes may significantly diverge from these statements due to a range of risks and uncertainties. There are various factors / variables that could make a difference or influence to the Companys operation include raw material availability and its prices, demand and pricing of the products in the markets, industry and market conditions, cash flow projections, pandemic conditions, changes in the governmental regulations, tax regimes, forex markets, economic developments within India and other incidental factors. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable laws and regulations.

For and on Behalf of Board of Directors For Ramdevbaba Solvent Limited

	SD/-	SD/-
Place: Nagpur	Prashant Kisanlal Bhaiya	Nilesh Suresh Mohata
Date: 21/08/2026	Chairman & Whole Time Director	Managing Director
	DIN:02374524	DIN:02374561