rcl retail ltd Management discussions

MANAGEMENT ANALYSIS AND REVIEW REPORT:

We herewith submit Management Discussion and Analysis Report on the business of the Company for the year ended 31.03.2022

ECONOMY

India has emerged as the worlds fastest-growing major economy and it is expected to be one of the top three economic powers in the near term, due to its strong democracy and strategic partnerships. Despite well-crafted fiscal and monetary policy support, the COVID-19 pandemic caused Indias economy to decline by 6.6% in FY21. Following the second wave, growth in FY22 is likely to be about 8.8% keeping India among the worlds fastest-growing economies.

INDUSTRY

Indias packaged food industry is in the nascent stage with evolving business models and strategies. Packaged food companies must focus on a diverse product offering, brand-building and an efficient supply chain to establish a scalable and profitable business. With stimulating growth in the food retail sector, favourable economic policies, and attractive fiscal incentives, Indias food ecosystem provides tremendous business prospects for the Indian snacks industry. Post COVID, industry is getting back to growth across all categories. The industry has a great growth potential and would significantly contribute to the development of the Indian economy.

OPPORTUNITIES

Packaged food firms are changing and attempting to position themselves to take advantage of the enormous opportunity and compete for market share by increasing scale and staying relevant across various categories.

THREATS

The snack foods market is fiercely competitive with a wide range of activities being undertaken relating to product and flavour developments, consumer convenience and new businesses joining the industry. Consumer needs have been served by smaller and local kirana stores over the years, and the supply chain has been dominated by small traders, therefore there is a significant share of the unorganized market in the packaged food space

OUTLOOK

The industry is characterized by relatively lower entry barriers although distribution and brand building are the extensive and expensive task. Factors like interest rates, inflation, growth in economic activity, rationalisation of tax structure, job creation and consumer sentiment continues to be the biggest source of threat as well as opportunity for the Company. Other external factors, including a steep rise in interest rates or drastic changes in the policy or regulatory environment can pose financial challenge for the Company.

RISKS & CONCERNS

Direct competition from large players, competition from local and regional players which may adversely affect business prospects and future profitability.

SEGMENT-WISE ANALYSIS

The Companys Operating segment is identified based on nature of activity, risks and returns. The Company is primarily engaged in Trading of all kinds of tradeable and marketable goods.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

To maintain orderly and efficient operations, the Company has in robust system of internal controls that are commensurate with the scale and nature of its operation.

DETAILS OF SIGNIFICANT CHANGE IN KEY FINANCIAL RATIOS

The details of key financial ratios and changes therein are disclosed in the notes forming part of the financial statements.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations might be construed as forward looking statements within the meaning of applicable laws and regulations. Actual results may differ substantially or materially from those expressed or implied.

	By Order of the Board
	For RCL RETAIL LIMIETD
	s/d-
Place: Chennai	RATANCHAND LODHA
Date: 1st August, 2022	Chairperson
	DIN:01534269