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Shanti Guru Industries Ltd Management Discussions

8.8
(-0.68%)
Oct 7, 2025|12:00:00 AM

Shanti Guru Industries Ltd Share Price Management Discussions

We herewith submit Management Discussion and Analysis Report on the business of the Company for the year ended 31st March, 2025.

ECONOMY

India demonstrated robust economic resilience in FY 2024 25, underpinned by strong domestic consumption, and International pressures, a sustained infrastructure push, and proactive fiscal and monetary policies with ‘Make In India push gaining ground. Real GDP growth stood at 6.4%, driven by strong private consumption and recovery in investment activity. Key growth drivers included increased public capital expenditure, policy support for manufacturing, and steady demand for goods and services across urban and rural markets. Inflation moderated significantly, easing pressures on consumers. Looking ahead, the International Monetary Fund (IMF) has forecast India to remain the fastest-growing major economy, sustaining growth at around 6.4% in FY 2025 26. However, risks from ongoing global trade disruptions and geopolitical developments may temper the pace of growth.

INDUSTRY

The FMCG sector continues to be a key driver of growth and diversification in India. However, sectoral dynamics are shifting, while urban demand is softening, rural markets are increasingly becoming the primary growth engine. Additionally, small regional brands are gaining ground, However challenges still continue. While growing awareness, easier access, and changing lifestyles have been key growth drivers for the sector in the past, the year 2024-25 saw the sector come under pressure due to rising inflation, which squeezed consumer spending, particularly in urban India.

OUTLOOK

India has a strong economic fundamentals exploring new International markets, despite obstacles in export market, with GST reforms expected to stimulate consumption. Experts anticipate a consumption surge driven by eased tax structures and improved affordability, which will benefit food and FMCG segments in particular. Governmental support, coupled with stable macroeconomic conditions, makes the near-term outlook promising.

OPPORTUNITY

With rising disposable incomes, Indias consumer market is set to become the third-largest in the world. There is always a growing demand for food processing industries and the Company expects to gain from these opportunities. Rural consumption continues to outpace urban demand, providing growth opportunities for value-oriented FMCG and food products. Tax reforms and GST rationalization are anticipated to lower prices and boost festive season spending. The rise of agile, small brands catering to niche demands is reshaping market dynamics. Seizing these opportunities, the Company is venturing into a manufacturing facility for the production of soyabean chunks and vermicelli.

THREATS, RISK & CONCERNS

On the flip side, some caution is warranted. Urban consumption remains subdued, impacting overall volumes and profitability. Global trade tensions, such as U.S. tariffs, continue to cloud export prospects, potentially restraining GDP growth. Cost pressures from inflation and volatile raw materials persist, pressuring margins especially for price-sensitive products. Monsoon irregularities, such as early rainfalls, can disrupt seasonal demand cycles for certain FMCG categories.

SEGMENT WISE PERFORMANCE:

The Companys primary operating segment is currently the trading of all types of marketable goods. In addition, the Company is in the process of establishing a manufacturing facility to produce food products namely soya chunks and vermicelli. Once operational, this new manufacturing segment is expected to significantly enhance our scope and drive sustainable business growth.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company has in place, adequate internal control systems and procedures commensurate with the size and nature of our business.

KEY FINANCIAL RATIOS:

The financial ratios are disclosed in the notes to the financial statements.

By Order of the Board
For SHANTI GURU INDUSTRIES LIMITED
SARTHAK SANGHVI SARIKA SSANGAVI
WHOLE-TIME DIRECTOR DIRECTOR
DIN: 10277570 DIN: 11256382
Date: 25/08/2025
Place: Chennai

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