Shri Bajrang Alliance Ltd Management Discussions

I. INDUSTRY STRUCTURE AND DEVELOPMENTS 1) STEEL INDUSTRY GLOBAL OUTLOOK:

The global steel industry plays a critical role in infrastructure and manufacturing but remains highly cyclical in nature. It is closely linked with macroeconomic indicators such as GDP growth, interest rates, infrastructure spending, and commodity pricing. After witnessing subdued growth in 2023, global steel demand saw signs of recovery in 2024.

As per the World Steel Associations April 2024 outlook, global steel demand is expected to grow by approximately 1.8% in 2025, mainly due to recovery in emerging economies. Developed nations continue to face challenges from rising interest rates, inflationary pressures, and geopolitical uncertainties. In contrast, developing countries·especially in Asia and Africa·are witnessing increased demand for steel driven by urbanization, infrastructure development, and industrialization.

INDIA OVERVIEW:

India continues to strengthen its position as a global steel hub and is currently the second-largest steel producer in the world. Under the National Steel Policy 2017, India aims to increase its steel production capacity to 300 million tonnes by 2030. The Governments large-scale infrastructure programs·such as PM Gati Shakti, Smart Cities, Bharatmala, and Dedicated Freight Corridors·are providing sustained growth impetus for the domestic steel sector.

The consumption of finished steel in India is expected to grow at a CAGR of 7-8% over the next three years, supported by increasing demand from construction, automotive, renewable energy, and capital goods sectors.

KEY DEMAND DRIVERS:

Construction and Real Estate: Urban infrastructure, affordable housing, and metro rail projects are boosting demand for TMT bars, structural steel, and long products.

Automotive and Engineering: Growth in electric vehicle (EV) production and defence manufacturing supports demand for specialized steel.

Renewables and Power: Wind turbines, solar structures, and transmission towers use high-strength steel, creating new application areas.

CHALLENGES:

Rising Input Costs: Prices of essential raw materials such as iron ore and coking coal remain volatile due to global supply chain disruptions and geopolitical issues.

Dumping and Overcapacity: Import of cheap steel from countries like China and Vietnam continues to pose a threat to domestic manufacturers.

Sustainability and Compliance: Growing pressure to reduce carbon emissions and comply with global ESG (Environmental, Social, Governance) standards demands capital investment in cleaner technologies and circular economy models.

2) FROZEN FOOD INDUSTRY (INDIA FOCUS)

INDUSTRY STRUCTURE:

Indias frozen food industry is emerging as a high-potential segment within the processed food sector. It includes ready-to-eat (RTE) meals, frozen vegetables, Indian breads, snacks, and desserts catering to both domestic consumers and export markets. The sector, traditionally fragmented and dominated by unorganized players, is now witnessing increased participation from organized food manufacturers, driven by rising demand and evolving lifestyles.

MARKET SIZE & GROWTH:

As per industry reports (IMARC & Invest India), the Indian frozen food market is estimated at ?10,000 crore in 2024 and is expected to grow at a CAGR of 15-20% over the next five years. The key drivers include:

• Rising Dual-Income Households: Time-constrained consumers prefer easy-to-cook, hygienically packaged food options.

• Urbanization and Migration: Growth in urban centres and nuclear families is contributing to higher consumption of frozen convenience foods.

• Post-COVID Lifestyle Shifts: Increased awareness of food hygiene and storage safety has led to growing acceptance of frozen products, even in Tier 2 and Tier 3 cities.

SEGMENT TRENDS:

The following product categories are showing the most robust growth:

• Frozen Snacks: Products like samosas, kebabs, tikkis, and cutlets are popular among millennials and working professionals.

• Frozen Indian Breads: Parathas and naans have become essential in quick-service restaurants (QSRs) and international export orders.

• Frozen Desserts: Traditional Indian sweets like gulab jamun, rasgulla, and halwa are finding traction in both domestic retail and overseas ethnic markets.

• Export-Focused Products: The demand for hygienically packaged, preservative-free Indian food products in the U.S., UAE, and Southeast Asia is on the rise.

CHALLENGES:

• Cold Chain Dependency: The frozen food supply chain is heavily reliant on uninterrupted refrigeration and logistics, which poses a risk in regions with weak infrastructure.

• High Operating Costs: The cost of maintaining cold storage, refrigerated transport, and energyintensive processing leads to higher overheads.

• Raw Material Volatility: Prices of key ingredients like pulses, edible oil, and flour are subject to seasonal and international fluctuations.

• Consumer Perception: In rural areas and some parts of Tier 3 cities, frozen foods still face resistance due to misconceptions around freshness and nutrition.

II. ECONOMIC OVERVIEW (FY 2024-25 context)

GLOBAL ECONOMIC FACTORS:

• IMF projected global growth at ~3.2% for 2025, with inflation cooling in developed markets.

• Supply chain normalization and easing energy prices are improving manufacturing sentiment.

• Geopolitical tensions (e.g., Middle East, Taiwan) remain downside risks.

INDIA-SPECIFIC MACRO TRENDS:

• India remains among the fastest-growing economies with ~6.8% GDP growth estimated for FY 25.

• Government focus on Make in India, PLI schemes, and logistics infra is aiding steel and food processing.

• RBI monetary policy remained cautious, supporting credit growth while containing inflation.

III. OPPORTUNITIES, STRENGTHS, THREATS, RISKS & CONCERNS 1) STEEL INDUSTRY OPPORTUNITIES:

• Government Infrastructure Push: Increased public and private investments in infrastructure, construction, and railways under programs like PM Gati Shakti and National Infrastructure Pipeline (NIP) are expected to drive steel demand.

• Export Potential: Emerging markets in Asia and Africa offer growing demand for Indian steel, supported by competitive pricing and improved production efficiencies.

• Green Steel Initiatives: The push towards decarbonization offers new avenues for adopting cleaner steel technologies, potentially attracting climate-conscious buyers.

• Automotive & Renewable Energy Growth: The rise in EV manufacturing and solar panel installations opens up specialized steel segment demand.

STRENGTHS:

• Integrated Steel Operations: Backward and forward integration ensures control over cost, quality, and logistics.

• Proximity to Raw Materials: Availability of iron ore and coal within India aids in cost optimization.

• Strong Domestic Demand: India remains the second-largest producer and consumer of steel with steady demand across sectors.

• Policy Support: Government schemes like PLI (Production-Linked Incentive) for specialty steel promote R&D and innovation.

THREATS:

• Global Market Volatility: International price fluctuations, trade restrictions, and geopolitical tensions may impact export potential and input costs.

• Dumping from Other Countries: Low-cost imports from countries like China and Vietnam pose competitive pressure on domestic manufacturers.

• Environmental Regulations: Stricter emission norms and ESG expectations may demand higher investments in sustainable technologies.

RISKS & CONCERNS:

• Raw Material Price Fluctuations: Volatile prices of iron ore, coal, and energy can significantly impact margins.

• Currency Fluctuation Risk: Imports and exports expose the business to forex volatility.

• High Capital Intensity: Steel production involves high fixed costs and debt risk, especially during demand slumps.

• Labour and Logistic Constraints: Labour shortages and infrastructure bottlenecks may affect smooth operations.

2) FROZEN FOOD INDUSTRY

OPPORTUNITIES:

• Changing Lifestyle & Urbanization: Rising demand for convenient and ready-to-eat meals, especially among working professionals and urban families.

• Export Potential: Growing global demand for Indian frozen vegetarian and non-vegetarian products, especially in Middle East, USA, and Southeast Asia.

• Organized Retail & E-commerce Growth: Expansion of modern trade channels and online platforms increases reach and visibility.

• Government Incentives: Support through Mega Food Park schemes, cold chain subsidies, and exports under APEDA boosts sectoral growth.

STRENGTHS:

• Brand Recognition & Quality: Shri Bajrang Alliances established brand and consistent quality position it favorably in both domestic and international markets.

• Modern Processing Units: Advanced freezing and packaging infrastructure ensure product longevity and compliance with global standards.

• Diversified Product Portfolio: A diversified product portfolio for pure vegetarian frozen snacks offers various vegetarian snack items to suit diverse preferences within the expansive vegetarian consumer market.

• Cold Chain Network: Strong distribution and cold storage systems reduce wastage and ensure timely deliveries.

THREATS:

• High Competition: Entry of large FMCG players and regional brands intensifies price and market share pressure.

• Perishability & Shelf Life Risks: Any breakdown in the cold chain system can lead to product spoilage and losses.

• Regulatory Scrutiny: Strict food safety and labelling regulations can result in penalties or recalls if not adhered to.

RISKS & CONCERNS:

• Rising Input & Packaging Costs: Increases in prices of raw food materials, logistics, and packaging affect profitability.

• Consumer Perception & Health Trends: Shifts toward fresh and organic foods may affect demand for frozen products.

• Dependence on Power Supply: Reliable electricity is critical for freezing and storage; power cuts can severely impact operations.

• Climate Impact on Agriculture: Dependency on seasonal produce may lead to supply-side risks due to erratic weather patterns.

IV. OVERVIEW & FINANCIAL SUMMARY FINANCIAL PERFORMANCE

For FY 2024-25, your Company reported consolidated total income of Rs 3,259.78 Lakhs compared to Rs 4,086.26 Lakhs in FY 2023-24. Revenue for the year stood at Rs 40,121.32 Lakhs, down from Rs 57,426.41 Lakhs in the previous year, reflecting a decline of approximately 30.14%, primarily due to macroeconomic headwinds and input cost pressures.

An overview of the consolidated financial results for FY25 and FY24 is given below:

(in lakhs)

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PARTICULARS	Financial Year ended 31.03.2025	Financial Year ended 31.03.2024
Total Turnover & Other Receipts	40121.32	57426.41
Operating expenses	39423.04	56539.28
EBIDTA	698.28	887.13
Profit/(Loss) Before Taxation	254.30	487.15
Profit/(Loss) after Taxation (PAT)	3259.78	4086.26
Total Comprehensive Income	3180.79	4169.39

KEY FINANCIAL RATIOS

The key financial ratios for Consolidated financials are as per the below table:

Particulars	FY 2024-25	FY 2023-24
Debtors Turnover Ratio	11.09	10.33
Inventory Turnover Ratio	6.02	12.49
Interest Coverage Ratio	27.87	45.90
Current Ratio	1.07	1.03
Debt Equity Ratio	0.29	0.20
Operating Profit Margin (%)	8.65%	7.36%
Net Profit Margin (%)	8.18%	7.17%
Return on Net worth (%)	10.35%	14.77%

The formulae used for computation of key financial ratios are as follows:

Debtors Turnover Ratio	Net Sales / Average Trade Receivable
Inventory Turnover Ratio	Net Sales / Average Inventory
Interest Coverage Ratio	Profit Before Interest and Taxes / Finance Costs
Current Ratio	Current Assets / Current Liabilities
Debt Equity Ratio	Total Debt / Shareholders Equity
Operating Profit Margin (%)	(EBITDA - Other income) / Revenue from Operations
Net Profit Margin (%)	Profit After Tax / Net Sales
Return on Net worth (%)	Profit After Tax / Average of Total Equity

SEGMENT ANALYSIS

Segments have been identified in accordance with the Indian Accounting Standards (Ind AS) 108 on Operating Segments, considering the risk or return profiles of the business. As required under Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the performance and allocates resources based on analysis of various performance indicators. Accordingly, information is presented for the Companys operating segments.

The Company operates in two key business segments·Steel and Agro (Frozen Foods). Segment Wise Geographical Revenue is as under:

Particulars	FY 2024-25	FY 2023-24
Segment Revenue
Domestic	38340.06	56213.43
Export	1495.74	778.89
Net Sales/Income from Operations	39835.81	56992.32

V. OPERATIONS & STRATEGIC POSITIONING

The Company continues to leverage its dual presence in core infrastructure (steel) and high-growth consumer segments (frozen food). On the steel front, the focus remains on operational efficiency, cost optimization, and value-added products. In the agro-division, product innovation, brand building, and expanding cold chain reach are key priorities. The Company is enhancing its digital footprint and exploring export markets to mitigate domestic demand fluctuations and improve margin realization.

VI. INTERNAL CONTROL SYSTEMS

We have an Internal Control System commensurate with the size, scale and complexity of our operations. Process has been set up for periodically apprising the senior management and the Audit Committee of the Board about internal audit observations of the Company with respect to internal controls and status of statutory compliances. Business heads and support function heads are responsible for establishing effective internal controls within their respective functions. Standard operating procedures and internal control manuals are defined and continuously updated. The Company has laid down internal financial controls as detailed in the Companies Act, 2013. These have been established across the levels and are designed to ensure compliance to internal control requirements, regulatory compliance and appropriate recording of financial and operational information. The internal audit team periodically conducts audits across the Company, which include review of operating effectiveness of internal controls. The Company, wherever necessary, engages third party consultants for specific audits or reviews.

The Audit Committee oversees internal audit function.

VII. FUTURE OUTLOOK

The Company remains cautiously optimistic about the future prospects of both its business segments- Steel and Frozen Foods.

Steel Division

Indias steel sector outlook continues to remain robust, supported by sustained government focus on infrastructure development, increased spending on housing and commercial real estate, and national initiatives promoting renewable energy sectors such as solar, wind, and hydropower.

In line with anticipated demand growth, the Company has planned a capacity expansion during FY 202526, involving process enhancements and modifications to its existing plant. These initiatives are expected to improve throughput and operational efficiency.

Nonetheless, the Steel Division remains mindful of external risks, including global economic volatility and fluctuations in the prices of key raw materials, which may pose intermittent challenges to cost structures and profitability.

Frozen Food Division

The Frozen Food segment is poised for sustained growth, driven by structural shifts in consumer behavior, including:

• Increasing urbanization, particularly in tier-2 and tier-3 cities,

• Rising disposable incomes and demand for convenient, hygienic, and ready-to-cook meal options,

• Greater awareness of food safety and quality, and

• Expansion of modern retail formats and digital commerce platforms.

To capitalize on these trends, the Company is pursuing a multi-pronged strategy, including:

• Product Portfolio Diversification: Expanding offerings in snacks, ready meals, and ethnic segments, with a focus on health-conscious and vegetarian consumers;

• Channel Expansion: Strengthening presence across modern trade outlets, quick commerce platforms, and e-commerce channels;

• Brand Building: Engaging in targeted marketing initiatives, strategic partnerships, and participation in food exhibitions to enhance brand recall;

• Export Market Development: Evaluating opportunities in key overseas markets with a strong Indian diaspora to diversify the revenue base.

These initiatives are aimed at building a resilient, scalable, and consumer-focused frozen food business, aligned with long-term consumption patterns and emerging lifestyle trends.

Strategic Direction

Across both business verticals, the Company is focused on strengthening its operating model through investments in technology, automation, and quality enhancement. Management remains committed to:

• Driving sustainable and inclusive growth,

• Maintaining strong corporate governance practices, and

• Delivering long-term value to shareholders and stakeholders.

VIII. DISCLAIMER

The statements in the “Management Discussion and Analysis Report” describe the Companys objectives, projections, expectations, estimates or forecasts which may be “forward-looking statements” within the meaning of the applicable laws and regulations. Actual results may differ substantially or materially from those expressed or implied therein due to risks and uncertainties. Important factors that could influence the Companys operations, inter alia, include global and domestic demand and supply conditions affecting selling prices of finished goods, input availability and prices, changes in government regulations, tax laws, economic, political developments within the country and other factors such as litigations and industrial relations.

References and Sources

1. World Steel Association · Short Range Outlook April 2024 https://worldsteel. org

2. Ministry of Steel, Government of India · National Steel Policy and Annual Reports https://steel. gov. in

3. CRISIL & ICRA Reports · Sectoral analysis on Indian Steel Industry (2023-2025)

4. Press Information Bureau (PIB) · Infrastructure updates https://yi b.gov.in

5. Economic Survey 2023-24 · Government of India https://www. indiabudget. gov. in/economicsurvey

6. IMARC Group Report · Frozen Food Market in India 2023 https://www. imarcgroup. com/india-frozen-food-market

7. Invest India · Food Processing & PLI Scheme Overview https://www. investindia. gov. in

8. FICCI & ASSOCHAM Reports · Processed Food Industry White Papers

9. NITI Aayog · Cold Chain Infrastructure Reports (2022)

10. Deloitte and KPMG·Food Sector Insights (Frozen & RTE_ foods)

11. IMF · World Economic Outlook April 2024 https://www. i mf. org

12. RBI·Monetary Policy Reports (2024) https://www. rbi. org. in

13. Ministry of Finance · Union Budget & Economic Survey https://www. indiabudget.gov.in