SKM Egg Products Export (India) Ltd Management Discussions

Key factors which affect the performance of the Company:

01. The Company recorded revenue of Rs.50,740 lakhs (including other income of Rs.1,404 lakhs) for the year ended 31st March,2025 as against Rs.70,153 lakhs (including other income of Rs.1,158 lakhs) in the previous year ended 31st March,2024.

02. The Profit before tax was at Rs.4,694 lakhs for the year ended 31st March,2025 as compared to Rs.11,246 lakhs during the corresponding in the last year.

03. The Net Profit was at Rs.3,299 lakhs as on 31st March,2025 as against Rs.8,723 lakhs in the previous year.

04. The quantity sold during the year 202425 stood at 9,620 Tons, when compared to 10,455 Tons during the previous year ended 31st March,2024.

CAPITAL EXPENDITURE AND FUNDING

01. The capital expenditure incurred and funded for the year is Rs.3,313 lakhs of which Rs.969 lakhs pertain to plant and

02. During the year and review, your company has sold/deleted/adjusted assets worth Rs.28 lakhs.

SALES AND MARKETING

SKM Egg Products Export (India) Limited has built a strong and consistent presence across Russia, Europe, Japan, Southeast Asia, the Middle East, and Africa over the past 27 years, known for its commitment to quality and service. The international market for egg products is highly competitive, with major players from the USA, Europe, Ukraine and China.

We have been the only Indian egg processing facility approved in the Russian market for many years. Despite the entry of other Indian processors in the market SKM remains the largest exporter of Egg Yolk Powder to Russia, as per import data.

We are making efforts to appoint new distributors and to meet with existing partners. We discussed strategies to grow our Egg Albumen Powder business, especially the High Whip variant, which is widely accepted in Russian confectionery applications.

Due to bird flu outbreaks in Japan, Europe, and the USA, the demand for Whole egg powder has increased in the Japanese market . The demand for Egg yolk has increased globally.

The time is right to enter the USA market and we are making efforts for the same.

To diversify and expand our market share, we are actively appointing nonexclusive distributors in countries such as Malaysia, Vietnam, Taiwan, Thailand, and Indonesia. Our chilled and frozen liquid egg products have also gained traction globally.

In our continuous efforts to strengthen customer relationships and better understand market dynamics, our team regularly visits key markets. We travelled to Vietnam to reinforce partnerships and explore new opportunities in the Egg Albumen

machinery.

market.

We entered new markets such as Ghana, Uganda, and Madagascar, and began shipments. We are also identifying more potential customers in Korea.

We recently began exports of Egg Yolk Powder to Angola and Nigeria, marking strong entry into the African market.

Our Egg Yolk Powder sales in Russia have increased significantly due to global demand and market trust built over consistent engagement. The Egg Albumen Powder market is stabilizing, and improved global inventory levels have allowed us to resume Egg Yolk Powder production, balancing supply and demand effectively.

Global demand for Whole Egg Powder has also risen. Our Managing Directors recent visit to Russia secured more Egg Powder business, and his business trip to Japan in June 2025 strengthened relationships with our Japanese customers. With reduced supply from the USA and Europe, SKM has filled the gap and increased sales of both Whole Egg and Egg Albumen Powder.

We aim to further expand our Whole Egg Powder business in Japan, and we have already secured new contracts for the coming months.

We are participating in Fi Asia in Bangkok during September and Gulfood Manufacturing in Dubai during November.

We continue to face challenges in entering the Saudi Arabian market due to regulatory barriers and are actively working with the authorities to address them.

Approval for liquid egg products in Malaysia is still pending, and we are pursuing resolution through the appropriate channels.

Trade barriers and WTOrelated issues are consistently raised with the Government of India to help us gain competitive advantage through potential duty concessions.

Additionally, table egg demand has significantly increased in the Middle East, resulting in a sharp rise in sales in the region. Domestically, while our B2C share remains steady, our B2B sales — particularly in liquid eggs — have seen significant growth.

SKM HR places high priority on maintaining consistent payroll practices and ensuring that all benefits—whether provided by management or mandated by the government—effectively serve employees. The HR team recognizes the importance of company culture, employee development, and career growth in fostering engagement and longterm retention.