Srivari Spices & Foods Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS:

India is the worlds largest spice producer. It is also the largest consumer and exporter of spices. The production of different spices has been growing rapidly over the last few years. The production of spices in FY24 stood at 12.48 million metric tonnes, whereas production in FY25 is estimated at 11.99 million metric tonnes.

India produces about 75 of the 109 varieties which are listed by the International Organization for Standardization (ISO). The most produced and exported spices are pepper, cardamom, chilli, ginger, turmeric, coriander, cumin, celery, fennel, fenugreek, garlic, nutmeg & mace, curry powder, spice oils and oleoresins. Out of these spices, chilli, cumin, turmeric, ginger and coriander makeup about 76% of the total production.

The largest spices-producing states in India are Madhya Pradesh, Gujarat, Andhra Pradesh, Rajasthan, Telangana, Karnataka, Maharashtra, Orissa, Uttar Pradesh, Assam, West Bengal, Tamil Nadu and Kerala.

Exports Trend

India is the largest exporter of spice and spice items. During FY26, India exported 17.34 lakh tonnes of spices and spice products valued at Rs 39,140.11 crore (US 4,430.90 million) as compared to 17.99 lakh tonnes valued at Rs 39,994.48 crore (US 4,430.90 million) as compared to 17.99 lakh tonnes valued at Rs 39,994.48 crore (US 4,722.65 million) during FY25.

During FY 2025-26, the major contributors to Indias spice export basket in terms of value included chilli, cumin, spice oils and oleoresins, small cardamom, mint products, turmeric, curry powder/paste, ginger, pepper and coriander.

INDIA SPICES MARKET

Market Overview:

The India spices market size reached INR 2,00,643.7 Crores in 2024. Looking forward, the publisher expects the market to reach INR 5,13,253.9 Crores by 2033, exhibiting a CAGR of 10.56% during 2025-2033. The growing product demand in the food and beverage (F&B) sector, widespread adoption of spices for medicinal purposes, government support, sustainable sourcing, continuous innovation, and introduction of new blends are some of the major factors propelling the market.

Spices are natural plant substances that improve the flavor, aroma, and color of food and beverages. They have been essential in culinary practices, medicinal remedies, and cultural traditions for several years. Some of the commonly known spices include cinnamon, cumin, paprika, turmeric, cloves, and black pepper, each offering unique and distinctive tastes and health benefits. They often possess medicinal properties, such as anti-inflammatory, antioxidant, and antimicrobial effects, contributing to their use in traditional medicine across various cultures. Additionally, spices continue to be cherished for their ability to elevate culinary experiences, adding a burst of exotic and tantalizing flavors to cuisines, making them an essential component of diverse culinary traditions.

The market is primarily driven by the rising demand for blended spices. In addition, rapid urbanization and the hectic lifestyles of individuals and working professionals are influencing market growth. Moreover, consumers are shifting toward natural spices over artificial ones due to growing health consciousness represents another major growth-inducing factor. Also, packaged spices are gaining popularity as they offer reduced contamination risk. Besides this, the government of India (GoI) efforts to promote and export spices further support the market expansion of spices. Along with this, the aromatic and flavorful appeal of Indian spices led to widespread adoption among individuals, and the increasing demand for convenient, cost-effective, and high-quality spices available through various distribution channels is propelling the market growth. Furthermore, the introduction of plant growth-promoting rhizobacteria (PGPR) technology enhances germination and shelf life, thereby creating positive market growth across the Indian spices market.

India Spices Market Trends/Drivers:

The growing food and beverage (F&B) industry

The food and beverage industry in India is driven by changing consumer preferences, increasing disposable incomes, urbanization, and a diverse culinary region. In addition, the increasing demand for processed and convenience foods is leading to a higher consumption of spices in various food products, thus influencing market growth. Moreover, Indian spices are essential in enhancing the aroma, flavor and sensory appeal of food items, and are widely employed as natural seasonings and colorants in several cuisines, from traditional Indian dishes to international delicacies represents another major growth-inducing factor. Besides this, the food processing industry relies heavily on spices to add distinct tastes to snacks in the formulation of new food products, catering to the evolving palate of consumers. Along with this, the rising popularity of health and wellness foods is further accelerating the demand for spices with medicinal properties, such as turmeric, ginger, and black pepper, contributing to their increased consumption in functional food and nutraceutical products.

South India exhibits a clear dominance in the market

The report has also provided a comprehensive analysis of all the major regional markets, which includes South India, North India, West and Central India, and East India. According to the report, South India accounted for the largest market share.

South India is dominating the Indian spices market, due to their ideal tropical climate conditions for cultivating several spices. The regions unique geographical features, including fertile soils and abundant rainfall, contribute to the cultivation of key spices such as black pepper, cardamom, turmeric, cloves, and cinnamon.

The implementation of government Initiatives

The Government of India is supporting and promoting the spice industry through various initiatives and export promotion strategies and recognizing the immense potential of spices in contributing to the countrys economy. In addition, the implementation of several initiatives to enhance production, quality, and international trade of spices are influencing the market growth.

India Spices Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the India spices market report, along with forecasts at the country and regional levels from 2025-2033. Our report has categorized the market based on product type, application and form.

Breakup by Product Type:

- Pure Spices

- Chilli

- Turmeric

- Coriander

- Cumin

- Pepper

- Tamarind

- Asafoetida

- Bay Leaf

- Clove

- Cardamom

- Cinnamon

- Tulsi Leaf

- Others

- Blended Spices

- Garam Masala

- Non-Veg Masala

- Kitchen King and Sabzi Masala

- Chole and Channa Masala

- Chat Masala

- Sambhar and Rasham Masala

- Paneer and Curry Masala

- Pav Bhaji Masala

- Jaljeera Masala

- Others

Pure spices represent the most popular product type

The report has provided a detailed breakup and analysis of the market based on the product type. This includes pure spices (chilli, turmeric, coriander, cumin, pepper, tamarind, asafoetida, bay leaf, clove, cardamom, cinnamon, tulsi leaf, and others) and blended spices (garam masala, non-veg masala, kitchen king and sabzi masala, chole and channa masala, chat masala, sambhar and rasham masala, paneer and curry masala, pav bhaji masala, jaljeera masala, and others). According to the report, pure spices (chilli, turmeric, coriander, cumin, pepper, tamarind, asafoetida, bay leaf, clove, cardamom, cinnamon, tulsi leaf, and others) accounted for the largest market share.

Pure spices refer to unadulterated and unblended spices that retain their natural flavor, aroma, and authenticity, which are highly valued by consumers for their superior quality and traditional culinary attributes. In addition, the increasing popularity of pure spices can be attributed to the growing consumer awareness and preference for authentic and natural ingredients in their food, thus influencing the market growth. Also, health-conscious consumers are avoiding artificial additives, preservatives, and flavor enhancers, thus escalating the demand for pure spices.

Besides this, pure spices are considered essential in Indian cooking, where the right blend of spices is crucial in achieving the distinctive and nuanced flavors of various regional cuisines thus accelerating the market growth. Along with this, Indian spices are gaining immense popularity and augmenting the demand for authentic Indian spices, such as cumin, coriander, turmeric, cardamom, and black pepper. Furthermore, the trust and reliability associated with pure spices have made them a staple in households, restaurants, and food processing industries.

INDIA PACKAGED ATTA

The India packaged atta (wheat flour) market size reached INR 84.0 Billion in 2024. Looking forward, IMARC Group expects the market to reach INR 255.7 Billion by 2033, exhibiting a growth rate (CAGR) of 13.16% during 2025-2033. An enhanced focus on hygiene and sanitation, the rising need for convenience and elimination of manual grinding and sifting of wheat grains and changing consumer lifestyles represent some of the key factors driving the market.

An Enhanced Focus on Hygiene and Sanitation is Augmenting the Market Growth

The packaged atta (wheat flour) market in India has been experiencing continuous growth. An enhanced focus on hygiene and sanitation currently represents one of the primary drivers resulting in the increasing sales of packaged atta. Packaging of atta safeguards the product from external contaminants and prevents any tampering or exposure to unfavorable environmental conditions. In addition to this, the sealed packaging ensures that the atta remains fresh, clean, and intact until it is opened by the end user. The rising concerns regarding food contamination, along with an enhanced emphasis on quality assurance in packaged atta, serves the growing consumer demand for safe and reliable food products.

What is Packaged Atta?

Packaged atta refers to finely ground commercial wheat flour with a uniform texture that is packaged and sold in sealed bags or containers for consumer use. Packaged atta brands typically provide flour enriched with nutrients, such as iron and folic acid while ensuring consistent quality and texture for optimal baking and cooking outcomes. In addition to this, majority of the packaged atta brands provide nutritional information on their packaging, thereby enabling consumers make informed choices based on their dietary needs. Also, the packaging of atta helps to extend the shelf life by protecting it from moisture and external contaminants and offers convenience for handling and storage. It is commonly used in the formulation of various wheat-based products such as chapatis, bread, and pastries.

India Packaged Atta Market Trends:

The market in India is primarily driven by the rising need for convenience and elimination of manual grinding and sifting of wheat grains. In line with this, rapid urbanization across the country, along with changing consumer lifestyles, is resulting in an augmented demand for convenience food products, which, in turn, is fueling the market. Moreover, a considerable rise in concerns regarding adulteration and contamination in unbranded or unregulated products is resulting in the higher uptake of packaged atta. In addition to this, the implementation of rigorous quality control processes during production and packaging to market it as a safer and more reliable option is providing an impetus to the market. Also, the rising need for staples with longer shelf life facilitating reduced food spoilage and wastage is further propelling the demand for packaged atta. Furthermore, the rapid expansion of organized retail in the country, such as supermarkets, hypermarkets, and online grocery platforms, is resulting in a higher product uptake.

Source: IMARC Group – India Packaged Atta Market.

Key Market Segmentation:

IMARC Group provides an analysis of key trends in each segment of the India packaged atta market, along with forecasts at regional levels. The market is categorized based on product type, pack type, pack size and distribution channel.

Product Type Insights:

Whole Wheat

Multigrain

The market includes whole wheat and multigrain packaged atta. Whole wheat remains an important segment due to its nutritional content and growing consumer preference for natural and less-processed staple foods.

Pack Type Insights:

Pouches

Woven Bags

The packaged atta market is also segmented by pack type, including pouches and woven bags. Pouches offer convenience and portability and can help extend shelf life by providing a protective barrier against moisture and air.

Pack Size Insights:

10 KG

5 KG

1 KG

Others

The packaged atta market includes multiple pack sizes to suit household and institutional needs. Larger packs enable bulk purchase and may reduce purchase frequency, while smaller packs cater to convenience and lower consumption requirements.

Distribution Channel Insights:

General Trade

Convenience Stores

Kirana Stores

Modern Trade

Supermarkets

Hypermarkets

Specialty Stores

Online and E-Commerce

A detailed breakup and analysis of the packaged atta market based on distribution channel includes general trade, modern trade and online/e-commerce. General trade serves a broad consumer base across various regions and socio-economic strata, including urban, semi-urban and rural areas. Modern trade and online/e-commerce are increasingly improving convenience, reach and product visibility.

Source: https://www.imarcgroup.com/india-packaged-atta-market

INDIA EDIBLE OIL MARKET SUMMARY

The India edible oil market size reached a volume of 25.33 Million Tons in 2025. The market is projected to reach a volume of 28.34 Million Tons by 2034, exhibiting a growth rate (CAGR) of 1.26% during 2026-2034. The market growth is attributed to the rising disposable incomes, increasing health awareness, growing demand for packaged and branded oils, expanding food processing industries, evolving dietary preferences, and government support for oilseed cultivation.

Market Insights:

On the basis of region, the market is segmented into North India, West and Central India, East India and South India.Based on type, the market is divided into palm oil, soybean oil, mustard oil, sunflower oil and others.On the basis of packaging type, the market is segmented into pouches, jars, cans and bottles.Based on packaging material, the market is divided into metal, plastic, paper and others.

On the basis of pack size, the market is segmented into less than 1 litre, 1 litre, 1-5 litres, 5-10 litres and 10 litres and above.Based on domestic manufacturing/imports, the market is divided into domestic manufacturing and imports.On the basis of application, the market is segmented into HoReCa, home users and food processing industry.Based on distribution channel, the market is divided into direct/institutional sales, supermarkets and hypermarkets, convenience stores, online and others.

India Edible Oil Market Trends:

Rising Edible Oil Consumption Due to Population Growth and Urbanization

Indias edible oil consumption continues to grow steadily, driven by population growth, rising disposable incomes, and urbanization. As the worlds leading importer and consumer, India edible oil demand is closely tied to dietary habits, especially the high reliance on cooking oils in Indian cuisine. Urban households are increasingly favoring ready-to-cook and processed foods, which further amplifies edible oil usage.

Increasing Focus on Domestic Production and Import Dependency Reduction

The market is witnessing an increasing focus on increasing domestic production and reducing reliance on imports, which currently account for a substantial share of total consumption. Global price volatility, geopolitical tensions, and supply disruptions have underscored the vulnerability of Indias edible oil security. In response, the government has rolled out various policy measures, aiming to expand the cultivation of oilseeds like mustard, groundnut, soybean, and oil palm.

Source: IMARC Group – India Edible Oil Market.

India Edible Oil Industry Segmentation:

IMARC Group provides an analysis of key trends in each sub-segment of the India edible oil market report, along with forecasts at country and regional level. The report categorizes the market based on type, packaging type, packaging material, pack size, domestic manufacturing/imports, application and distribution channel.

Breakup by Type:

- Palm Oil

- Soybean Oil

- Mustard Oil

- Sunflower Oil

- Others

Breakup by Packaging Type:

- Pouches

- Jars

- Cans

- Bottles

Breakup by Packaging Material:

- Metal

- Plastic

- Paper

- Others

Breakup by Pack Size:

- Less than 1 Litre

- 1 Litre

- 1-5 Litres

- 5-10 Litres

- 10 Litres and Above

Breakup by Domestic Manufacturing/Imports:

- Domestic Manufacturing

- Imports

- Breakup by Application:

- HoReCa

- Home Users

- Food Processing Industry

Breakup by Distribution Channel:

- Direct/Institutional Sales

- Supermarkets and Hypermarkets

- Convenience Stores

- Online

- Others

Breakup by Region:

- North India

- West and Central India

- East India

- South India

Source: https://www.imarcgroup.com/india-edible-oil-market

BUSINESS OVERVIEW

Our Company was incorporated on January 29, 2019 as ‘Srivari Spices and Foods Private Limited, a private limited company under the Companies Act, 2013, pursuant to a certificate of incorporation dated January 30, 2019 issued by the Deputy Registrar of Companies, Central Registration Centre. Subsequently, our Company was converted into a public limited company and consequently the name of our Company was changed to ‘Srivari Spices and Foods Limited and a fresh certificate of incorporation dated December 27, 2022 was issued by the Registrar of Companies, Telangana at Hyderabad. The corporate identification number of our Company is L47735TG2019PLC130131.

Srivari Spices and Foods Limited has quickly established itself as a trusted FMCG brand in India. With a vision of blending tradition with modern business excellence, the company is engaged in the manufacturing and marketing of spices and chakki atta and has expanded its product portfolio to include edible oils and Soya Chunks, delivering products that are free from artificial preservatives and chemicals.

At the heart of our operations lies an origin-based sourcing model: chillies from South India, coriander from Central India, turmeric from the western belts, and premium Sharbati wheat from Madhya Pradesh. This ensures every product carries the authentic freshness and goodness of its ingredient.

Under the leadership of Chairperson Mrs. Neihaa Rathi and Whole Time Director Mr. Narayan Das Rathi, Srivari has evolved into a household name. Their focus on quality, innovation, and customer trust has helped build a strong market presence, with a growing retail presence across Telangana and Andhra Pradesh.

Looking ahead, the company is actively pursuing expansion into major metro cities such as Bangalore, Chennai, Delhi, and Mumbai, with long-term ambitions to establish a footprint in global markets.

BUSINESS STRATEGY:

PRODUCT DIVERSIFICATION –

In FY 2024–25, the Company successfully launched a new range of blended masalas, including Egg Masala, Chola Masala, Chat Masala, Fish Masala, Pav Bhaji Masala, Shahi Biryani, Peri Peri Masala, Kalimirchi Powder, Kasuri Methi, Sabzi Masala, Jeera Powder and Special Marwadi Mirchi.

During FY 2025–26, the Company continued its product diversification strategy by expanding into new food categories. The Company commenced commercial production of edible oils on May 10, 2025, initially launching groundnut cold-pressed and double-filtered oils. The Company also launched Soya Chunk on November 20, 2025, under the Fast Moving Consumer Goods (FMCG) – Food Product category, catering to the domestic market, further broadening its product portfolio and strengthening its presence across the FMCG food segment.

(Image of Soya Chunks and Soya Mini Chunks packaging)

This launch has enabled the Company to enter the high-growth blended spices category, complementing its existing pure spice portfolio.

STRATEGIC CHANNEL PARTNERSHIPS

To strengthen distribution, Srivari has tied up with leading modern trade and e-commerce players, including:

- DMart

- BigBasket

- Jumbotail

- Vijetha Supermarkets

- Balaji Grand Bazar

- Ushodaya Supermarkets

These partnerships provide access to urban and semi-urban consumers, enhance brand visibility, and enable wider adoption of the companys newly launched masalas and existing product lines.

During the year, the Company entered into a marketing arrangement with SOLV, a leading B2B e-commerce marketplace for MSMEs. Through this arrangement, the Company aims to enhance its market reach, discover new buyers, and strengthen operational efficiency across India.

BUSINESS MARKETING

During the year, the Company significantly strengthened its marketing presence through a mix of digital campaigns and traditional media sponsorships:

1. Digital & Social Media Marketing

- Launched Instagram reels and video campaigns to engage directly with younger, urban consumers.

- Content strategy focuses on recipes, product usage tips, and lifestyle branding.

2. Television Sponsorships

- Sponsored a cooking show on NTV, a popular regional channel, to demonstrate product applications and build trust with homemakers and family audiences.

- The sponsorship allowed brand integration into live cooking formats, boosting visibility in Andhra Pradesh and Telangana.

3. On-ground Promotions

- Continued with Dealer Mega Meets and Secunderabad Railway Station branding campaign.

AWARDS & RECOGNITIONS

- In 2026, Mrs. Neihaa Rathi, Chairperson of Srivari Spices and Foods Limited, was conferred with the Women Entrepreneur in FMCG · Spice Brand recognition at the Times Women Power Awards 2026. The prestigious recognition acknowledged her exceptional entrepreneurial leadership and significant contribution to the FMCG spice industry. The award recognized her vision and efforts in building a trusted and rapidly growing spice brand, with a strong focus on innovation, uncompromising quality standards, customer-centric practices, and sustainable business growth. This recognition reflects her commitment to excellence and her instrumental role in strengthening the Companys position in the Indian FMCG sector.

- In 2026, Mrs. Neihaa Rathi, Chairperson and Whole-Time Director of the Company, and Mr. Narayan Das Rathi, Whole Time Director of Srivari Spices and Foods Limited, were conferred with the ET Excellence Award 2026 · Excellence in FMCG · Spices Brand. The prestigious recognition acknowledged their exemplary leadership and contribution to the FMCG spices industry, as well as the Companys commitment to quality, innovation, customer satisfaction, and sustainable business growth. The award also recognized the vision and efforts of the Rathi family in strengthening Srivari Spices and Foods Limited as a growing and trusted FMCG spices brand with an expanding presence in the Indian market.

During the year, Srivari Spices and Foods Limited was also featured in Forbes India

- In 2025, Srivari Spices and Foods Limited was also featured in Forbes India magazine, which profiled the Companys journey, vision, and commitment to building a trusted FMCG brand. This feature reflects the national recognition of the Companys growth story and market positioning.

- In 2025, the company received the ‘Excellence in FMCG · Spices Brand award at the ET Excellence Awards. The award was presented by acclaimed actress and environmentalist Ms. Dia Mirza and reflects our growing reputation as a trusted, innovative brand in the FMCG sector. It further strengthens our brand positioning and enhances stakeholder confidence in our long-term growth journey.

During the year RECOGNITION OF LEADERSHIP, Mrs. Neihaa Rathi, Chairman and Whole-Time Director of the Company, was featured in Spice Route – TheInflight Magazine in an article titled "10 Heroes of India – Your Story Deserves the

Spotlight" by Timez Applaud.

The feature highlighted her inspiring journey from being crowned Mrs. Telangana and serving as the former face of SpiceJet, to her present leadership role as Chairperson of Srivari Spices and Foods Limited. The article recognized her efforts in driving the Companys pan-India expansion with a focus on innovation, quality, and purposeful entrepreneurship.

- Additionally, our Chairperson & Whole Time Director, Ms. Neihaa Rathi, was recognized with the ‘Visionary Entrepreneur Award at the ET Womens Conclave, underscoring the leadership that drives the companys growth journey.”

- In 2023, the Company was honored with the ‘Excellence in FMCG Spices Brand award by The Times Group. This recognition highlights our commitment to quality, innovation, and customer satisfaction, reaffirming Srivaris position as a leading FMCG spices brand.

(Image of Neihaa Rathi receiving award)

OPPORTUNITIES, THREATS & CHALLENGES:

A. Opportunities:

- Health Trends: Growing consumer interest in health and wellness creates opportunities for products with added health benefits, such as whole-grain atta, spices, edible oils and plant-based food products.

- E-commerce Growth: The rise of online shopping allows companies to reach a broader audience and tap into new markets, including international consumers.

- Premium Products: There is a growing market for organic, premium, and specialty spices, flours and edible oils, driven by increasing consumer awareness and willingness to pay more for high-quality products.

- Innovation in Processing: Advances in food processing and preservation technologies can enhance product quality and extend shelf life.

- Culinary Trends: The popularity of international cuisines and culinary experimentation can drive demand for diverse and exotic spices.

B. Threats:

- Economic Downturns: Economic instability can impact consumer spending and shift preferences towards cheaper alternatives.

- Competition: The industry faces competition from both local producers and international brands, which can drive prices down and squeeze margins.

- Climate Change: Adverse weather conditions and climate change can affect crop yields and the availability of raw materials.

- Counterfeiting and Fraud: The presence of counterfeit or adulterated products can damage brand reputation and lead to regulatory issues.

- Changing Consumer Preferences: Shifts in consumer preferences, such as a move towards gluten-free diets, can affect demand for traditional food products, including atta and other established product categories.

C. Challenges:

i) Maintaining Quality and Consistency:

- Quality Control: Ensuring consistent quality in spices, atta, edible oils and other food products requires rigorous quality control measures and effective supply chain management.

- Storage and Preservation: Proper storage to prevent spoilage and contamination is critical, given the perishable nature of some products.

ii) Cost Management:

- Raw Material Costs: Managing fluctuating costs of raw materials and production inputs while maintaining competitive pricing can be challenging.

- Operational Efficiency: Streamlining operations to reduce costs and improve efficiency without compromising quality is a continuous challenge.

iii) Consumer Preferences:

- Shifting Trends: Adapting to changing consumer preferences, such as increased demand for gluten-free or plant-based options, requires flexibility and innovation.

- Market Saturation: In mature markets, achieving growth can be difficult due to saturation and changing consumer habits.

iv) Technological Adaptation:

- Adopting New Technologies: Investing in new technologies for production, quality control, and customer engagement can be capital-intensive but necessary for staying competitive.

- Digital Transformation: Embracing digital tools for marketing, sales, and operations is essential for modernizing the business and meeting consumer expectations.

RISKS AND CONCERNS:

i) Supply Chain Risks

- Raw Material Shortages: Dependence on specific regions for spices, grains, oilseeds and other key raw materials makes the industry vulnerable to disruptions due to crop failures, natural disasters, or political instability.

- Transportation Disruptions: Delays or issues in transportation and logistics can affect the timely delivery of raw materials and finished products, impacting inventory levels and customer satisfaction.

ii) Quality and Safety Concerns

- Contamination: Risks of contamination from pesticides, pollutants, or improper handling can affect the quality and safety of spices, atta, edible oils and other food products. This can lead to health risks for consumers and potential recalls.

- Quality Variability: Inconsistent quality of raw materials can lead to variability in the final product, affecting brand reputation and customer trust.

iii) Economic Risks

- Price Volatility: Fluctuations in the prices of raw materials due to market speculation, geopolitical issues, or climate impacts can affect production costs and profit margins.

- Economic Downturns: Economic slowdowns can lead to reduced consumer spending, impacting sales and profitability, particularly for premium or specialty products.

iv) Regulatory and Compliance Issues

- Regulatory Changes: Evolving food safety regulations, labeling requirements, and standards can create compliance challenges and increase operational costs.

- Legal Risks: Failure to adhere to regulatory requirements can result in legal penalties, product recalls, or damage to brand reputation.

v) Environmental Concerns

- Climate Change: Adverse effects of climate change, such as droughts or floods, can impact the availability and quality of raw materials like spices, grains and oilseeds.

- Sustainability Pressures: Increasing consumer and regulatory demands for sustainable and environmentally friendly practices can require significant investment and operational changes.

vi) Market Risks

- Intense Competition: High competition from local and international brands can pressure prices and reduce profit margins, making it difficult to maintain market share.

- Consumer Preferences: Shifts in consumer preferences towards healthier, organic, or alternative products can affect demand across traditional and established food product categories.

vii) Technological Risks

- Technological Advancements: Keeping pace with technological changes in production, quality control, and packaging requires continuous investment and can be challenging for smaller players.

- Cybersecurity Threats: Increasing reliance on digital systems for operations and e-commerce exposes companies to cybersecurity risks, including data breaches and system disruptions.

viii) Operational Risks

- Production Disruptions: Equipment failures, labor shortages, or operational inefficiencies can disrupt production and impact product availability and quality.

- Storage Issues: Inadequate storage facilities or practices can lead to spoilage or deterioration of spices, atta, edible oils and other food products, resulting in financial losses and potential safety concerns.

ix) Financial Risks

- Cost Management: Managing production and operational costs while maintaining competitive pricing can be challenging, particularly during periods of raw material price volatility.

- Investment Risks: Investments in new technologies, market expansion, or product innovation carry financial risks and may not always yield the expected returns.

x) Reputation Risks

- Brand Image: Negative publicity due to quality issues, contamination incidents, or environmental concerns can damage a brands reputation and impact consumer trust.

- Customer Relations: Poor customer service or failure to meet customer expectations can lead to loss of business and negative reviews.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has established adequate internal control procedures for the procurement of raw materials and management of inventory, including components and stores. These controls ensure that all materials are acquired and stored efficiently and securely. Controls are in place for the procurement, management, and safeguarding of fixed and other assets. These measures help track asset utilization and prevent unauthorized access or misuse. The Company maintains robust internal controls for the sale of goods, ensuring accurate order processing, invoicing, and revenue recognition.

Internal controls cover various aspects of human resource management, including recruitment, payroll, and employee performance, to ensure fair and compliant practices. Quality control and operational management procedures are implemented to maintain high standards of product quality and operational efficiency throughout the production process across the Companys product categories.

The effectiveness of these internal controls is reviewed by independent internal auditors. The Audit Committee of the Board oversees these reviews, incorporating recommendations from top management to address any identified issues. Timely reviews and recommendations are used to strengthen and refine the internal control systems. This ensures that controls remain effective and consistently operational throughout the year.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Our total income for the financial year ended March 31, 2026 was Rs17,241.82 lakhs on a standalone basis, while the profit after tax was Rs1,617.05 lakhs.

FINANCIAL PERFORMANCE

The financial performance of our Company for the year ended on March 31, 2026 and March 31, 2025 is as follows:

(Rs in Lakhs)

Particulars	Year ended March 31, 2026	Year ended March 31, 2025
Revenue from operations	17,181.32	11,192.13
Other income	60.50	6.69
Total income	17,241.82	11,198.82
Profit before tax	2,299.68	1,408.24
Tax expense	682.63	436.66
Profit after tax	1,617.05	971.58
Earnings per share (Rs)	18.87	12.43

RATIOS:

Analytical ratios

Particulars	FY 2025-26	FY 2024-25	Variance
Current ratio (in times)	2.50	3.63	-44.99%
Debt-equity ratio (in times)	0.46	0.40	12.47%
Debt service coverage ratio (in times)	4.61	2.88	37.46%
Return on equity ratio	0.24	0.23	3.25%
Inventory turnover ratio (in times)	3.35	2.84	15.39%
Trade receivables turnover ratio (in times)	3.95	4.64	-17.53%
Trade payables turnover ratio (in times)	56.80	30.74	45.89%
Net capital turnover ratio (in times)	2.77	6.41	-131.34%
Net profit ratio	0.09	0.09	7.76%
Return on capital employed	0.36	0.25	30.51%
Return on investment	Not Applicable	Not Applicable	-

MATERIAL DEVELOPMENT IN HUMAN RESOURCES / INDUSTRIAL FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

The Company has expanded its workforce to 105 employees, reflecting growth in operations and increased demand for products. This includes personnel across various functions such as production, quality control, logistics, sales, and administrative support.

To enhance employee skills and knowledge, the Company has established comprehensive training programs. These programs cover essential areas such as production techniques, quality assurance, safety protocols, and sales and marketing.

To boost employee engagement, the Company has implemented regular feedback mechanisms, team-building activities, and recognition programs. These initiatives aim to foster a positive work environment and high levels of job satisfaction.

Clear organizational structures and role definitions have been established to ensure efficient operations and effective management. This includes clearly demarcating responsibilities across departments and levels of authority.

Regular performance reviews are conducted to assess employee performance, provide feedback, and set goals. This process helps align individual contributions with company objectives and identify areas for improvement.

OUTLOOK:

The outlook for the spices and atta manufacturing industry is positive, driven by various growth factors in India. With rising disposable incomes and the expansion of modern retail formats, the sector is well-positioned for growth. Key drivers include increasing rural consumption, a growing population, and higher levels of education and urbanization. The shift towards modern retail and the countrys consumption-driven economy further support the industrys potential for expansion and development.

CAUTIONARY STATEMENT:

The above management discussion and analysis contain certain forward-looking statements as defined by applicable securities laws and regulations. These statements relate to the Companys future business prospects and profitability and are subject to various risks and uncertainties. Actual results may differ materially from those anticipated in these forward-looking statements. Risks and uncertainties associated with these statements include, but are not limited to, fluctuations in earnings, our ability to manage growth, competitive pressures, economic conditions in India, our capacity to attract and retain skilled professionals, potential cost overruns on contracts, and government policies affecting investments, fiscal deficits, and regulatory changes.

By Order of The Board of Directors

For Srivari Spices and Foods Limited

Place: Hyderabad

Date: 05.09.2025

Sd/-

Narayan Das Rathi

Whole Time Director

DIN: 09065949

Sd/-

Neihaa Rathi

Chairman &Whole Time Director

DIN: 05274847