Swasth Foodtech India Ltd Management Discussions

FY2026 represents the fiscal year 2025-26, from 1 April 2025 to 31 March 2026, and analogously for FY2025 and previously such labelled years.

Our Company was originally incorporated under the name ‘Swasth Foodtech India Private Limited, pursuant to a certificate of incorporation dated February 2, 2021, issued by the Deputy Registrar of Companies, Registrar of Companies, Central Registration Centre. Further, our Company was converted into a public limited company pursuant to a resolution passed by our Board of Directors in their meeting held on January 27, 2024, and by the Shareholders in an Extraordinary General Meeting held on February 21, 2024 and a fresh certificate of incorporation dated May 20, 2024, was issued by the Registrar of Companies, Central Registration Centre. Consequent to the conversion of our Company, the name of our Company was changed to ‘Swasth Foodtech India Limited.

We are in the business of processing of rice bran oil from crude oil, for sale to oil manufacturers and packers. We manufacture various rice bran oil under various grades and colors, based on the requirement of our customers. We believe that rice bran oil is healthier than the other options available in the market, on account of it having an ideal balance of polyunsaturated fats and monounsaturated fats, in almost a 1:1 ratio. Since rice bran oil is made from rice bran, it is rich in Vitamin E, an antioxidant and Oryzanol. Rice bran oil is a healthy oil extracted from the germ and inner husk of rice kernels. It has gained popularity in recent years due to its numerous health benefits. The advantages of rice bran oil include support heart-healthy; high smoke point makes it a good choice for stir-frying, sauteing, and other high-heat cooking methods; and

Neutral flavor makes it a versatile oil that can be used in a variety of dishes. We have crafted our business model in such a manner that we market and sell, our finished products, being rice bran oil, as well as the residue and the byproducts generated while processing our products. Therefore, we market and sell, fatty acid, gums, spent earth and wax in the open market.

The sale of our products is majorly made to oil manufacturers, which makes our business model business to business (B2B), wherein our Company processes and/or supplies rice bran oil to reputed manufacturers and packers in tankers. We majorly sell our products in bulk form to players operating with their own brands and to those who sell edible oil in unbranded or loose form. We also sell our products to re-packers who ultimately sell the oil either in their own brands or further sell in bulk form. We believe our business model adds value to our business operations by ensuring higher capacity utilization and improving overall production efficiency and costs.

Since incorporation, it has been our Companys vision and focus to process and supply superior quality products to our customers, which has enabled us to expand our business operations. In order to set up internal controls for processing our products, we have set up an in-house laboratory for testing our raw materials and finished products.

We have a quality control and assurance division ("Quality Division") in our manufacturing unit which carries out the required tests on the materials received including raw materials which are used in the manufacturing process and also on the final products. Our laboratory carries out oil analysis tests on the raw materials and finished products to ensure that our products are compliant with the specifications provided by regulatory bodies such as, FSSAI. In addition to testing our key products, we also carry out an in-process testing, wherein we on a sample basis measure the physical parameters of the oil processed by us at each and every stage of the production process. Additionally, we also undertake quality testing of each of our by-products and residue to check the amount of oil soaked by such products and the requirement of reprocessing a particular process to reduce wastage or to achieve efficiency. To ensure our standard of products we also undertake quality tests from third party laboratories.

1. Modern and strategically located manufacturing facilities.

2. Easy availability of crude oil around our manufacturing facility.

3. Arrangements with institutional oil manufacturers for supply of rice bran oil

4. Quality Assurance and Quality Control of our products.

5. Well experienced management team with proven project management and implementation skills.

1. Setting up of a packing line at our existing manufacturing unit to focus on packing and selling our products in our own brand in small quantities.

2. Addition of ‘sunflower oil, mustard oil, soya oil and palm oil as an additional products.

3. Diversifying and increasing penetration in markets

4. Strengthen our marketing network

We would aim our business strategies to be dynamic and proactive, given the macro and micro market environments in which we operate or where we may expand in the future. Our Company shall always strive to:

• achieve maximum operational efficiency;

• strengthen and expand our market position and product portfolio;

• enhance our depth of experience, knowledge-base and know-how; and

• increase our network of distributors, customers and geographical reach.

Our manpower is a prudent mix of the experienced and young people which gives us the dual advantage of stability and growth, along with assurance of quality. Our employees are our core resource and the Company has continuously evolved policies to strengthen its employee value proposition. Your Company was able to attract and retain best talent in the market and the same can be felt in the past growth of the Company. The Company is constantly working on providing the best working environment to its Human Resources with a view to inculcate leadership, autonomy and towards this objective; your company spends large efforts on training. Your Company shall always place all necessary emphasis on continuous development of its Human Resources. The belief "great people create great organization" has been at the core of the Companys approach to its people.

Statements in this Management Discussion and Analysis report detailing the Companys objectives, projections, estimates, expectations or predictions may be "forward looking statements " within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and Indian demand supply conditions, raw material prices, finished goods prices, cyclical demand and pricing in the Companys products and their principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries with which the Company conducts business and other factors such as litigation and/ or labor negotiations.