T & I Global Ltd Management Discussions

ECONOMIC OVERVIEW

Global Economy

The world economy is forecasted to sustain a growth rate of 3.2% in 2024 and 2025, mirroring that of 2023.

Advanced economies are expected to experience a slight uptick in growth, while emerging market and developing economies may see a modest slowdown. Inflation is anticipated to decrease steadily, from 6.8% in 2023 to 4.5% in 2025, with advanced economies likely achieving their inflation targets sooner than emerging markets and developing economies. Core inflation is expected to decline more gradually.

Outlook

Looking ahead, the IMF predicts global growth rates of 3.2% for both 2024 and 2025, alongside a projected decline in global headline inflation to 5.9% in 2024 and

4.5% in 2025. However, challenges such as geopolitical disruptions, including conflicts in the Red Sea and Ukraine, are driving up commodity prices and threatening global recovery. These disruptions could lead to supply shortages and significant increases in food, energy, and transportation costs. Tight monetary policies and escalating trade tensions may also hinder global economic growth and impact international trade dynamics. https://www.imf.org/en/Publications/WEO/

Issues/2024/04/16/world-economic-outlook-april-2024

Indian Economy

Indias economy continues to shine amidst global economic turbulence, maintaining its status as the fastest-growing major economy. With a robust growth rate of 8.2% in FY 2023-24 compared to 7.2 % in FY 2022-23 and strong performances in construction and manufacturing sectors, driven by domestic demand and stable economic conditions, India showcases resilience. However, inflationary pressures have been a concern, leading to monetary policy adjustments by the Reserve Bank of India. This approach contributed to a moderation in Indias Consumer Price Index (CPI) inflation to 5.08% during June 2024, despite shocks in food prices. India has managed to maintain steady economic growth, with industrial production rising by 5.8% and increased capital expenditure driving further economic activity. https://pib.gov.in/PressReleseDetailm. aspx?PRID=2022323

Outlook

Looking ahead, Indias economic outlook appears promising, with the Reserve Bank of India forecasting a

7% growth for FY 2024-25. This growth is supported by factors such as decreasing inflation, substantial capital expenditure with 11.11 trillion allocated to infrastructure projects, and government initiatives like the PLI scheme,

Make in India campaign, and relaxed FDI regulations, which are expected to boost economic expansion. These efforts are fostering a conducive environment for Indias economic development.

Global Tea Industry

The tea market size has grown strongly in recent years. It is expected to grow from USD 52.74 billion in 2023 to USD 56.12 billion in 2024 at a CAGR of 6.4%. This positive trend is expected to persist over the next few years, with the market size reaching an estimated USD 70.19 billion by 2028, maintaining a CAGR of 5.8%. Key drivers of this growth include premiumization trends, rising demand for functional and health-enhancing teas, sustainability efforts, innovations in tea products, and the growing popularity of e-commerce and direct-to-consumer sales. https://www.giiresearch.com/report/tbrc1436736-tea-global-market-report.html

Indian Tea Industry

India ranks among the top 5 global tea exporters, accounting for around 10% of total tea exports. The India tea market grew to USD 11.1 billion in 2023 and is projected to reach USD 14.7 billion by 2032, with a CAGR of 3.18% from 2024 to 2032. Growth is driven by rising consumer demand for premium and packaged tea brands, the expansion of online retail, and increasing awareness of teas health benefits. During April-March 2024, Indias tea exports reached USD 781.79 million.

India exports tea to over 25 countries globally, with major importers including Russia, Iran, UAE, USA, UK, Germany, and China. Renowned for their quality, Indian Assam,

Darjeeling, and Nilgiri teas are highly esteemed worldwide.

The majority of Indias tea exports consist of black tea, comprising approximately 96% of total exports. In 2023-24 (until January 2024), UAE, Iran, and USA imported USD

120.29 million, USD 80.23 million, and USD 69.20 million worth of tea from India, respectively. The total export value to these nations combined during the period was USD

314.27 million.

Period	Export Quantity (in million Kgs)
2023-24 (Apr-Mar)	250.73
2022-23 (Apr-Mar)	228.4
Growth %	9.78

https://www.ibef.org https://www.indiantradeportal.in https://www.imarcgroup.com https://www.teaboard.gov.in https://www.custommarketinsights.com

Tea Processing Equipment Market

The global market for tea processing equipment is estimated at USD 12.8 billion by 2023. With rising global tea consumption, the demand for such equipment is forecasted to grow at a CAGR of 6.4% from 2023 to 2033, exceeding USD 25.4 billion by the end of the period. Currently, North America commands the largest market share in the global tea processing equipment market. However, Asia Pacific is poised to lead globally, driven by favorable regulatory reforms and robust growth among tea producers in the region. https://www.futuremarketinsights.com/reports/tea-processing-equipment-market

Tea Processing Equipment

Estimated Market Value (2023)	USD12.8 Billion
Projected Market Value (2033)	USD 25.4 Billion
CAGR (2023-2033)	6.4%

Emerging Opportunities

Indias favorable climate and diverse geography allow for the cultivation of various tea varieties, catering to different tastes and preferences worldwide Increasing tea consumption in emerging markets and exports to regions such as North America and Europe with growing tea appreciation

Growing consumer preference for organic and specialty teas driven by health consciousness and an inclination towards premium quality products

Development of new tea blends, flavours and packaging, catering to diverse consumer preferences

The rapid growth of e-commerce presents a significant opportunity for the Indian tea market to reach a wider consumer base and streamline distribution channels, as online sales steadily increase

Threats

Shifts in consumer preferences towards alternative beverages or health trends that may reduce tea consumption

Geopolitical crises can disrupt supply chains, hinder market access, and reduce consumer confidence, thereby impacting exports.

COMPANY OVERVIEW

About T&I Global Limited

T&I Global Limited has a rich history rooted in entrepreneurial spirit of the Bagaria family, which began shortly after

Indias independence. Over the years the company has evolved into a prominent manufacturer and exporter of Tea processing machinery, serving satisfied customers in over 28 countries. Its innovative machines play a crucial role in tea production, reflecting its commitment to quality and customer satisfaction. The company aims to provide high quality, customised solution for various type of tea production, including CTC, Orthodox and Green Teas. The company boasts a robust global customer base, with a market share exceeding 40% in the export sector.

Its clientele spans across countries such as Sri Lanka,

Bangladesh, Vietnam, Malasia, China, Philippines and many more. Domestically it serves prominent companies in the tea industry including those under the Tata Group.

Certification: ISO 9001: 2008 for Quality Management System

ISO 9001: 2015 for Manufacture & Exporter of Tea & Coconut Processing Machinery

Offerings CTC Machinery

CTC machinery processes tea leaves by crushing, tearing, and curling them into small, uniform particles, enhancing the teas brewing speed and robust flavor.

Orthodox & Green tea machinery

Orthodox tea machinery is designed for traditional processing that preserves leaf structure, while green tea machinery focuses on gentle handling to preserve freshness and flavor through minimal oxidation.

Mini tea processing

It facilitates the processing of tea leaves into various types of tea with compact and efficient machinery.

Automation

This involves using advanced machinery to streamline sorting, processing, and packaging, ensuring efficient and consistent production.

Blending & Packing increase of 20.45% from the This involves the processes of mixing different tea varieties or ingredients to create specific blends, followed by packaging them into finished products for distribution and sale.

Trunkey Solutions

Turnkey solutions encompass a full range of services including boilers, steam fittings, electrical systems, factory design, training, installation, and commissioning, providing clients with a complete, ready-to-operate package from start to finish

Others Products

Other product offering includes Industrial Dryer Agro Processing Machinery

Fruit & Vegetable Processing Equipment Coconut Processing Machinery

Manufacturing Facilities

The company operates advanced manufacturing facilities in Kolkata. T&I Global Limited boasts state-of-the-art manufacturing facilities that integrate diverse processes under one roof. All operations, from precision fitting and machining to welding and laser cutting, are conducted within a single facility. A specialized quality control department rigorously ensures that every machine component is impeccable, following a stringent "zero defects" philosophy. This cohesive setup enables the company to deliver high-calibre manufacturing solutions that meet stringent industry standards and customer expectations worldwide.

Research & Development

The company has its dedicated in-house research and development department, staffed with highly qualified engineers and food technologists, drives technological advancements and product innovation. Certified by the Department of Scientific and Industrial Research (DSIR) of the Government of India, its R&D center collaborates closely with prestigious academic and research institutions. Key accomplishments include patents for Continuous Chemical Withering Machine (CCW) and Continuous Physical Withering Machine (CPW) technologies, along with the development of an automatic chasing machine.

Financial Performance

In FY 2023-24 the company had a turnover of 18,349.64 lakhs, a significant 15,233.58 lakhs in FY 2022-23. The company reported profit tax of 1,382.49 lakhs, up from 1,293.96 lakhs resulting in a net profit 993.92 lakhs compared to of 842.71 lakhs in the previous year.

Key Ratios	FY 2023-24	FY 2022-23
EBITDA Margin	-0.11	-0.29
PAT Margin	-0.02	-0.34
Debt Equity Ratio	NA	NA
Return on Assets	0.08	0.07
Return on Equity	0.13	0.11
Current Ratio	2.57	1.43

Human Resources

At T&I Global Limited, Human Resource Management plays a pivotal role in cultivating a skilled and motivated workforce. Our approach is centered around comprehensive strategies that prioritizes talent acquisition, development, and retention.

We cultivate a supportive work environment through robust training programs, ample career advancement opportunities, and competitive compensation packages aimed at nurturing employee growth and satisfaction. Moreover, we are committed to promoting diversity, equity, and inclusion, ensuring a dynamic workplace culture that aligns with our organizational values and objectives.

Corporate Social Responsibility findings are The company is committed to sustainable practices, including the installation of solar panels to generate clean energy. T&I Global also emphasizes corporate social responsibility through initiatives like establishing educational facilities and rehabilitating communities in need.

Risk & Concerns

The tea industry operates within the realm of agriculture, heavily influenced by natural conditions. It is characterised by intensive labour requirements and compliance with strict labor laws. Shortages of skilled labor during peak seasons in certain areas pose significant risks and opportunities are inherent and interconnected.

The companys management comprehensively considers this when making decisions to safeguard stakeholders from adverse impacts.

Internal Control System

The Company implemented internal control systems to ensure that all assets are safeguarded and protected against losses and all transactions are recorded and reported correctly. The Company has laid down policies, guidelines and procedures, which form part of its internal control system. The Companys internal control system are periodically tested and supplemented by extensive internal audits conducted by independent firm Accountants. Audits are finalized and conducted based on internal risk assessment. Significant to the notice of the Audit Committee of the Board and corrective measures are recommended for implementation.

Cautionary Statement

The statement in the report of the Board of Directors and the Management Discussion & Analysis Report describing the companys projections, estimates, expectation 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. Further tea industry depends on vagaries of nature and any adverse favorable situation can reverse the whole situation.

Information pursuant to Section 134(3) (m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 and forming part of the Directors Report for the year ended 31st March, 2024.

Form ‘A

Form for Disclosure of particulars with respect to conservation of energy:

	Current Year ended	Previous Year ended
	31.03.2024	31.03.2023
A) Power & Fuel Consumption
1) Electricity
a) Purchased
Unit (KWH)	636436	654547
Total Amount (Rs. in Lacs)	55.73	61.35
Rate per unit (Rs. /KWH)	8.75	9.37
b) Own Generation
2) H.S.D Oil
a) Purchased
Unit (Ltrs.)	5915	5621
Total Amount (Rs. in Lacs)	5.57	5.26
Rate per unit (Rs. /Ltrs.)	94.15	93.66
b) Own Generation
2) Coal
a) Purchased
Unit (Tones)	864.06	814.90
Total Amount (Rs. in Lacs)	142.08	142.20
Rate per unit (Rs. /Ton)	16643	17450
b) Own Generation
B) Consumption Per Unit Of Production
Product - Tea (Gross) (Kgs.)	795745	814898
Energy Use: Electricity (KWH/Kg.)	0.80	0.80
H.S.D Oil (Ltrs. /Kg.)	0.007	0.006
Coal (Kgs. /Kg.)	1.08	1.00

B. Technology Absorption: i. The efforts made towards technology absorption: Not Applicable ii. The benefits derived like product improvement, cost reduction, product development or import substitution: Not Applicable iii. In case of imported technology (imported during the last 5 years reckoned from the beginning of the Financial Year), following information may be furnished : a) Technology Imported: Not Applicable b) Year of Import: Not Applicable c) Has technology been fully absorbed : Not Applicable d) If not fully absorbed, areas where this has not taken place, reasons therefore and future plans of action: Not Applicable iv. The expenditure incurred on Research and Development:

Nil.

C. Foreign Exchange earnings and outgo:

Earnings in foreign exchange: Rs. 8084.89 lakh Foreign exchange outgo: Rs. 883.87 Lakh

PARTICULARS OF EMPLOYEES:

Particulars of Employees pursuant to section 134(3) (q) of the Companies Act, 2013 read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

Requirements of Rule 5(1)	Details
(i) the ratio of the remuneration of each director to the median remuneration of the employees of the company for the	(a) Mr. Vineet Bagaria 1:0.010
financial year;	(b) Sajjan Bagaria 1:0.019
	(c) Viraj Bagaria 1:0.021
(ii) the percentage increase in remuneration of each director, Chief Financial Officer, Chief Executive Officer or Manager, if any, in the financial year;	The percentage increase in remuneration of MD- NIL , Chairman- NIL , WTD- 44% , CFO- 0.20% during the Financial Year 2023-24
(iii) the percentage increase in the median remuneration of employees in the financial year;	NIL
(iv) the number of permanent employees on the rolls of company;	881 employees as on 31.03.2024
(v) the explanation on the relationship between average increase in remuneration and company performance;	The total remuneration has been increased by Rs. 64/- Lakh during the financial year 31st March, 2024, and total turnover have been increased by Rs. 3002.55 lakh
(vi) comparison of the remuneration of the Key Managerial Personnel against the performance of the company;	The total remuneration of the Key Managerial Personnel has been increase by Rs. 18.52 lakh during the financial year, and total turn- over have been increased by Rs. 3002.55 lakh
(vii) variations in the market capitalisation of the company, price earnings ratio as at the closing date of the current financial year and previous financial increase over decrease in the market quotations of the shares of the company in comparison to the rate at which the company came out with the last public offer in case of listed companies, and in case of unlisted companies, the variations in the net worth of the company as at the close of the current financial year and previous financial year;	As on As on Percentage increase 31.03.2023 31.03.2024 in Share Price 97.30 209.75 115.57 year and percent- The Company has not made any Public Issue or Rights issue of securities in the last 5 years, so comparison have not been made of current share price with public offer price. The Companys shares are presently listed on Bombay stock Exchange.
(viii) average percentile increase already made in the salaries of employees other than the managerial personnel in the last in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the manage- rial remuneration;	There is 7.83% increase in salary of the employees other than Managerial Personnel. in the financial year ended financial year and its comparison with the percentile increase31st March 2024.There are no exceptional circumstances in increase in managerial remuneration.
(ix) comparison of the each remuneration of the Key Mana- gerial Personnel against the performance of the com- pany;	There was only increase in remuneration of Mr. Viraj Bagaria Whole time Director.
(x) The key parameters for any variable component of remuneration availed by the directors;
(xi) the ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive remuneration in excess of the highest paid director during the year;	The Managing Directors is the highest paid director. No employees received remuneration higher than the Managing Director.
(xii) Affirmation that the remuneration is as per the remuneration policy of the company.	Remuneration paid during the year ended March 31, 2024 is as per the Remuneration Policy of the Company.

(Pursuant to Clause (h) of Sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014) Forms for disclosure of particulars of contracts / arrangements entered into by the Company with related parties referred to in sub-section (1) of Section 188 of the Companies Act, 2013 including certain arms length transaction under third proviso thereto

1. Details of contracts or arrangements or transactions not at arms length basis:

Your Company has not entered into any contracts or arrangements or transactions with its related parties which is not at arms length during the financial year 2023-24.

2. Details of material contracts or arrangement or transactions at arms length basis

(a) Name(s) of the related party and nature of relationship:

Names of the Related Party	Nature of Relationship	b) Nature of contracts/ arrangements/ transactions	c) Duration of the contracts/ arrangements/ transactions	d) Salient terms including the value, if any (Amt. in Rs.)	e) Date(s) of approval by the Board, if any value, if any
Mr. Sajjan Bagaria	Executive Chairman	Remuneration	During the F.Y. 23-24	60,00,000	On different date of Board Meetings held during the F.Y, 23-24
Mr. Vineet Bagaria	Managing Director	Remuneration	-Do-	96,00,000	-Do-
Mr. Viraj Bagaria	Director	Remuneration	-Do-	49,31,988	-Do-
Mr. Vishnu Baheti	CFO	Remuneration	-Do-	8,77,800	-Do-
Mrs. Khushboo Choudhary	Company Secretary	Remuneration	-Do-	4,85,613	-Do-
Mrs. Sunita Baheti	Relative of CFO	Remuneration	-Do-	3,98,000	-Do-
Mr. Vineet Bagaria (HUF)	Relative of Directors	Rent	-Do-	1,08,000	-Do-
Mrs. Seema Bagaria	Relative of Directors	Rent	-Do-	2,40,000	-Do-
Mr. Vineet Bagaria	Managing Director	Rent	-Do-	6,00,000	-Do-
Mrs. Indu Bagaria	Relative of Directors	Rent	-Do-	1,74,000	-Do-
Chaman Exports Ltd.	Associate Company	Rent	-Do-	12,00,000	-Do-
T & I Projects Ltd.	Associate Company	Purchase	-Do-	1,06,36,41,862	-Do-
T & I Projects Ltd.	Associate Company	Sale	-Do-	5,08,43,901	-Do-