tai industries ltd Management discussions

Para B of schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 stipulates disclosure under specific heads which are given in the following paragraphs and which continue to be followed in the usual course of the Companys business over the years in discussions amongst the Directors, Key Managerial Personnel and other Management Personnel.

(a) Industry Structure and Developments Food Processing

India boasts of one of the largest food processing industries in terms of production, consumption, export and growth prospects , providing an important synergy between agricultural produce and industries. The fruit and vegetable processing is equally divided between organised and unorganised sector in India. Food processing has become an integral part of the food supply chain in the global economy, India being the second most populated country has one of the largest food processing industries in terms of production, consumption, export and growth prospects. It provides an important synergy between agricultural produce and industries. The proportion of working women have been increasing continuously both in the urban and rural areas. As a result of their busy lifestyle, the amount of time for household activities such as cooking is declining. This is creating a rising demand for processed and ready-to-eat foods.

Charcoal and Ferro Silicon

Ferro Silicon is a major input in the preparation of alloys and special steel. Its growth is linked to the development of iron and steel & stainless steel industry.

Due to the imposition of duty on steel products export , war scenario, price competition and low quantity buying there was a decrease in the sale of products in 2023 as compared to the financial year 2022.

The demand for charcoal was high in 2022-2023 as compared to earlier year 2021 - 2022.

(b) Opportunities and threats Food Processing

India has one of the largest working populations in the world. With increasing disposable incomes, this segment can be regarded as the biggest consumer of processed foods in the country. We expect this population to grow continuously during the coming years.

Gaps in the supply chain are perhaps the biggest challenge faced by this industry. Another big challenge is the distinct consumer preferences varying by each region. Competition from imports of non- standardized processed foods and ingredients remains a challenge. These complexities combined with change in consumption pattern and increased competition pose a major challenge for Food Processing Industry.

Charcoal and Ferro Silicon

There is always a demand for quality material and our endeavor has always been to maintain high standard. We enjoy a strong brand and extensive all India reach.

Market competition, erratic Supply and influx of imported material are the threats being faced by this division.

We have seen an unprecedented global breakout of the COVID-19 pandemic leading to a humanitarian crisis, lockdown across many countries and a significant economic fallout which has been largely disruptive. Notably India had also been witnessing a pre-pandemic slowdown, and the current pandemic has "magnified pre-existing risks to the economic outlook".

(c) Segment-wise or Product-wise Performance

The growth of the Fruit Product Division has not been significant during the year.

The overall performance of industrial division was satisfactory during the year.

(d) Outlook

Your Company will continue to be alert and responsive to adapt to the trends and forces shaping our markets to secure competitive growth in these rapidly evolving times. Managing margins through judicious pricing and sustained efficiencies and cost saving will receive constant attention.

(e) Risks & Concerns

Severe competition and weather conditions continue to govern demand and therefore results.

Vital areas of concern are the transport system for movement of goods from warehouses to the distributors and the dependence on IT sector for solutions that help automate and integrate the transactional and control system.

We are focusing on the long-term health of the business by judiciously reviewing cash flows and reallocating spends with rigorous discipline.

There are many unknowns today and hence, the near-term outlook is extremely uncertain.

Our Supply Chain network is exposed to potentially adverse events such as transportation disruptions, changes in the legal environment, which could impact our deliverability of our orders to our customers and cost of our product.

Our Distribution teams are working tirelessly to keep our distribution ongoing so that our consumers have uninterrupted access to our products

(f) Internal Control Systems & their Adequacy

The statutory requirements of the Audit Committee are being met. In meetings of the Audit Committee, the Statutory Auditors and Partners of Internal Audit Firms participate. Such Internal Auditors also periodically visit various divisions of the Company.

Activities of each sector are being programmed on a quarterly basis, which get translated into an Annual Activity Plan. Each departmental head is involved in the preparation of the activity plans and identifying and categorising the areas of risks, which are closely monitored. Such documentation thereafter undergo a further layer of scrutiny and implementation under direct superintendence of the Managing Director of the Company.

(g) Financial & Operational Performances

This has been adequately stated in the Directors Report.

(h) Material Developments in Human Resources Industrial Relations Front

Industrial Relations remained cordial throughout the year. Your Company strongly believes that its intrinsic strength lies in the quality of its pool of dedicated and motivated employees.

The total number of permanent employees in the payroll of the Company is 68.

The human impact of this crisis takes precedence for us. Our utmost priority has been health, safety and well-being of the employees. We have been proactive and swift in ensuring safe working conditions, strict standards of social distancing, necessary sanitation measures across all our operations.