Tapi Fruit Management Discussions


The global economy is gradually recuperating from the repercussions of the pandemic and the Russia-Ukraine conflict. However, there are also positive developments evident in the short term. The COVID crisis has ended, supply chains have normalised, and the economy has displayed remarkable resilience in early CY 2023 despite all the challenges.

Going forward, the International Monetary Fund (IMF) forecasts a moderation in global growth, tapering from 3.5% in CY 2022 to 3% in CY 2023. Concurrently, projections indicate a decline in global inflation from 8.7% in CY 2022 to 6.8% in CY 2023, with a further decrease to 5.2% in CY 2024, reflecting a slight downward revision. Significantly, the slowdown in economic expansion is mainly concentrated in the advanced economies. It is projected that this decrease will drop from 2.7% in CY 2022 to 1.5% in CY 2023, with a marginal decline to 1.4% in CY 2024. European nations, especially, are encountering difficulties as they navigate through the consequences of the surge in gas prices sparked by the Russia-Ukraine conflict.

In contrast, emerging markets and developing economies are poised for accelerated growth, projecting an upswing from 3.1% in CY 2022 to 4.1% in CY 2023. While progress is evident, it is crucial to approach the future with caution, as there are likely to be potential risks that warrant careful consideration.

(Source: https://www.imf.org/en/Blogs/Articles/2023/07/25/global-economy-on-track-but-not-yet-out-of-the-woods)

Indian economic review

India has emerged as one of the worlds fastest-growing economies, surpassing the UK to become the fifth-largest. Despite various global challenges such as liquidity issues, banking crises, and supply chain disruptions, the country has demonstrated remarkable resilience. This growth has been driven by substantial investment initiatives and spurred by the governments focus on capital spending. This has resulted in heightened capital accumulation and a surge in personal spending. Moreover, the private industry has played a vital role in a dvancing transportation infrastructure, logistics, and the general business landscape, creating an environment conducive for business growth. India comes out as a bright spot in the global economy and the country is marching ahead rapidly to take its place as one of the leading economies in the world. As the fifth-largest economy in the world, India is not only undergoing social and economic transformation but has also set its sight on achieving the USD 5 Trillion GDP mark.

However, high inflation rate has been a persistent concern, consistently exceeding the Reserve Bank of Indias (RBI) tolerance level of 6.7% for FY 2022-23. To address this challenge, the RBI implemented quarterly increases in repo rate whenever the situation went out of control.

According to the RBI, growth in India is anticipated to be driven by robust domestic demand and an increase in capital formation. The Indian governments focus on taxation measures will lead to higher collections, which will be allocated to financing various infrast ructure development initiatives. This includes the production-linked incentive (PLI) schemes and the Saptarishi Budget, aimed at stimulating the economy and fulfilling the vision of the Amrit Kaal. The Indian economys success can be attributed to the active participati on of a dynamic private sector and a government committed to creating a conducive business environment while maintaining a long-term perspective on economic stability.

(Source: World Economic Outlook, April 2023: A Rocky Recovery (imf. org)

Indias Economy to Grow by 6.4% in FY2023, Rise to 6.7% in FY2024 : Asian Development Bank (adb.org) https://www.bankbazaar.com/home-loan/repo-rate.html

https://www.forbes.com/advisor/in/personal-finance/inflationrate-in india/#: ~: text=Latest% 20Inflation % 20News,rate%20at%20 6.50% 25.)


Indias food processing sector has emerged as a major catalyst for economic growth, displaying consistent annual growth of approximately 8.38% in FY 2022-23. Driven by robust demand fundamentals, shifting lifestyles, and favorable demographics, the industry is set to expand further and faster in the times to come. This sector plays a pivotal role in promoting value addition, minimising wastage, enhancing farmer returns, and addressing concerns related to food security and inflation. By improving shelf life, providing nutritious products, and encouraging crop diversification, food processing brings tangible benefits to both producers and consumers alike. The governments facilitation of 100% foreign direct investment (FDI) through the automatic route has attracted significant equity inflows, amounting to USD 5.72 Billion between 2014 and 2022. Indias competitive advantages, including abundant raw materials, cost efficiency, and su pportive policy incentives, have further encouraged substantial investments in the sector. The impact of these endeavors is clearly visible in the value of agricultural and food exports, including that of processed food products. This reached USD 46.11 Billion during 2021 -22, contributing to approximately 10.93% of Indias total exports, valued at USD 421.89 Billion. As the food processing industry continues to grow and evolve, it is poised to play an even more significant role in Indias economic development and global trade.

Fruits and Vegetable Pulp

The global fruit and vegetable pulp industry has witnessed steady growth in the recent years. The industry was valued at USD 2.92 Billion in 2022 and projected to expand at a CAGR of 6.4% from 2023 to 2031 to reach USD 4.80 Billion by 2030. The rising popularity of natural and nutritious drinks and juices made from fruit and vegetable pulps is a key growth driver, as consumers increasingly prefer plant-based foods and beverages. Fruit and vegetable pulps appeal to changing dietary preferences as they are derived entirely from plant sourc es and align well with organic, sustainable, and clean-label trends.

India is emerging as a prominent market for fruit and vegetable pulps, with the industry forecasted to grow by USD 151.3 Million from 202227 at an accelerated CAGR of 7.96%. This growth is fueled by rising health consciousness among Indian consumers coupled with increasing spending on processed and convenience food products. The maximum demand is for mango, guava, tomato, and mixed fruit pulps.

Some of the key factors fuelling the consumption of fruit and vegetable pulp globally includes: a widening application in food products, rising private label offerings, investments in pulp processing technology, and capacity expansions by leading players. Developed regions like North America and Europe are mature markets. The Asia-Pacific region and Latin America offer strong growth potential owing to rapid urbanisation, rising incomes, and an increasing middleclass population. Overall, the fruit and vegetable pulp sector is poised for a prosperous future globally backed by a strong health and wellness trend.

(Source: https://www.grandviewresearch.com/industryanalysis/fruit-vegetable-pulp-market-report https,.//www.researchandmarkets.com/reports/5504882/ india-fruit-pulp-market-2023-2027)

Jellies and Gummies

The global jellies & gummies market size to be valued at USD 17.7 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 3.5% during the forecast period. The market growth is attributed to growing vegan population, booming candy industry, rising awareness regarding the side effects of chocolate consumption, and increasing consumer spending. Jellies and gummies have been gaining an increasing traction among the consumers on account of their frequent purchases and growing consumption of candies over chocolate. Factors impacting the purchase decision of consumers include unique flavors, textures, candies design, shape, packaging, and sugar content. Snacking, personal rewards on-the-go, occasions, and holidays are the major reasons for the consumption of jellies and gummies. Candies are mostly popular among kids and they are the major target consumers for the candy makers.

(Source: https://www.grandviewresearch.com/industry-analysis/jellies-gummies-market)

Organic Food and Beverages

The global organic food and beverages market size was estimated at USD 208.19 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 11.7% from 2023 to 2030. One of the primary factors driving market expansion is growing awareness about the health benefits associated with the consumption of organic products. Sales of organic food and beverages are projected to rise as a result of the change in purchasing behavior of consumers. In addition, the rising popularity of non-GMO products among consumers is driving market growth. The market has witnessed substantial growth due to the increased accessibility of organic foods and beverages. Organic products are no longer confined to niche stores or farmers markets.

(Source: https://www.grandviewresearch.com/industry-analysis/organic-foods-beverages-market)

Nutraceutical products

The global nutraceuticals market size was USD 291.33 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 9.4% from 2023 to 2030. The primary factors driving the market growth are preventive healthcare, increasing instances of lifestyle-related disorders, and rising consumer focus on health-promoting diets. Additionally, increasing consumer spending power in high-growth economies is projected to contribute to the growing demand for nutraceutical products. The growing demand for dietary supplements and nutraceuticals is also attributed to consumer preferences shifting towards self-directed care in the treatment of lifestyle disorders such as cardiovascular disorders and malnutrition.

Nutraceuticals are associated with various medical and health benefits, which is driving their increased adoption among consu mers globally. Rising healthcare costs, coupled with the increasing geriatric population across the world, are anticipated to assist the global nutraceutical industry growth over the forecast period. Consumers attitude is very positive towards functional foods mainly because of the added health and wellness benefits offered by these products. The rising geriatric population, increasing healthcare costs, changing lifestyles, food innovation, and expectations regarding higher prices have aided overall growth.

(Source: https://www.grandviewresearch.com/industry-analysis/nutraceuticals-market)


• Providing financial assistance and fiscal incentives to develop common supply chain infrastructure including cold storage, packaging, logistics etc. to lower investment costs, increase viability, and ensure regulatory compliance.

• PLI schemes to support the creation of infrastructure to encourage manufacturing champions based out of India.

• Promoting processing clusters and strong linkages from farm to retail through measures like setting up Mega Food Parks with appropriate incentives.

• Supporting the creation of services for R&D, testing, quality improvement, marketing etc., to enhance innovation, competitiveness, and eco-friendly packaging.

• Creating a Rupees 2000 Crores fund in NABARD to provide affordable credit for boosting the food processing sector.

• Assisting new and existing micro food enterprises through capital investment support along with strengthening linkages, common facilities, training etc., through the Pradhan Mantri Formalisation of Micro food Processing Enterprises (PMFME) scheme.

• Supporting the setting up of new micro units and upgrading existing micro food processing units, through the PMFME scheme.


Tapi Fruit Processing Limited is thriving in the highly favorable business environment for the Indian food processing industry, capitalising on the increasing demand for processed fruits and vegetables. The company have a successful track record of over two decades in the Indian food industry which has enabled them to develop an effective business model with stringent control over processes, including raw ingredient procurement, manufacturing operations, inventory management across their large range of products and SKUs, management of distribution logistics across India, as well as managing deemed export sales.

Tapi Fruit Processing Limited unwavering commitment to sustainability and ethical manufacturing practices, differentiates it from the commoditised nature of this industry enabling it to become the preferred supplier to top brands globally. The Company actively embraces renewable energy, water conservation measures, and effective waste management initiatives, demonstrating its dedication to minimising its environmental footprint.

The domestic candied fruits and jelly industry also experienced a year of robust growth. Some factors for this growth include the resurgence of out-of-home channels and pent-up demand driven by consumers returning to socialising along with increased outreach in rural electrification and increase of capacities by large brands.

The Indian beverages industry presents significant growth opportunities in the future, driven by deeper penetration into rura l markets, an expanding demographic profile, and a growing middle-class population. Furthermore, with the growth in per capita income, consumers are willing to spend more on premium and niche products. Urbanisation is also playing a significant role in the growth of the industry, as more people move to urban areas and have greater disposable income.

Tapi Fruit Processing Limited secured equity commitments to the tune of INR 7,61,280.00 Hundred in FY 2022-23. This was by way of issue of Equity shares to marquee investors in India to fund the Companys capex and working capital requirements to cater to the incremental demand. The Company will continue to grow through organic and inorganic means to create value for all its stakeholders.

The Company has implemented several strategic initiatives to enhance its operational excellence.


Products Description
Candied, Crystallized and Glazed Fruit and Vegetable Products ("Candied Fruit") These products are made out of 100% fruits and vegetables cooked in sugar syrup. Our products under this category includes tooty fruity, karonda cherry, amla candy. We sell these products under our brand "Tapi", "MumMum" and "Boleto".
Fruit Bar, Jellies, Fruit Jam & Fruit Leathers ("Fruit Jellies") A product made out of natural fruit pulps dried and shaped in to roll form or bar forms. Our products under this category includes mango fruit rolls, tamarind bars etc. These are fruit jellies made from sugar, glucose, pectin along with fruit pulps added with flavours and colors. Our products under this category includes jelly balls, fruit bears, fruit jelly pops, Jams, fruit katli and jelly cubes. Fruit Jam made from sugar, glucose, pectin along with fruit pulps added with flavours and colors.
Chutney & Sauces In this category we sell Ketchup made from tomato paste under our brand "Tapi".
Beverages Under this category our product includes fruit crush and fruit syrups. Our Company recently reintroduced its fruit syrups under its new packaging, with added fruit content.
Nutraceutical Products We manufacture herbal base nutraceutical products as gummies, fortified with minerals as a functional food. These products are available as multi vitamin gummies, etc.


Tapi have placed a strong emphasis on developing their in-house R&D abilities, which, has been instrumental in companys growth. Their inhouse R&D initiatives have resulted in the expansion of companys product portfolio, maintaining the quality of our products and translating feedback received from customers, dealers and distributors into concrete results.

The research and development activities emphasize designing and developing new products keeping in mind market standards, cus tomer requirements, cost of production and compliance with applicable standardization norms.


^ Growing Packaged Food and Beverage Consumption: Large and Expanding Indian Market ^ International Market Expansion: Introducing Products to Cater to Indian Diaspora and Ethnic Food Aisles ^ Premium Product Development: Targeting Consumers Seeking High-Quality Offerings ^ Strengthening Supply Chain and Business Practices: Enhancing Operational Efficiency and Cost Reduction THREATS

^ High Tax Structure

^ Volatility in Commodity and Currency Rates: Led by inflationary pressures and mobility restrictions ^ Broad-Based Cost Pressures: Including commodity prices, input cost inflation, and freight challenges


The company is primarily engaged in the business of Corrugated Plastic Sheets, which constitute a single reportable segment in accordance with Ind AS 108 - "Segment Reporting".

Financial Highlights

INR In Hundred




F.Y. 2022-23 F.Y. 2021-22 F.Y. 2022-23 F.Y. 2021-22
Revenue from Operations 20,51,084.49 15,16,324.67 20,67,208.21 15,16,324.67
Other Income 6,682.35 5,764.11 6,682.35 5,764.11
Total Income 20,57,766.84 15,22,088.78 20,73,890.56 15,22,088.78
Less: Total Expenses before Depreciation, Finance Cost and Tax 20,00,293.62 13,99,561.66 20,15,701.37 13,99,561.66
Profit before Depreciation, Finance Cost and Tax 57,473.22 1,22,527.12 58,189.19 1,22,527.12
Less: Depreciation 62,481.12 57,538.16 62,490.67 57,538.16
Less: Finance Cost 15,493.86 43,248.00 15,501.99 43,248.00
Profit Before Extraordinary & Exceptional Items and Tax (20,501.75) 21,740.96 (19,803.46) 21,740.96
Less: Extraordinary & Exceptional Items 626.09 665.21 626.09 (665.21)
Profit before tax (21,127.84) 21,075.75 (20,429.55) 21,075.75
Less: Current Tax - 6,644.20 126.25 6,644.20
Less: Earlier Years Tax (162.74) - (162.74) -
Less: Deferred tax Liability (Asset) (1,538.26) (1,172.15) (1,488.75) (1,172.15)
Profit after Tax (19,426.84) 15,603.70 (18,904.31) 15,603.70

Financial Performance On Standalone Basis

During the year under review, the revenue from operation of the Company was stood at INR 20,51,084.49 Hundred as against that of INR 15,16,324.67 Hundred for previous year. Revenue from operation of the Company was increased by 35.27% over previous year.

Loss before Tax for the financial year 2022-23 stood at INR 21,127.84 Hundred as against Profit before Tax of INR 21,075.75 Hundred making the net loss of INR 19,426.84 Hundred for the financial year 2022-23 as against the net profit of INR 15,603.70 Hundred for the financial year 2021-22. Due to increase in raw material prices and other expenses, the Company could not generate the requisite profit even though increase in revenue from operations.

The Board is making its continuous efforts for re-visiting the purchase policy of the Company and increasing the capacity utilization of manufacturing capacity. Side by side, the Management is also confident that automatic cooking system installed by the Company will help to achieve the higher revenue and thereby achieving reduction in the fixed cost and manual intervention in the production will lead the Company to generate the profit in the coming years.

On Consolidated Basis

The consolidated revenue from operation of the Company for financial year 2022-23 stood at INR 2067,208.21 Hundred. Loss before Tax for the financial year 2022-23 stood at INR 20,429.55 Hundred making the net loss of INR 18,904.31 Hundred for the financial year 2022-23. This being first consolidated financial statement of the Company, no comparison is made with the figures of previous year.


The Company is exposed to various risks and uncertainties which may adversely impact its performance. The Company s future growth prospects and cash flow generation could be materially impacted by any of these risks or opportunities. The major risks as identified by the Company are demand-risks due to any resurgence in the COVID 19 pandemic, currency risk associated with imports, unfair competition, etc. The Company follows the Enterprise Risk Management (ERM) framework to manage and mitigate such risks which is primarily based on the integrated framework for enterprise risk management and internal controls developed b y the Company.


Particulars F.Y. 2022-23 F.Y. 2021-22 % Change Reason
Debtors Turnover 12.70 times 11.45 times 10.92% Increase in Net Credit Sales
Inventory Turnover 9.25 times 6.36 times 45.44% Increase in Sales
Interest Coverage Ratio 3.67 times 2.82 times 30.14% Decrease in Interest Expenses
Current Ratio 3.60 times 1.09 times 230.28% Decrease in Current Liabilities
Debt Equity Ratio 0.07: 1.00 12.41: 1.00 99.44% Decrease in Total Debt
Operating Profit Margin (%) (1.00%) 1.00% (200.00%) Decrease in Profit
Net Profit Margin (%) (0.95%) 1.03% 192.04% Decrease in Net Profit
Return on Net Worth (5.11%) 44.33% 111.53% Decrease in Profit after Tax


Particulars F.Y. 2022-23 F.Y. 2021-22 % Change Reason
Debtors Turnover 12.80 times 11.45 times 11.79% Increase in Net Credit Sales
Inventory Turnover 9.32 times 6.36 times 46.54% Increase in Sales
Interest Coverage Ratio 3.71 times 2.82 times 31.56% Decrease in Interest Expenses
Current Ratio 3.41 times 1.09 times 212.84% Decrease in Current Liabilities
Debt Equity Ratio 0.07: 1.00 12.41: 1.00 99.44% Decrease in Total Debt
Operating Profit Margin (%) (1.00%) 1.00% (200.00%) Decrease in Profit
Net Profit Margin (%) (0.91%) 1.03% 188.87% Decrease in Net Profit
Return on Net Worth (4.97%) 44.33% 111.21% Decrease in Profit after Tax


Internal Control system and adequacy Internal Control measures and systems are established to ensure the correctness of the transactions and safe guarding of the assets. Thus, internal control is an integral component of risk management. The Internal control checks and internal audit programmes adopted by the Company plays an important role in the risk management feedback loop, in which the information generated in the internal control process is reported back to the Board and Management. The internal control systems are modified continuously to meet the dynamic change. Further the Audit Committee of the Board of Directors reviews the internal audit reports and the adequacy and effectiveness of internal controls.


The Company believes in establishing and building a strong performance and competency driven culture amongst its employees with greater sense of accountability and responsibility. The Company has taken various steps for strengthening organizational competency through the involvement and development of employees as well as installing effective systems for improving their productivity and account ability at functional levels. The Company acknowledges that its principal asset is its employees. Ongoing in-house and external training is provided to the employees at all levels to update their knowledge and upgrade their skills and abilities. As on March 31, 2023, the Company had total 76 full time employees. The industrial relations have remained harmonious throughout the year.


Statements in this Report, describing the Companys objectives, projections, estimates and expectations may constitute forwa rd looking statements within the meaning of applicable laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events. These statements are subject to certain risks and uncertainties. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results may be different from those expressed or implied since the Companys operations are affected by many external and internal factors, which are beyond the control of the management. Hence the Company assumes no responsibility in respect of forward-looking statements that may be amended or modified in future on the basis of subsequent developments, information or events.