TBI Corn Ltd Management Discussions

ANNEXURE-V

(a) Industry Structure and Developments

The Indian com market, valued at $1.46 billion in 2024, is projected to grow at 7.86% CAGR to reach $2.30 billion by 2030, driven by food, feed, and industrial demand. Major producing states like Karnataka and Maharashtra support year-round cultivation, while government ethanol blending policies (20% by 2025) boost consumption. The sector faces challenges from price volatility and pest threats but benefits from growing exports to Bangladesh, Vietnam and the Middle East. Rising poultry and FMCG demand further strengthens market prospects, positioning corn as a key agricultural commodity with strong growth potential.

(b) Opportunities and Threats Opportunities

Emergence of Contract Farming: The emergence of contract farming in India is bridging the gap between farmers and agribusinesses, ensuring a stable demand for corn and providing farmers with a guaranteed income. This model introduces advanced farming techniques and high-yield seed varieties, significantly boosting productivity. It also supports the growing domestic demand from key sectors such as poultry, starch, and ethanol, while aligning with Indias push for ethanol as a sustainable biofuel, thereby diversifying the uses of corn and strengthening its market potential.

Increase in Export of Corn Products: Rising global demand for Indian corn products like cornmeal and corn oil is driving opportunities to scale production for both domestic and export markets. Supportive import policies for non-GM corn and the ethanol industrys shift from sugarcane to corn are further boosting demand and market potential.

Threats

Lack of Modern Technology: The reliance on traditional farming methods limits yield efficiency and weakens supply chain stability, while post-harvest losses from inadequate storage and processing infrastructure further constrain supply. These challenges may prompt farmers to shift to more profitable crops, reducing corn cultivation, and the absence of digital trading platforms continues to disrupt market dynamics.

Lack of Proper Pest Management: Fall Armyworm infestations are devastating corn crops, reducing yields and acting as disease vectors that threaten livestock and human health, thereby eroding consumer confidence. These outbreaks cause significant economic losses for farmers, disrupt commodity markets, and highlight the urgent need for sustainable pest control strategies to stabilise production.

(c) Segment-wise or Product-wise Performance

Corn Grits: Demand remains steady from breweries and snack manufacturers, with export potential growing in Southeast Asian markets due to competitive pricing.

Corn Bran: Gaining traction in health-conscious markets as a high-fiber ingredient for breakfast cereals and animal feed, though production volumes remain limited.

Broken Maize: Continues to dominate as the primary component in snack and cattle feed, with prices fluctuating based on seasonal crop yields..

Processed Indian Yellow Maize: Sees rising demand from grit making industries as well as animal feed industries across India as well as South-east Asia.

Corn Flour: Experiences consistent growth in retail and food service sectors, particularly for gluten-free and bakery applications, though faces competition from alternative flours.

Corn Flakes: Benefits from increasing preferences for Indian traditional namkeen and farsana items across the country.

Corn Germ: Increasingly valued for its oil extraction potential in edible oil production, while residual meal maintains strong demand in livestock feed formulations.

The processed maize segment (flakes, flour, grits) shows higher value realization compared to bulk commodities (broken maize, bran), reflecting shifting consumption patterns toward convenience foods. Industrial usage demonstrates the most aggressive growth trajectory, aligning with Indias food processing sector expansions.

(d) Outlook

The Indian corn market is set to grow at a 7.86% CAGR, reaching USD 2.3 billion by 2030, driven by ethanol blending targets, rising animal feed use, and greater demand for processed products. Productivity gains from hybrid and GM seeds, micro-irrigation, and precision farming, backed by government support and supply chain upgrades, will strengthen growth. Opportunities include bio-industrial applications, non-GM exports, and climate-resilient varieties, while challenges remain in crop competition, GM approvals, and logistics. By 2029, processing uses are expected to make up 45% of demand, making corn Indias third most important cereal after rice and wheat.

(e) Risks and Concerns

The Indian corn industry faces climate risks from erratic monsoons and droughts that threaten yields. Pest attacks like Fall Armyworm cause major crop losses, while delays in GM seed approvals keep productivity low. Weak storage infrastructure and fragmented supply chains lead to high post-harvest losses. Rising input costs and price volatility from competing crops add pressure on farmer margins. The ethanol program may divert corn from food and feed uses, creating supply imbalances. Export competitiveness suffers from high domestic prices and inconsistent quality. Labor shortages and low mechanization in small farms further limit productivity gains, posing risks to the industrys growth outlook.

(f) Internal Control Systems and Their Adequacy

The company has implemented robust internal control systems that ensure efficient operations, compliance with laws and regulations, and the reliability of financial reporting. Regular audits and reviews are conducted to assess the adequacy of these systems, with improvements made as necessary to address any identified weaknesses. The internal control framework is deemed adequate and effective in mitigating risks.

(g) Discussion on Financial Performance with Respect to Operational Performance

The companys financial performance has been strong, with revenue growth driven by increased sales across key product segments. Operational efficiency initiatives have resulted in improved margins, despite fluctuations in raw material prices. Investment in technology and production capacity has also contributed to better operational performance, enabling the company to meet growing demand.

(h) Material Developments in Human Resources / Industrial Relations Front, Including Number of People Employed

During the financial year, the company has made significant strides in strengthening its human resources. New training programs have been introduced to enhance employee skills, particularly in areas of quality control and production efficiency. Industrial relations have remained stable, with no major disruptions. The total number of employees as of the end of the financial year stands at 2024-25.

(i) Details of Significant Changes in Key Financial Ratios