Times Green Energy India Ltd Management Discussions

<dhhead-MANAGEMENT DISCUSSION AND ANALYSIS REPORT </dhhead-

I) INDUSTRY STRUCTURE AND DEVELOPMENTS:

Times Green Energy India Limited (TIMES) is a company founded by a group of women entrepreneurs. It started off by manufacturing of natural organic fertilizers through agri-waste management systems with technical support from Excel Industires along with manufacturing of Sanitary napkins and other women hygiene products.

Within five years of its inception, TIMES has built a strong network. With two manufacturing units located in and around Hyderabad, TIMES has grown into a large corporate with Agriculture, Women Hygiene and E-commerce as main verticles.

The board of directors of our Company is made up entirely of experienced and dynamic women, who have been managing TIMES since its inception. Recently, TIMES has entered the women’s hygiene and safety segment by manufacturing and marketing sanitary napkins, baby nappies, and adult nappies and other products through our ecommerce site Bazaartimes.in.

1. GLOBAL ECONOMY

Despite the pace and magnitude with which monetary policy rates went up since 2022, global growth has remained resilient - the world avoided a recessionary event, the banking system remained largely robust, and major emerging market economies did not suffer sudden stops. Higher household spending and larger than expected government expenditure has supported the aggregate demand.

Economic growth was stronger than expected in 2023 in the United States (2.5%) and several major emerging market and developing economies (4.3%). Euro area displayed the smallest upside (0.4%) reflecting weaker consumer sentiment and lingering effect of high energy prices. China’s economy (5.2%) was affected by the enduring downturn in its property sector. Overall, for the year 2023 global growth stood at 3.2%, making a strong recovery from 2.3% in 2022.

After the surge in 2020 through 2022, headline inflation for advanced economies neared its pre-pandemic level for the first time in late 2023. There was a steep correction in commodity prices in 2023, with decline experienced in all the major segments viz fuel, metal, fertilizer and food. Going forward, IMF forecasts global headline inflation to fall from 6.8% in 2023 to 5.9% and 4.5% in 2024 and 2025 respectively.

With around 64 countries—representing 49% of the combined global population—heading for elections in 2024, the year is expected to witness political uncertainties. IMF projects global growth at 3.2% in 2024 on account of greater-than-expected growth in United States and Europe. Growth in China is projected to slowdown from 5.2% in 2023 to 4.6% in 2024 as post pandemic boost to consumption and fiscal stimulus ease and weakness in property sector persists. Faster disinflation is expected to lead to further easing of financial conditions. However, the conflict in Gaza and Israel escalating into the wider region, marine trade disruption in the Red Sea and the ongoing war in Ukraine poses supply side risks and can impact food, energy, and transportation costs.

2. INDIAN ECONOMY

During the year, the Indian economy continued to expand at an accelerated pace, supported by fixed investment and improving global environment. As per RBI’s April’24 forecast, India’s real GDP growth stood at 7.6% for FY24, led by growth in manufacturing and services sector.

The year witnessed organizations taking significant strides towards adoption of Artificial Intelligence specially in Gen AI space. The Indian government has also shown increasing interest and investment in AI technology, recognizing its potential to drive economic growth and solve societal challenges. Several initiatives have been launched to foster AI development in India including launch of National AI Portal, which serves as a central platform for AI-related resources, policies, and initiatives. Additionally, the government has established AI research institutes and centers of excellence to promote research and innovation in AI. However, challenges such as data privacy, skill shortages, and ethical concerns remain significant barriers to the widespread adoption of AI in India.

India continued its green energy transition towards meeting its CoP 26 commitments. As part of this, India is aggressively expanding its renewable energy capacity and the Government has implemented various policies and incentives to promote green energy development, including subsidies, tax incentives, and renewable purchase obligations for utilities. Further, policy support towards developing electric vehicle value chain has seen increased interest from the industry.

3. TRENDS IN THE GLOBAL AGRICULTURE MARKET

The increasing demand for organic products, both domestically and globally, along with the premium prices commanded by organic produce, presents a lucrative market for farmers and agribusinesses. Integration of technology, such as precision farming and blockchain for traceability, enhances the credibility of organic products and fosters consumer trust.

Strategic collaborations between farmers, retailers, and e-commerce platforms contribute to expanding the market reach of organic produce, creating a robust supply chain for the industry. Additionally, the growing interest of multinational corporations in sourcing organic raw materials from India underscores the global potential of the organic farming sector.

There has been an increasing shift from traditional to technology-driven sustainable farming practices, which marks a significant stride toward ensuring agriculture’s long-term viability while reducing its environmental impact. Consumers’ growing awareness of agricultural environmental impact and preference for green foods and new regulations such as the European Union’s Farm to Fork (F2F) Strategy is driving this move

Demand for biofuel feedstocks is expected to grow slowly over the next ten years. Most additional biofuel use of agricultural crops is expected to occur in India and Indonesia, driven by increasing transport fuel use and higher biofuel blending requirements.

4. INDIAN AGRICULTURE

Agriculture is the bedrock of Indian economy, holding second-largest agricultural land globally and generating employment to about half of the country’s population. Over the years, India has emerged as a leading producer of key agricultural commodities, achieving self-sufficiency in food grain output and servicing the nutrient needs of the world. With a production of 330 million tons of food grains in FY23, India ranks third in the overall global output, and is a leading exporter of agricultural commodities. Supportive policy measures by the Central and state governments to improve crop productivity, income support through farm subsidies and infrastructure creation has helped in propping up the rural economy. However, some of the structural challenges like low average land holding, low level of mechanization and seasonal dependence on monsoon persists, which continues to impact the productivity of Indian farms.

The organic farming industry in India has experienced a significant upswing in recent years, signalling a shift in consumer preferences towards healthier and environmentally sustainable agricultural practices. Government support, coupled with increasing consumer awareness and technological advancements, plays a pivotal role in unlocking the full potential of organic farming as a sustainable and economically viable practice in India.

The India Organic Fertilizer Market was valued at USD 577.10 Million in 2023 and is expected to reach USD 942.39 Million by 2032, at a CAGR of 5.6% during the forecast period 2023 - 2032.

Organic fertilizers are naturally available plant, animal and mineral sources that contain moderate amounts of plant essential nutrients. Organic fertilizers refer to those organic amendments applied to the soil such as include animal manure, sewage sludge, and compost, along with rendering waste, guano, brewery waste, digestate and other bio-wastes.

The government of India has announced schemes worth crores for encouraging organic farming and fertilizer industry, as India has the potential to become the hub of organic fertiliser production in the world.

The COVID-19 pandemic, in general, has made people realise the importance of good health, wellness, and nutrition. Organic food contains an absence of Chemical pesticides and is widely acknowledged for its nutritional benefits, lack of carcinogenic substances, and boosting immunity. .

Various factors such as increasing awareness about the health benefits associated with the consumption of organic products, and changes in the purchasing behaviour of consumers are propelling the demand for organic food, which in turn boosts the demand for organic fertilizers and thereby market growth.

The organic food industry in India, valued at approximately INR 131.41 billion in 2023, is poised to reach around INR 625.69 billion by 2028. This reflects an impressive compound annual growth rate (CAGR) of about 37.01 percent during the forecast period from 2024 to 2028.

The surge in popularity of organic farming is driven by global awareness of the environmental impact of conventional agriculture. This combined with a growing health-conscious consumer base, positions organic farming as a leading practice in the Indian agricultural landscape. The demand for chemical-free produce, sustainable farming practices, and a preference for healthier lifestyles contribute to the sectors growth.

5. WOMAN HYGIENE & SAFETY

Our promoters began their journey by getting involved in procuring and distribution of natural organic plant protection products and other organic products for the betterment of farming amongst villages and hence our Company was formed to formalize such trading and distribution activities. Thereafter we acquired agricultural land in 2013 and used certain available farm area to carry out farming activities to research and develop methods of improving farm yield and thereafter educating and supporting women farmers to use such products thereby growing our distribution and touch point base. Even though we did not carry out any large scale farming activities ourselves we were able to create an ecosystem of various small farmers whom we acted as trading intermediaries for better realization of their produce. Further with our growing network of women among these villages we started helping to create awareness about women hygiene products such as Sanitary Napkins along with other organizations doing such work. Thereafter in 2018 we formally entered into Woman Hygiene & Safety Segment by launching Sanitary Napkins under our brand name - "Monthly times".

The market was valued at INR 25.02 billion in 2018 and is expected to reach INR 58.62 billion by 2024, expanding at a compound annual growth rate (CAGR) of ~14.92%, during the 2019-2024 period. In India, approximately 60% of women are diagnosed with vaginal and urinary tract diseases and infections every year due to poor menstrual hygiene. Growing awareness about intimate hygiene and increase in preference for sanitary products like tampons and panty liners have garnered a huge demand for feminine hygiene products in the country. The entry of new players and start-ups is expanding the feminine hygiene products market in India

6. FEMININE HYGIENE PRODUCT MARKET OUTLOOK

With an estimated CAGR of 9.0%, the global feminine hygiene product market size has the potential to surpass US$ 32,714.70 million in 2023. By 2033, feminine hygiene product sales are expected to be estimated at US$ 77,399.90 million.

From 2023 to 2033, the feminine hygiene product market may grow due to the increased acceptance and awareness of menstrual hygiene management practices. The growing demand for menstrual products is aided by the increased emphasis on gender equality and womens empowerment.

The feminine hygiene industry is expanding due to many product innovations and technological advancements. To satisfy consumers changing needs and preferences, feminine hygiene product manufacturers always create new products with enhanced comfort, absorption, and convenience.

The growing consciousness among women regarding the significance of menstrual health and feminine hygiene is a major factor accelerating the feminine hygiene product market expansion. Initiatives and campaigns for education have helped raise awareness of this. Continuous improvements in manufacturing processes, materials science, and product design have produced more comfortable and practical feminine hygiene products, stimulating feminine care product market expansion.

The feminine hygiene product market has grown due to cultural and societal shifts that put womens health and hygiene first. These shifts have stimulated conversations about menstruation and supported creative product solutions. Since urban areas typically offer better access to a broader range of products and better sanitation facilities, the trend of urbanization has resulted in a greater adoption of feminine hygiene products.

Due to rising consumer awareness, shifting consumer preferences, and market innovations, sales of feminine hygiene products saw significant growth between 2018 and 2022. There was a noticeable shift during this time towards eco-friendly and sustainable options.

The feminine hygiene product market may continue to change between 2023 and 2033. Forecasts indicate that technology innovation, sustainability, and customization to meet various needs may remain priorities. To develop novel, eco-friendly solutions, adjust to social norms and consumer preferences, and broaden their reach, feminine hygiene product vendors should make research and development investments.

3. OPPORTUNITIES AND THREATS:

After nearly four decades of globally acclaimed phenomenal increase in food grains production, termed as Green revolution, Indian agriculture is once again at cross roads. Despite a plethora of schemes at the national and state level, the agricultural growth rate is struggling to achieve the four per-cent growth rate set up by National Development Council to achieve a double digit growth rate of 10%. Agriculture is becoming non remunerative and if farmers are not getting enough money to be encouraged to stay in agriculture, it would be ridiculous to come up with a binding legislation on food security.

(A) OPPORTUNITIES: The growing trend towards sustainable and organic agriculture is expected to create lucrative opportunities for the market. Favorable growth of organic agricultural practices all over India coupled with state government initiatives to promote organic farming is creating lucrative opportunities for the market during the forecast period.

1. Favorable government initiatives:

Favorable government policies are also expected to create lucrative opportunities for the market during the forecast period. For instance, the Government of India is promoting Natural Farming on a larger scale in Mission Mode to cover a 7.5 lakh hectare area by developing 15,000 clusters along Ganaga Basin and other red flag areas.

Initiatives such as the Menstrual Hygiene Day Foundation’s educational campaigns play a crucial role in raising awareness about menstrual health, highlighting the importance of proper feminine hygiene products.

2. Growing research:

Growing research and development in organic fertilizer is expected to create lucrative opportunities for the market during the forecast period. Indian Council of Agricultural Research (ICAR) under the Network project on ‘Soil Biodiversity-Bio-fertilizers’ has developed new technologies for rapid composting within farm renewable resources which is a potential source of organic fertilizers. Under this project, ICAR has developed improved and efficient strains of bio-fertilizers specific to various crops and soil types. Through this project, ICAR provides training and guidance to farmers on the use of organic fertilizers. Thus, such initiatives are expected to create lucrative opportunities for the market during the forecast period.

Product diversification, particularly through the introduction of organic and eco-friendly options in Feminine Hygiene Products, is driving the growth of the Feminine Hygiene Products industry.

3. Expansion in niche segments:

Expanding into niche segments within the feminine hygiene products market presents a promising avenue for growth by catering to specialized consumer needs. For example, the introduction of menstrual cups designed specifically for athletes.

4. Market Trends :

Trends indicate a sharp increase in on-the-go eating, snacking in between meals, switching to healthier eating alternatives, pre-cooked ready-to-eat meals, and increasing consumption of organic foods. This has led to a host of new opportunities in the consumer foods market for both domestic and international companies to build a stake in this fast-growing processed food market.

(B) THREATS: These are also the external elements in the environment that could cause trouble for the enterprise.

1. Land Degradation

More than 5 billion tonnes of soil is washed every year taking with it 6 million tonnes of nutrients. A look at Table 3 reveals that threat of land degradation looms large over Indian agri-culture. Presently 93.7 million hectares of land is under threat of water erosion, 9.5 m ha under wind erosion, 14.3 m ha under water logging, 5.9 m ha from soil salinity, 16 m ha from soil acidity and 7.4 m ha from other types of threats. This puts the total area under land degradation to 146.8 m ha i.e. more than the total cultivable land.

2. Low seed replacement ratio

In India still those varieties are used which were developed 20-30 years ago. We have a low seed replacement ratio of 20-25%. There is a close relationship between good quality seed and the yield. Quality seeds can increase yield by 25-30%. There is a need to rejuvenate the seed sector by producing more quality seeds by National Seeds Corpora-tion and State seed corporations.

3. Declining Interest in Agriculture:

A survey by National Sample Survey Organization (2005) reveals that 41% of farm-ers want to leave agriculture if any other option was available. Even in agriculturally progressive state like Punjab 37% of farmers wants to quit agriculture. Definitely the percentage must have risen high now. 95% of farming community has no access to microfinance and insurance. 56% still borrow from informal sources and 70% has no deposit account in Banks. Crop insurance also covers only 4-6% of farmers. Youths are not interested in agriculture. This is because agriculture is not economically rewarding and intellectually stimulating. A December 2012 report of the Institute of Applied Manpower Research (IAMR) a part of the planning commission on an average 2,035 farmers are losing main cultivators status every single day for the last 20 years. Census 2011 also shows that we now have 95.8 million cultivators for whom farming is their main occupation and this number is down from that was 103 million in 2001 and 110 million in 1991. Between 1981 and 1991 the number of cultivators (main workers) actually went up from 92 million to 110 million. The huge decline comes after post 1991.

4. Lack of education:

The lack of open dialogue and education about menstrual health perpetuates the stigma, further inhibiting market expansion. Without adequate awareness campaigns and educational initiatives to challenge these taboos, the market for feminine hygiene products remains constrained

5. Face obstacles in marketing

In regions where cultural beliefs heavily influence societal attitudes towards menstruation, market penetration becomes particularly challenging. Companies face obstacles in marketing their products effectively and may struggle to shift ingrained cultural perceptions.

Addressing these cultural barriers requires not only targeted marketing strategies but also broader societal efforts to normalize conversations about menstruation and promote menstrual health education. Only through dismantling stigma and challenging cultural taboos can the Feminine Hygiene Products market realize its full growth potential.

4. RISKS AND CONCERN:

Risk is an integral part of the business and we aim at delivering superior shareholder value by achieving an appropriate balance between risks and returns. The financial services industry is subject to continuously evolving legislative and regulatory environment due to increasing globalization, integration of world markets, newer and more complex products & transactions and an increasingly stringent regulatory framework.

The agricultural sector is exposed to a variety of risks which occur with high frequency. These include climate and weather risks, natural catastrophes pest and diseases, which cause highly variable production outcomes. Production risks are exacerbated by price risks, credit risks, technological risks and institutional risks. Risk management in agriculture ranges from informal mechanism like avoidance of highly risky crops, diversification across crops and across income sources to formal mechanisms like agriculture insurance, minimum support price system and future’s markets.

Stigma and Cultural Taboos present a formidable restraint hindering the growth of the Feminine Hygiene Products market. In societies where menstruation is steeped in cultural taboos, discussions around feminine hygiene remain restricted, impeding the adoption of modern products.

For example, in various cultures, menstruation is perceived as taboo, leading to silence and reluctance to embrace contemporary feminine hygiene solutions. These deep-rooted taboos create significant barriers to market growth by perpetuating myths and misconceptions about menstruation and hygiene.

Women may feel ashamed or embarrassed to openly discuss their menstrual needs or seek out appropriate products. Consequently, the demand for modern feminine hygiene products stagnates, as cultural norms discourage their usage.

5. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The company has an Internal Control System commensurate with its requirement and size of business to ensure that the assets and interest of the company assets are safeguarded. The adequacy and effectiveness of the internal control across various activities, as well as compliance with laid down system and policies are comprehensively and frequently monitored by your company’s management at all the levels of the organization. The company has established well defined policies and processes across the organization covering all major activities including authority for approvals. In all cases where monetary decisions are involved, various limits and authorities are in place.

The Company’s internal controls are structured in a manner that ensure reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use or losses, executing transactions with proper authorization and ensuring compliance of corporate policies, laws and accounting standards.

6. HUMAN RESOURCES:

Times Green Energy (India) Limited is part of a dynamic and progressive group that actively fosters a challenging work environment and encourages Entrepreneurship. With trust being the critical part of our business belief, we lay a strong emphasis on integrity, teamwork, innovation, performance and partnership. Our professional staff with diverse backgrounds brings varied talent, knowledge and experience to the Group, helping our businesses to remain competitive, achieve greater success and newer milestones. Our management team and board of directors are resolved to do what, we believe, is best for our shareholders, clients and associates.

7. FINANCIAL OVERVIEW:

The company’s turnover for the year under review was Rs. 32,73,65,000 from Rs. 20,56,48,000 in the previous year, a considerable rise of around 17%, owing to an increase in pricing and volume as compared to the previous year, which was impacted by the Covid 19 pandemic and reduced economic activity.

Profits:

For the year, profit before finance costs, depreciation, tax, and exceptional items was Rs 49,02,000 (Rs. 43,26,000 the previous year).

10. GOVERNMENT INITIATIVES

Government Initiatives in Agriculture Sector -

- The government of India is implementing various supportive policies and schemes to promote organic farming. For instance, schemes such as Paramparagat Krishi Vikas Yojana (PKVY) and

Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) are providing end-to-end support to farmers engaged in organic farming i.e. from production to processing, certification and marketing and post-harvest management. Such supportive policies are encouraging organic farming in India, which in turn boosts the demand for organic fertilizers.

- Budget 2024 - The minister has allocated Rs100 crore for promotion of organic fertilizers during FY25 against Rs6 crore in FY24 (RE). A new scheme for promotion of organic fertilizers providing Market Development Assistance (MDA) and promotion of Research and Development as Galvanizing Organic Bio-Agro Resources Dhan (GOBARdhan) initiative was introduced in 2023. The PM-PRANAM scheme was also launched last year to grant financial incentive under a formula to states if they reduce usage of chemical fertilizers. This scheme, aimed at converting biodegradable/ organic waste, including cattle dung and, agricultural residues and other biomass, into valuable resources such as biogas, compressed biogas (CBG), and organic manure, was a niche initiative to promote a circular economy through a novel "Whole of Government" approach, an official statement said.

- The Market Development Assistance (MDA) scheme has been approved to incentivise the sale and marketing of FOM/LFOM (a by-product from GOBARDhan plants), promoting organic farming.

- Ministry of New & Renewable Energy Biomass Division Administrative has given approval for implementation of Biomass Programme under the Umbrella scheme of National Bioenergy Programme for duration of FY 2021-22 to 2025-26 (Phase-I)- Reg. The Phase-I of the Programme has been approved with a budget outlay of Rs. 858 crore. The Ministry of New and Renewable Energy (MNRE), Government of India has notified the National Bioenergy Programme on November 2, 2022. MNRE has continued the National Bioenergy Programme for the period from FY 2021-22 to 2025-26.

- Ministry of New & Renewable Energy (Biogas Division) Administrative approval for implementation of Biogas Programme under the Umbrella scheme of National Bio Energy Programme for FY 2021-22 to 2025- 26- (Phase-I) regarding. MNRE has continued the National Bioenergy Programme for the period from FY 2021-22 to 2025-26. The Programme has been recommended for implementation in two Phases. The Phase-I of the Programme has been approved with a budget outlay of Rs. 858 crore.

- Through several Digital Initiatives, such as the National e-Governance Plan in Agriculture, the construction of Digital Public Infrastructure, digital registries, etc., the government has taken various steps to ensure access to IT across the nation.

- In the Union Budget 2023-24: Rs. 1.24 lakh crore (US$ 15.9 billion) has been allocated to the Department of Agriculture, Cooperation and Farmers’ Welfare & Rs. 8,514 crore (US$ 1.1 billion) has been allocated to the Department of Agricultural Research and Education.

- Through several Digital Initiatives, such as the National e-Governance Plan in Agriculture (NeGP- A), the construction of Digital Public Infrastructure (DPI), digital registries, etc., the government has taken a number of steps to ensure access to IT across the nation.

- The Soil Health Card site has been updated and connected with a Geographic Information System (GIS) system, allowing all test results to be captured and shown on a map. Samples are now being gathered using a mobile application as of April 2023 under the new system.

- The Agricultural Technology Management Agency (ATMA) Scheme has been implemented in 704 districts across 28 states and 5 UTs to educate farmers. Grants-in-aid are released to the State Government under the scheme with the goal of supporting State Governments efforts to make available the latest agricultural technologies and good agricultural practices in various thematic areas of agriculture and allied sector.

- Since its inception, i.e. from 01.04.2001 to 31.12.2022, a total of 42,164 storage infrastructure projects (Godowns) with a capacity of 740.43 Lakh MT have been assisted in the country under the Agricultural Marketing Infrastructure (AMI) sub-scheme of the Integrated Scheme for Agricultural Marketing (ISAM).

- The Centre has granted permission to 5 private companies to conduct cluster farming of specified horticulture crops on approximately 50,000 hectares on a trial basis, with a total investment of Rs. 750 crore (US$ 91.75 million). The 5 companies chosen through a bidding process for the pilot cluster farming program are Prasad Seeds, FIL Industries, Sahyadri Farms, Meghalaya Basin Management Agency.

- 27,003 Loans have been sanctioned in the country under credit linked subsidy component of the PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME).

- In July 2022, the PM Formalisation of Micro food processing Enterprises (PMFME) scheme was launched for providing financial, technical, and business support for setting up/ upgradation of micro food processing enterprises in the country with an outlay of Rs. 10,000 crore (US$ 1.27 billion).

- The Indian government is planning to launch Kisan Drones for crop assessment, digitization of land records, and spraying of insecticides and nutrients.

- NABARD will assist in the creation of a blended capital fund with a focus on the agricultural startup ecosystem which will be used to fund agriculture and rural enterprise startups that are related to the farm product value chain.

- A network of 729 Krishi Vigyan Kendras has been established at the district level across the country to ensure that newer technologies such as improved variety seeds of crops, new breeds/ strains of livestock and fish, and improved production and protection technologies reach farmers.

- In October 2021, the Union Minister of Home Affairs and Cooperation launched the ‘Dairy Sahakar’ scheme in Anand, Gujarat.

- Ministry of Civil Aviation launched the Krishi UDAN 2.0 scheme in October 2021. The scheme proposes assistance and incentive for the movement of agri-produce by air transport. The Krishi UDAN 2.0 will be implemented at 53 airports across the country, largely focusing on Northeast and tribal regions, and is expected to benefit farmers, freight forwarders, and airlines.

- In October 2021, the Agricultural and Processed Food Products Export Development Authority (APEDA) signed a Memorandum of Understanding (MoU) with ICAR-Central Citrus Research Institute (ICAR-CCRI), Nagpur, for boosting exports of citrus and its value-added products.

- In October 2021, the Union Ministry of Agriculture and Farmers Welfare announced that 820,600 seed mini-kits will be distributed free of cost in 343 identified districts across 15 major producing states under a special programme. This programme is likely to boost production and productivity by speeding up the seed replacement rate and subsequently, help in increasing farmers’ income.

- In September 2021, Prime Minister Mr. Narendra Modi launched 35 crop varieties with special traits such as climate resilience and higher nutrient content.

- Prime Minister of India launched the Pradhan Mantri Kisan Samman Nidhi Yojana (PM-Kisan) and transferred Rs. 2,021 crore (US$ 284.48 million) to bank accounts of more than 10 million beneficiaries on February 24, 2019. As per the Union Budget 2021-22, Rs. 65,000 crore (US$ 8.9 billion) was allocated to Pradhan Mantri Kisan Samman Nidhi (PM-Kisan).

- The Indian government has initiated Digital Agriculture Mission for 2021-25 for agriculture projects based on new technologies such as artificial intelligence, blockchain, remote sensing and GIS technology, drones, robots, and others.

- In September 2021, the Union Ministry of Agriculture and Farmers’ Welfare signed 5 MoUs with CISCO, Ninjacart, Jio Platforms Limited, ITC Limited, and NCDEX e-Markets Limited. This MoU will have 5 pilot projects, which will help farmers make decisions on the kind of crops to grow, the variety of seeds to use, and best practices to adopt to maximise yield.

- With a budget of US$ 1.46 billion, the ‘Production-Linked Incentive Scheme for Food Processing Industry (PLISFPI)’ has been approved to develop global food manufacturing champions commensurate with Indias natural resource endowment and to support Indian food brands in international markets

- Under Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PM FME), an outlay of Rs. 10,000 crore (US$ 1.27 billion) over a period of 5 years from FY21 to FY25 has been sanctioned.

- In April 2021, the Government of India approved a PLI scheme for the food processing sector with an incentive outlay of Rs. 10,900 crore (US$ 1.48 billion) over a period of 6 years starting from FY22.

- The Agriculture Export Policy, 2018 was approved by the Government of India in December 2018. The new policy aimed to increase India’s agricultural export to US$ 60 billion by 2022 and US$ 100 billion in the next few years with a stable trade policy regime.

- The Government of India is going to provide Rs. 2,000 crore (US$ 306.29 million) for the computerisation of the Primary Agricultural Credit Society (PACS) to ensure cooperatives are benefited through digital technology.

- The Government of India launched the Pradhan Mantri Krishi Sinchai Yojana (PMKSY) with an investment of Rs. 50,000 crore (US$ 7.7 billion) aimed at the development of irrigation sources for providing a permanent solution to drought.

- Government plans to triple the capacity of the food processing sector in India from the current 10% of agricultural produce and has also committed Rs. 6,000 crore (US$ 729 million) as investments for mega food parks in the country, as a part of the Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters (SAMPADA).

- The Government of India has allowed 100% FDI in the marketing of food products and in food product E-commerce under the automatic route.

- To enhance the income of farmers, the government has taken initiatives across several focus areas. Income support is provided to farmers through PM KISAN Scheme, crop insurance is assured through the Pradhan Mantri Fasal Bima Yojana, and irrigation facilities are ensured under Pradhan Mantri Krishi Sinchai Yojana.

- Access to institutional credit is being provided through Kisan Credit Card and other channels.

- Under the e-NAM initiative, markets across the length and breadth of the nation are now open to farmers, to enable them to get more remunerative prices for their produce. Online, Competitive, Transparent Bidding System with 1.74 crore farmers and 2.39 lakh traders put in place under the National Agriculture Market (e-NAM) Scheme.

- The umbrella scheme Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) ensures Minimum Support Price (MSP) to farmers for various Kharif and Rabi crops while also keeping a robust procurement mechanism in place.

Government Initiatives in Feminine Hygiene Sector

The Indian government has taken several initiatives to improve menstrual hygiene, including schemes to increase awareness and access to sanitary napkins and to ensure safe disposal:

- Menstrual Hygiene Scheme (MHS) - Launched in 2010, this scheme aims to increase awareness and access to high-quality sanitary napkins for adolescent girls in rural areas, and to ensure safe disposal.

- National Guidelines on Menstrual Hygiene Management (MHM) - Developed by the Ministry of Drinking Water and Sanitation as part of Swachh Bharat Abhiyan, these guidelines aim to raise awareness of menstrual hygiene management in rural areas.

- Rashtriya Kishor Swasthya Karyakram - This program, which is part of the Reproductive, Maternal, Newborn, Child and Adolescent Health scheme, aims to increase awareness of and access to sanitary pads.

- Pradhan Mantri Bharatiya Janausadhi Pariyojna (PMBJP) - Implemented by the Department of Pharmaceuticals, this project aims to ensure access to affordable sanitary napkins and medicines for

women. Under the project, over 8,700 Janaushidhi Kendras have been set up across the country, which provide Oxo-biodegradable sanitary napkins called Suvidha for Rs. 1 per pad.

19. FINANCIAL AND OPERATING PERFORMANCE:

The Total Income of the Company stood at Rs 3,273.65 lakhs for the year ended March 31, 2024 as against Rs 2056.48 lakhs in the previous year. The Company made a net profit (after tax) of Rs 47.30 lakhs for the year ended March 31, 2024 as compared to the Rs 41.13 lakhs in the previous year.

KEY FINANCIAL RATIOS:

(Disclosure of the following ratio changed 25% or more as compared to the previous year)

Sr. No. Ratio Analysis	Ratio		Variance %	Reasons for Differences, if Difference is More than 25%.
	2023-24	2022-23
Current Ratio 1	1.30	1.88	30%	Due to increase in trade payables by 367%
Debt Service Coverage ratio	5.91		100%	Due to fresh borrowings in the current year
Inventory Turnover 4 Ratio	0.06		100%	No purchases in the current year
Trade Payable Turnover Ratio	0.05	5.42	99%	Due to increase in trade payables by 367%
Net Profit Ratio 6	1.45%	2%	28%	The cost of financing has increased as a result of new borrowing.
7 Return on Investment		-	0%	-
Debt-Equity Ratio 8	0.07		100%	There is no debt in the previous year
Trade Receivables Turnover Ratio 9	1.61	4.65	65%	There is increase in trade receivables by 3.6 times
Net Capital Turnover Ratio	5.87	5.26	(12%)

 

20. OUR STRENGTH:

• Strong network and established relationships within rural communities in Southern India

Our promoters began their journey by getting involved in procuring and distribution of natural organic plant protection products and organic products for the betterment of farming amongst villages and hence our Company was formed to formalize such trading and distribution activities. Thereafter we acquired agricultural land in 2013 (later converted into non-agricultural land) and used certain available farm area to carry out farming activities to research and develop methods of improving farm yield and thereafter educating and supporting women farmers to use such products thereby growing our distribution and touch point base. Even though we did not carry out any large-scale farming activities ourselves we were able to create an ecosystem of various small farmers whom we acted as trading intermediaries for better realization of their produce. Further with our growing network of women among these villages we started helping to create awareness about women hygiene products such as Sanitary Napkins along with other organizations doing such work. Thereafter in 2018 we formally entered into Woman Hygiene & Safety Segment by

launching Sanitary Napkins under our brand name Monthly times. We believe that since our business

model is heavily reliant on women ecosystem in such villages our established point of sale contacts would help in ensuring stronger growth in the future.

• Low Indirect Tax Product Space

Our all three core activities - i.e. -Agro Products; Bio-Products and Sanitary Napkins are all having NIL and/ or concessional indirect tax rates such as GST. We believe these products would continue to enjoy government benefits and hence growth of our businesses would be benefited from such government initiatives and regulations in future.

21. OUR STRATEGIES

• Continue to focus on women centric business avenues

Our Company is a women entrepreneurial venture. Our organization is deeply involved in the rural ecosystem surrounding women in and around certain villages of Telangana, Andhra Pradesh & border areas of Karnataka. We also involve local agents and traders based in the state of Telangana for sale our goods. Likewise, the Company also procures goods from local dealers and vendors via local agents based in the state of Telangana. We believe that being one of the few companies in India having —All Women Board of Director! would provide us a unique advantageous position w.r.t positioning the Company for dealing with women related products such as sanitary Napkins or even natural organic plant protection products used by farming communities. We intend to carry our PR exercise to strengthen these women centric image of the Company thereby providing us niche in the minds of our consumers and suppliers likewise. Our Company has recently launched a B2C e-commerce application on the playstore by name of Bharatbazaar (Kisaan to Kitchen) wherein our Company sells various categories of products i.e. it has more than 1000 products in its catalogue ranging from cooking essentials such as oil, basmati rice to bakery and dairy items, snacks and branded foods, beverages and a different tab for sanitary napkins.

• Focus on sustainable options in women hygiene Product market.

Our Company is looking forward to explore this industry and promoting reusable and disposable options to promote sustainable future. Reusable and Disposable Sanitary Napkins will reduce the use of plastics and in this way contribute towards the environment.

22. OUTLOOK:

The outlook for the industry depends on (a) consistent demand for Plantation Crops throughout the year (b) a higher realization commensurate with the cost of production and (c) the growth of packet tea segment. The Company has been constantly endeavoring on this. Quality upgradation and attainment of cost

efficiency are the prime missions of the Company. Plant modernization and field development have been undertaken with the above missions in mind.

The Government of India through it ‘Atmanirbhar’ package has rolled out many path breaking reforms particularly in the agriculture and rural sector. It is now important for all institutions to step up and engage all stakeholders to take forward the vision of a rejuvenated, ambitious and self-reliant Bharat.

Disclaimer

The Company’s objectives, projections, outlook, expectations, estimates, and other information expressed in the Management Discussion and Analysis may be considered forward-looking statements under applicable securities laws and regulations. These statements are based on certain assumptions that the Company cannot guarantee.

Several circumstances, some of which the Company may not have direct control over, could have a substantial impact on the Company’s operations. As a result, actual results may differ materially from such projections, whether expressed or implied, because it would be beyond the Company’s ability to successfully implement its growth strategy. The Company assumes no obligation or responsibility to update forward-looking statements or to publicly amend, modify, or revise them to reflect events or circumstances that occur after the date of the statement on the basis of subsequent development, information, or events.