Tirupati Industries (India) Ltd Management Discussions.

VEGETABLE OIL INDUSTRY

The Indian Oil industry is estimated to be growing at around 4% annually. The industry segment is characterized to be highly fragmented, less R&D led and less export focused. About 70% of Indias oil consumption is imported. The Indian Oil industry is estimated to be the fourth largest in the world after USA, China and Brazil where the per capita consumption is growing every year. The dynamics of the oil market are influenced by both the organized and unorganized sectors.

Your Company has developed its own strength by quality manufacturing process, right availability of technical manpower and good sourcing of raw materials. In order to leverage its strength and experience, the Company is constantly developing innovative products to enhance sales of our Brand. To improve market share domestically, we focus on excellence in quality, timely deliveries, being price competitive and having innovative marketing and pricing strategies.

CHEMICALS INDUSTRY

The Chemicals industry is one of the fasted growing industries in India. It is estimated that the size of Indian chemical industry is in excess of US$ 32 billion. Volume of production in chemical industry positions India as third largest producer in Asia (after China and Japan), and twelfth largest in the world. The industry, comprising both small scale and large units (including MNCs) produces several thousands of products and bye-products, ranging from specialty chemicals, petro-chemicals, resins, fuels, cosmetics and toiletries.

We are one of the potential players in this industry and the Chemicals, Laboratory Reagents, Methyl Esters and Biodiesel produced by your Company are being well accepted across industries due to its high quality offerings. Your Company has developed our own strength by quality manufacturing process, setting up of a state of the art quality control and R&D laboratory. Your Company focuses on our core competencies of manufacturing and strengthen our technological competence by continuously improving our manufacturing processes and yields of our products. To improve our market share domestically, we focus on excellence in quality, timely deliveries, being price competitive and having innovative marketing and pricing strategies.

The Companys Metallic Compounds are of high quality and ensure that the product meet critical specifications which are required by the end customer. Customization is key for such products and due to the technical expertise; the Company can match any standards as demanded by the customers.

The Company is also exploring various opportunities for sales of its Biodiesel in India and abroad for which it is in the process of tying up with various companies for the product.

OPPORTUNITY

TIRUPATI is catering to many customers in India and in export market and is in the process of increasing its sales and availability of its products. TIRUPATI aims to capture market share in areas of its operations and has plans to appoint various partners ready to enhance sales across the country.

There is an increasing demand for Methyl Esters, Biodiesel Chemicals and Reagents in India with very few established brands providing a complete range of high purity products. Your Company has identified various markets and users for its range of Chemicals. The Company is currently offering a range of about 3000+ products under its portfolio.

There is also a huge demand for Biodiesel in the country and your Company has one of the largest capacities for producing Biodiesel in Western India. The Company has been shortlisted as one of the suppliers to Oil Marketing Companies for supply of Biodiesel to be blended to petroleum diesel and expects to commence the supply once the tenders are finalized.

There is a huge potential for the Innovative Specialty Oils that the Company is developing. The Company has identified a niche market for its products that will be targeted to different demographics across the country. We intend to tap this opportunity by increasing sales and conducting various promotional activities to increase the reach and availability of our products.

DISCUSSION ON FINANCIAL AND OPERATIONAL PERFORMANCE

Your Companys (standalone) income from operations for the current financial year, 2016-17 stands at Rs. 4793.53 lakhs with a profit before tax of Rs. 173.17 lakhs. The future outlook of the Company is extremely positive. With reduced debt and given adequate funding, the Company is poised to achieve higher sales in the near future. The Company is increasing its capital base to make this possible.

CORPORATE SOCIAL RESPONSIBILITY

Your Company is developing initiatives and efforts across all sectors towards its CSR activities. We strive to serve the commitments where we operate. Our values and our policies, which we build on international standards and directives are designed to guide, influence and govern our activities.

We believe in supporting the society and people. They are the most important participants of our business. Hence we strive to put in every effort to give back to the society. Your Company uses Biodiesel, which is an eco friendly substitute of Petroleum Diesel in its manufacturing activities that assists in saving the environment.

OUTLOOK

The outlook for the Company is extremely positive. The products of the Company are being well accepted due to their competitive pricing and high quality offerings. The Company shall continue its growth momentum and also continuously improve processes to give its customers excellent products at par with international standards.

CAUTIONARY STATEMENT

Statement in the Management Discussion and Analysis describing the Companys objectives, projections, expectations and estimates regarding future performance may be forward looking statements and are based on currently available information from available sources online and otherwise. The Management believes these to be true to the best of its knowledge at the time of preparation of this report. However, these statements are subject to certain future events and uncertainties, which could cause actual results to differ materially from those, which may be indicated.