Tirupati Starch Management Discussions

1. Economic Development & Business Overview :

The global industrial starch market grew from $84.29 billion in 2022 to $92.14 billion in 2023 at a compound annual growth rate (CAGR) of 9.3%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services, and affecting many markets across the globe Global inflation is expected to fall from 8.8 percent in 2022 to 6.6 percent in 2023 and 4.3 percent in 2024, still above pre-pandemic (2017-19) levels of about 3.5 percent. The balance of risks remains tilted to the downside, but adverse risks have moderated since the October 2022 WEO. On the upside, a stronger boost from pent-up demand in numerous economies or a faster fall in inflation are plausible. On the downside, severe health outcomes in China could hold back the recovery, Russias war in Ukraine could escalate, and tighter global financing costs could worsen debt distress. Financial markets could also suddenly reprice in response to adverse inflation news, while further geopolitical fragmentation could hamper economic progress.

2. Industry Structure and Development :

The market increase stems from the increasing demand for on-the-go food products that use starch in their formulation and the increase use of starch in the bakery and confectionary sector. The food and beverage sector is, by far, the top market for starch, accounting for 55 per cent of its revenue share. Other important markets include feed, pharmaceuticals, and the retail and food service sectors. The latter accounts for 2.7 per cent in volume of the global starch market. The Asia Pacific region is the largest market for starch, accounting for over 40% of global consumption. This can be attributed to the large population and growing food industry in countries including India.

3. Companys Business Segment :

The Company continues to remain one of the market leaders in the Starch industry. The products of the Company are very well accepted in local and international markets due to its quality and applications. The Company is ISO 9001:2015 certified, certifiying the quality standards of the products and processes which the Company adopts to manufacture its products. The efforts have been put to enlarge the product portfolio of the Company by including the high value products to ensure that the bottom line is improved. Our vision is to build on our history of excellence to create a company that continues to evolve with the nature and grow adapting to a changing world and to changing customer preferences.

The Company is launching a new product Liquid Glucose in the markets which will contribute in the profits and growth of the Company in the long run.

Like previous years, the Company has been supplying its quality products around the globe and performed well this year as well. The Company currently deals with following products:

a. Maize & its byproducts,

b. Dextrose Anhydrous & its byproducts,

c. Dextrose Monohydrate & its byproducts d. Starch & its byproducts

4. Opportunities and Threats : Opportunities :

Corn Starch market growth can be attributed to the easy availability of corn and its wide range of applications in various industries such as food and beverage, pharmaceutical, animal feed, textile industry, paper industry, and others. Post-pandemic, the industry experienced growth due to the utilization of corn starch in various.

a. High demand for these products can be experienced in wide and varied range of below industries:

Food Industry: i. Modified starches are used for functions such as thickening, stabilizing, binding, and emulsification.

ii. Corn starch is also used in preparation of ready to-eat food products.

iii. Sugarcane and corn can be used as alternatives for sweetener/flavour in cold drinks, sweets etc.

iv. Maize oil is widely used for manufacturing Vanaspati & Refined Corn Oil.

Poultry sector : Maize husk and gluten are extensively used for cattle and poultry feeds. Gluten is enriched with very high Quality vegetable protein which is very much useful for cattles.

Paper Industry : To improve the bonding strength of paper and corrugated boxes.

Textile Industry : To soften the fabric and add weight to clothes.

Pharma & Cosmetic Industry : Instant binder and disintegration agent in tablets, emulsions, and ointments, powders etc.

Automobile Industry : Corn starch is also being used in manufacturing of car parts to enhance the car safety aspects.

b. Increased Export Opportunities : Indian exports are still cheaper compared to global prices, creating export opportunities for India.

c. Industrialization : The rapid growth of population and the rapid industrialization has contributed in the growth of corn starch market. Various government scheme supporting the industries is one of the major factor in the growth.

We are one of the market leaders in the starch industry from last more than 35 years which is a remarkable achievement for our Company. Our operational excellence initiatives have delivered significant savings & efficiencies and we continue to grow strategically by expanding into new geographies and increasing our capabilities, meticulously catering to the specifications of our customers in food, beverages and feeds. These actions contributed to the improved results despite muted margins in some businesses. We are also beginning to see the benefits of our aggressive actions to improve our performance and continue to expect that results will improve as we move through the year.

Threats :

The industry faces major threats on the raw material front as Maize being basic raw material, which is an agriculture produce. The availability and price of Maize remain very volatile as its production/cultivation is subject to natural vagaries. The industrys raw material being agricultural in nature is subject to price fluctuations as well as production uncertainty. The industry is also faced with challenges like growing competition in the sector. The price of Maize and all other input costs may go up further in view of monsoon, which may affect the margins of the industry. A few reasons for dampened growth include volatile raw material supply, the competitive need for bio-energy as well as the relationship between oil prices and agricultural raw materials.

5. Segment-Wise or Product-Wise Performance :

The Company is engaged in developing, manufacturing and distribution of Maize Starch Powder, Dextrose Anhydrous, Starch, White Dextrin, Yellow Dextrin as its main products and its by products in local as well as international market.

Product-Wise Performance : The turnover of the company for the current year is 36421.46 Lacs, bifurcated as follows:

S. N.


Amount in Lakhs
1. Dextrose 2404.94
2. Dextrose Monohydrate 14.16
3. Starch 24570.30
4. Byproducts 9067.97
5. Scrap / Waste 357.13
6. Export incentive 6.97
TOTAL 36421.46

Geographical Wise Performance: The turnover of the company for the current year is 36421.46 Lacs, bifurcated as follows :

S. N.


Amount in Lakhs
1. Domestic 36176.22
2. Exports (including incentive) 245.24
TOTAL 36421.46

6. Outlook:

The Company is constantly expanding the current business of the Company and exploring the business opportunities globally. The outlook for the Company for the coming years continues to be positive. Most of the customers have indicated robust growth plans which augurs well for the growth of the Company.

Due to the Russia-Ukraine affecting the global economy, there has been substantial increase in the price of maize. The Company is exploring various measures to control costs internally, such as optimizing operations, streamlining processes, negotiating with suppliers, or seeking more cost-effective alternatives for inputs. We are trying to strike the right balance between maintaining profitability and retaining customer loyalty for the companys long-term success.

7. Risks and Concerns:

Agricultural production and trade flows are subject to government policies, mandates, and regulations. Governmental policies affecting the agricultural industry, such as taxes, tariffs, duties, subsidies, incentives, foreign exchange rates, and import / export restrictions on agricultural commodities and commodity products can influence the plantation of certain crops, the location and size of crop production, whether unprocessed or processed commodity products are traded, the volume and types of imports and exports, the availability and competitiveness of feed stocks as raw materials, the viability and volume of production of the Companys products and industry profitability.

The Companys operating results may be affected by changes in other governmental policies, mandates, and regulations including monetary, fiscal and environmental policies, laws, regulations, acquisition approvals, and other activities of governments, agencies, and similar organizations. These risks include but are not limited to changes in a countrys or regions economic or political conditions, local labour conditions and regulations, reduced protection of intellectual property rights, changes in the regulatory or legal environment, restrictions on currency exchange activities, currency exchange fluctuations, burdensome taxes and tariffs, enforceability of legal agreements and judgments.

The Company is exposed to the risk of price fluctuation of raw materials, dyes and chemicals, work-in-progress and finished goods. The Company manages its commodity price risk by maintaining adequate inventory of raw materials, dyes and chemicals, work -in-progress and finished goods considering future price movement. To counter raw materials risk, the Company worked with various suppliers of Raw Material with the objective to material cost, enhances application flexibility and increase product functionality and also invested product development and innovation.

Further technology risks, supply chain risks, consumer changing demands, environmental risks, competition risks , government regulations, legal mandates, government policies, foreign policies are some of the risks that may impact the profitability and the operations of the Company.

8. Internal Control Systems and their adequacy:

The Company has proper internal control system, which provides adequate safeguards and effective monitoring of the transactions and ensures that all assets are safeguarded and protected against loss from unauthorized use or disposition. The Company has appointed a firm of Chartered Accountants as Internal Auditors and has an effective internal control system to ensure that all the transactions are properly executed and recorded. The systems are also reviewed by the management, statutory auditors and audit committee of the Company to ensure efficiency and transparency in the operations of the Company. The system is also in place to ensure that all applicable statutory and legal formalities are complied with. The management of company has the responsibility for establishing and maintaining internal controls for financial reporting, to evaluate the effectiveness of internal control systems of the company pertaining to financial reporting and they have to disclose to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which they are aware and the steps they have taken or propose to take to rectify the deficiencies.

9. Discussion on financial performance with respect to operational performance:

During the year under review, the Companys total revenue was 36421.46 Lakhs as compared to 31817.50 Lakhs in the previous year, which is 12% hike from the previous year. The Company earned other income amounting to 57.81 this year. A significant part of the sales of the Company comes from the export. The Companys performance during the year is mentioned below:


S. N.


Amount in Lakhs
1. Total Revenue 36479.23
2. Total Expenses 35716.56
3. Profit Before Tax 762.70
4 Tax Expense:
i. Current Tax 128.96
ii. Tax pertaining to Earlier Year 0.50
iii. Deferred Tax 47.84
iv. MAT Credit Entitlement -71.51

Profit After Tax


10. Material Developments in Human Resource and Industrial Relations:

Caring for its people has always been the way of life in the Company as its people are always treated as most valuable assets. Your Company has been continuously working to improve human resources skills, competencies and capabilities in the Company, which is critical to achieve results as per our strategic business ambitions. The Company has been successful in fostering a people-centric cohesive culture within the organization that has been instrumental in creating its diverse pool of intellectual capital. The Company is focused and committed towards empowering its employees and continues to embark upon several initiatives on this front. The Company has a team of experienced and qualified personnel to support its plant and other allied operations. The team is having technical expertise and experience, which is critical for successful or timely implementation of operational decisions. The recruitment of well qualified personnel and retention of experienced workforce is critical for maintaining the talent pool in the Company. The Company continuously works towards ensuring that appropriate recruitment and retention plans are in place to avoid any gaps in talent pool. Employees are also empowered to take full ownership and accountability of their responsibilities. Besides human resource development, Company provides various welfare measures for its employees and their families. Cordial industrial relations in factory have also helped Company to build a strong team of employees at various levels having good experience and skills.

The underlying rule of Companys policy towards human resource development is that competent and motivated manpower is the most important factor in achieving business goals. The policies in this regard are evolved and pursued to achieve this objective. Industrial relations remained cordial at all locations during the year. No working hours was lost due to any labour dispute. As at the financial year ended March 31, 2022, there were total 380 numbers of employees and workers on roll of the Company.

11. Changes (Change of 25% Or More) in significant key financial ratios and return on net worth:

The details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with the detailed explanations thereof, are as follows :



March 31, 2023 March 31, 2022 % Change in Ratio

Reason for significant change

1 Debtors Turnover Ratio 11.47 11.60 -1.06 -
2 Inventory Turnover Ratio 15.69 13.28 15.34 -


Debt- Service Coverage Ratio

1.13 1.66 -47.26

It is due to low net profit before tax as compared to previous year and increased level of repayment during the year.

4 Current Ratio 1.11 1.39 -24.70 -
5 Debt-Equity Ratio 3.67 4.38 -19.29 -
6 Operating Profit Ratio 0.06 0.07 0.01 -


Net Profit Ratio

0.02 0.03 -44.01

It is due to low net profit before tax as compared to previous year and increased level of sales during the year.


Return on Net-worth/Equity Ratio

0.14 0.26 -81.43

It is due to low net profit before tax as compared to previous year and increase in share capital during the year.


Trade Payables Turnover Ratio

11.58 8.53 26.32

Due to substantial decrease in trade


Net Capital Turnover Ratio

59.67 16.18 72.88

Due to substantial increase in working capital.

11 Return on Capital Employed 0.14 0.14 -2.25 -

12. Cautionary Note:

The Management discussion and analysis report contains forward looking statements based upon the data available with the Company, assumptions with regard to economic conditions, the government policies etc. Thus, the Company cannot guarantee the accuracy of assumptions and performance of the Company in future. Therefore, the actual results, performance or achievements could thus differ materially from those projected in any such forward looking statement. The Company assumes no responsibility to publically amend, modify or revise any forward looking statement, on the basis of any subsequent development, information or event.

Investors are cautioned that this discussion contains forward looking statement that involve risks and uncertainties including, but not limited to, risks inherent in the Companys growth strategy, dependence on certain businesses, dependence on availability of qualified and trained manpower and other factors discussed. The discussion and analysis should be read in conjunction with the Companys financial statements and notes on accounts.











DIN: 03124351

DIN: 00150037