Tirupati Starch & Chemicals Ltd Management Discussions

1. Economic Development & Business Overview :

The Indian economy registered a robust growth of 7.2% during FY 2024-25, supported by strong performances in manufacturing, agriculture, infrastructure, and the food processing sectors. Controlled inflation, fiscal support, and a growing emphasis on agro-based industries created a favorable operating environment for starch manufacturers.

Amid this backdrop, Tirupati Starch & Chemicals Limited delivered an impressive performance. The Company reported a 26.17% increase in revenue, reaching Rs. 386.22 crore, compared to Rs. 306.11 crore in FY 2023-24. Net profit surged to Rs. 7.53 crore, driven by higher capacity utilization, an improved product mix, and operational efficiencies. With a strategic focus on innovation, cost optimization, and value-added product offerings, the Company is well-positioned to capitalize on future growth opportunities.

With a recovering global economy, our focus shifts to sustainable growth strategies amidst evolving market dynamics. Key sectors such as technology and renewable energy are expected to drive significant investments and innovation. Regulatory changes continue to shape business operations and market competitiveness. Challenges persist, including inflationary pressures and disruptions in supply chains, requiring agile responses from enterprises. Nonetheless, opportunities are abundant in digital transformation, harnessing data analytics, and advancing green technologies. As stakeholders navigate these changes, collaboration between public and private sectors remains vital to fostering inclusive growth and achieving economic sustainability in the coming year.

2. Industry Structure and Development :

The Indian starch industry continued to expand in FY 2024-25, driven by increasing demand from the food & beverage, pharmaceutical, paper, textile, adhesives, and packaging sectors. The domestic starch market was valued at approximately 43,000 crore (USD 5.2 billion) and is expected to grow at a CAGR of 6.2% over the next five years.

A significant trend in the industry is the shift from native starch to value-added derivatives such as liquid glucose, dextrose monohydrate, and modified starches. This evolution is driven by end-user industries seeking better performance, cleaner labeling, and improved functional benefits. However, the industry faces challenges such as raw material price volatility (particularly maize), high energy costs, and tight working capital cycles.

TC&CL remains aligned with industry trends through investments in process optimization, quality improvement, and customer-centric product development.

The maize-based starch segment, in which Tirupati Starch & Chemicals Limited operates, remains fragmented yet dynamic, with a clear shift towards value-added and specialty derivatives. Increasing applications of modified starches and dextrins across industries have further enhanced growth opportunities. The Company is well-positioned within this landscape, supported by its integrated operations, diversified product range, and emphasis on quality and innovation. These industry developments have positively influenced the Companys performance and strategic direction during the year.

3. Companys Business Segment :

The company maintains its position in the starch industry, both domestically and internationally, thanks to the high quality and versatile applications of its products. Being ISO 9001:2015 certified underscores the companys commitment to maintaining rigorous standards in product quality and manufacturing processes. Efforts are focused on expanding the companys product portfolio with high-value offerings to enhance profitability. Our vision is to build upon our legacy of excellence, continually evolving to meet the evolving needs of a changing world and shifting customer preferences.

Consistently, as in previous years, the company has successfully supplied its high-quality products globally and continued its strong performance this year. Currently, the company deals with the following product categories: a. Maize Starch and its byproducts, b. Dextrose Anhydrous and its byproducts, c. Dextrose Monohydrate and its byproducts, d. Modified Starch and value added byproducts, e. Liquid Glucose.

4. Opportunities and Threats : Opportunities :

The corn starch industry offers significant growth opportunities due to the increasing demand for natural and sustainable ingredients.

The corn starch sector presents substantial growth prospects driven by rising demand for natural and sustainable ingredients. This markets expansion is supported by the widespread availability of corn and its diverse applications across industries including food and beverage, pharmaceuticals, animal feed, textiles, paper, and more. Following the pandemic, the industry has witnessed growth stemming from increased utilization of corn starch across various sectors.

a. There is significant demand for these products across a wide range of industries:

• Food Industry: Maize Starch and Modified starches serve purposes such as thickening, stabilizing, binding, and emulsifying. Corn starch is also used in the production of ready-to-eat food products. Starch & its Derivatives utilized as alternatives for sweeteners and flavors in beverages and confectionery.

• Poultry sector : Maize husk and gluten are extensively used in cattle and poultry feeds. Gluten is a high-quality vegetable protein beneficial for livestock.

• Paper Industry : Corn starch enhances the bonding strength of paper and corrugated boxes.

• Textile Industry : Used to soften fabrics and add weight to clothes.

• Pharma & Cosmetic Industry : Acts as an instant binder and disintegration agent in tablets, emulsions, ointments, powders, etc.

• Automobile Industry : Corn starch is employed in manufacturing car parts to enhance safety features.

• Bioplastics : The rising environmental concerns have driven an increase in demand for eco-friendly packaging solutions. Corn starch-based bioplastics offer a sustainable alternative to conventional plastics. They are biodegradable and compostable, significantly reducing environmental impact. Companies can seize this opportunity by investing in the advancement of bioplastic products and forming partnerships with stakeholders across the value chain. b. Increased Export Opportunities : The corn starch industry holds substantial export potential driven by growing global demand for natural and sustainable ingredients. Companies can capitalize on this opportunity by diversifying their product offerings and entering new markets. Collaborating with local partners to establish robust distribution networks is another strategic approach to expanding market presence and capturing market share. Indian exports remain competitively priced compared to global rates, opening up export opportunities for India. c. Industrialization : Rapid population growth and industrialization have fueled the growth of the corn starch market. Various government schemes supporting industries are major contributors to this growth.

For over 38 years, we have maintained our position as a leading player in the starch industry, a testament to our remarkable achievements. Our focus on operational excellence has resulted in substantial savings and efficiencies. Strategically, we are expanding into new markets and enhancing our capabilities, meticulously meeting the specific needs of our customers in food, beverages, and animal feeds. These efforts have bolstered our results, despite challenges in certain sectors with constrained margins. We are beginning to reap the rewards of our proactive measures aimed at enhancing performance, and we anticipate further improvements as the year progresses.

and governmental and agency activities. These risks include shifts in economic or political conditions within countries or regions, local labor conditions and regulations, reduced intellectual property protection, alterations in regulatory or legal environments, constraints on currency exchange activities, fluctuations in currency exchange rates, burdensome taxes and tariffs, enforceability of legal agreements and judgments.

The Company faces the risk of price fluctuations in raw materials, dyes, chemicals, work-in-progress, and finished goods. To mitigate raw material price risks, the Company manages its commodity price exposure by maintaining adequate inventories of raw materials, dyes, chemicals, work-in-progress, and finished goods, taking into account anticipated price movements. Additionally, the Company collaborates with various raw material suppliers to optimize costs, enhance application flexibility, and improve product functionality through investments in product development and innovation.

Furthermore, the Company is exposed to risks such as technology risks, supply chain disruptions, evolving consumer demands, environmental considerations, competition, government regulations, legal mandates, and foreign policy, all of which can impact profitability and operations.

8. Internal Control Systems and their adequacy:

The Company maintains a robust internal control system designed to safeguard assets, monitor transactions effectively, and prevent unauthorized use or disposal. 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 Revenue from Operations was Rs. 38622.45 Lakhs as compared to Rs. 30611.46 Lakhs in the previous year, which is increase of 26.16% from the previous year. The Company earned other income amounting to Rs. 401.10 Lakh this year. The Companys performance during the year is mentioned below:

S. N. Product	Amount Rs. in Lakhs
1. Total Revenue	39023.55
2. Total Expenses	38005.29
3. Profit Before Tax	1018.26
4 Tax Expense:
i. Current Tax	177.90
ii. Deferred Tax	86.62
Profit After Tax	753.74

10. Material Developments in Human Resource and Industrial Relations front:

Caring for its people is fundamental to the Company, which views its employees as its most valuable assets. Continuous efforts are made to enhance human resource skills, competencies, and capabilities, essential for achieving our strategic business goals. The Company has successfully fostered a cohesive, people-centric culture that has cultivated a diverse pool of intellectual capital.

12. Disclosure of Accounting Treatment:

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act,20213, read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended), and other relevant provisions of the Companies Act, 2013, as applicable. The accounting policies have been consistently applied and are in line with those adopted in the previous financial year. There have been no deviations in the accounting treatment prescribed under the applicable Ind AS or any other regulatory requirements.

13. Cautionary Note:

The Management discussion and analysis report includes forward-looking statements based on available Company data and assumptions regarding economic conditions, government policies, and other factors. The Company cannot guarantee the accuracy of these assumptions or predict its future performance with certainty. Therefore, actual results, performance, or achievements may differ materially from those projected in such forward-looking statements. The Company does not undertake any obligation to publicly update, modify, or revise any forward-looking statement based on subsequent developments, information, or events.

Investors are advised that this discussion includes forward-looking statements that entail risks and uncertainties, such as those inherent in the Companys growth strategy, reliance on specific businesses, and availability of qualified manpower, among other factors discussed. It is recommended to review this discussion and analysis alongside the Companys financial statements and accompanying notes.

	FOR AND ON BEHALF OF THE BOARD
	TIRUPATI STARCH & CHEMICALS LIMITED
Place: INDORE	AMIT MODI	PRAKASH CHAND BAFNA
Date: 29.07.2025	MANAGING DIRECTOR	CHAIRMAN & WHOLE-TIME DIRECTOR
	DIN: 03124351	DIN: 00107070