Tyroon Tea Company Ltd Management Discussions

Industrial Structure and Development

India is the largest producer of black tea and produced about 1284.78 million Kgs in 2024 against 1393.66 million Kgs of Tea during calendar year 2023.The all India average price during 2024-25 was Rs. 201.84 per kg against Rs. 166.49 per kg in 2023-24. India is the second largest producer of tea after China. The climate change continues to affect the Tea Industry as it is still dependent on the vagaries of nature. The climate in the tea growing areas continues to be erratic, adversely affecting the production of tea at its Tea Estate.

The Contribution of small Growers in Indian Tea Production continues to swell every year and is now more than 50% of the Total Crop whereas production from the Organized Sector is declining consistently. Global Tea Consumption is likely to grow due to Tea being recognized as a health drink. Indian Tea Consumption continues to grow but at a lower rate than projected.

The companys main business is plantation, processing and sale of tea. The crop yield depends on the climatic condition to a very large extent. Steps are being taken by your company for increasing the yield by implementing improved agricultural practices.

The health of our industry depends to a large extent on the geographical conditions which are outside the realm of the control of the company. The tea industry is a highly labour intensive. The wages of workers are determined according to periodic wage settlement agreement which often increase the labour cost to a significant extent irrespective of any improvement in productivity and realization. Due to continued conflict between the Russian-Ukraine and Iran-Israel war exports have been adversely affected along with various other disruptive forces which has adversely affected prices. The Companys Policy of continuous uprooting and planting with high yielding quality clones along with regular upgradation of its manufacturing facility will enable the Company to face future challenges.

The Company has an adequate Internal Control system to ensure proper and efficient use of the companys resources, accuracy in financial reporting and due compliance of the company policy procedure as well as the statutes. Statutory and internal auditors also review its implementation and progress at periodic intervals and take corrective action where any short comings are identified. The audit committee similarly reviews the internal control system and provides guidance for improvement. The committee also discussed with statutory auditor to ascertain, inter alia, their views on the adequacy of internal control system and inform their observation to the Board of Directors.

During the year 2024-2025 the company reported a net sale of Rs. 41.23 Crores in comparison to previous year Rs.41.52 Crores. The average sale price Increase from Rs. 237/- per kg in financial year 2023-2024 to Rs.283/- per kg in financial year 2024-2025. and profit for the year ended 31st March 2025 (after tax) is Rs. 330.79 Lakhs in comparison to Profit of Rs. 298.77 Lakhs last year. Increase in average price realization was negated by significant increase in input cost and lower production.

The company has around 1327 permanent employees employed at the tea estate. The labour welfare officer employed specifically for the purpose of monitory the welfare of the workers.

The Tea Estate of your Company is certified under Trustea indicating firm commitment towards sustainability as well as workers health, hygine and safety. It is your companys endeavor to provide safe, healthy and sustainable working environment to the employees and their families.

Your company runs a hospital, ambulance and dispensaries at its out divisions providing medical care to the employees.

Your Company believes in employee empowerment in order to achieve organizational effectiveness.

Refer Note No.-40 of Notes to Accounts.