Virat Crane Industries Ltd Management Discussions

Corporate Overview

Virat Crane Industries Limited (the Company) has been growing decently in Dairy Industry among all categories of people irrespective of income levels and geographical areas in the Ghee products. Your Company now has over 33 years of legacy in the Indian dairy industry.

Your Company has adopted Indian Accounting Standard (Ind AS) notified under Companies (Indian Accounting Standard) Rules 2015 and accordingly the Standalone & Consolidated Financial Statements have been prepared in accordance with Ind AS prescribed under Section 133 of the Companies Act, 2013 read with the Rules made there under.

The Financial statements are prepared in accordance with accounting principles generally accepted in India, including the Accounting Standards notified under the Companies Act, 2013 (the Act) read with Section 133 of the Companies Act, 2013. Your Management accepts responsibility for the integrity and objectivity of the financial statements, as well as for the various estimates and judgments used therein. These estimates and judgments relating to financial statements are prudently made to reflect in a true and fair manner the form and substance of transactions. This also enables in reasonably presenting the Companys state of affairs and profits and cash flows for the year ended March 31st, 2025.

Global Economy

In FY25, the global economy exhibited considerable resilience, achieving an approximate growth rate of approximately 3.2%. The growth within advanced economies is projected at 1.7% for FY25, with robust economic activity in the United States compensating for slower growth in other regions. Conversely, the Eurozone presents a less favourable outlook, with moderate growth anticipated to be only 0.8% in FY25. Meanwhile, China s economy experienced a growth rate of 4.8% in FY25, despite a decelerating growth trajectory.

Commodity price trends for FY25 portray a mixed outlook. An ample supply coupled with sluggish demand has resulted in relatively stable commodity prices during the latter half of the year. Oil prices have encountered persistent pressure in FY25, primarily due to a lacklustre forecast for global demand and an overabundance of supply.

Global inflation rates are decreasing more rapidly than previously anticipated across most regions, reaching a rate of 5.8% in FY25. This decline can be attributed to the resolution of supply- side issues and the implementation of restrictive monetary policies. In advanced economies, inflation rates have decreased to approximately 2%, aligning with targets established by central banks. This reduction has empowered significant central banks, including the Federal Reserve and the European Central Bank, to adopt more accommodative monetary policies, thereby promoting sustained economic growth.

Global trade, an essential driver of economic activity, is projected to grow 3.3% in FY25. Trade growth within advanced economies is expected to be modest at 2.1%, whereas emerging markets and developing economies (EMDEs) are predicted to expand at a more robust rate of 5.0%. This slowdown reflects challenges such as the rise in protectionism, trade distortions and the ramifications of geopolitical conflicts, which have disrupted supply chains and increased costs.

Financial markets continue to be dynamic, with US equities benefiting from business- friendly policies, while emerging markets are adapting to changing capital flows. The strengthening of the dollar persists in influencing global trade and investment patterns.

Although geopolitical and trade shifts present challenges, they simultaneously create opportunities for innovation and resilience, underscoring the necessity for forward- thinking strategies in an ever- evolving global landscape.

Regional Growth(% )	2025 **	2024	2023
World output	3.3	3.2	3.1
Advanced economies	1.9	1.7	1.69
Emerging and developing economies	4.2	4.2	4.1

(Sources: IMF, World Bank)

Outlook

It is anticipated that global output will exhibit steady growth in 2025 and 2026, maintaining the same rate observed in FY25. The United States is expected to sustain significant momentum, while emerging economies will demonstrate substantial potential. In contrast, advanced economies, particularly those in Europe, are projected to experience moderate growth.

Forecasts indicate that global headline inflation will decrease to 4.4% in FY25 and further to 3.5% in FY26, with advanced economies achieving target levels of 2.1% by FY26. Correspondingly, crude oil prices are likely to experience a more pronounced decline in 2025.

Nevertheless, non-fuel commodity prices are anticipated to rise by 2.5%, thereby bolstering growth in key resource-driven sectors.

Changes in economic policy and evolving trade dynamics are expected to compel businesses to adapt, innovate and compete within a rapidly transforming global market. The International Monetary Fund (IMF) emphasizes the necessity of proactive policymaking to facilitate a smooth disinflation process and enhance market confidence. These factors cultivate a dynamic business environment, promoting strategic planning and resilience across various industries.

Indian Economy

Once again, India has shown remarkable resilience. Defying global economic trends, the countrys economy achieved a growth rate of 6.5% in FY25, following a substantial 9.2% increase in the prior fiscal year. Positive consumption patterns, a resurgence in rural demand, service expansion and a rising proportion of high-value manufacturing in exports drove this growth.

In FY25, annual inflation moderated to 4.7%, down from 5.4% the previous year. This decline was supported by favorable weather conditions, stable commodity prices, an improved supply chain and a significant drop in vegetable prices. As a result of this easing pressure, the Reserve Bank of India lowered the repo rate by 25 basis points, from 6.5% to 6.25%, marking the first cut in five years. Additionally, the urban unemployment rate remained unchanged until the third quarter of FY 25.

In FY25, the agriculture sector experienced a growth of 3.8%, the industry sector expanded by 6.2% and the service sector increased by 7.2%. By January 2025, the core sector had grown by 4.6%. The HSBC India Manufacturing Purchasing Managers Index (PMI) surged to 58.1 in March 2025, surpassing

Februarys figure of 56.3, representing the highest point since July 2024. New orders and output witnessed their most significant increase in eight months, while purchasing levels reached a seven-month peak.

Nevertheless, the fast-moving consumer goods (FMCG) sector encountered demand challenges while the rural market provided crucial support. The net Goods and Services Tax (GST) collections rose by 8.6% to Rs19.56 trillion in the fiscal year 2025, reflecting an increase in economic activity despite global economic challenges.

Rising Foreign Direct Investment (FDI) and record foreign exchange reserves also bolstered Indias overall economic performance; however, the depreciation of the rupee against the dollar has led to increased import costs and inflation. The Reserve Bank of India (RBI) has strengthened gold reserves as a hedge against global uncertainties, while corporate earnings have contributed to the resilience of stock markets. Nonetheless, global trade tensions and external risks have resulted in significant market declines by the conclusion of the fiscal year 2025.

	Q1 FY24- 25	Q2 FY24- 25	Q3 FY24- 25 **	Q4 FY24- 25
Real GDP growth( %)	6.7	5.4	6.2	6.5

IMF data showed that Indias GDP was Rs 1.8 lakh crore (US$2.1 trillion) in 2015 (at current prices) and is expected to reach Rs 3.6 lakh crore (US$4.27 trillion) by 2025-end — a 100 per cent growth over the past 10 years!

Outlook

In the fiscal year 2026, the Indian economy is anticipated to exhibit moderate growth relative to the preceding financial year, with an anticipated real GDP growth ranging from 6.3% to 6.8%. However, this is from a significantly high baseline. Consequently, India is positioned to reinforce its status as one of the fastest- growing major economies, thereby substantially contributing to global GDP growth. Nevertheless, external risks such as a global economic slowdown, geopolitical tensions and protectionist policies that lead to trade disruptions could adversely affect Indias future economic prospects. Furthermore, a deceleration in urban consumption, an increase in food inflation and sluggish growth in capital formation are also likely to impact the growth trajectory.

Global dairy industry

Dairy products, including milk and other products, represent a timeless foundation of nutrition and delight globally, effectively merging tradition with contemporary preferences to enhance the quality of life daily. From the sheer simplicity of milk to the creamy attraction of cheese, the invigorating tang of yogurt and the opulent richness of butter, dairy provides a harmonious array of flavors and nutritional benefits that resonate through generations.

The global dairy food market comprises a diverse array of products, including milk, butter, cheese, dried and evaporated goods, as well as frozen desserts, all of which are widely regarded as essential staples. The distribution channels extend from traditional supermarkets to online platforms, thereby enabling dairy companies to broaden their reach and improve consumer access to their products.

An overview for 2024: In 2024, the global dairy industry saw uneven growth, with lower demand in mature markets (EU, U.S.) but steady gains in Asia and Africa. Supply chain disruptions (weather, trade barriers) and volatile prices squeezed margins, while sustainability pressures and alternative dairy products reshaped competition.

The European Union led the global dairy market with a 36% share, followed by Oceania at 27%, illustrating their prominence in dairy trade. New Zealand and India remained key exporters, though trade policies and geopolitical risks impacted flows. Innovation in functional dairy and precision fermentation emerged as longterm growth drivers amid shifting consumer preferences.

Off-trade channels accounted for 92% of the market in 2024, including supermarkets and online platforms, largely due to the influence of organized retail chains in China, India and Japan. Supermarkets and hypermarkets play a crucial role in this segment, enhancing product availability.

Evolving consumer preferences, urbanization and technological advancements drove the global dairy market growth in 2024. Increasing health consciousness and demand for dairy- based snacks have shaped industry trends, while innovations in functional dairy products, fortified beverages and plant-based alternatives have diversified offerings. Supportive government policies and investments in supply chain infrastructure have further strengthened the sector.

Estimates for the future: The global dairy market attained a valuation of US$ 991.5 billion in 2024 and is projected to experience a 4.75% CAGR, reaching an estimated US$ 1,505.8 billion by 2033. The

Global dairy industry

Dairy products, including milk and other products, represent a timeless foundation of nutrition and delight globally, effectively merging tradition with contemporary preferences to enhance the quality of life daily. From the sheer simplicity of milk to the creamy attraction of cheese, the invigorating tang of yogurt and the opulent richness of butter, dairy provides a harmonious array of flavors and nutritional benefits that resonate through generations.

The global dairy food market comprises a diverse array of products, including milk, butter, cheese, dried and evaporated goods, as well as frozen desserts, all of which are widely regarded as essential staples. The distribution channels extend from traditional supermarkets to online platforms, thereby enabling dairy companies to broaden their reach and improve consumer access to their products.

An overview for 2024: In 2024, the global dairy industry saw uneven growth, with lower demand in mature markets (EU, U.S.) but steady gains in Asia and Africa. Supply chain disruptions (weather, trade barriers) and volatile prices squeezed margins, while sustainability pressures and alternative dairy products reshaped competition.

The European Union led the global dairy market with a 36% share, followed by Oceania at 27%, illustrating their prominence in dairy trade. New Zealand and India remained key exporters, though trade policies and geopolitical risks impacted flows. Innovation in functional dairy and precision fermentation emerged as longterm growth drivers amid shifting consumer preferences.

Off-trade channels accounted for 92% of the market in 2024, including supermarkets and online platforms, largely due to the influence of organized retail chains in China, India and Japan. Supermarkets and hypermarkets play a crucial role in this segment, enhancing product availability.

Evolving consumer preferences, urbanization and technological advancements drove the global dairy market growth in 2024. Increasing health consciousness and demand for dairy- based snacks have shaped industry trends, while innovations in functional dairy products, fortified beverages and plant-based alternatives have diversified offerings. Supportive government policies and investments in supply chain infrastructure have further strengthened the sector.

Estimates for the future: The global dairy market attained a valuation of US$ 991.5 billion in 2024 and is projected to experience a 4.75% CAGR, reaching an estimated US$ 1,505.8 billion by 2033. The primary factors contributing to this growth include rapid urbanization, heightened health consciousness, technological advancements, increasing demand for dairy-based snacks, evolving dietary preferences and supportive government policies. The Asia-Pacific dairy market is anticipated to grow from US$ 202.8 billion in 2025 to US$ 256.9 billion by 2030, propelled by a CAGR of 4.84% and a transition towards off-trade distribution channels.

Trends expected in 2025: Global dairy fundamentals are anticipated to remain largely balanced as we approach 2025. An increase in the production of milk and dairy products is expected, accompanied by an improvement in demand for these products in the year 2025.

Farmgate milk prices are on the rise, while stable feed costs and favorable availability have bolstered the margins of dairy farms, thereby creating conditions conducive to further industry expansion in 2025. Nonetheless, geopolitics, tariff disputes, disease outbreaks and weather conditions may impact trade and production.

Indian dairy industry

India, with 80 million+ smallholder farmers and over 300 million cattle, is leading the global milk production and it is transitioning from a volume-driven model to a more technology- integrated and value-focused ecosystem.

In India, dairy is more than an industry - its a cherished legacy, fuelling households and cultures with its wholesome promise. As today s consumers seek health, sustainability and convenience, the Indian dairy industry rises to meet these demands, marrying age-old craftsmanship with cutting-edge innovation. This is a journey of passion and precision, where every product reflects a commitment to excellence, ensuring that each sip, bite and dollop brings satisfaction and trust to the table. India produced more than 239 million metric tons of milk in the fiscal year 2024. The dairy sector has experienced an impressive 15% CAGR over the past 15 years. There are abundant investment opportunities in dairy farming, driven by innovation and expansion. Liquid milk continues to dominate the market due to its essential role in daily nutrition. In contrast, A2 milk represents the fastest-growing category, propelled by consumer preference for its perceived superior digestibility and health benefits compared to standard milk.

The dairy industry in India is undergoing significant evolution, with an increasing emphasis on enhancing health benefits by incorporating high-quality proteins, probiotics and prebiotics. These advancements support digestive health, immune function and cognitive well-being, encompassing mood, stress management and mental clarity.

According to the USDA Foreign Agricultural Service (FAS), fluid milk consumption is forecasted to reach 91 MMT in 2025, up from 89 MMT in 2024. Uttar Pradesh remains the leading milk-producing state, followed by Rajasthan, Madhya Pradesh, Gujarat and Andhra Pradesh.

During the fiscal year 2023-24, dairy exports totalled 63,738.47 metric tonnes, generating an income of US$ 272.64 million. The key markets included the UAE, Saudi Arabia, the USA, Singapore and Bhutan.

The Indian dairy market is valued at Rs18,975 billion in 2024 and it is projected to reach Rs57,001.8 billion by 2033, growing at a CAGR of 12.35%. This sector is a crucial driver of Indias economy, contributing 5% to the gross domestic product (GDP) and providing livelihoods to over eight crore farmers.

Demand Catalysts for the Indian Dairy Industry

Rising Consumption: With a growing population of 1.44 billion, demand for dairy products continues to rise, driven by a large consumer base. Increasing incomes enable greater spending on nutritious foods, reinforcing dairys role as a staple in Indian diets.

Growing health consciousness: Consumers are increasingly seeking dairy products for essential nutrients like protein, vitamins and minerals. This growing demand extends beyond traditional dairy, including value-added products such as flavored yoghurts, fortified milk and probiotic drinks.

Large Vegetarian Community: India has a large vegetarian demography that depends on milk as a key protein source. This group consistently fuels the demand for milk and its products in different forms.

Evolving distribution network: New dairy startups are revolutionizing the industry with subscription models, home delivery and digital supply chains, ensuring fresh and high-quality products. Focusing on premium and organic offerings.

New technologies in dairy processing: Technological advancements are reshaping India s dairy industry and improving farm management, milk processing, packaging and logistics. Automation enhances efficiency, product quality and safety, while better farm practices drive productivity and sustainability. Cold chain technologies ensure freshness and nutritional integrity during storage and transport.

Focus on value-added dairy products: The dairy industry is shifting towards value-added products like cheese, yoghurt, flavored milk. and probiotic drinks. These offerings provide higher profit margins while meeting consumer health, convenience and variety demands.

Growing e-commerce & quick commerce: The rise of e-commerce and quick commerce is driving new trends, shipping challenges and food safety considerations. The Direct-to- Consumer (D2C) model is gaining traction, enabling dairy manufacturers to connect directly with consumers.

Key Focus Segments within the Indian Dairy Industry

Liquid Milk

India produced more than 239 million metric tons of milk in the FY25. A considerable national herd and advancements in production methodologies primarily propel this market growth. India has established an ambitious goal to notably enhance its milk production capacity over the forthcoming five years.

The United States Department of Agriculture (USDA) Foreign Agricultural Service has anticipated moderate growth within India s dairy sector for 2025, with the population of milking cows expected to reach 62 million. This expansion is supported by government interventions, elevated milk prices, favourable climatic conditions, consistent fodder availability and the absence of significant disease outbreaks.

The dairy sector is benefitting from an increasing herd size, the adoption of superior breeds, technological innovations and sustainable practices, with substantial support from government initiatives. As the demand for dairy products rises with a burgeoning population and a transforming economy, competition drives innovation, enhancing quality and variety. This evolution shapes a robust industry prepared to fulfil domestic requirements and to redefine its role in the global market.

UHT Milk

The market for UHT (ultra-high temperature) milk in India is experiencing consistent growth, propelled by an increasing health awareness among the urban populace. With a shelf life ranging from six to nine months, UHT milk provides exceptional convenience while preserving high quality and nutritional value. A heightened consciousness regarding healthy dietary practices, in conjunction with a burgeoning population and rising income levels, further stimulates the demand within this market.

In 2024, the UHT milk market in India achieved a volume of 1,306.6 million litres. It is projected to expand to 3,927.4 million litres by 2033, demonstrating a CAGR of 12.36% from 2025 to 2033. The increasing demand for convenient, long-shelf-life dairy products contributes to UHT milks rising favorability.

A2 Milk

The A2 milk market is anticipated to expand from USD 15.4 billion in 2024 to USD 50.9 billion by 2033, reflecting a CAGR of 14.21% during the forecast period. The increasing prevalence of lactose intolerance and a heightened awareness of health and wellness are propelling the demand for A2 milk on a global scale. The numerous advantages associated with A2 milk, such as enhanced bone and dental health, improved muscle strength, regulation of blood pressure, promotion of tissue and cell growth and increased nutrient absorption, further contribute to the markets growth.

Skimmed Milk powder

Indias market for skimmed milk powder attained a value of H62.0 billion in 2024 and it is projected to expand at a CAGR of 9.1%, ultimately reaching Rs355.0 billion by the year 2033. A heightened awareness of health issues propels the growth of the market, an increasing preference for nutritious dietary options and the broadening adoption of e-commerce platforms.

Furthermore, the extensive utilisation of skimmed milk powder in various bakery products, dairy items and beverages- including but not limited to bread, cakes, chocolates, ice cream, cheese, yoghurt, soups and shakes- serves to bolster demand, particularly within restaurants and commercial food establishments.

Organic Milk

Organic dairy farming in India is experiencing a significant increase in popularity as healthconscious consumers transition away from conventional milk due to various health-related concerns. The organic milk market in India was valued at Rs12,914.2 million in 2024 and is projected to reach Rs1,02,842.0 million by 2033, reflecting a CAGR of 24.63%.

The expansion of the organic milk market is attributed to a growing consumer preference for healthier alternatives, coinciding with the rising prevalence of diabetes, hypertension, cardiovascular diseases and obesity. Organic milk, devoid of antibiotics and chemicals, provides enhanced nutritional benefits, rich in omega-3 fatty acids and antioxidants, thus rendering it a preferred option among consumers

Government initiatives Rashtriya Gokul Mission

The Rashtriya Gokul Mission (RGM) is designed to develop and conserve indigenous bovine breeds to augment milk production and farmers income. It operates under the Rashtriya Pashudhan Vikas Yojna for the period spanning from 2021 to 2026, supported by a budget allocation of Rs 2400 crore. The RGM is set to enhance the productivity of all cattle and buffaloes, thereby particularly benefiting small and marginal farmers. Furthermore, the Union Cabinet has sanctioned the Revised RGM to further strengthen the livestock sector, with an additional financial commitment of Rs1,000 crore.

National Programme for Dairy Development (Npdd)

The National Programme for Dairy Development (NPDD), which was launched in February 2014, aims to enhance the infrastructure for the production, procurement, processing and marketing of high-quality milk through State Implementing Agencies or State Cooperative Dairy Federations. Recently, the Union Cabinet approved the Revised NPDD with an additional budget allocation of Rs1,000 crore.

Dairy Entrepreneurship Development Scheme (Deds)

The Dairy Entrepreneurship Development Scheme (DEDS), overseen by the Department of Animal Husbandry, Dairying and Fisheries, is designed to foster self-employment within the dairy sector. Administered by the National Bank for Agriculture and Rural Development (NABARD), this scheme supports milk production, processing and marketing through back-ended capital subsidies for viable projects.

NATIONAL LIVESTOCK MISSION

The National Livestock Mission provides assistance to states and union territories in the organisation of training sessions, workshops and capacity-building initiatives for livestock farmers and breeding groups. It enhances awareness of animal husbandry through social media campaigns and demonstration projects, while fostering the adoption of advanced technologies, including artificial intelligence insemination.

Livestock Health and Disease Control (Lh&Dc) Scheme

The scheme comprises three components: the National Animal Disease Control Programme (NADCP), Livestock Health & Disease Control (LH&DC) and Pashu Aushadhi. The LH&DC further encompasses three sub-components: the Critical Animal Disease Control Programme (CADCP), the Establishment and Strengthening of Veterinary Hospitals and Dispensaries - Mobile Veterinary Unit (ESVHD-MVU) and Assistance to States for Control of Animal Diseases (ASCAD). Notably, Pashu Aushadhi has been recently introduced. The anticipated total outlay amounts to 3,880 crore for the fiscal years 2024-25 and 2025-26, which includes 75 crore allocated for affordable generic veterinary medicine and for incentivising the sales of Pashu Aushadhi.

The Department Of Animal Husbandry and Dairying Fund (Ahidf)

The Department of Animal Husbandry and Dairying is in the process of implementing a fund amounting to Rs15,000 crore to enhance investments in dairy processing, meat processing, feed production, vaccine production, animal waste management and breed improvement.

For the fiscal year 2025-26, the Department of Animal Husbandry and Dairying, Government of India, is scheduled to receive an allocation of Rs 4,840.40 crore. This allocation signifies a 26.08% increase from the revised estimated expenditure of Rs 3,839.25 crore.

Value-Added Products Curd

Curd, also referred to as Dahi, constitutes an essential element of a balanced diet and is appropriate for individuals with lactose intolerance. Abundant in calcium, vitamin D, proteins and phosphorus, curd enhances bone health and aids in digestion. The Indian curd market reached Rs1,778.9 billion in 2024, influenced by various growth factors. Population growth, increasing disposable incomes, heightened health awareness and the products affordability are significant contributors to this positive trajectory. The market is projected to achieve Rs5,421.9 billion by 2033, with a strong CAGR of 12.52% from 2025 to 2033.

Paneer

Paneer is a versatile type of Indian cottage cheese that is abundant in protein and calcium and is utilized in a variety of culinary dishes. Its soft texture allows it to absorb flavors effectively, contributing to its popularity. Paneer is rich in essential nutrients that aid in the development of robust bones and teeth and promote cardiovascular and neurological health. The demand for paneer has been on the rise due to an increase in calcium deficiency and associated bone disorders. In 2024, the market for paneer in India was valued at Rs648.1 billion. Fueled by strong demand and shifting consumer preferences, the market is anticipated to expand to Rs2,030.7 billion by 2033, demonstrating a notable compound annual growth rate (CAGR) of 12.85% from 2025 to 2033.

Cheese

Indias cheese market is currently experiencing significant growth. The increasing influence of Western cuisines, coupled with rising disposable incomes, is facilitating a transition in consumer preferences from paneer to cheese, thereby elevating its demand across the nation. Furthermore, manufacturers are introducing a diverse array of flavoured cheese products to meet the evolving tastes and preferences of consumers. The market was valued at Rs107 billion in 2023 and is projected to attain a value of Rs593.5 billion by 2033, exhibiting a compound annual growth rate (CAGR) of 19.86%. This upward trajectory illustrates the escalating demand for both natural and processed cheese, thereby contributing to the markets burgeoning value and volume.

Buttermilk

Buttermilk, alternatively known as chaach, is produced through the churning of milk. It is characterized by its thicker consistency and sour taste compared to milk. Furthermore, it is a cost-effective option, convenient to obtain and is known to facilitate digestion, reduce blood pressure and enhance immune function. In 2024, the buttermilk market in India was valued at Rs193.3 billion and is projected to reach 933.5 billion by 2033, reflecting a compound annual growth rate (CAGR) of 18.16% from 2025 to 2033.This growth is attributed to the increasing demand for healthy, natural beverages, their extensive availability through various distribution channels and a rising awareness among consumers regarding health matters.

Flavored milk

Flavoured milk represents a widely consumed dairy beverage prepared by combining milk with sugar and flavors such as vanilla, chocolate and mango. It offers a palatable and healthier alternative to carbonated soft drinks, appealing to children and working adults. Furthermore, an increase in disposable incomes, a growing population and expanding distribution channels, including supermarkets and online platforms, contribute to the rising demand for flavored milk in India. The pronounced growth of the market is fuelled by increasing health consciousness among consumers inclined to select dairy-based products. In 2024, the flavored milk market in India was valued at 63.3 billion, experiencing a robust growth of 20.73% CAGR from 2025 to 2033, with projections indicating it will reach Rs 374.1 billion by 2033.

Milkshake

A milkshake is a cold, blended dairy-based beverage available in various flavors with a multitude of toppings and additions, enhancing its attraction. The Indian milkshake market reached 7.6 billion in 2024 and it is poised to grow 34.2 billion by 2033, with a CAGR of 17.47% from 2025 to 2033. Key growth drivers include rising disposable incomes, shifting consumer preferences for convenient and indulgent beverages and growing demand among the youth demographic.

Lassi

Lassi enhances energy through its nutrient composition, which includes carbohydrates, proteins, vitamins and minerals. It also facilitates rapid hydration in elevated temperatures, thus rendering it a favored beverage, particularly during the summer months. Its probiotic content supports the proliferation of beneficial gut bacteria, improving digestion and mitigating gastrointestinal issues. In conjunction with its refreshing characteristics, these advantages have catalyzed an increase in demand and market development within India. The Indian lassi market is projected to attain a valuation of 56.0 billion in 2024, with a CAGR of 16.96% anticipated from 2025 to 2033. It is forecasted to reach 245.7 billion by 2033.

Ice-cream

The ice cream market in India is undergoing significant transformation, propelled by emerging startups that are introducing innovative flavors to accommodate the evolving preferences of consumers. There is a discernible increase in the demand for premium and artisanal ice creams crafted from high-quality, natural ingredients devoid of preservatives, particularly among Gen Z consumers who are in pursuit of distinctive experiences, as well as the upper middle class who display a readiness to invest more in premium products.

As of 2024, the valuation of Indias ice cream market stood at 268.0 billion. Projections indicate that the market is anticipated to escalate to 1,078.0 billion by the year 2033, reflecting a CAGR of 16.7% from 2025 to 2033. The escalation in investor interest, coupled with the advancement of comprehensive cold chain systems featuring temperature-regulated storage facilities, is further contributing to the market s sustainable growth.

Fat products

Ghee, a concentrated form of clarified butter, is not only a culinary staple but also essential in traditional healing practices and spiritual ceremonies. Ghee is recognized as the second most popular dairy product subsequent to milk There is an escalating preference for organic ghee, driven by heightened health awareness and a demand for natural, additive-free products. Furthermore, the rapid proliferation of e-commerce platforms is augmenting market accessibility, providing consumers with an extensive array of ghee options, including premium and organic varieties. Additionally, the increasing consumption and cultural significance of ghee within Indian households further bolsters the markets sustained growth. The ghee market in India is projected to expand at a CAGR of 8.4% from 2025 to 2033, ultimately reaching 7,179.0 billion by 2033, up from 3,482.0 billion in 2024.

Butter India is emerging as a strong contender in the global butter trade, indicating a potential shift in international dairy dynamics. The expansion of India s organized dairy sector and increased farm-gate procurement are enhancing its appeal as a butter supplier to Middle Eastern, Asian and African markets. Competitive pricing, lower shipping costs and a growing focus on quality certifications are further boosting Indias export prospects.

Butter is rich in niacin, calcium, phosphorus, riboflavin, antioxidants and vitamins A, E, B12 and K. When consumed in moderation, it enhances immune function, promotes cardiovascular health and safeguards cellular integrity while supporting bone development and warding off osteoporosis. The butter market in India is driven by increasing disposable incomes, evolving dietary trends towards Western cuisine and heightened awareness of its health advantages. The market is anticipated to experience a compound annual growth rate (CAGR) of 16.01% from 2025 to 2033. In 2024, the market was valued at 90.4 billion and is expected to reach 366.9 billion by 2033.

Key challenges faced by the Indian dairy industry Despite its remarkable growth, the Indian dairy industry faces its fair share of challenges.

Fragmented industry structure: A key issue for the Indian dairy industry is its fragmented structure, leading to supply chain inefficiencies and challenges in scaling up production to meet increasing demand.

• Low milk yields per animal: A major challenge in Indias dairy sector is the relatively low milk yield per animal, particularly in native breeds. Factors include scarce quality feed, traditional practices, insufficient veterinary care, limited high-quality livestock and inefficient breeding programs.

• Inefficient feed and fodder management:

Inadequate availability of nutritious feed and fodder, especially during lean season, affects the nutritional status of dairy animals and leads to suboptimal milk production.

• Lack of QA/QC and testing facilities:

Quality assurance and testing are vital for dairy safety and quality. Challenges include limited access to testing facilities, weak quality control and inconsistent quality standards, affecting product consistency.

• Resource efficiency: Dairy farming demands Significant resources, such as land, water, feed, andenergy. Inefficiency and unsustainable methods lead to environmental issues like land degradation, water scarcity, and deforestation.

• Transportation and logistics: Transportation and logistical issues hinder dairy distribution, with a shortage of specialized vehicles for perishables leading to quality loss and spoilage.

Company overview

Our company has been a promising company in the Dairy Industry. Your Company now has over 33 years of outstanding journey in the Indian dairy industry.

Strengths

* Low Debt

* Product line - variety of product portfolio

* Cost-effective supply chain

* High product quality

* Committed human capital

* Technological advancements

* Geographical advantage

Opportunities

* Greater disposal income -increasing purchasing power

* Increasing quality and standards

* Continued innovation and adoption of advanced technologies to enhance productivity, quality and reduce cost.

Weaknesses

* Dairy sector has a large number of small- scale/unorganized players, leading to fragmentation and inefficiencies.

Threats

* No barriers to entry - leading to emergence new competitors both at local and national level

* Big Competitors - few famous brands also aligned with product portfolio

* Natural disasters and weather related events can affect milk production.

*Adulteration

Segment-Wise or Product-Wise Performance

The primary business segment of your company is Ghee, Cow Ghee, Milk, Curd and Butter Milk.

Durga Ghee: It still remains the most premium brand among the all brands of ghee and its brand name is strongly positioning itself more and more in the minds of people. It is processed from the buffalo milk.

Durga Cow Ghee: It is a variant of Durga ghee which is processed from cow milk and it also enjoys good amount of demand.

Bhavani Ghee: It is mainly used for the cooking in edible products like sweets, Biryanis and bakery items. It is the product which can be used as the substitute for vanaspathi in making edible products.the demand for this product has been growing significantly.

Kamadhenu cow Ghee:It is used mainly for pooja purposes and the demand for this product has been steadily rising. The companys management has been making efforts to position this product as a brand in this category of products.

Durga Milk:The milk sales are steadily rising. Though the main product is ghee still the management is striving to increase milk sales.

Durga Curd: The curd sales are also steadily rising. Though the main product is ghee still the management is striving to increase the curd sales as well.

The company presently operating in Andhara Pradesh, Telangana, Orissa, Karnataka and Tamilnadu.

Now the company recently explored the opportunity for its products to the new states of Maharashtra, Madya Pradesh and Chhattisgarh and seeking the ways to penetrate into these areas also exploring new demographic areas including the foreign countries.

The company also exploring new opportunities in the new product categories and would launch its new products in near future in the already established markets for its products like the states of Andhra Pradesh and Telangana.

Outlook

The Company intends to enhance the quality of its services in locations where it already operates. Being aware of the shifting demographic factors such as changing lifestyles, rising disposable incomes and the transition towards leading a healthier lifestyle, the Company is trying to leverage its penetration strategy to expand its consumer base.

Company hopes adding new plant with high technology to its assets base will help cater the demand there by increasing significantly its revenue which in turn results more profits to the company.. It is expanding its value-added product portfolio and capitalizing on the industry s projected double- digit growth. The Company s focus on bolstering demand, expanding its distribution network and boosting its efficiency measures will contribute to sustained growth. Investments in value-added products, milk procurement and marketing campaigns are aligned with the Companys long-term growth aspirations.

Keeping in this mind the company The company presently operating in Andhara Pradesh, Telangana, Orissa, Karnataka and Tamilnadu.

Now the company recently explored the opportunity for its products to the new states of Maharashtra, Madya Pradesh and Chhattisgarh and seeking the ways to penetrate into these areas also exploring new demographic areas including the foreign countries.

(e) Risks and Concerns

Climate, water scarcity and geography Climate change and scarcity of water has been a major threat to the dairy industry as reported earlier. Milk production could go down by 3 million tons over the next three years as the average temperatures rise, creating problems of water scarcity and reduced availability of green and dry fodder for the cattle. Heat and humidity are the factors with largest impact.

Internal Control Systems and Their Adequacy: The Company has a well-defined and documented internal audit & control system, which is adequately monitored. Checks & balances and control systems have been established to ensure that assets are safe guarded, utilized with proper authorization and recorded in the books of account. The Internal control systems are improved and modified continuously to meet the changes in business conditions, statutory and accounting requirements. Your Company has an Audit Committee consisting of three Directors in whom all are Non-Executive and two are independent Directors. The Audit Committee of the Board of Directors and Statutory Auditors are periodically apprised of the internal audit findings and corrective actions taken. The Audit Committee of the Board of Directors reviews the adequacy and effectiveness of internal control system and suggests improvements if any for strengthening them.

Companys performance

During the Year under review revenue from operations for the financial year 2024-25 was Rs.139.19 Crores. It was increased by 3.51% over the last financial year (Rs.134.47 Crores in 2023-24). Profit before tax and exceptional items for the financial year 2024-25 was Rs.6.29 Crores. It was decreased by 44.98% over last year (Rs.11.44 Crores in 2023-24). Profit after tax for the financial year 2024-25 is Rs.4.66 Crores. It was decreased by 53.91% over last year (Rs.1012.26 Crores in 2023-24) since high raw material prices and increase in other expenses which included mainly rise in advertisement expenses contributed to decrease in profits of the company. The company has improved its revenue even though the company is facing competition from unorganized sector

Details of significant changes (i.e. change of 25% or more as compared to the previous financial year) in the following key financial ratios along with explanations:

Return on Equity Ratio:

Net Profit after tax / Average of Total Equity It was 0.07 for the financial year 2024-25 and 0.16% in the financial year 2023-24.

Hence it was decreased by (-56.25%) in the financial year 2024-25 compared to the previous financial year 2023-24.

Return on equity ratio for the year is decreased in the profit which was the result of increase in other expenditure.

Inventory turnover ratio:

Cost of goods sold / Average Inventory for the period

It was 13.59 times in the financial 2024-25 and 8.48 times in the previous financial year 202324.

.Hence it was increased by 60.26% in the financial year 2024-25 compared to the previous financial 2023-24.

Inventory turnover ratio is increased mainly due to increase in sales and decrease of inventory for the year compared to previous year.

Trade Payable Turnover Ratio:

Net credit purchases /Average Trade payables

It was 9.91 times in the financial 2024-25 and 7.51 times in the previous financial year 202324.

Hence it was increased by 31.96 in the financial year 2024-25 compared to the previous financial 2023- 24.

Trade payables ratio is increased mainly due to increase of credit level inventory purchases and delay in payment made to vendors.

Net profit ratio:

Net Profit after tax / Revenue from Operations

It was 0.03 percentage of revenue in the financial year 2024-25 and 0.08 in the previous financial year 2024-25.

Hence it was decreased by (62.50%) in the financial year 2024-25 compared to the previous financial year 2023-24.

Net profit ratio was decreased mainly due to increase in expenditure and increase in cost of materials.

Return on capital Employed:

Earnings before interest, exceptional items and taxes/Average Capital Employed

It was 0.05 percentage in the financial year 2024- 25 and 0.16 percentage in the previous financial year 2023-24.

Hence it was decreased by (68.75%) in the financial year 2024-25 compared to the previous financial year 2023-24

Return on capital employed was decreased due to increase in expenditure and lower net profits.

Debt Service Coverage Ratio:

Earnings available for debt service / Debt service

It was 0.62 times in the financial year 2024-25 and 3.46 times in the previous financial year 2023-24.

Hence it was decreased by (82.08%) in the financial year 2024-25 compared to the previous financial year 2023-24.

It was decreased due to decrease of net profits during the year.

Details of non-significant changes:

(I.e. change of less than 25% or less as compared to the previous financial year)

Current ratio:

Current Assets / Current Liabilities

It was 2.51 times in the financial year 2024-25 and 2.51 times in the previous financial year 2023- 24.

Hence it was no change in the financial year

2024- 25 compared to the previous financial year 2023-24.

Debt equity ratio:

(Long Term Borrowings + Short Term Borrowings) /shareholders Equity

It was 0.30 times in the financial year 2024-25 and 0.31 times in the previous financial year 2023-24.

Hence it was decreased by (3.23%) in the financial year 2024-25 compared to the previous financial year 2023-24.

Trade Receivables Turnover Ratio:

Revenue from Operations / Average Trade Receivables

It was 9.14 times in the financial 2024-25 and 11.02 times in the previous financial year 202324.

Hence it was decreased by (17.06%) in the financial year 2024-25 compared to the previous financial 2023-24.

Net Capital Turnover Ratio:

Revenue from Operations / Working Capital

It was 5.12 times in the financial 2024-25 and 5.30 times in the previous financial year 202324.

Hence it was decreased by (3.40%) in the financial year 2024-25 compared to the previous financial 2023-24.

Return on Investment:

Income generated from investments /Average weighted Investments: NA

Human Resources and Industrial Relations

Your Company has been putting high emphasis on driving an effective and transparent performance culture with an open mindset. This is evident in the way performance is closely tracked and its impact on your Companys financial sustainability monitored. Leaders today provide feedback not only on performance but also on demonstration of Core Values and Leadership skills defined for each layer of Organization hierarchy. Top performers and high achievers are recognized for their exemplary performance as part of the rewards and recognition program. In the year gone by, your Company has focused on functional training programs such as Food Safety and Regulations, Energy Management, Lean Sigma, TQM, Industrial Safety, Your Company provides learning opportunities through facilitator led learning, workshops and experiential learning through projects, programs and assignments.

Your Company has continued to maintain amicable Industrial Relation footprints by focusing on increased worker level engagement through formal and informal communication and training forums. As of 31stMarch 2025, your Company had 99 employees on its rolls.

Disclosure of Accounting Treatment: Where in the preparation of financial statements, during the year there was no different treatment from that prescribed in an Accounting Standard has been followed, the fact shall be disclosed in the financial statements.