05th November 2024

Corporate Relationship Department Scrip Code: 519003

BSE Limited
P. J. Towers, Dalal Street, Fort,
Mumbai - 400 001

Sub: Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015- Transcript of earning conference call held on October 30, 2024.

Dear Sir/Madam,

Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015, we enclose herewith transcript of Q2 & H1FY25 earnings conference call
for the Un-Audited Financial Results for the quarter ended 30th September, 2024 held on Wednesday 30th
October, 2024.

You are requested to kindly take the same on your record.

Thanking You,

Yours truly,
for MODI NATURALS LIMITED
AKSHAY
Digitally signed by AKSHAY MODI
DN: c=IN, o=MODI BIOTECH PRIVATE LIMITED,
ou=MANUFATURING,
2.5.4.20=9e3a184d7d97f82e9c8c5e7a9fa34e6
17f1498df734d2b40f92ed510c3328619,

MODI
postalCode=110020, st=Delhi,
serialNumber=B494650CA1AEA5348D60B9D3
08DC2A271992DE1137E52F5615B6D6C077BE
2B19, cn=AKSHAY MODI
Date: 2024.11.05 10:35:55 +05'30'

Akshay Modi
Jt. Managing Director
DIN: 03341142

Encl: as above
 “Modi Naturals Limited
Q2 & H1FY25 Earnings Conference Call”

October 30, 2024

“E&OE - This transcript is edited for factual errors. In case of discrepancy, the audio recordings
uploaded on the stock exchange on 30th October 2024 will prevail.”

MANAGEMENT: MR. AKSHAY MODI – JOINT MANAGING DIRECTOR

SGA – INVESTOR RELATIONS ADVISORS

Page 1 of 20
 Modi Naturals Limited
October 30, 2024

Moderator: Ladies and gentlemen, good day and welcome to Modi Naturals Ltd. Q2 and H1 FY25
Earnings Conference Call.

As a reminder, all participant lines will be in the listen-only mode and there will be an
opportunity for you to ask questions after the presentation concludes. Should you need
assistance during the conference call, please signal an operator by pressing “*” then “0” on
your touchtone phone. Please note that this conference call is being recorded.

I now hand the conference over to Joint MD, Mr. Akshay Modi, from Modi Naturals Ltd.
Thank you, and over to you, sir.

Akshay Modi: Thanks. Good afternoon, ladies and gentlemen. Thank you for joining us for the Modi Naturals
Q2 and H1 FY25 Earnings Conference Call. I trust you have had an opportunity to review our
“Financial Results” and “Investor Presentation”, both available on the Company's Website and
Stock Exchanges. SGA – our investor relations advisor, is joining me on this call.

Given that this is our “First Earnings Call” and for the benefit of the participants at large, I will
give an overview of the Company, followed by financial performance for the quarter and half
year ended September ‘24.

At Modi Naturals, our journey began in 1974 under the visionary leadership of D.D. Modi.
From modest beginnings, we have grown into a household name and a trusted provider of
healthy, high-quality edible oils and innovative FMCG products. With a vision centered on
producing premium edible oil and food products, we have maintained an unwavering
commitment to quality and innovation. In 1985, we expanded our operations by establishing a
new solvent extraction plant in Pilibhit, Uttar Pradesh, as part of a green field expansion. This
facility has evolved into a fully integrated oil extraction, refining and packaging plant. Our
primary objective was to supply top quality edible oils to Indian households, which at the time
had limited options for quality, purity and health benefits.

In the early years, our primary focus was on rice bran oil and a high-quality by-product, de-
oiled rice bran, which is an animal feed ingredient. Through rigorous quality control and a
commitment to traditional values, we quickly earned the trust of our customers. As demand
grew, so did our product portfolio, expanded to include a variety of oils such as olive oil,
multi-source edible oil and canola oil, each known for its nutritional benefits. We invested in
advanced extraction and refining technology to ensure that every drop of oil met stringent
quality standards, providing an added layer of health benefits that consumers could rely on.

At Modi Naturals, we have 3 divisions:

The Bulk Oil division.

Branded Consumer division.

Page 2 of 20
 Modi Naturals Limited
October 30, 2024

The Ethanol division.

Let me begin with the Bulk division:

Our Bulk division is vital to our overall strategy, focusing on procuring, processing and
distributing various edible oils in a dynamic market. This segment allows us to capitalize on
price fluctuations and shifts in consumer demand, optimizing our inventory and maximizing
profitability. By leveraging our extensive network of suppliers and customers, we navigate the
complexities of the oil trading landscape effectively, along with backward integration.

However, the last few quarters have been particularly challenging for our Bulk division, which,
despite having a manufacturing back-end, has a trading element. It faced significant obstacles
due to government-imposed price restrictions on edible oils, leading to considerable inventory
losses. Market volatility and shifting demand further exacerbated these challenges, impacting
our trading margins and operational efficiency. Fortunately, we are beginning to see signs of
recovery, prices have stabilized, and we believe the worst is behind us. Favorable rainfall
across the country and the arrival of fresh crops are creating a more conducive environment for
trading. As supply chains normalize and demand picks up, we expect to see positive
momentum in our bulk trading segment moving forward.

Coming to our Consumer Branded division:

A major milestone in our journey was the introduction of Oleev, a brand of high-quality, heart-
healthy cooking oils in 2012. Our flagship brand, Oleev, and particularly Oleev Active,
quickly became a popular choice for health-conscious consumers in India, combining olive
oil's benefits with everyday cooking oils' versatility. By focusing on scientifically backed
products that addressed health concerns like cholesterol, cardiovascular health, and overall a
fitness lifestyle, we successfully reached a rapidly growing market of health-conscious
individuals seeking more from their everyday ingredients.

Oleev oils became synonymous with quality, lifestyle, and wellness, and the brand continued
to innovate by introducing more varieties to cater to diverse cooking needs. We are currently
the only major player in India producing multi-source edible oil with olive oil, and we are the
country's third largest super-premium edible oil brand.

Our journey was not without its challenges. As the Company grew, we faced intense
competition from both domestic and international players. The edible oils market is highly
competitive, with numerous established brands and the constant pressure of fluctuating raw
material prices. However, we approached these challenges with resilience and strategic
foresight by implementing cost-effective manufacturing practices without compromising
quality and building strong relationships with suppliers, we were able to maintain stable prices.
Furthermore, we adopted a multi-pronged approach, expanding our distribution network,

Page 3 of 20
 Modi Naturals Limited
October 30, 2024

strengthening our R&D efforts, and implementing modern marketing strategies by partnering
with retailers and distributors across the country.

We achieved nationwide reach, making our products accessible to both urban and semi-urban
consumers. Our strong logistics network became a competitive advantage, allowing us to
maintain a robust presence throughout India and some neighboring countries. We strategically
selected our market presence. Our Consumer business does not focus on commodity-based
edible oils such as soybean, mustard, and sunflower oil. Instead, we cater to the premium
Multisource Oil segment, which includes blends like Rice Bran Plus Olive Oil and Rice Bran
Plus Sunflower Oil. We market these products under brands Oleev Active, Oleev Gold, and
Oleev Smart.

Additionally, we have also extended our offerings into the super-premium edible oil category,
which includes Olive Oil and Canola Oil. These products are marketed under the brands
Oleeve Kitchen, Olivana Wellness, and Miller Canola Oil. Additionally, we reinforced our
commitment to quality and transparency by investing in R&D facilities and enhancing our
product packaging to clearly communicate health benefits. This dedication to innovation and
consumer focus paid off, as more people recognized and trusted Modi Naturals as a provider of
healthier, high-quality oils.

While we had already established a name in edible oils, our ambition did not stop there.
Recognizing opportunities in the FMCG sector, we strategically diversified our product line to
cater to a broad range of consumer needs. This expansion enabled us to enter new product
categories, including premium oils and other food items, thereby creating a strong, diversified
brand presence.

Recently, we also ventured into the ready-to-cook snack category, introducing products that
align with our philosophy of health, convenience, and taste. We have developed strong brand
identification to better align our products with consumer expectations. For example, the Oleev
brand is associated with health and wellness, which is why we extended it under a sub-brand,
Oleev Kitchen, with which we guarantee healthier-for-you food products with significant
innovation and product differentiation, ensuring our consumers receive high quality with great
taste and nutrition.

This range includes items like Oleev Kitchen, Pasta and Peanut Butter and Super Soup, India's
first ready-to-cook soup with pre- and probiotics. Additionally, we elevate the snacking
experience. We introduced Pipo, a popcorn brand, which comes in flavors such as Cheese
Burst, Peri-Peri, Tomato Salsa, and Tandoori.

Our roasted peanuts also offer both international and local flavors, including Smokehouse,
Barbecue, Himalayan Rock Salted, etc. To enhance the beverage experience, we launched
Jynx, a line of powdered, ready-to-mix drinks available in various flavors enriched with
vitamin C. Our products cater to a generation seeking quality, taste, and nutrition in quick-to-

Page 4 of 20
 Modi Naturals Limited
October 30, 2024

make food options. The decision to expand into FMCG was driven by our desire to provide
consumers with choices that are not only healthy, but also flavorful and convenient, aligning
with modern lifestyles.

Additionally, we will leverage the ecosystem that supports our oil business, including quick
commerce and e-commerce platforms, a robust network of distributors, and direct access to
retail stores, modern outlets, and CSD Army canteens. This approach will allow us to
efficiently distribute our products while ensuring they are readily available to consumers in
various shopping environments. By utilizing these established channels, we aim to enhance
visibility and accessibility, ultimately driving sales and strengthening our market presence.
This integrated strategy maximizes our reach and fosters greater customer engagement and
satisfaction. This will reduce our effort to a large extent. Introducing these new products is a
testament to our adaptability and vision. By closely monitoring consumer trends, we swiftly
identify and address market gaps.

We have been in the Branded Consumer business since FY12, and from day 1, we have
approached our decisions with extreme caution and careful analysis. Our business has been
profitable from the very beginning, which underscores our commitment to sound strategies and
prudent management. We will continue to uphold this philosophy as we move forward,
ensuring sustainable growth and long-term success in a competitive market.

Let me now move on to our new segment, the Ethanol division:

We strategically entered the Ethanol division, promising economic growth and a positive
environmental impact. Let me explain the reasoning behind this expansion. India is
aggressively pursuing energy self-reliance with an ambitious goal to achieve a 20% ethanol
blend in petrol by 2025. This shift toward ethanol, a biofuel derived from biomass resources,
holds great potential for reducing fossil fuel dependency, enhancing energy security, curbing
environmental pollution, and increasing farmer and rural income. The government's strong
push for ethanol production via the EBP program presents a valuable opportunity for
companies like ours to diversify into a sector with rapidly growing demand.

We have a rich legacy in processing Agri products. With decades of expertise in oil extraction
and refining, and safe handling of resources, we have developed the necessary infrastructure
and technical know-how to transition seamlessly into ethanol production. Our Agri processing
sector experience equips us with the critical skills required for efficient processing and product
quality management, two key aspects of ethanol production. Furthermore, with decades of
experience in handling various types of oils, we have a deep understanding of grains and
protein byproducts as commodities, which allows us to effectively navigate the complexities of
this market. This expertise is the reason we have decided to enter the grain-based ethanol
sector, positioning ourselves to leverage our knowledge and drive sustainable growth in this
emerging industry.

Page 5 of 20
 Modi Naturals Limited
October 30, 2024

We have established a 100% wholly-owned subsidiary, Modi Biotech, and have strategically
entered Raipur in Chhattisgarh. This state, along with Orissa, just 100 kilometers away, is rich
in grains and produces up to 3 crops per year. This location gives us a significant advantage in
easily procuring raw materials. Additionally, our plants are strategically located near all major
oil manufacturing companies' depots, which helps us reduce logistic costs and strengthen our
relationships with them. We began establishing our plant in April ‘22 and commenced
commercial production in November ‘23. Currently, our manufacturing facility is set up for
130 KLPD, for which we have incurred a capital expenditure of approximately Rs. 150 crores.
Furthermore, we are working toward expanding our capacity with an additional 180 KLPD
ethanol distillery, which will bring our total capacity to 310 KLPD. We estimate a capital
expenditure of approximately Rs. 100 crores for this additional capacity, and we have recently
completed the engineering work. Construction is set to begin in Q3 of this financial year.

We are excited to announce that we have recently secured an order worth Rs. 300 crores for
our upcoming ethanol year, which spans from November 2024 to October 2025. This
achievement is a testament to our team's hard work and dedication and showcases our
commitment to excellence and innovation in the ethanol sector. Receiving this order not only
reinforces our reputation as a reliable supplier, but also inspires us to push beyond our limits in
pursuit of sustainable growth. We look forward to the opportunities this order presents and are
dedicated to delivering high-quality products that meet the evolving needs of our customers.
As we expand our operations, we are confident that we will reach new heights and
significantly impact the industry.

Now, coming to our consolidated “Financial Performance”:

Please note that last year, in the same period, the Ethanol division was not there, hence it is not
a like comparable.

Q2 FY25 Performance Highlights:

Revenue from operations is up by 59.5% to Rs. 146.6 crores. EBITDA for the quarter grew by
5.8x year-on-year to Rs. 14 crores. EBITDA margins stood at 9.6% and PAT grew by 10x to
Rs. 7.6 crores.

H1 FY25 Performance Highlights:

Revenue from operations is up by 67.6% to Rs. 294.2 crores. EBITDA for the quarter grew by
5.6x year-on-year to Rs. 27.88 crores. EBITDA margins stood at 9.4% and PAT grew by 9.7x
to Rs. 15 crores.

Coming to our divisional performance:

Consumer division:

Page 6 of 20
 Modi Naturals Limited
October 30, 2024

Revenue for Q2 FY25 stood at Rs. 46.6 crores compared to Rs. 47 crores in Q2 FY24 and H1
FY25 stood at Rs. 86.6 crores, compared to Rs. 85.8 crores in H1 FY24. Largely, the revenues
for Q2 FY25 and H1 FY25 have remained flattish on a year-on-year basis owing to a reduction
in oil prices and seasonality factors at play. EBITDA for Q2 FY25 stood at Rs. 4.6 crores as
compared to Rs. 5.2 crores in Q2 FY24, and for H1 FY25 stood at Rs. 10.6 crores as compared
to Rs. 9.5 crores in H1 FY24. The increase in ad spend in Q2 FY25 had an impact on EBITDA
and this is in line with our strategy.

Further, we are scaling up the Pasta portfolio under the Oleev Kitchen brand with celebrity
endorsement and targeted advertising. Overall demand is improving, driven by expanded
distribution, innovation and new product launches in our food basket.

Bulk division:

In Q2 FY25, our revenue stood at Rs. 19.6 crores as compared to Rs. 44.9 crores in Q2 FY24
and H1 FY25 stood at Rs. 49.5 crores as compared to Rs. 89.7 crores in H1 FY24. The first
half traditionally sees softer performance as fresh crops start entering the market from the
second half onwards. EBITDA loss of Rs. 30 lakh in Q2 FY25 as compared to loss of Rs. 2.2
crores in Q2 FY24 and H1 FY25 loss stood at Rs. 1.5 crores as compared to loss of Rs. 2.9
crores in H1 FY24.

Ethanol division:

In Q2 FY25, our revenue stood at Rs. 80.4 crores and for H1 FY25 stood at Rs. 158.2 crores.
EBITDA for Q2 FY25 stood at Rs. 9.9 crores and for H1 FY25 stood at Rs. 19.4 crores. The
ethanol distillery has stabilized and is currently operating at its optimum capacity. Engineering
work for Phase 2 expansion has been completed and construction will begin shortly.

Given our place today, we believe our consolidated revenues for FY25 will increase by 75% to
Rs. 700 crores from Rs. 400 crores. Division-wise split will be as follows. Branded division
revenue will contribute Rs. 210 crores, Bulk Oil division revenue will contribute to Rs. 215
crores, and Ethanol division revenue will contribute to Rs. 275 crores.

The revenue growth will be attributed to as follows:

Consumer division:

We will be launching new products in niche categories. Furthermore, our focus will be on
expanding our assortment in quick commerce, modern trade and general trade. We will hire a
new brand ambassador and increase our advertising spend moving forward.

Bulk division:

Page 7 of 20
 Modi Naturals Limited
October 30, 2024

With good range and fresh crop starts entering the market and macroeconomic conditions
continue to improve.

Ethanol division:

We have recently received an order for ethanol of Rs. 300 crores from multiple OMCs for
41,600 kL, which is in line with our capacity for the following ethanol sugar year starting
November 2024. Along with the sale of by-products, this firms up our revenue for the coming
year. We are in the process of expanding our manufacturing capacity to 310 KLPD i.e.
expansion of an additional 180 KLPD with an estimated CAPEX of Rs. 100 crores.

We expect EBITDA in FY25 will be at Rs. 50 crores as compared to Rs. 9.1 crores in FY24.
Further, PAT is expected to be at Rs. 30 crores in FY25 from a loss of Rs. 1.4 crores in FY24.
Margins and profitability. Our focus will be on enhancing profitability as increased cash flows
will drive greater investment in our Branded Consumer business. Furthermore, EBITDA
margins will improve supported by a stronger product mix in the branded segment and robust
performance in the ethanol business.

With this, now I can open the floor for the questions and answers.

Moderator: Thank you very much, sir. We will now begin the question-and-answer session. Our first
question is from the line of Gunit Singh from Counter Cyclical PMS. Please go ahead.

Gunit Singh: You mentioned the guidance of Rs. 700 crores in FY25. So, I would like to understand
whether this is conservative guidance or an optimistic guidance? And what is the downside
risk to this and what gives us confidence of achieving this. And secondly, I would like to
understand the operating margins that we can expect in FY25 on the steady state operating
margins. Because in FY23 and before that, we were operating in the range of 1% to 3%
operating margins, while in this quarter, we are observing about 8% to 9% operating margins.
So, what should be the steady state operating margins going forward and for FY25?

Akshay Modi: So, as far as revenue guidance is concerned, we are confident we can achieve it, and it is in line
with what we have already achieved so far this year. For margin guidance, we have already
provided EBITDA guidance and PAT guidance. So, I think you can extrapolate from that.

Gunit Singh: Sir, can you please repeat the EBITDA and PAT guidance? I am sorry. I might have missed
that.

Akshay Modi: So, the consolidated revenue guidance is Rs. 700 crores, EBITDA guidance is Rs. 50 crores
and the PAT is Rs. 30 crores.

Moderator: Our next question is from the line of Sandeep Dixit from Arjav Partners. Please go ahead.

Page 8 of 20
 Modi Naturals Limited
October 30, 2024

Sandeep Dixit: So, I just wanted to understand the correlation between EBITDA margin across branded and
bulk. There doesn't seem to be any correlation in inverse or either way. Because I mean, how
does it work? For example, your EBITDA margin on bulk has been all over the place. It's gone
from, let's say, minus 4.81% last year, September quarter to minus 1.3%. Whereas your
branded has gone from 11% to 9.92%. What exactly is there any correlation between the way
the branded business work and the Bulk business works?

Akshay Modi: There is no correlation between the two. The two operate entirely independently. The Bulk
business has two margins at play. One is a processing margin and the other is a trading margin,
as it's a low margin business. And as I mentioned earlier on the call, over the last 2 years, we
have faced some headwinds in the Bulk Oil business as the government had imposed some
price restrictions as well as reduced import duties. So, there was a drastic inventory loss over a
few quarters. But that has bottomed out and the Bulk division performance will improve going
forward. Whereas the Consumer division operates on relatively straightforward margins,
there's not that much volatility, more stable margins. And in Q2 particularly, we have
mentioned that we have increased our ad spends in order to pursue faster growth. So, that's
why Q2 margin is a little lower than Q1 margin. Does that answer your question?

Sandeep Dixit: Yes, it does. Just to follow up on that, what would be a sort of a steady-state margin that you
can expect in the Bulk business? Because last six quarters, you have made negative margins on
this. So, does it make sense to carry on that business at all?

Akshay Modi: Yes like I said, that's a one-time thing. We have probably never witnessed this in our lifetimes.
So, that is stabilized. And moving forward, it should be able to contribute. We haven't given
that number yet, but anywhere between 5% to 6% EBITDA margin.

Moderator: Thank you. Thank you. Our next question is from the line of Amit Agicha from HG Hawa &
Co. Please go ahead.

Amit Agicha: Congratulations, Mr. Modi. It was an excellent presentation. It doesn't look like your first con
call. Extremely fantastic presentation. And most of the things have been cleared. The question
was with respect to the FMCG competition. Like given the expansion of the new product
launches, how was the initial response on grain pasta, multi-grain pasta, olive, peanut butter,
ready-to-mix beverage named by Jynx? Are there any other plans for additional products in the
coming quarters?

Akshay Modi: Thank you very much. Much appreciated for your comments. As far as the new product
launches are concerned, in multi-grain pasta, we have had a very favorable response. And as I
mentioned, we are in the middle of scaling up that portfolio, pan India, including targeted
advertising. And for the other two as well, as far as peanut butter is concerned, yes, that's a
very crowded market, but we have some product differentiation there, and we aim to carve out
a niche for ourselves within that. And Jynx is fairly new. We piloted this in the summer as a

Page 9 of 20
 Modi Naturals Limited
October 30, 2024

seasonal product, and we have got a very good response, and we will be scaling it up in the
upcoming season.

Amit Agicha: And the last question was connected to the Ethanol division. Can you elaborate the timeline
and expected final impact on the phase 2 ethanol plant expansion? And will there be any
specific challenges in scaling from 130 KLPD to 300 KLPD?

Akshay Modi: So, with the experience of the first plant now, we are able to execute faster. The 180-KLPD
engineering work is already completed, as I mentioned. And we will be starting construction as
early as maybe 2 weeks from now. And we hope to complete it by the second half of next
financial year.

Amit Agicha: Any specific challenges?

Akshay Modi: Not at present. I don't see many challenges.

Moderator: Thank you. Our next question is from the line of Rohith from Marshmallow Capital. Please go
ahead.

Rohith Potti: I would like to echo the comments of the previous participant. It was excellent opening
remarks statement. It was quite comprehensive and helped us get a context for the Company.
So, my questions are the first one on the Oleev business, the Consumer business. So, while the
year-on-year business revenue is stagnant, even if I see on a yearly basis, last 3 years has been
roughly around Rs. 150 to Rs. 180 crores. So, I understand there might be a fluctuation
because of the change in the price of edible oil, but could you give us a sense of how the
volumes have moved over the last 3 years in this business?

Akshay Modi: So, we have not shared volume data yet. But commenting on the revenue, yes, last 2 years, oil
prices were down consecutively, and down to the extent of almost 40% to 50%. So, despite
that, we have had stable revenue. And the other reason was also that while we were investing
in our Ethanol division, we had reduced our ad spends over the last year or so significantly.
But now, since all the divisions are performing well, we have increased our ad spends to target
a faster growth rate.

Rohith Potti: So, am I right in thinking that in the oil part of our Consumer business, we follow the MRP
route and hence the reduction in oil prices doesn't impact us so much or beyond a certain level,
we do pass on the price benefit? Is that how it works?

Akshay Modi: I mean, that's similar to most FMCG. So, we manage a bit of price movement with consumer
offers. And beyond a point, then we have to take price reductions.

Page 10 of 20
 Modi Naturals Limited
October 30, 2024

Rohith Potti: So, is it fair to assume that you have taken considerable price reductions over the last 2 years
and hence the volumes have improved? So, in some sense, I want to understand that the market
share in the country has improved because revenue doesn't seem to indicate that.

Akshay Modi: Yes I wouldn't be able to comment on the volumes, as I said. But as far as revenue is
concerned, you're absolutely right.

Rohith Potti: So, I just, I don't want the exact number, volumes qualitatively, it has improved over the last 2,
3 years.

Akshay Modi: Yes. Of course, otherwise, we won't be able to maintain revenue when oil prices have fallen by
40%.

Rohith Potti: And similarly, on this, it would be great to hear your thoughts on the consumer strategy in
general, because over the last 2, 3 years, my assumption was that we would be focusing on
becoming a health-focused FMCG brand, extending olive to pasta, peanut butter, etc. So, how
does it all router into a coherent strategy is something that will be great to hear from you.

Akshay Modi: Sure, when we look at new product launches, we work on 3 vectors. One is consumer and
brand salience. The other is distribution salience. And the third is competition and margin in
the category. So, we believe that the distribution and consumer are the same for ready-to-cook
snack products like popcorn. The only different thing is the brand there. And same for ready-
to-mix drinks. So, for example, in Jynx, we have not launched a ready-to-drink beverage, we
have launched a ready-to-mix beverage brand, which also goes to the same channel, which is
premium grocery outlets.

Rohith Potti: In your comments, you also mentioned that we are the third largest premium oil brand in the
country. Would it be possible to share who you see as the top 2 brands and what is the
difference between us as a second as of today?

Akshay Modi: The top 2 would be I think Marico, Saffola; and Agro Tech, Sundrop. And I think we are
inching very close to the second spot.

Rohith Potti: So, Sundrop, I would not think it is a premium brand, isn’t it? It's a mass brand is what I
assume. Am I mistaken?

Akshay Modi: It is a premium brand within edible oil's price ladder.

Rohith Potti: And my last question on ethanol. You expect to commission this plant by the second half of
FY ’26. Is that right?

Akshay Modi: That’s correct.

Page 11 of 20
 Modi Naturals Limited
October 30, 2024

Rohith Potti: And like the for the 1st Phase, we would have a contract hopefully ready with the 2nd Phase as
well as we launch it.

Akshay Modi: The contracts come out every quarter, so once we are ready with the plant, we will be bidding
for that quantity.

Rohith Potti: What is the distance between the plant that we have in ethanol and potential customers so what
is the radius I just to understand the logistics?

Akshay Modi: The nearest OMC depots are about 9 kilometers from us.

Rohith Potti: And that can take the entire expanded capacity as well.

Akshay Modi: Yes and no. not necessarily because there are other plants from other states as well. I mean,
OMCs have their own sort of algorithm to allocate depots, for example, in the upcoming year,
we have got Jharsuguda in Orissa, etc., So, they have their own way of allocating quantities,
but they compensate on freight based on what you get.

Moderator: Thank you. Our next question is from the line of Tushar Vasuja from Yogya Capital. Please go
ahead.

Tushar Vasuja: Sir. I have a couple of questions. First one is that you received the 41,600 kiloliters order so is
it a fixed confirm order or is it just an allocation?

Akshay Modi: It's a confirmed order. The allocation comes as a confirmed order and for the 1st Quarter they
give you, POs, etc., and then they release purchase orders quarterly. But yes, it's a confirmed
allocation.

Tushar Vasuja: So, there's no expectation of any shortfall from the amount you allocated?

Akshay Modi: No, it can only be based on our own operational inefficiencies.

Tushar Vasuja: It also mentioned that the entire order is worth around Rs. 300 and that comes to around Rs. 72
per liter. So, the prices for ‘24-25 season out or is it a rough estimation based on your part?

Akshay Modi: This is based on the current prices in the tender.

Tushar Vasuja: So, these prices will be followed for the next year also.

Akshay Modi: The current tender gives these prices, but if there are any price changes, they communicate that
separately through corrigendum, which hasn't come yet.

Tushar Vasuja: so there is a chance of the order size being changed later on.

Page 12 of 20
 Modi Naturals Limited
October 30, 2024

Akshay Modi: Yes, that's correct. Hopefully only upward.

Tushar Vasuja: What was the A&P spend as a percentage of revenue for this quarter and how will it shape up
going forward?

Akshay Modi: So, we will get back to you with that data piece.

Tushar Vasuja: Last time we talked you mentioned that you have thoughts of winding up a or spinning off the
Bulk division so any update on that?

Akshay Modi: No, it's too soon. Like I said we will take that decision as and when?

Tushar Vasuja: I said that the last question is whether the con-call will be a regular quarterly thing from now
on?

Akshay Modi: Yes, that is our thought process, yes.

Moderator: Thank you. Next is a follow-up question from line of Rohit from Marshmallow Capital. Please
go ahead.

Rohith Potti: So, I just wanted to confirm the EBITDA margin possibility, is this the normalized EBITDA
margin that we can generate around 12% to 12.5% that we see this quarter?

Akshay Modi: For which division?

Rohith Potti: Ethanol division.

Akshay Modi: Ethanol division, as I said given where we are, and how we are operating our plants and the
value addition we are doing on our byproducts, I think 10% to 12% margin is maintainable in
the near to medium term.

Rohith Potti: But this band would expand once we commence the new capacity is that right?

Akshay Modi: I think it's modular, only some amount of operational leverage is there in terms of manpower
cost, etc., but the product cost remains the same.

Rohith Potti: What is the working capital investment as a percentage of sales for the small business on an
annual basis.

Akshay Modi: On an annual basis I will have to check that number, we will get back to you on that.

Rohith Potti: So, effectively what is the payback period or the return on capital on an annual basis, we can
get from ethanol is what I am trying to understand, that's it.

Page 13 of 20
 Modi Naturals Limited
October 30, 2024

Akshay Modi: My team informs me that for FY25, Ethanol division, we are looking at ROCE of
approximately 18.5%.

Moderator: Thank you. Our next question is from the line of Ashay Jain from Jain Capital. Please go
ahead. Sir, your lines are muted. Please go ahead with your question.

Ashay Jain: So, a couple of questions from my side. So, firstly, can you help us better understand the bulk
oil business? What are the key drivers? How are the pricing contracts decided in that segment
and how should we look at going forward and is there any entry barrier for the players to enter
in this particular vertical?

Akshay Modi: The bulk oil business is an oil processing business and legacy business. We have had it for the
last 40 years and these plants are very efficient. They have been around for a long time, and
since it's in our geography, we are based on a local raw material base. So, it's primarily
dependent on the processing margin. And in terms of barriers to entry, it's limited by the
availability of local raw materials. So, I think the capacities in our region are optimized and
there's very little room for any more plans to come up?

Ashay Jain: And the pricing contracts?

Akshay Modi: It is commodity pricing; it is fluctuating on a daily basis.

Akshay Modi: Said thank you. So, I will just go back to the previous question. I think there was a mistake.
The 18.5% ROCE number is on a consolidated basis, not just ethanol. That number would be
higher. We will get back to you with that.

Moderator: Thank you. Our next question is from the line of Ankit Minocha from Adezi Ventures Family
Office. Please go ahead.

Ankit Minocha: I first wanted to understand with regard to the Bulk business, I mean. The rice prices expected
to be relatively docile moving ahead, what is the margin profile that you would probably be
looking at for the Bulk business for H2 of this year.

Akshay Modi: In the Bulk Oil business we process rice bran, not rice particularly, so rice prices don't have
any bearing on this. As far as margins are concerned, as I mentioned typical steady state
margins are about 5% EBIDTA margin. Since the first two quarters have been a little muted,
we hope that in the second half of the year, we will be able to cover up once the new season
comes in.

Ankit Minocha: And secondly, the growth trajectory given in the guidance and also the Results which are
excellent, that looks clear, in terms of the Q4 of this year, just wanted to understand beyond
that, say for the year after that what are the thoughts to maintain the strong growth that we are

Page 14 of 20
 Modi Naturals Limited
October 30, 2024

going to be seeing from ethanol this time, are there plans for capacity expansion or anything
else that you have in mind?

Akshay Modi: Yes, as I mentioned in my opening remarks, we have growth plans for the Consumer and
Ethanol divisions. In the Ethanol division, we are expanding our capacity from 130 KLPD to
310 KLPD adding 180 KL. So, that new plant should come online by the second-half of FY26.
And given the cash flows that we are generating now in the company, we aim to increase our
ad spends and investment in the Consumer division and grow that faster as well.

Ankit Minocha: So, when we say H2 of 2026 so that means same time probably next year, right?

Akshay Modi: Thank you.

Moderator: Thank you. Next is a follow up question from the line of Sandeep Dikshit from Arza Partners.
Please go ahead.

Sandeep Dikshit: Just a book-keeping question. The difference between the standalone and the consol numbers I
presume is the ethanol business, am I right?

Akshay Modi: That's correct.

Sandeep Dikshit: Is that for your wholly-owned subsidiary, I am sorry for asking this question.

Akshay Modi: Yes, it's a wholly owned subsidiary.

Moderator: Thank you. Our next question is from the line of Faisal Hawa from Hawa Capitals. Please go
ahead.

Faisal Hawa: So, the EBITDA margins in the Ethanol divisions are rather low than projected before is it
because of rice procurement prices have been little higher this year.

Akshay Modi: Are you talking about Q1 and Q2, the 12% EBITDA?

Faisal Hawa: Yes, and plus, we are also projecting 10% to 12% going forward.

Akshay Modi: 12% is the number that I have talked about for a long time. Obviously, in the first two quarters
the crop is not there. So, now in Q3-Q4, the crop comes in. So, the margins on an average basis
could be a little higher for the year.

Faisal Hawa: So, fair to assume that on a steady state basis it will be 12%.

Akshay Modi: Yes, in that region.

Page 15 of 20
 Modi Naturals Limited
October 30, 2024

Faisal Hawa: And 2nd is that what is our strategy regarding so many brands? Are we like trying various
things and then maybe one or two brands will emerge as blockbusters and how are we doing
with respect to quick commerce and modern trade? How much is our sales to both of these
channels and which channels do we proposed to now increase and what do we want to do with
our legacy oil business because that business is always have a drag on our margins and overall
workings also?

Akshay Modi: Sorry, this was multiple questions, so I will try and answer them one by one. As far as the
number of brands is concerned, I mentioned earlier that we identify white paces within our
distribution and brand salience, and we launch products. Of course, some of them will be able
to be blockbusters and some will sort of get us decent enough market share with the profitable
growth. So, that is our objective, and we aim to leverage all our distribution channels, and we
present across the spectrum from quick commerce, to e-commerce, modern retail, general
trade, and the CSD Army Canteens. And the channel mix will change as the channels evolve.
It's not like we are paying special attention to just one and not the other. But yes, like you said,
quick commerce is growing much faster. I think they are contributing to almost 15% of our top
line now and the number is growing very fast. So, let's see how it plays out. And I think the last
question was about the legacy oil business that the management will take a call as and when
it's probably still a bit early, we hope to scale up the other two divisions in the near term and
then take a decision on that.

Faisal Hawa: And when will we take a call to actually manufacture our own products like noodles, pasta,
etc. and not contract manufacture them, at what point do you have a value at in your mind
where you will actually then do the manufacturing ourselves and how many basis percentage
points will it add to our EBITDA?

Akshay Modi: So, right now we are operating on an asset-light model and once specific products like pasta
you mentioned are scaled up enough where it warrants backward integration, we will do it if
we see that our margins in it. So, right now it's too early to say.

Faisal Hawa: And what will be our branding strategy and advertising, will there be like different brand
ambassadors for pasta and noodles and for again oil or will we go in for more of a social media
branding strategy where we have a very targeted approach to our audience?

Akshay Modi: See social media is one of the media vehicles that we use, but it's part of a larger digital
marketing strategy and these days even television, which is, for example, CTV (connected
television) forms part of digital itself, but it's actually television. So, we use all the different
media vehicles and as far as the brand ambassador is concerned, we could sort of make a deal
for oil as well as pasta, which we will be announcing shortly.

Faisal Hawa: And are we particularly weak in South India or is it not a right statement to make?

Page 16 of 20
 Modi Naturals Limited
October 30, 2024

Akshay Modi: South India is also quite vast. So, for example in Andhra, Telangana and Karnataka, we have
decent volumes and market shares. Maybe Tamil Nadu and Kerala we are relatively weaker as
we entered those markets much later and we hope to catch up.

Faisal Hawa: And beyond this 3.10 lakh ethanol capacity, it's difficult to expand at the current location.

Akshay Modi: We have not thought beyond that at the moment.

Moderator: Thank you. Our next question is from the line of Rohit Thakkar from 4P Capital Partners.
Please go ahead.

Rohit Thakkar: Thank you so much for this fantastic presentation, Mr. Modi. Just a couple of questions that we
had from our perspective. One is could you help me understand what is your utilization level at
the ethanol plant for the last quarter?

Akshay Modi: So, in Q2 it's fairly optimum. I think we are almost at about, let's say 90% to 95% and it will
only increase going forward.

Rohit Thakkar: In terms of your consumer business, what's the split in revenue between your edible oil and
non-edible oil business?

Akshay Modi: What is the revenue split?

Rohit Thakkar: Yes.

Akshay Modi: The segmental revenue is in Q2, we have done Rs 46.6 crore from the Consumer division and
Rs 19.6 crore from the Bulk division.

Rohit Thakkar: No. So, my question was within the Consumer division, what is the split between edible oil
and non-edible oil?

Akshay Modi: So, we don't get that split. But you can say non-oil sales would be about 15%.

Rohit Thakkar: And for your capacity expansion on ethanol, how do you intend to fund that? That itself will
require about Rs 100 crores. So, is it internal accruals plus borrowing or are you looking to do
capital raise?

Akshay Modi: So, out of Rs 100 crores, see the plant will also take about a year to establish and the fund flow
will be such that I think we will have about Rs 50 crores through internal accruals and the rest
through either debt or equity. And the management is yet to take a decision on that.

Rohit Thakkar: But Rs 50 crores could be done through internal accruals and that's what the expectation
from….

Page 17 of 20
 Modi Naturals Limited
October 30, 2024

Akshay Modi: Yes, that's correct. So, there's not a major gap between what we need and what we have.

Moderator: Thank you. Our next question is from the line of Shaurya Punjani from Azav Partners. Please
go ahead.

Shaurya Punjani: So, I have two quick questions. So, we are guided for 75% growth in FY25. So, what is the
growth momentum we are seeing in FY26-27?

Akshay Modi: We haven't given a number for that yet, but like I said, we expect high growth from two
divisions, which is the Ethanol division and the Consumer division. In the Ethanol division, we
will be increasing our capacity from 130 KL to 310 KL and that expanded capacity should
come on line by the second-half of FY26. So, that gives you growth for FY26 as well as FY27
when we will get the full year for that plant as well. And Consumer division will continue to
grow.

Shaurya Punjani: What is the current ad spend to sales ratio?

Akshay Modi: So, we will get back to you on that number piece.

Moderator: Thank you. Next is a follow up question from line of Ankit Minocha from Adezi Ventures
Family Office. Please go ahead.

Ankit Minocha: Just wanted to also understand that the recent import duty on oils, how does that affect us
whether it's positive or negative and what that also means the price increases due to some
compulsion or due to strength.

Akshay Modi: So, your first question is about the import duty. So, let me answer first. As far as the Consumer
business is concerned, we have taken price increases so it's a positive impact on revenue side,
whereas margins should remain stable. On the Bulk business side, it's a very positive impact
because as prices increased, trading margins will reverse from negative will come back into
positive and at higher price points of oil, we feel that more raw material comes into processing
for oil rather than going for other users. So, it's a positive impact for our Bulk business as well.

Ankit Minocha: I think you have already answered that. In terms of the price increase. So, any price increases
planned on the Consumer business as well.

Akshay Modi: Yes. So, that's already happened.

Ankit Minocha: How does the change in import regulation impact your olive oil in terms of raw materials?

Akshay Modi: I didn't understand your question, sorry.

Ankit Minocha: Just the new import regulation, does that mean that the raw materials also become…

Page 18 of 20
 Modi Naturals Limited
October 30, 2024

Akshay Modi: You mean the import duty?

Ankit Minocha: Yes, import duty.

Akshay Modi: The import duty has gone up on other soft oils, it is not on olive oil. The olive oil import duty
is already at the peak.

Ankit Minocha: So, could there be also play coming from substitution into olive oil?

Akshay Modi: So, our product portfolio is very diversified and strategically positioned to take care of this. So,
we have pure olive oils and then we have multi-source edible oils in which have a blend of
olive oil with other oils and that helps us maintain price points and margins.

Ankit Minocha: And in the blend does the import duty impacting.

Akshay Modi: It impacts on other soft oils. So, for example, if import duty goes up on palm oil, soybean oil
and sunflower oil, it affects the entire basket at the bottom end. So, even rice bran oil prices go
up. So, it affects us to that extent. And we have taken price increases for the multi-source oil
and so has the rest of the industry.

Ankit Minocha: Secondly, this might be slightly hypothetical, but is there any link to Godfrey Phillips as a
business for you guys I believe your office is close by, but.

Akshay Modi: No, they are two different.

Ankit Minocha: They're completely different. So, no synergies or distribution or anything.

Akshay Modi: No.

Ankit Minocha: And any chance you guys are looking for a preferential or an equity fund raise anytime soon?

Akshay Modi: So, I answered this question on the previous one as well. Maybe in future we could look at
something we have not taken a decision on how to fund our expansion of ethanol through debt
or equity, but in the future that is a possibility, but I wouldn't be able to comment on that right
now.

Moderator: Thank you. Ladies and gentlemen, as there are no further questions, I would now like to hand
the conference over to Mr. Akshay Modi. For closing comments.

Akshay Modi: Thank you everyone. I hope we have been able to answer all your questions satisfactorily.
However, if you need any further clarifications or want to know more about the company,
please contact SGA – our Investor Relations advisors. I Wish you all a very Happy Diwali and

Page 19 of 20
 Modi Naturals Limited
October 30, 2024

a Prosperous Year ahead and thank you once again for taking the time to join us during this call
today.

Moderator: On behalf of Modi Naturals Limited, that concludes this conference. Thank you for joining us
and you may now disconnect your lines.

Page 20 of 20