A K Spintex Ltd Management Discussions

Global Economic Outlook

The global economy showed encouraging signs of resilience in 2025, with real GDP growth holding steady at 2.8%, as per the International Monetary Fund (IMF). This performance came despite headwinds such as tight monetary policy in advanced economies, geopolitical uncertainties, and a slower-than-expected recovery in parts of Europe. Key contributors to global growth included India, with a strong 6.2% expansion, and the United States, where robust labour markets and technological investments supported economic momentum. China also posted moderate recovery, buoyed by targeted fiscal stimulus and improvements in consumer sentiment. A significant positive development in 2025 was the easing of inflation, as supply chain pressures normalized and commodity prices stabilized. Global headline inflation fell to 4.4%, down from 5.8% in 2024, helping to restore purchasing power and stabilize input costs across industries.

booking ahead to 2026, the IMF forecasts the global economy to maintain its growth trajectory at 3.0%, supported by a gradual shift from monetary tightening to more accommodative stances in several economies. Emerging and developing markets, particularly in Asia, are expected to lead global expansion, with strong urban consumption, infrastructure development, and digital transformation acting as key drivers. Importantly, central banks across the world are anticipated to maintain a delicate balance between supporting growth and ensuring inflation continues to ease toward target levels. With improving investor sentiment, stable commodity markets, and a positive demand outlook, the macroeconomic environment in 2025 appears conducive for global businesses, including the textile and manufacturing sectors, which stand to benefit from increased consumer spending, greater trade integration, and stronger global supply chain linkages.

References:

• IMF World Economic Outlook - April 2025

• Statista: Inflation rate forecast - 2025

• PIB: IMF maintains 3.0% global growth outlook for 2026

Indian Economic Outlook

In 2025, India solidified its position as one of the worlds fastest-growing major economies, recording a robust GDP growth rate of 6.2%, according to the International Monetary Fund (IMF). This growth was propelled by strong domestic consumption, increased infrastructure investments, and a resilient services sector. The manufacturing industry also witnessed a notable uptick, benefiting from government initiatives aimed at enhancing industrial output and export competitiveness. A significant development was the moderation of inflationary pressures; retail inflation eased to a five- year low of 3.34% in March 2025, primarily due to declining food prices and favourable monsoon conditions. This decline in inflation has opened avenues for the Reserve Bank of India (RBI) to consider further monetary easing, potentially stimulating investment and consumption booking ahead, the IMF projects Indias GDP growth to remain strong at 6.2% for 2025 and at 6.3% for 2026, underpinned by sustained macroeconomic stability and robust private consumption.

Annual Report 2024-25

The anticipated continuation of accommodative monetary policies, coupled with structural reforms in sectors like infrastructure and digital services, is expected to further bolster economic activity. Additionally, India has rapidly become one of the worlds most attractive destinations for Foreign Direct Investment (FDI), fuelled by a decade of structural reforms, investor-friendly policies, and enhanced global competitiveness. Strengthened by improvements in key international rankings and strategic initiatives, investor confidence has surged. With retail inflation projected to stabilize around the RBIs target of 4% in FY26, down from 4.9% in FY25, the Governments proactive policy interventions have played a crucial role in achieving this stability. Consequently, the economic environment is becoming more conducive to growth, creating favourable conditions for sectors such as textiles and manufacturing to expand and innovate.

References:

• Government of India, Press Information Bureau: India Becoming An Economic Powerhouse

• IMF: Real GDP Outlook for 2025

• REDUCTION IN RETAIL INFLATION: PIB GOV

FMCG & FMCG Intermediates Industry Outlook Market Performance and Growth Drivers

Globally, the FMCG intermediates industry is witnessing steady growth, driven by increasing consumer demand for packaged goods, rising health and hygiene awareness, and the expansion of organized retail. According to Skyquest, the global FMCG market reached a valuation of over USD 14.1 trillion in 2024, with continued growth anticipated through 2025, particularly in developing regions across Asia-Pacific, Africa, and Latin America.

Indias Fast-Moving Consumer Goods (FMCG) sector has exhibited robust growth, with projections indicating a 7-9% expansion in FY25, driven by a resurgence in rural demand and stable urban consumption. The sectors economic footprint now exceeds ^18.34 trillion, underscoring its pivotal role in the nations economic landscape.

The intermediates segment, encompassing textiles, packaging materials, and chemical inputs, is integral to the FMCG supply chain. Government initiatives like Make in India and the Production Linked Incentive (PLI) schemes have bolstered domestic manufacturing capabilities, enhancing the supply chain for FMCG companies. The Union government approved a new PLI scheme for the food processing sector, with a budget outlay of Rs. 109 billion (US$ 1.46 billion). Incentives under the scheme will be disbursed for six years to 2026-27.

Demand Dynamics and Consumption Patterns

Rural consumption in India is on the rise, driven by growing incomes and heightened aspirations. This shift has led to a noticeable increase in demand for branded products in rural markets. At the same time, the FMCG sector is witnessing a decline in the share of the unorganised market, paving the way for stronger growth in the organised segment. This trend is further supported by a rising sense of brand consciousness and the expansion of modern retail infrastructure.

In urban areas, the demand for food services is being significantly fuelled by the countrys large and growing youth population. With a majority of young consumers actively engaged in the workforce and facing time constraints, the preference for convenient food options is on the rise,

Sunrakshakk Industries India Limited (Formerly known as A.K. Spintex Limited)

reducing the time and inclination for home cooking.The intermediates industry benefits from these trends, as increased demand for FMCG products necessitates a robust supply of quality inputs. Companies like Sunrakshakk are well-positioned to capitalize on this demand by supplying essential components for FMCG products.

Digital Transformation and E-commerce Expansion

The FMCG sector is undergoing a digital transformation, with online sales channels valued at ^1.7 trillion. Direct-to-consumer (D2C) models and e-commerce platforms are reshaping consumer purchase behaviour, prompting FMCG companies to adapt their distribution strategies.

For intermediates suppliers, this digital shift necessitates agility in operations and the ability to meet the evolving demands of FMCG companies. Embracing digital tools and technologies can enhance supply chain efficiency and responsiveness.

Sustainability and Innovation Trends

Sustainability has become a focal point in the FMCG industry, with companies prioritizing eco-friendly products and packaging. This trend extends to intermediates suppliers, who are expected to provide sustainable materials and solutions.

Innovation in product development and manufacturing processes is also critical. Intermediates suppliers must invest in research and development to offer innovative solutions that align with the sustainability goals of FMCG companies.

Implications for FMCG & FMCG Intermediates Suppliers

The evolving FMCG landscape presents both opportunities and challenges for intermediates suppliers. Companies like Sunrakshakk can leverage these trends by:

Diversifying Product Offerings: Developing a range of sustainable and innovative materials to meet the specific needs of FMCG companies.

Enhancing Operational Agility: Adapting to the dynamic demands of the FMCG sector through flexible manufacturing and supply chain practices.

Investing in Technology: Implementing digital tools to improve efficiency, traceability, and customer engagement

• Collaborating with FMCG Companies: Establishing strategic partnerships to co-develop products and solutions that align with market trends.

References:

• FMCG market set for 7-9% revenue growth in FY25: Report

• FMCG sector to have sustained growth rate of 7-9% in 2025: IBEF

• FMCG Market Size Data : Skyquest

• Trends in the FMCG Industry for 2024

• Demand momentum in India rising, rural spending picking pace, says RBI

• The Digital sales channel size in the FMCG Industry : IBEF Report

Textile Industry Outlook

Market Performance and Growth Drivers

The global textile market size is calculated at USD 2,123.72 billion in 2025 and is forecasted to reach around USD 4,016.50 billion by 2034, accelerating at a CAGR of 7.35% from 2025 to 2034. This growth is driven by increasing demand for apparel, home textiles, and technical textiles across emerging economies.

In 2024, Indias textile industry demonstrated robust growth, with the market size reaching USD 146.6 billion. The market for Indian textiles and apparel is projected to grow at a 10% CAGR to reach US$ 350 billion by 2030. This growth is fuelled by increasing domestic demand, rising disposable incomes, and supportive government policies.

The governments initiatives, such as the Production Linked Incentive (PLI) scheme and the PM MITRA Parks, are designed to bolster the sector by enhancing infrastructure, encouraging investment, and promoting exports. These programs aim to create integrated textile value chains, from spinning to garment manufacturing, thereby increasing efficiency and competitiveness.

Export Performance and Global Positioning

During the April-October period of FY25, Indias textiles and apparel exports, including handicrafts, rose by 7%, reaching Rs. 1,83,098 crore (US$ 21.35 billion)—up from Rs. 1,71,520 crore (US$ 20 billion) in the same period of FY24. Ready-Made Garments (RMG) led the growth, contributing Rs. 74,868 crore (US$ 8.73 billion) and accounting for 41% of total textile exports. Cotton Textiles were the second-largest segment, with exports of Rs. 60,718 crore (US$ 7.08 billion) or 33%, followed by Man-Made Textiles, which contributed Rs. 26,586 crore (US$ 3.1 billion), representing 15% of total exports.

On the import front, Man-Made Textiles constituted the largest share, totalling Rs. 15,951 crore (US$ 1.86 billion), which is 34% of total textile imports during the same period. A notable rise in imports of Cotton Textiles and long staple cotton fibre reflects growing domestic production capacity and rising consumption within India.

References:

1. IMARC Group - India Textile Market Report

2. Press Information Bureau - Year End Review 2024 of Ministry of Textiles

3. Precedence Research -Textile Market Size, Share, and Trends 2025 to 2034

4. Indian Textiles Export Data - IBEF

Company Overview

Sunrakshakk Industries India Limited, formerly A.K. Spintex Ltd, is a diversified enterprise with a legacy in textiles and a growing focus on the FMCG and FMCG intermediate chemicals segments. As part of its strategic transformation the company has expanded beyond textiles, marking a key shift toward high-growth FMCG and FMCG intermediate chemical segment. While the textile division remains an important contributor, Sunrakshakk future is anchored in innovation, value creation, and sustainable diversification across sectors. With experienced leadership and a clear growth strategy, the company is emerging as a dynamic player in Indias evolving FMCG landscape.

The financial year 2024-25 was marked by record profit and high YOY top line growth and strategic growth initiatives. The company recorded a revenue of ^180.2 crore and a net profit of ^11.01 crore, reflecting a strong operational year with the strategic acquisition of the company named Sunrakshak Agro Product Pvt. Ltd. Shareholders funds rose to ^51.67 crore, compared to ^39.97 crore in the previous year, indicating a healthy increase in retained earnings and overall financial strength. Guided by an experienced leadership team and a professionally governed board, Sunrakshakk operates with a long-term view on capital allocation and strategic direction. The company has steadily reinvested earnings into process modernization, quality control systems, and workforce training to improve productivity and ensure that customer requirements are met with consistency and precision. The management has also been forward-looking in identifying adjacent areas of growth that align with the companys core manufacturing strengths.

In a key strategic move to diversify its business interests, the Company (formerly known as A.K. Spintex Limited) acquired 100% equity in Sunrakshak Agro Products Private Limited (SAPPL) on January 1, 2025, for ^24.72 crore. This acquisition marks a significant expansion into the FMCG and FMCG intermediate chemicals sectors. SAPPL, engaged in manufacturing fast-moving consumer goods and intermediate chemicals for a premium clientele, strengthens the Companys presence in these high-growth markets. Subsequently, the Ministry of Corporate Affairs approved the companys name change from "A.K. Spintex Limited" to "Sunrakshakk Industries India Limited" on April 25, 2025, with the new name being officially adopted on May 22, 2025.

This acquisition marks Sunrakshakks entry into the FMCG and FMCG intermediate chemical sector — a market characterized by stable demand patterns, diverse end-use applications, and increasing significance in both domestic and export arenas. To support its expansion plans, the Company successfully raised ^98.25 crore through a preferential allotment, which was completed on May 30, 2025. These funds will be deployed across a range of growth-oriented projects aligned with our strategic objectives. As part of this plan, we have acquired assets at a plant in Guwahati to facilitate our expansion into soap noodles and cosmetics, as well as key equipment at two units in Bhilwara to strengthen our presence in the food products segment. Moving forward, both segments will collaborate to identify process efficiencies and optimize resources wherever possible. Sunrakshakk views this acquisition as a long-term strategic investment — a second growth engine alongside its core textile business — while maintaining its commitment to operational discipline and high manufacturing standards.

As the company moves into the next fiscal year, the focus remains on deepening customer relationships, improving yield efficiencies, and driving innovation in Textiles and FMCG Sector. At the same time, the integration of Sunrakshak Agro into the broader group ecosystem is expected to open new doors for market expansion and product diversification. With a clear strategy, strong financials, and a culture rooted in quality, Sunrakshakk is well-positioned to deliver sustained value to all its stakeholders in the years ahead

Outlook

FY2025-26 marked a watershed year in the journey of Sunrakshakk Industries India Limited, as the Company took bold steps to diversify its portfolio and lay the foundation for sustainable, long-term growth. From being primarily a textile-focused enterprise, we are now firmly on the path to becoming a multi-sector conglomerate, with strategic interests spanning FMCG, FMCG intermediates, and edibles.

The acquisition of Sunrakshak Agro Products Pvt. Ltd. (SAPPL) has been a cornerstone of this transformation, providing an immediate entry into high-growth categories such as soaps, detergents, toothpaste, and home-care products. This acquisition not only strengthens our market positioning but also creates strong synergies with our existing operations, thereby reducing dependence on a single vertical and opening up multiple avenues for growth.

To support this expansion, we have embarked on significant capacity-building initiatives. At Guwahati, we are investing in a state-of-the-art FMCG facility, which will house 2,160 MT/month of Soap Noodles and 1,000 MT/month of Cosmetics manufacturing capacity. This plant is expected to commence revenue contribution from January 2026, providing us a strong foothold in the personal care and intermediate chemicals segment. Simultaneously, in Bhilwara, we are setting up an edibles facility with a capacity of 850 MT/month of Savories and 650 MT/month of Spices, scheduled to contribute to revenues from September 2025. These investments are designed not only to enhance scale but also to diversify our portfolio into high-demand consumer categories with strong growth visibility.

Beyond capacity expansion, our focus remains firmly on innovation, product enhancement, and sustainable value creation. In textiles, we continue to strengthen our portfolio of eco-friendly and health-focused fabrics catering to institutional segments such as healthcare, education, and hospitality. In FMCG, our aim is to continuously introduce differentiated, value-added products that resonate with evolving consumer preferences, while also capturing higher-margin opportunities. Geographically, our growth strategy is centered on building a truly pan-India presence. With strong roots in Rajasthan and new capacities in Assam, we are expanding our footprint across diverse markets, including the North-East, which is emerging as a promising consumption hub. This geographic diversification ensures that our growth is broad-based, resilient, and less dependent on any single market.

Looking forward, the industry context is highly encouraging. The Indian FMCG sector, currently valued at around USD 192 billion, is projected to grow to USD 665 billion by 2032, at a CAGR of nearly 15%. Rising disposable incomes, urbanization, evolving lifestyles, and increased preference for branded consumer goods provide a strong tailwind for our expansion plans. Sunrakshakk Industries is strategically positioned to capture this opportunity with its multi-category portfolio, modern manufacturing infrastructure, and customer-centric approach.

Sunrakshakk Industries India Limited (Formerly known as A.K. Spintex Limited)

With these initiatives, we are confident of achieving our medium-term aspiration of ^1,000 crore in revenues by FY2028, while maintaining a focus on profitability, sustainability, and value creation. Our strategic roadmap is underpinned by disciplined execution, prudent capital allocation, and a commitment to innovation and environmental stewardship.

In essence, Sunrakshakk Industries is evolving into a future-ready, consumer-focused conglomerate. The opportunities before us are immense, and with the strength of our people, partners, and stakeholders, we are poised to deliver sustainable earnings growth, enhanced shareholder value, and long-term social and economic contributions