Add-Shop E-Retail Ltd Management Discussions

During the year 2024 25 saw moderating input cost inflation, shifting consumer preferences 1. EconomicOverview toward natural and sustainable products, and steady demand across agri-nutrition and wellness segments.

practices drove demand. Supply chain normalisation and improved logistics expanded government and state-level support for organic inputs, and greater adoption of soil health Organic Fertilizers: Growing farmer interest in sustainable farming, increased rural reach.

and supplements (probiotics, enzymes, mycotoxin binders, mineral premixes). Price poultry, dairy and aquaculture sectors supported structural demand for high-value feed Animal Food Supplements / Feed: Rising protein consumption and intensification of sensitivity remained, but premium, value-added formulations continued to gain share. commerce and modern trade channels expanded market access; exports to GCC, SAARC continued shifting to herbal and natural products for wellness and personal care. E- Ayurvedic Medicines&HerbalCosmetics/PersonalCare: Urban and rural consumers and developed markets grew steadily for validated herbal brands.

2.Industry Structure and Developments

The demand for organic fertilizers surged as farmers sought sustainable solutions that improve Agriculture (OrganicFertilizers &Animal FeedSupplements): benefited from government support programs and an increasing focus on livestock health and soil fertility without harming the environment. Similarly, the animal feed supplement market productivity.

The Ayurvedic and herbal product sector continued to expand, supported by the AYUSH ministrys Health&Beauty(AyurvedicMedicines&HerbalCosmetics): herbal formulations. Herbal cosmetics and personal care products saw increased adoption in both initiatives, growing consumer trust in natural remedies, and rising global demand for Indian urban and rural markets.

Eco-friendly and herbal-based homecare products gained popularity as consumers moved away HomecareProducts: from chemical-based solutions towards safe, plant-derived alternatives.

3.Opportunities and Threats

Opportunities: Expanding rural penetration through direct selling and digital platforms

Increasing export potential for Ayurvedic and herbal products Government subsidies and schemes promoting organic farming

Rising consumer preference for chemical-free and eco-safe homecare products

Threats: Intense competition from organized and unorganized players

Price sensitivity in rural markets

Seasonal dependence of agriculture on monsoon patterns

Regulatory changes affecting labeling and export compliance

During the year, the Company strengthened its distribution network, expanded its product range, 4.BusinessPerformance FY2024 25 andmaintained steady growth, supported by higher adoption of organic fertilizers. The health and invested in marketing initiatives to increase brand visibility. The agriculture segment revenue. Homecare products showed promising early adoption trends. beauty segment recorded robust growth, with Ayurvedic medicines and herbal cosmetics driving

Total revenue for FY 2024 25 stood at Rs 15512.95(in lakhs) FY 2023 24. , as compared to Rs 20306.29 (inlakhs)in

Net profit after tax (PAT) was 331.79(in lakhs) FY 2023 24. as compared to Rs 315.71 (in lakhs) in 5.Segmental Review A. Organic Fertilizers (Trading)

revenuedriven by improved distribution and seasonal demand. Revenue & Volume: Revenue from trading of organic fertilizers was 20% of the total growth in institutional buyers (agri-input retailers and cooperatives). Drivers: Increased farmer awareness of soil health and subsidies/extension programs; patterns affecting buying cycles. Challenges: Fragmented supplier base, quality variability, and dependence on monsoon rationalisation, rolled out farmer education programs and bundling with soil testing services. Actions Taken: Strengthened vendor audits and quality control, added SKU

B. Animal Food Supplements(Trading&Distribution)

supplements and probiotics for poultry and aquaculture. Revenue & Volume: of the total revenue growth led by higher off-take of protein nutrition. Drivers: Rising intensification, disease prevention focus, and shift to performance

Challenges: Volatility in commodity feed inputs and logistics costs.

premixes,Actions Taken: and Expanded B2B partnerships with integrators, introduced private-label launched technical support services for feed optimisation.

C. Ayurvedic Medicines&Herbal Therapeutics (Trading/Distribution)

toward higher-margin proprietary formulations and exports. Revenue & Margin: 5% of the total revenue margin pressure eased due to mix shift pharmacy channels. Drivers: Increased consumer preference for preventive health and growth in e-commerce

Challenges: Regulatory compliance and need for clinical substantiation for newer SKUs.

contract manufacturers with GMP certification, and invested in dossier development for Actions Taken: Strengthened compliance and pharmacovigilance, partnered with exports.

D. Herbal Cosmetics, Food and Nutracheutical , Hygenic and personal care products , House Hold Chemicals

Revenue&Growth: commerce. , 3% of the total revenue with strong traction in urban retail and e-

Drivers: Natural/clean-label trend and premiumisation of hair, skin and personal care.

Challenges: building spend. High competition from established FMCG players and need for brand modern trade listings; streamlined SKUs and trade promotions to improve ROI. Actions Taken: Focused on NPD (natural actives), influencer/digital campaigns, and Key risks identified and mitigation measures: 6.RiskManagement clauses, and pass-through mechanisms. Rawmaterial& commoditypricerisk: Long-term supplier contracts, dynamic pricing regulatory team, compliance audits, and product registration pipelines. Regulatory & risk (AYUSH/pharma, cosmetic claims): Strengthened onboarding standards. Quality & reputation risk: Enhanced QC labs, third-party testing and supplier on expanding retail and digital channels to reduce single-account dependency. Concentrationrisk: Diversification across suppliers, customers and geographies; focus

Climate & supply chain risk: Contingency sourcing, warehousing strategy, and route optimisation.

7.Sustainability, ESG & CorporateSocialResponsibility

(neem, herbal extracts); reduction in single-use packaging trials underway. Sourcing & environment: Greater sourcing of traceable, sustainable raw materials responsible disposal for chemical packaging. Emissions&waste: Initiatives to reduce energy intensity in warehouses and implement community health camps for Ayurveda awareness. Social: Farmer training programs, veterinarian outreach for feed best practices, and

Governance: Strengthened supplier code of conduct and periodic supplier audits.

8.Outlook & Strategy forFY2025 26

expected to remain healthy. Demand outlook: Structural demand for sustainable agri-inputs and herbal wellness is accelerate D2C & e-commerce penetration, and launch clinically-validated premium SKUs. Growthpriorities: Expand distribution footprint, grow private-label B2B partnerships,

Margin rationalisation and cost optimisation across supply chain. initiatives: Focus on higher-margin proprietary formulations, supplier

9.InternalControls /Corporate Governance

Management continues to maintain robust internal control systems. There were periodic identified. internal audits during the year; no material weaknesses affecting financial reporting were

segmental and related-party transaction disclosures.

Statements in this MD&A describing expectations, projections or forecasts are forward-looking 10.CautionaryStatement or implied due to macroeconomic conditions, regulatory developments, and other risks described and subject to risks and uncertainties. Actual results may differ materially from those expressed above.

Office No 38, Third Floor , The Emporia Registered Office:		By the Order of the Board of
Building Near A G Chowk , Kalawad Road-360001 , Rajkot, Gujarat, India		Add-Shop E-Retail Limited
.
	Sd/-	Sd/-
Place: Rajkot
	Dineshkumar B Pandya	Jayshree D Pandya
Date: 02 /09/2025
	Managing Director	Director
	DIN: 06647303	DIN: 06647308