Aditya Consumer Marketing Ltd Management Discussions

Industry Overview

Indias retail sector in 2025 is marked by rapid digital transformation, infrastructural development, and shifting consumer preferences. Stakeholders across the value chain are actively capitalizing on these trends to drive sustainable and long-term growth. With growing consumer demand for premium, health-conscious, and eco-friendly products, the growth trajectory of the Fast-Moving Consumer Goods (FMCG) industry will heavily depend on innovation, technological integration, and supply chain optimization.

According to the Retailers Association of India, retail sales have experienced strong growth, particularly in the food & grocery, quick-service restaurants (QSR), and consumer durables segments.

FMCG continues to be the fourth-largest sector in the Indian economy, comprising three key segments:

Food & Beverages - 19%

Healthcare - 31%

Household and Personal Care - 50%

The urban segment contributes approximately 65% of the sectors revenue, while the rural segment accounts for the remaining 35%. The rise in rural consumption is expected to be a significant driver of growth for the FMCG market.

The Company continues to operate in three primary business segments under various brand names:

1. Retail (FMCG, Grocery, and Utilities)

Brand: 9to9 Super Market

2. Hospitality (Restaurants, Takeaway Kitchens & Banquets) Brands:

YO! China - Dine-in & Delivery

Take-Away Express

9to9 Biryani & Street Food

Banquet & Conference Hall

3. Salon & Spa (Beauty & Wellness)

Brand: 9to9 Salon - Offering services for both ladies and gents using top-tier professional products.

The Company focuses on key consumer categories including consumer goods, food, fashion, and beauty & wellness. Significant efforts have been made in leveraging technology and omni-channel capabilities to manage customer data and strengthen customer engagement- strategies that proved particularly effective during pandemic-induced uncertainties.

During FY 2024-25, the Company further enhanced its digital presence, using social media and digital marketing platforms for brand building and direct consumer engagement.

Revenue: Rs. 97.41 Crore Net Loss: (Rs. 3.83 Crore)

Earnings Per Share (EPS): (Rs. 2.62)

> Customer-Centric Approach: Strong commitment to delivering high-quality products with on-time service, offering value-for-money propositions.

> Experienced Management Team: A strong leadership team with deep industry knowledge and strong relationships with stakeholders.

> Efficient Systems & Processes: Continuous investment in front and backend operations has strengthened inventory management, demand forecasting, and financial controls.

> To become the preferred shopping destination, the Company is focusing on.

> Expanding product formats across Bihar to reach diverse consumer segments.

> Enhancing customer service through specialized employee training.

> Improving store-level profitability.

> Optimizing operations using IT systems for better supply chain efficiency.

> Backend integration and streamlining.

> Expanding into high-potential urban centers and strengthening presence in existing markets.

> Prioritizing high-margin and high-volume products to boost profitability.

Risks and Concerns

> Execution Risk: Efficient implementation of growth plans remains critical.

> Employee Retention: Competitive landscape may affect talent retention.

> Margin Pressures: Intensified competition has led to shrinking margins and increased reliance on promotions and discounts.

The Company maintains robust internal control mechanisms ensuring accurate recording of transactions and safeguarding of assets. Internal audits are governed by a clearly defined charter approved by the Audit Committee. Key measures include:

> Enhanced assessment tools for internal controls.

> Regular reviews by the Audit Committee.

> Structured processes for transaction approval and compliance.

> Effective utilization of human resources

> Human Resources and Industrial Relations

The Company continued its focus on employee development and engagement. Industrial relations remained positive throughout FY 2024-25, with no disruptions in operations. Initiatives included:

> Functional training programs to enhance productivity.

> Training on occupational health, safety, and environment.

> A dedicated and skilled workforce, supported by a professional management team, continues to be one of the Companys greatest assets.

The financial statements for the year ending 31st March, 2025 have been prepared in accordance with applicable accounting standards. There have been no changes in accounting treatment, and accordingly, no additional explanation is required by the management.

Details of Significant Changes in Key Financial Ratios & Return on Net Worth