Ador Multi Products Ltd Management Discussions

Annexure to Boards Report

FORWARD LOOKING STATEMENTS

Statements in this report regarding future performance and expectations are forward-looking, based on assumptions that may not materialize. Actual results may differ materially due to various factors. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events

INDUSTRY STRUCTURE AND DEVELOPMENTS

The personal care industry in India and globally is evolving toward safer ingredients, advanced certifications, and innovative skincare solutions. The rise of direct-to-consumer (D2C) models and digital platforms has intensified competition, leading to product commoditization and margin pressures. Shifting consumer preferences, such as declining demand for talcum powder and growing interest in serums, are reshaping product mixes. An omni-channel approach, coupled with sustainable packaging and innovative formulations, is emerging as a strategic focus for long-term growth.

BUSINESS OVERVIEW

Ador Multiproducts Limited (AMPL), is a leading contract manufacturer in the personal care sector. Our well-equipped facility supports a diverse product portfolio, including hand sanitizers, hand wash, skincare products, serums, talcum powder, and face wash. Continued investments particularly in alcohol-based products, AMPL has become a go to manufacturer for many brands. The Company serves prominent brands and supports emerging startups, offering tailored manufacturing solutions. AMPL continues to strategically invest in its Puducherry facility to enhance automation and efficiency. Additionally, the new management with fresh funds are exploring diversification into new sectors, such as real estate, to strengthen financial resilience and long term growth.

OPPORTUNITIES AND THREATS

Opportunities: AMPLs integrated solutions in product development, manufacturing, and testing position it to scale as a trusted long term partner for brands across India and globally. Investments in factory modernization will enhance production flexibility, while diversification into real estate offers new revenue streams.

Threats: Intense competition, discount-driven markets, and shifting product trends require continuous R&D investment. Economic fluctuations and regulatory changes may also impact operations

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

AMPL maintains a robust internal control system aligned with its operational scale. The Audit Committee regularly reviews these controls, ensuring compliance with legal requirements and effective record-keeping. Ongoing efforts aim to further strengthen these systems for operational efficiency

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE PERSONAL CARE PRODUCTS DIVISION

AMPLs personal care division continues to grow, serving as a preferred supplier to leading brands like Himalaya and Argus, as well as startups such as Baypure, Cocomo, and Inde Wild. Strategic investments in production capacity support scalability, while opportunities in hospitality and bulk exports are being explored to maximize facility utilization. These initiatives aim to ensure sustainable, long-term growth, with results expected in the coming years

RISKS AND CONCERNS

Risks are inherent in any business, and AMPL actively mitigates these through detailed market analysis and expert consultations. Key risks include competitive pressures, shifting consumer preferences, and regulatory changes, which the Company addresses through strategic planning and innovation.

FINANCIAL PERFORMANCE OF COMPANY

For the period under review, AMPL recorded revenue of Rs. 217.97 Lakhs, a decline from Rs. 515.14 Lakhs in the previous year, primarily due to reduced demand for sanitizers and thinner margins in the talcum powder segment. The Company is addressing these challenges through diversification and operational efficiencies.

HUMAN RESOURCES

AMPL recognizes its employees as a cornerstone of success. The Company fosters a culture of engagement and development, guided by core values that shape decision-making and policies. Collaborations with experienced consultants strengthen supply chain, governance, and business development functions. With a stable manufacturing team, AMPL plans to enhance its business development capabilities to support future growth.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis outlining objectives, projections, or expectations are forward-looking within the meaning of applicable securities laws. Actual outcomes may differ due to factors such as global and Indian demand- supply dynamics, pricing, raw material availability, regulatory changes, and economic conditions.