Bindal Exports Ltd Management Discussions

This Report contains forward-looking statements that involve risks and uncertainties. When used in this Report, the words ‘anticipate, ‘believe, ‘estimate, ‘expect, ‘intend, ‘will and other similar expressions as they relate to the Company and/or its Businesses are intended to identify such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Actual results, performances or achievements could differ materially from those expressed or implied in such forwardlooking statements. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of their dates.

INDUSTRY STRUCTURE AND DEVELOPMENTS:

Global Industry Structure and Developments

The global textile and apparel industry is a complex, fragmented, and highly competitive sector encompassing the production of raw materials (fibers), yarns, fabrics, garments, home textiles, and technical textiles. As of 2025, the global textile market is valued at approximately USD 1.4 trillion, and is expected to grow at a CAGR of 4-5% over the next five years, driven by evolving consumer preferences, fast fashion, sustainability demands, and technological advancements.

Indian Industry Structure and Developments

The Indian textile and apparel industry is one of the oldest and most significant sectors of the Indian economy, contributing approximately 2% to the countrys GDP and accounting for around 12% of total exports. The sector spans the entire value chain from fiber to apparel, including natural and synthetic fibers, weaving, knitting, processing, garmenting, and trading.

Indias textile market is currently undergoing structural transformation driven by changing global sourcing patterns, growing demand for sustainable products, digitalization of retail, and policy support through initiatives such as the PLI Scheme, PM-MITRA Parks, and FTA agreements.

The trading segment, especially in yarn and fabric, remains vibrant, driven by strong domestic consumption and a shift in B2B buying behavior post-COVID. Textile traders are now increasingly leveraging technology for sourcing, logistics, and customer engagement.

KEY MARKET SEGMENT

Our Company operates across a broad spectrum of the textile value chain, including fabric supply, grey cloth trading, finished fabric exports, garment exports, and branded garment manufacturing under our proprietary label FASHFUN. With a diversified product mix and a balanced focus on both domestic and international markets, we serve a wide range of customer segments in the textile and apparel ecosystem.

1. Fabrics (Finished & Grey) - Domestic and Export

Nature of Business: Supply and trading of finished and grey fabrics such as polyester, viscose, rayon, and blends thereof.

Product Use: Widely used by garment houses for mass production of apparel across categories (menswear, womenswear, ethnic wear).

Market Positioning: Known for variety in material, size, color, and finish, tailored to client needs.

Key Buyers: Domestic garment manufacturers, fabric wholesalers, export houses.

Export Markets: U.K., Germany, Nigeria, France, UAE, Egypt, Saudi Arabia, and others.

2. Garment Manufacturing (FASHFUN Brand)

Business Model: In-house manufacturing with stitching, cutting, and value addition facilities; focuses on mid-premium branded segment.

Product Line: Ready-to-wear garments under the FASHFUN label.

Target Segment: Retailers, fashion chains, and direct-to-consumer (D2C) channels.

Growth Focus: Expansion through domestic e-commerce, retail distribution, and select export channels.

DEVELOPMENT OUTLOOK

The Indian textile and apparel sector is poised for robust growth, driven by strong domestic consumption, favorable government policies, and increasing global demand for diversified sourcing. Against this backdrop, Bindal Exports Limited is well-positioned to expand its operations, build on its export success, and further strengthen its market presence through strategic initiatives.

OPPORTUNITIES AND THREATS Opportunities:

• Global “China + 1” sourcing strategy favoring Indian exporters.

• Increased demand for sustainable and technical textiles.

• Government support through PLI Scheme, PM-MITRA, and export incentives.

• Expansion of domestic textile consumption due to urbanization and e-commerce.

• New market access via FTA agreements (UAE, Australia, EU under negotiation).

Threats:

• Raw material price volatility, especially cotton and polyester.

• Rising labor and energy costs.

• Competition from low-cost manufacturing countries like Bangladesh and Vietnam.

• Foreign exchange fluctuation impacting export earnings.

• Logistics constraints and regulatory compliance challenges for MSMEs.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

Projects and Performances for the financial year 2024-25 - A snapshot

During the financial year 2024-25, the Company recorded a Total Revenue from Operations of ?2,700.58 lakhs, representing a 10.07% decrease compared to the previous year (FY 2023-24). The decline was primarily attributable to subdued demand in key export markets, raw material price volatility, and currency fluctuations impacting margins in the trading segment.

Despite the macroeconomic challenges, the Company continued to strengthen its operational foundation and diversify its portfolio across its core segments. The performance highlights are summarized below:

Export Sales:

Revenue from Exports: ?220.86 lakhs % of Total Revenue: 8.17%

Key Export Markets: Germany, Nigeria, France, Spain, U.K, Egypt, Jordan, Syria, Mauritius, U.A.E, Saudi Arabia, Oman, Yemen, Kuwait, Singapore, Malaysia, and Indonesia.

Domestic Sales

Revenue from Domestic Market: ?2463.97 lakhs

% of Total Revenue: 91.23%

Domestic Operations Include: Sale of Grey Cloth (1.10%), Fabric and Fants (73.59%), Made ups (0.40%) OUTLOOK

The Company is optimistic about the prospects for FY 2025-26. With a balanced focus on domestic market expansion, export growth, product innovation, and operational efficiency, it aims to restore revenue growth and enhance profitability. The Company will continue to invest in upgrading manufacturing capabilities, diversifying product offerings—including sustainable and value-added textiles—and strengthening supply chain resilience. While global market conditions remain dynamic, strategic initiatives and disciplined execution are expected to position the Company well to navigate uncertainties and capitalize on emerging opportunities in the Indian and international textile markets.

RISKS AND CONCERNS

• Currency Fluctuations: INR volatility impacts export realizations.

• Environmental Regulations: Compliance with water, dyeing, and effluent treatment norms.

• Labour Availability: Migration and labour shortages in key manufacturing hubs.

• Geopolitical Factors: Disruptions in raw material supply chains.

A comprehensive enterprise risk management (ERM) system is in place to monitor and mitigate these risks.

INTERNAL CONTROL SYSTEM AND RISK MANAGEMENT

The company has in place an adequate system of internal control commensurate with its size and nature of its business. These have been designed to provide reasonable assurance that all assets are safeguarded and protected against loss from unauthorized use or disposition and that all transactions are authorized, recorded and reported correctly and the business operations are conducted as per the described policies and procedures of the Company. The Audit committee and the management have reviewed the adequacy of the internal control systems and are found satisfactory. However, suitable steps are taken to improve the same.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the financial year 2024-25, the Company recorded a Total Revenue from Operations of ?2,700.58 lakhs, representing a 10.07% decrease compared to the previous year (FY 2023-24). The decline was primarily attributed to fluctuating raw material costs particularly cotton and overall market volatility in the global textile sector.

Despite the drop-in revenue, the Company focused on cost optimization, efficiency improvement, and supply chain streamlining to protect margins. Operationally, the Company achieved stable capacity utilization levels and introduced new product lines to cater to evolving market demand, particularly in the domestic segment.

• EBITDA margins remained under pressure due to input cost inflation, yet the Company was able to partially offset this through improved manufacturing efficiencies and better inventory management.

• Export revenue declined due to weak demand in Europe and the US; however, domestic trading activities remained resilient, supported by demand in Tier 2 and Tier 3 cities.

• Inventory and receivable cycles were closely monitored, resulting in improved working capital management despite revenue pressures.

profit margins in the upcoming financial year. The net profit margin for the current year stood at -3.65%, compared to 1.07% in FY 2023-24. The loss was primarily due to a non-operating expense arising from the sale of GIDC land.

Return on Net Worth

The Return on Net Worth (RoNW) declined significantly from 3.27% in FY 2023-24 to -11.01% in FY 2024-25, primarily due to a decline in revenue and profitability during the year. The negative RoNW reflects the Companys current operational challenges and margin pressures amid a difficult macroeconomic and industry environment.

While the decline is noteworthy, it also underlines the importance of the Companys renewed focus on cost optimization, margin improvement, and strategic revenue enhancement initiatives. Management remains committed to restoring profitability and improving capital efficiency in the upcoming financial year. Through better working capital management, enhanced production planning, and product diversification, the Company aims to rebuild shareholder value and move toward a positive RoNW trajectory in FY 2025.

By Order of the Board of Director For Bindal Exports Limited

	Sd/-
	Ravindrakumar Kanhaiyalal Arya
Date: 26/08/2025	Managing Director
Place: Surat	DIN: 00033067