Bizotic Commercial Ltd Management Discussions

The management of the Company is pleased to present its report on the business environment & industry scenario, industry risks and opportunities and Companys performance during the financial year 2024-25.

GLOBAL ECONOMY:

The global economy in FY 2024-25 witnessed a steady but cautious recovery amidst persistent inflationary pressures, geopolitical conflicts, and supply chain realignments. The global textile and apparel market reached an estimated valuation of US$1,027 billion and is projected to grow at a CAGR of 3.8%, reaching US$1,445 billion by 2032. This growth is driven by factors such as population expansion, higher disposable incomes, rising demand for functional and eco-friendly fabrics, and the integration of smart technologies in textile manufacturing. Consumers continue to prioritize personalization, sustainability, and digital experiences in their fashion choices, reshaping global supply chains and product innovation strategies.

INDIAN ECONOMY:

India remained a beacon of growth with one of the fastest-growing major economies, supported by strong domestic consumption, digital infrastructure advancements, and robust policy reforms. The Indian textile and apparel sector continues to be a major contributor to the countrys economy, accounting for approximately 2.3% of the GDP and providing employment to over 45 million people. With exports worth US$35.58 billion in FY 2023, the sector has demonstrated resilience and competitiveness despite global headwinds. Government schemes such as the Production Linked Incentive (PLI), PM MITRA parks, RoSCTL, and National Technical Textiles Mission (NTTM) have provided crucial support for infrastructure, innovation, and export enhancement.

OPPORTUNITIES AND CHALLENGES:

The textile industry is undergoing transformative changes, presenting both significant opportunities and complex challenges. Opportunities lie in the growing demand for mens fashion in Tier II and III cities, the increasing penetration of organized retail and e-commerce, the expansion of domestic consumption, and rising awareness around sustainable clothing. The Indian governments continued push for selfreliance and investment in textile hubs also provides a conducive environment for scale and innovation. However, the industry faces challenges such as fluctuating raw material prices, intense global competition, currency volatility, rapidly changing fashion cycles, and heightened customer expectations. Navigating these challenges requires agility, innovation, and robust operational controls.

COMPANY STRENGTHS:

Bizotic Commercial Limited has established itself as a distinctive brand in mens apparel under the "Urban United" label. The companys hybrid business model - combining outsourced manufacturing with in-house design, retailing, and distribution - allows for cost-efficiency and scalability. With a retail presence in Rajasthan, Bihar, and other states through 20+ outlets (including 4 company-owned stores), the company is focused on expanding its footprint into Gujarat and Madhya Pradesh. The companys strengths lie in its agile operations, youthful brand positioning, quality-focused supply chain, customer-centric designs, and a leadership team with deep industry expertise. Bizotics consistent financial performance, backed by prudent fiscal management and operational leverage, underscores its long-term growth potential.

HUMAN RESOURCES:

Bizotic Commercial Ltd. is part of a dynamic and progressive group that actively fosters a challenging work environment and encourages Entrepreneurship. With trust being the critical part of our business belief, we lay a strong emphasis on integrity, teamwork, innovation, performance and partnership. Our professional staff with diverse backgrounds brings varied talent, knowledge and experience to the Group, helping our businesses to remain competitive, achieve greater success and newer milestones. Our management team and board of directors are resolved to do what, we believe, is best for our shareholders, clients and associates.

At Bizotic Commercial Limited, we recruit for skill, experience, right attitude, commitment and diversity. However, the one common trait that runs through the DNA of every employee is entrepreneurship. We encourage our employees to act as owners, partners and managers of their individual functions while providing a conducive environment for them to be creative and productive.

HEALTH AND SAFETY:

The company remains committed to ensuring the health, safety, and well-being of all its employees, partners, and customers. Safety protocols are implemented across retail outlets and warehouses, ensuring compliance with occupational health standards and local regulations. Regular safety audits, hygiene checks, and workplace training sessions are conducted to build awareness and mitigate risks. Post-pandemic, the organization continues to emphasize health resilience by maintaining a clean, sanitized work environment and offering support for employee wellness and mental health initiatives.

FOCUS:

Bizotics strategic focus remains on expanding its retail presence, building a strong pan-India brand identity, and optimizing its supply chain through technology. The company aims to strengthen the "Urban United" brand by catering to the dynamic preferences of young, aspirational Indian men through contemporary designs and affordable pricing. In addition, Bizotic plans to scale its operations through digital retail platforms and enhance customer experience with data-driven insights, streamlined logistics, and strategic franchise partnerships. Product diversification and entry into adjacent apparel categories are also on the horizon.

INTERNAL CONTROL SYSTEMS:

The company has implemented a comprehensive internal control system that ensures accurate financial reporting, compliance with laws and regulations, and efficient operational processes. The internal audit function, under the supervision of the Audit Committee, routinely reviews key risk areas, monitors internal policies, and evaluates the effectiveness of controls. Bizotic also maintains an ERP-based system for inventory, finance, and procurement, enabling transparency and real-time oversight. These controls help mitigate financial, operational, and reputational risks and support the companys long-term strategic objectives.

CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis describing the companys objectives, projections, estimates, expectations, or predictions may be considered forward-looking statements. These statements are based on current assumptions and business outlooks and are subject to known and unknown risks and uncertainties. Actual results may differ materially from those expressed or implied in such statements due to various external factors, including economic conditions, market fluctuations, regulatory changes, and unforeseen developments. The company assumes no responsibility to publicly update or revise these forward-looking statements.