Bloom Dekor Ltd Management Discussions

GLOBAL ECONOMY:

The global economy in mid-2025 presents a complex picture, characterized by slowing growth, persistent uncertainties, and diverging regional performances. While a global recession is generally not anticipated, the pace of expansion is expected to remain below pre-pandemic averages, with significant downside risks. Global GDP growth is projected to slow down in 2025 compared to 2024, with forecasts generally hovering around 2.3% to 3.0%. This represents a significant downgrade from earlier projections. While some EMDEs, like India, are projected to maintain strong growth, many face a challenging outlook due to rising trade tensions and global uncertainty. Growth forecasts have been downgraded across most EMDE regions, particularly those reliant on global trade. Low-income countries continue to face challenges from debt burdens, limited fiscal space, and climate risks. This is identified as the top risk to global growth, with changes in trade policy and relationships (including tariffs) being a major concern for businesses and economies worldwide. Escalating trade disputes could further dampen economic prospects and fuel inflation. Ongoing conflicts and geopolitical tensions remain a significant disruptive force, impacting supply chains, commodity prices, and overall confidence. Global headline inflation has fallen significantly from its peak in late 2022 (when it was close to 9%). In May 2025, OECD headline inflation stood at 4.0%, marking its lowest level since June 2021. Projections suggest a continued, albeit slow, decline. The expected global average inflation rate for 2025 is around 4.0%, potentially easing slightly to 3.9% in 2026 and 3.8% by 2028. This indicates that inflation is expected to remain "high" by historical standards for the medium term. In summary, the global economy in 2025 is navigating a period of tempered growth, marked by significant headwinds from trade tensions and geopolitical risks. While disinflation continues in many regions, central banks face a delicate balancing act. Policymakers are challenged to address structural issues, reduce debt, and foster an environment conducive to sustainable and inclusive growth amidst ongoing uncertainties.

India is firmly established as a rising global economic powerhouse, demonstrating remarkable resilience and consistent growth amidst a challenging global landscape. In a significant development, the nation has ascended to become the worlds fourth-largest economy in 2025. The country is projected to remain the fastest-growing major economy globally for both FY2024-25 and FY2025-26, with GDP growth rates consistently around 6.5-6.6%. This trajectory stands in stark contrast to lower global growth forecasts, with the International Monetary Fund (IMF) projecting global growth at 2.8-3.0% for 2025-

26, underscoring Indias exceptional outperformance. Major opportunities for India stem from the "China Plus One" strategy, which is driving increased manufacturing foreign direct investment (FDI) , and its advanced digital public infrastructure (India Stack), fostering financial inclusion and economic formalization. Targeted government initiatives are also boosting entrepreneurship and social welfare. The long-term vision of Viksit Bharat 2047 aims for sustained 8% annual growth over the next two decades. Indias economy continues its trajectory of robust expansion, solidifying its position as a rising global economic powerhouse. For the fiscal year 2024-25, the projected Gross Domestic Product (GDP) growth rate stands at a strong 6.6%, a forecast consistently echoed by the Reserve Bank of India (RBI). A significant milestone in Indias economic ascent is its achievement of becoming the worlds fourth-largest economy in 2025, surpassing Japan, with a nominal GDP estimated at approximately $4.19 trillion. The IMF further anticipates that India will overtake Germany by 2027, securing the third position globally. This upward trajectory underscores Indias increasing economic influence on the world stage. The countrys nominal GDP is projected to nearly triple within a decade, from 106.57 lakh crore in 2014-15 to

331.03 lakh crore in 2024-25, reflecting substantial and sustained economic expansion. https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=154660 https://cleartax.in/s/world-gdp-ranking-list https://www.jagranjosh.com/general-knowledge/worlds-largest-economies-1694256013-1 https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=154840&ModuleId=3 https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=154660 https://invest.up.gov.in/wp-content/uploads/2025/01/India_010125.pdf

1. Growth Projections: Indias real estate market is projected to grow from $332.85 billion in 2025 to $985.80 billion by 2030, with a Compound Annual Growth Rate (CAGR) of 24.25%.

2. Residential Market: While home prices in major cities are projected to rise by 6.5% in 2025 (potentially outpacing inflation), the increased disposable income and various housing incentives are expected to sustain demand. The demand for larger, low-density housing (villas, townhouses) with privacy and green spaces is also on the rise.

3. Commercial Real Estate: The commercial real estate market, particularly office spaces, is experiencing significant growth due to economic expansion and rising foreign investments. Tier 2 cities are emerging as attractive locations for businesses and Global Capacity Centres (GCCs).

4. Institutional Investments: Institutional investments into Indias real estate sector saw a significant surge in Q2 2025, primarily led by foreign investors targeting commercial assets. While annual inflows were lower, the quarterly growth reflects renewed investor confidence supported by strong macroeconomic fundamentals.

5. Key Drivers: Beyond government schemes like PMAY, demand for larger homes, the rise in nuclear and dual-income families, interest in smart and sustainable housing, and continued infrastructure development are key drivers. Buyer Behavior: Digital research (over 85% of buyers start online), preference for RERA-registered projects, and bankable brands with a clean delivery record are shaping buyer behavior.

6. Challenges: Despite the positive outlook, challenges remain, including the potential for an affordability crisis due to stagnant wage growth and rising home prices, leading to increased demand for rental housing and co-living spaces.

The global plywood market was valued at approximately USD 59.01 billion in 2024 and is projected to grow from USD 62.67 billion in 2025 to USD 104.53 billion by 2033, demonstrating a Compound Annual Growth Rate (CAGR) of 6.60% over the forecast period. Other reports indicate slightly different figures but confirm the strong growth trajectory, with projections reaching around USD 100.2 billion by 2032 (CAGR 6.1%) or USD 115.06 billion by 2034 (CAGR 6.2%).

The Indian furniture market is experiencing a significant transformation, evolving from a largely unorganized and fragmented sector into a more structured and competitive landscape. Driven by a confluence of demographic shifts, economic growth, and technological advancements, India is rapidly emerging as a key player in the global furniture industry. https://dataverseeinc.in/the-future-of-indian-furniture-manufacturing-and-export-in-2024/

MARKET SEGMENTATION AND TRENDS ? By Application:

? Home Furniture: Leads the market, accounting for approximately 62% of the share in 2024. Demand is high for living, dining, and bedroom suites, with a growing emphasis on comfort and modularity. https://www.mordorintelligence.com/industry-reports/india-home-furniture-market ? Office Furniture: The fastest-growing segment, projected to grow at a 7.8% CAGR between 2025 and 2030, driven by the expansion of corporate spaces and the surge in work-from-home and hybrid work models creating demand for home office setups.

? By Material:

? Wood Furniture: Remains the stronghold, holding about 61-62% of the market share in 2024. Its popularity is rooted in cultural affinity for solid woods like teak and sheesham, durability, aesthetic appeal, and adaptability to various styles. Theres a rising trend for engineered wood and veneer-over-engineered cores due to cost-effectiveness and forest stewardship. https://theleafcrafts.com/blogs/news/benefits-of-solid-wood-furniture-in-india https://www.mordorintelligence.com/industry-reports/india-furniture-market

? Customization and Design: Theres a strong trend towards customized and personalized furniture, allowing consumers to choose specific colors, materials, and sizes to fit their aesthetic preferences and living spaces. The blending of traditional and contemporary styles is also gaining traction.

The "Make in India" initiative has significantly bolstered the domestic furniture manufacturing sector. While Indias share in global furniture exports is relatively small (around 1.5% in 2023, with exports totaling over USD 2 billion), it has experienced unprecedented growth in the past decade. https://dataverseeinc.in/the-future-of-indian-furniture-manufacturing-and-export-in-2024/

Export Growth: Indian furniture exports are projected to grow at a CAGR of 11.9% from 2024 to 2033, potentially reaching USD 12.09 billion in 2033. Some ambitious targets suggest India aims to achieve a furniture export target of USD 1 trillion by 2030.

Competitive Advantages: India benefits from competitive labor costs, access to quality raw materials (teak, mango wood, rosewood), and a rich heritage of skilled craftsmanship.

Government Support: Schemes like RoDTEP (Remission of Duties and Taxes on Exported Products) and Production-

Linked Incentive (PLI) schemes reduce costs for exporters. The government is also developing "Export Enclaves" with world-class infrastructure and supporting export-related shared infrastructure projects in designated export centers.

Key Export Destinations: The United States remains the largest market for Indian wooden and handcrafted items. Germany, the UK, UAE, Saudi Arabia, and Australia are also significant destinations.

Types of Exports: Solid wood furniture, handcrafted and painted furniture, upholstered sofas and chairs, dining sets, bedroom sets, and office/modular furniture are commonly exported. Overall, the Indian furniture market is on a strong growth trajectory, driven by internal demand and increasing global recognition of its craftsmanship and manufacturing capabilities. Government support, technological adoption, and a focus on sustainability are expected to further solidify Indias position as a significant force in the global furniture industry

The net revenue from operations decreased to 451.87 lakhs as against 572.70 lakhs in the previous year showing a downward trend of 21.09% due to decrease in domestic sales of Laminates and Door.

The loss before Tax for the current year is (138.44) lakhs as against the loss before tax of (143.99) lakhs in the previous year. The loss after tax stood at (103.45) lakhs as compared to profit after tax of previous year of (84.92) lakhs.

Equipping Bloom with an engaged and productive workforce is essential to our success. We look for commitment, skills and innovative approach in people. In assessing capability, we consider technical skills and knowledge that have been acquired through experience and practice, along with mental processing ability, social process skills and their application. We continue to invest in developing a pipeline of future talent and nurture them. As part of this process, we provide development and training opportunities to our workforce, which motivates and encourages them to grow in their work. As on March 31, 2024 the company has 10 employees at its manufacturing plants and administrative office. The Company has been maintaining cordial and healthy Industrial Relations, which has helped to a great extent in achieving the upper growth.

The Company has internal controls aimed at achieving efficiency in operations, optimum utilization of resources, effective monitoring and compliance with all applicable laws. The Management Audit Team undertakes extensive checks, process reviews and also conducts internal audits. The Audit Committee of the Board reviews major findings in the internal audit reports as well as the adequacy of internal controls.

This statement made in this section describes the Companys objectives, projections, expectation and estimations which may be ‘forward-looking statements within the meaning of applicable securities laws and regulations.