Borosil Ltd Management Discussions

This Management Discussion and Analysis (MD&A) delves into the financial performance and strategic developments of Borosil Limited (also referred to as Borosil, We, or the Company) and its subsidiary during FY 2024-25.

Our financial statements follow Indian Accounting Standards (IND AS), providing a detailed overview of the Companys operations.

We acknowledge that certain projections within this discussion are forward-looking and may be subject to variations due to dynamic factors such as regulatory shifts, economic fluctuations, and market competition. Our analysis includes internal estimates regarding market size and growth rates across various segments, other internally developed data, publicly available information, and additional sources the Company considers reliable. We also remain committed to transparency and aim to provide stakeholders with a comprehensive understanding of our financial trajectory and strategic initiatives, ensuring sustainable growth and value creation.

BOROSIL LIMITED: AT THE FOREFRONT OF THE INDUSTRY

We are a leading name in Indias consumer products segment, offering a comprehensive selection of storage, cooking, and serving solutions tailored for todays modern kitchens. For decades, we have been a trusted household brand, widely recognized for our expansive lineup of glass consumerware.

Our ability to serve a broad customer base across price points, materials, and product categories has helped us maintain a strong presence in the market. We offer a thoughtfully curated portfolio that makes us a go-to brand for all kitchen needs, appealing to consumers across different income levels. As we design products with a focus on everyday use and contemporary aesthetics, we continue to meet the needs of the progressive homemaker.

Over the past few years, we have introduced a broader spectrum of consumer products, growing well beyond our core glassware line. Our current portfolio includes opalware dinner sets under the Larah brand, along with small kitchen appliances, storage products, glass lunch boxes, stainless steel cookware, and steel vacuum-insulated flasks and bottles under the Borosil brand. Furthermore, we continue to support sustainable living by providing products that are functional, high in quality, and eco-friendly.

GLOBAL ECONOMY

As the global economy stepped into 2025, it stood at a pivotal point. While some signs of stabilization have surfaced, growth is expected to slow. This moderation is reflected in the projected slowdown in global real GDP growth to 2.8% in 2025, compared to an estimated 3.3% in 2024. The downturn is primarily the result of a combination of structural and cyclical pressures. Persistent policy uncertainty, escalating trade conflicts, rising protectionism, geopolitical tensions, and erratic financial markets are creating an increasingly unpredictable business environment. Parallelly, long-term challenges like aging populations and sluggish labor force expansion are limiting potential output.

Inflation is gradually declining, yet even at lower levels, it remains uncomfortably high. This is driven by deep-rooted cost pressures despite tighter monetary policies. On the upside, though, global headline inflation is expected to ease to 4.3% in 2025 and further to 3.6% in 2026.

A major policy shift shaping the global slowdown is the recent wave of tariff hikes, most notably by the US. These measures have heightened uncertainty around international trade, prompting a downward revision in world trade volume growth to just 1.7% in 2025. Any further escalation or trade ambiguity could amplify existing risks.

As a consequence, economic performance across regions is projected to weaken. In advanced economies, growth is expected to decelerate from 1.8% in 2024 to 1.4% in 2025, driven by policy-driven disruptions and softening external demand. The US economy is forecast to expand at 1.8%, while the Euro Area is projected to expand by only 0.8%. On the flip side, Emerging Market and Developing Economies (EMDEs) are anticipated to grow at a faster pace of 3.7% in 2025. Even so, trade-related pressures have triggered downward revisions in key economies such as China, now estimated at 4.0%. India, however, stands out for its relative resilience, with growth projected at 6.2%, despite ongoing global challenges.

Given these dynamics, the outlook for the global economy in 2025 remains difficult, characterized by tepid growth, lingering inflationary pressures, and increasing vulnerabilities. In such an environment, consistent policy direction and stronger international collaboration will be essential to restoring market confidence and supporting a more sustained recovery.

(Source: World Economic Outlook by IMF, April 2025)

INDIAN ECONOMY

Indias economy demonstrated remarkable endurance in FY 2024-25, recording a real GDP growth of 6.2%, despite global headwinds. This performance stemmed from strong domestic consumption patterns, consistent private sector investments, and continued public expenditure. One of the major contributors was the Union Budget FY 2025-26, which allocated Rs 11.21 lakh crores for capital expenditure. This funding has accelerated infrastructure expansion in crucial sectors such as transportation, logistics, and renewable energy.

Focused efforts and supportive policy actions are helping India sustain its economic momentum. According to the Press Information Bureau, India is now the worlds fourth- largest economy and is on track to become the third-largest economy with a projected GDP of USD7.3 trillion by 2030. Together, the convergence of fiscal discipline, infrastructure growth, and domestic demand has allowed the country to maintain a firm trajectory in the face of global economic uncertainty.

With inflationary pressures softening, the Consumer Price Index (CPI) declined to 4.8% in March 2025. This prompted the Reserve Bank of India (RBI) to shift to a slightly accommodative monetary stance by lowering the repo rate to 6%. This moderation was primarily fueled by a drop in food prices, driven by strong kharif harvests and favorable rabi expectations. Meanwhile, core inflation remained largely under control, indicating overall price stability.

Indias macroeconomic fundamentals remained strong on the global front. Foreign exchange reserves climbed to USD 676.26 billion as of April 04, 2025, while the Indian Rupee held steady against the US Dollar, reflecting confidence in the countrys external position. Although recent tariff hikes by the US affected exports in select sectors, the shifting dynamics in global supply chains offer India a strategic chance to improve its manufacturing competitiveness.

Consumption demand revived in the second half of the year, supported by rising business confidence as reflected in various sentiment indices. Sectorally, services continue to anchor Indias growth story, with exports projected to grow by 12.8% year-over-year (YoY) in FY 2024-25. Additionally, in the manufacturing sector, outbound shipments have picked up, especially in high-value product categories such as electronics, engineering goods, and chemicals.

The MSME sector remained vital to supply chains, showing strong expansion across diverse industries. These enterprises are driving innovation and contributing to the broadening of Indias manufacturing base. Recognizing their importance, the Union Budget FY 2025-26 introduced several targeted interventions, raising investment and turnover thresholds, expanding credit access, assisting first-time entrepreneurs, and supporting sector-specific productivity improvements.

Indias economic trajectory remains promising. Rising domestic consumption, rapid digital adoption, and healthcare sector growth fuel this optimism. With a young, expanding population and rising income levels, the country is positioned for continued long-term advancement. The interplay of progressive policy measures, solid internal demand, and structural reforms is expected to keep India on course as a key driver of global growth in the coming years.

(Sources:

https://www. pib.gov.in/PressReleasePage.aspxRsPRID=2098353

https://www.Dib.gov.in/PressReleaseIframePage.aspxRsPRID=2120509

Indias forex reserves rise by $10.8 billion to $676.26 billion as of April 4, 2025 - The Economic Times

https://www.pb.gov.in/PressReleasePage.aspxRsPRID=2097889

https://Www.Dib.gov.in/PressReleasePage.asDx?PRID=2099687 Press Note Details: Press Information Bureau)

INDUSTRY OVERVIEW

The Indian consumer segment is witnessing a noticeable shift toward international trends in everyday household items. Products like modular storage containers, stainless steel bottles, insulated ware, and appliances geared toward health-conscious living are becoming increasingly popular. With demand rising across categories, the market now addresses a broader spectrum of consumer tastes and expectations.

Indias Retail Market

Indias retail sector stood at around USD1.06 trillion in FY 2023-24, with organized retail accounting for 18.5%. The sector is forecast to expand further at a compound annual growth rate (CAGR) of 10.1% between 2024 and 2027, reaching nearly USD 1.41 trillion by FY 2026-27.

Organized retail continues to make its mark, with industry projections indicating it could account for 22.9% of the total market by FY 2026-27, fueled by a large youth population, increasing participation of women in the workforce, urbanization, a growing middle class, and the nuclearization of families.

Evolving Demand in the Consumerware Space

The Indian Consumerware market has witnessed a remarkable transformation, growing from Rs 13,895 crores in FY 2014-15 to Rs 24,058 crores in FY 2022-23, clocking in a healthy CAGR of 7.1%. This growth has been fueled by rising disposable incomes, the shift toward nuclear families, and an increasing preference for modern, well-organized kitchen spaces that combine style with functionality.

Looking ahead, the momentum is set to accelerate. The market is projected to grow at a strong CAGR of 11.3%, reaching Rs 41,083 crores by FY 2027-28. This next phase of growth will be driven by significant lifestyle and demographic shifts, including a greater share of working women, evolving roles within households, and a growing appetite for owning multiple kitchen products per individual.

A new generation of consumers is emerging, more aspirational, more brand-aware, and willing to spend on quality. The rapid rise of e-commerce and multi-brand retail outlets has made premium products more accessible than ever. At the same time, the demand for innovative, durable, and visually appealing kitchenware is pushing branded players to the forefront. Together, these forces are reshaping the Consumerware landscape and creating powerful tailwinds for sustained industry growth.

The consumerware market can be categorized into two main segments, each with diverse product lines:

Consumer Houseware

• Overview: This segment includes hydration products, cookware, thermoware, lunchboxes, storage containers, and melamine with cookware contributing the highest share, accounting for nearly 40% of total houseware sales in FY 2022-23.

• Market Outlook: Indias houseware segment is projected to expand at a CAGR of 10.5%, with market size expected to touch Rs 33,013 crores by FY 2027-28.

• Borosils Position: We differentiate ourselves in the market through our range of thoughtfully designed, long-lasting, and highly functional cookware, lunchboxes, hydra insulated flasks and bottles and storage products.

Consumer Glassware

• Overview: This category comprises soda lime, borosilicate, crystalware, opalware, porcelain, and bonechina. As of FY 2022-23, the segment was valued at approximately Rs 4,020 crores.

• Market Outlook: Driven by evolving consumer preferences and rising adoption in urban and semi- urban areas, the market is anticipated to grow at a CAGR of 15.0% over the next five years, reaching around Rs 8,070 crores by FY 2027-28.

• Borosils Position: We remain among the leading players in the Indian market for borosilicate and opalware, supported by our strong product reputation and continued consumer trust.

Rising Momentum in the Kitchen Appliances Market

Indias kitchen appliances market was valued at approximately Rs 20,510 crores in FY 2022-23. The sector is anticipated to reach Rs 30,840 crores by FY 2027-28, clocking in an 8.5% CAGR between FY 2023 and FY 2028. This rapid growth is fueled by factors such as a rising population, higher disposable incomes, rapid urbanization, a shift toward nuclear families, growing health consciousness, and more double-income households. Additionally, the rise of e-commerce, evolving consumer preferences for smart and energy-efficient appliances, and the growing demand for modern kitchen solutions are accelerating the markets momentum.

Indias kitchen appliances market is witnessing a decisive shift in favor of branded players. Market research reflected that branded manufacturers accounted for 78% of the market in FY 2022-23. This share is projected to increase to 82% by FY 2027-28, as consumers increasingly prioritize quality, reliability, and after-sales support in their purchasing decisions. This transition from unbranded to branded offerings is being powered by a confluence of supply-side drivers that are reshaping consumer preferences and market dynamics. On the supply side, the transformation is equally pronounced. Branded players are leveraging technology to enhance product performance, while investing heavily in brand-building and customer engagement. The implementation of GST has further leveled the playing field, encouraging formalization and boosting the competitiveness of organized players. Additionally, expansive distribution networks and strong retail footprints have enabled branded companies to reach deeper into Tier 2 and Tier 3 markets, fueling further adoption.

Together, these trends signal a long-term consolidation of branded dominance in the kitchen appliances segment, creating significant growth opportunities for established players with innovation-led strategies.

Market Trends Impacting Consumerware and Kitchen Appliances in India

• Premium Lifestyle Demand and Innovation: A growing segment of consumers is choosing premium and designer consumerware, showing a taste for premium lifestyles and a willingness to invest in superior quality and aesthetics. Parallelly, smart features like IoT connectivity are gaining popularity across the market. Tech-savvy users, in particular, are embracing automation, remote access, and convenience as essential elements of their kitchen experience.

• Brand Building and Consumer Engagement:

Companies are continuing to focus on advertising and marketing to strengthen their brand presence and create consumer awareness. Leading brands are using economies of scale to improve distribution efficiency and expand their overall reach. This is helping them offer wider product choices at competitive prices, increasing their appeal in the market. Additionally, through these efforts, brands are building trust and loyalty that further solidify their leadership position.

• Multi-Channel Retail Integration: Leading brands are responding to changing consumer habits by adopting integrated retail strategies across multiple formats. They are setting up a presence in traditional trade, modern trade, exclusive outlets, multi-brand outlets, and online channels. This approach is helping them meet a wide range of preferences and shopping behaviors. By connecting physical and digital retail spaces, they are creating smooth and consistent consumer journeys. People are now browsing, comparing, and shopping using the platform that suits them best.

• E-Commerce Adoption and Quick-Commerce:

Online platforms are continuing to reshape consumer buying behavior across the kitchen appliances and consumerware category. More shoppers are opting for online options due to easier access, a broader variety, better pricing, and smooth return policies. In cities with limited offline presence, especially Tier 2 and Tier 3, this trend is accelerating fast. This momentum is expected to continue as internet penetration and smartphone adoption increase across the country. Moreover, the rise of quick commerce platforms like Blinkit and Zepto has further accelerated this shift, promising delivery in just 10 to 30 minutes and increasing consumer reliance on digital channels.

Key Growth Drivers of the Indian Consumerware and

Kitchen Appliances market

• Increase in Population: A large and expanding consumer base is emerging from Indias growing population, particularly the middle class and aspirational youth. This is steadily boosting demand across household categories such as cookware, kitchen appliances, dinnerware, and storage solutions.

• Rise in Disposable Incomes; Consumers now have greater spending capacity, allowing them to invest in better-designed, higher-quality appliances and homeware. As a result, quality, convenience, and style have become key factors shaping their purchasing behavior.

• Urban Living and Compact Families: Smaller, nuclear households are becoming more common. This change is prompting higher demand for multi- functional, compact consumerware and a greater inclination toward modern kitchen technologies.

• Health and Wellness Priorities: Growing awareness of health and nutrition is fueling demand for appliances that promote healthier cooking methods. Consequently, products like non-toxic dinnerware, cookware, and storage containers, which provide a healthy eating experience are seeing an increased uptake.

• Growth of Double-Income Households: With more dual-income families emerging, the need for convenient, time-saving appliances and home solutions is rising. Products like remotely operated smart appliances, dishwashers, and food processors are gaining popularity among such households.

• Government Support and Local Manufacturing:

Domestic production in the segment is receiving a boost from initiatives like Make in India. Additionally, infrastructure expansion and rural electrification are broadening market access across previously untapped areas.

• Sustainability and Eco-Consciousness: Environmentally conscious consumers are actively choosing reusable and energy-efficient options. The market for eco- friendly appliances and sustainable storage solutions continues to expand in response to this shift.

The Road Forward for Borosil

• Product Innovation: Our focus remains on product innovation with an emphasis on premium and functional consumerware, along with kitchen appliances. Recent launches, including Opalware lunch boxes, glass bottles, coffee travel mugs, and health-oriented appliances such as air fryers, demonstrate our capability to meet evolving consumer demands.

• Market Penetration: Expanding market penetration by growing the distribution network is one of our key objectives. Currently, our products are available through more than 24,000 retailers across India. We are also investing in technology to improve supply chain management and enhance customer service.

• Brand Positioning: Using strong brand recognition and economies of scale, we compete effectively in both domestic and international markets. Our commitment to quality and safety resonates with the increasing consumer preference for trusted branded products.

• Digital Transformation: Recognizing the rapid growth of online commerce, we are strengthening our digital strategy. At the same time, we are broadening our presence on major e-commerce and q-commerce platforms, while developing our own direct-to- consumer channel, www.myborosil.com, to serve the expanding online customer base.

Challenges and Opportunities

The kitchenware and kitchen appliances sector in India faces a mix of hurdles and prospects. Although rising competition and changing consumer tastes create obstacles, the industry continues to show solid growth potential. Amid these dynamics, companies can tap into valuable opportunities as the middle class expands, disposable incomes increase, and lifestyles evolve, enabling innovation that meets the varied demands of Indian consumers.

This sector continues to transform, driven by demographic shifts and a favorable economic backdrop. As the sector moves toward sustained growth, companies that remain agile and innovation-led will be best positioned to succeed.

Backed by strong fundamentals and a clear strategic focus, we are poised to maintain our leadership position and drive the industrys growth in the years to come. Furthermore, our emphasis on quality, sustainability, and customer-centricity continues to reinforce our competitive advantage.

Risks And Concerns

• Economic Shifts and Consumer Spending: Periods of economic constraint often trigger cutbacks in discretionary spending. Moreover, sluggish GDP growth and rising food inflation can prompt consumers to delay purchases or shift from premium offerings to mass-market alternatives.

• Evolving Consumer Tastes: Consumer preferences can shift, which may negatively affect demand. At Borosil, we actively track these evolving trends to uncover new product lines that resonate with our customers.

• Global Dependencies and Regulatory Hurdles:

China, often referred to as the worlds factory, supplies a portion of our small domestic appliances and many SKUs under the Hydra range. Given the ongoing geopolitical tensions, our reliance on Chinese suppliers could present considerable challenges for our consumer business.

We are also subject to various laws and regulations concerning safety, environmental protection, and labor, which govern aspects of our manufacturing, including emissions, noise levels, hazardous materials, and product quality. Any changes in compliance requirements can materially affect our operations and financial outcomes.

Additionally, we must adhere to the Insulated Flask, Bottles, and Containers for Domestic Use (Quality Control) Order, 2024, which mandates compliance with specific standards and BIS certification. To meet these requirements, we shifted from Chinese to Indian manufacturers and onboarded BIS-certified suppliers. Some Chinese manufacturers are seeking certification, but delays could necessitate more domestic partnerships, leading to a short-term increase in production cost.

Also, a new Quality Control Order issued by the Government of India—Safety of Household, Commercial and Similar Electrical Appliances (Quality Control) Order, 2025—will come into effect from March 2026. This mandates that all electrical appliances for household, commercial, or similar applications must comply with Indian Standard IS 302 (Part 1):2024 and carry the BIS Standard Mark. Non-compliance could lead to regulatory penalties and disruption in production or sales. These changes could impact our operations, financial condition, and cash flow.

• Market Dynamics: Increased pressure on consumer disposable income may push buyers toward more affordable options. This shift could spark market disruptions driven by aggressive competitor pricing, particularly through e-commerce channels offering heavy discounts.

• Commodity Price Volatility: Fluctuations in global demand and supply, along with variations in the Indian Rupees exchange rate against foreign currencies, can lead to unexpected changes in commodity prices. This may raise the cost base and create short-term pressure on margins.

• Disruptions in Global Logistics: Delays in sourcing raw materials, finished goods, or capital equipment may arise from global supply chain disruptions. These interruptions can lead to demand shortfalls, increased inventory levels, and delayed project execution.

• Challenges to Brand Authenticity: Leading brands often face sustained threats from counterfeits, lookalikes, and deceptive replicas, which distort fair competition and impact consumer trust.

BUSINESS OVERVIEW

We offer affordable, high-quality products for everyday use in contemporary designs for the progressive homemaker.

In recent times, we have broadened our consumer portfolio beyond our core glassware range to opalware dinner sets (sold under the brand Larah), small kitchen appliances, storage products, glass lunch boxes, stainless steel cookware and steel vacuum-insulated flasks and bottles.

Consumer products have performed well in FY 2023-24. Building on this momentum, consumer products recorded revenue of Rs 1,107.77 crores in FY 2024-25, representing a 16.8% increase compared to FY 2023-24.

The revenue included Rs 251.98 crores from glassware, which grew by 27.2% over the previous year. Non- glassware sales reached Rs 452.85 crores, showing a 17.2% rise. Opalware sales amounted to Rs 383.75 crores, reflecting a growth of 7.3%. The other operating income amounted to Rs 19.19 crores.

Our diverse and contemporary product range spans multiple materials and price points, reflecting a deep understanding of Indian consumers evolving preferences and needs. This insight stems from our extensive experience in the consumer products industry and guides us in curating a portfolio that meets varied customer demands.

Our Opalware and Borosilicate pressware products are manufactured at a world-class manufacturing facility at Jaipur in India. Recently, we set up a unique borosilicate glass pressware plant in Jaipur with a production capacity of 25 tons per day (TPD). This advanced facility aims to address the growing demands of our customers while significantly reducing our reliance on imports. The lower production costs here will also strengthen our competitive position.

By combining large-scale manufacturing with efficient supply chain management, we capitalize on economies of scale throughout our operations. At the same time, using advanced technology and market data enables us to maintain optimal inventory levels at our production site.

Our products reach domestic consumers via a pan-India distribution network, comprising modern trade channels, e-commerce platforms, and our website. We also have an established export channel for our business. In addition, we also sell our products in bulk quantities to corporate clients and government departments.

We equip our field staff across our distribution network with an ERP system that aids in forecasting production levels and optimizing inventory levels. In addition to these efforts, we have developed and maintained longstanding relationships with our distributors and retailers over the years.

To boost brand awareness and reinforce brand recall, we employ a wide variety of promotional and marketing activities. These include merchandising, in-store displays, print and social media advertisements, as well as retail and product branding initiatives.

During FY 2024-25, guided by market feedback, we recognized the need to refresh the brand positioning of Borosil to We enhance every day for every Indian family, while retaining the core brand promise of performs beautifully. To support this, we conducted extensive nationwide market research, including qualitative and quantitative studies across key cities, to gauge consumer sentiments and analyze the competitive space. Furthermore, the Borosil brand logo was changed to a core logo, where the capital letter symbolizes a strong, enduring brand, and the sleek curve reflects a modern perspective. This transition was gradual and further reinforced through updates to visual elements such as packaging, peripherals, and point-of-sale materials, among others.

Analysis of Financial Outcomes in Relation to Operational Performance

The Company witnessed a marked improvement in its operational performance during the year. Net sales registered a year-on-year growth of 15.5%, reflecting enhanced demand and operational efficiencies. Earnings before interest, taxes, depreciation, and amortization (EBITDA), excluding the exceptional and non-recurring items, stood at 16.3%. Profit after tax for the financial year ended March 31, 2025, increased to Rs 74.24 crores, compared to Rs 65.87 crores recorded in the previous year.

Details Of Significant Changes in Key Financial Ratios, along with Detailed Explanations

Ratios (Based on Standalone Financials)	FY 2024-25	FY 2023-24	Change (%)	Explanation Where Changes is More than 25%
Debtors Turnover Ratio	11.50	13.29	(13.5)	-
Inventory Turnover Ratio	3.78	4.78	(20.8)	-
Interest Coverage Ratio	9.08	11.02	(17.6)	-
Current Ratio	1.96	1.18	66.0	Primarily due to a Decrease in Current Liabilities
Debt Equity Ratio	0.10	0.27	(63.8)	Primarily due to a Decrease in Borrowings
Operating Profit Margin (%)	10.47	10.18	2.8	-
Net Profit Margin (%)	6.70	6.94	(3.5)	-
Return on Net Worth (%)	12.23	14.39	(15.0)	-

Acalypha Realty Limited (ARL), our unlisted wholly owned subsidiary, intends to venture into the real estate business and is yet to commence its business operations. During the year ended March 31, 2025, ARL incurred a loss of Rs 0.46 lakhs, as compared to a loss of Rs 0.49 lakhs during the year ended March 31, 2024.

Segment-Wise Performance

We are primarily engaged in the business of consumerware products, classified as a single segment under Ind AS 108 Operating Segments.

Key Factors Impacting Our Operating Results A Broad and Varied Product Portfolio

We offer over 18,000 SKUs across categories, materials, and price segments, enabling us to function as a one-stop shop for consumers with varied needs and budgets. Our portfolio spans everything from daily essentials to occasion-driven products, allowing us to serve customers across income levels and preferences.

By working closely with our distributor network, we closely track evolving consumer behavior and tailor our innovations accordingly. Our products are designed to meet diverse requirements while maintaining quality across all price points, ensuring broad accessibility and appeal.

Our foray into several categories began with value-added products at higher price points, which we later expanded into more affordable formats to reach broader demographics. This strategy has supported margin stability, helping us cushion the effects of input cost fluctuations over time.

Our products are manufactured using materials like steel, opal glass, borosilicate glass and copper. We have also led category creation in areas such as microwavable glassware, glass lunch boxes, and multi-utility glass storage containers. Furthermore, we have entered into the glass gas stove segment, as gas stoves are an integral part of the modern kitchen.

Having a balanced and diversified product lineup has fortified our business model. It has enabled us to withstand adverse events such as the Covid-19 pandemic. Moreover, our diversified product portfolio serves consumers across various age groups, festive seasons, and occasions. This wide reach has helped us maintain steady revenue growth by smoothing out demand fluctuations caused by seasonality in some products.

To meet the shifting demands of our consumers, we focus on continuously expanding our product offerings by drawing on our extensive expertise, market understanding, and innovation. Our efforts to grow market share in Indias consumer products segment have involved launching new items across opalware, glassware, and non-glassware categories. In FY 2024-25, we introduced a total of 2,980 new SKUs within these categories.

Reliance on External Suppliers for Raw Materials and Stock-in-Trade

Our entire supply of raw materials, packaging components, and stock-in-trade comes from external third-party vendors. We procure these materials strictly on a purchase order basis without engaging in long-term supply agreements, typically defined as contracts lasting 12 months or more. This approach exposes our operations to raw material price volatility. Various factors beyond our influence impact these costs, including production capacity limitations, transportation expenses, interruptions in infrastructure, regulatory changes, government policies, labor disputes, export controls, and fluctuating demand from competitors and end-users alike.

OurAbilityto Improve Manufacturing Efficiency

Improving manufacturing efficiency remains a key driver for increasing our profit margins. To achieve this, we have introduced automation and integrated advanced technology at critical points in design, production, and distribution processes. These measures help boost efficiency while maintaining quality in a cost-effective way.

We enhanced tooling design and optimized the process controls to reduce defects and improve efficiency. Also, specially developed refractory directly improves efficiency.

Going forward, we plan to focus on better capacity utilization and tighter operating cost control by expanding automation in select manufacturing areas. Recently, we undertook projects aimed at cutting energy expenses, including replacing and installing energy-efficient chillers, lighting, and air compressors, as well as automating machine stoppage during idle times.

Additionally, we improved efficiency through horizontal implementation of specially designed orifice rings, tubes, and plungers made from advanced materials in three lines. Alongside these initiatives, we aim to modernize our current machinery and acquire new equipment featuring the latest technology to enhance productivity and reduce waste.

Our Ability to Grow Our Distribution Network

Our extensive sales and distribution network across the country is powered by a dedicated sales and marketing team of 224 professionals. To support them, we provide an enterprise resource planning system that aids in forecasting production needs and optimizes inventory management.

Over many years, we have nurtured strong, enduring relationships with our distributors and retailers. Investments in our Distributor Management System (DMS) and the Borosil SAARTHI sales force automation tool have significantly enhanced market reach, visibility, and employee efficiency by streamlining online inventory control and product replenishment, thereby reducing turnaround times.

This year, we broadened SAARTHIs application to cover additional verticals, including Large Format Stores (LFS), the Canteen Stores Department (CSD), and Central Police Canteen (CPC). Emphasizing digitalization and automation continues to be a key pillar of our transformation efforts.

In addition, maintaining an optimal balance between product availability and inventory levels is essential to deploying resources efficiently. Despite our wide geographic presence, our operations remain agile, able to respond swiftly to the needs of our distributor network and trade consumers. We also continuously adapt to evolving consumer preferences and the fluctuations in demand that characterize the marketplace.

We have established a strong presence on major e-commerce marketplaces such as Amazon, Flipkart, Myntra and JioMart, recognizing their crucial role in connecting with todays digitally empowered consumers. These marketplaces offer massive reach and visibility, allowing Borosil to showcase the breadth and depth of its product portfolio.

By investing in dedicated e-commerce teams, data-driven merchandising, and targeted advertising campaigns, we ensure optimal product discoverability, competitive pricing, and customer engagement. We also use high- quality imagery, A+ content, and customer reviews to drive conversion and brand trust. Parallelly, Borosil utilizes platform analytics and consumer insights to continuously refine its offerings, identify emerging trends, and personalize promotions.

We recognized early that quick commerce was not just a passing trend but a transformative shift in consumer behavior. With growing urbanization, shrinking attention spans, and a growing demand for instant gratification, quick commerce emerged as a channel that could redefine convenience and impulse buying.

In response, we strategically aligned our product assortment, packaging, and supply chain to meet the specific needs of this channel. We focused on smaller pack sizes, high- frequency-use products like glass lunch boxes, storage containers, microwavable cookware, and even Opalware dinner sets that are suitable for gifting or immediate use.

On the operational front, we worked closely with quick commerce platforms to ensure optimized inventory placement, data-driven demand forecasting, and rapid fulfillment capabilities. Throughout, we maintained a sharp focus on unit-level profitability, ensuring every order contributed positively to our bottom line.

This foresight and agile execution allowed us to capture the early-mover advantage and scale profitably in the quick commerce ecosystem, establishing us as a trusted brand for quality kitchenware and tableware delivered at lightning speed.

Significant traffic to our website, www.mvborosil.com. is driven by targeted marketing efforts combined with easy navigation and a smooth purchasing journey. To enhance visitor engagement, we now offer personalized options such as personalized water bottles and personalized glass storage. Supporting this is our dedicated customer experience team powered by Salesforce, ensuring seamless support after purchase.

In addition, we recently integrated Konnect Insights, an online reputation management tool, which monitors brand mentions and sentiment across digital platforms and marketplaces.

Our Competitive Strengths in the Indian Consumer Products Market

Successfully navigating the Indian consumer products space requires a combination of several key factors. These include the breadth of our product portfolio, the diversity within our product mix, manufacturing capacity, and the effectiveness of our advertising and marketing initiatives. Additionally, our ability to innovate in design and deepen our market presence plays a vital role in sustaining our competitive edge. Equally important is how swiftly we adapt to evolving consumer tastes and respond to the strategies deployed by our rivals in this dynamic sector.

The Indian consumer products space is intensely competitive, featuring numerous players, some of whom command larger scale and significantly greater financial resources. These advantages enable them to allocate more towards advertising, promotional discounts, and aggressive marketing campaigns. To counter this, we periodically amplify our advertising and promotional efforts, enhance incentive schemes for our distribution partners, and offer discounts on slower-moving items. Broadening and refining our product range also helps us stay relevant, but these measures naturally lead to increased costs during such periods. At the same time, some competitors benefit from longer market presence, stronger brand equity, and well-rooted supplier relationships, which heighten the competitive pressure we face.

Capital Employed

As of March 31, 2025, the Company had operating capital employed (without considering investments and capital work in progress) of about Rs 841.1 crores (compared to Rs 601.2 crores as of March 31, 2024). The Borosilicate Glass Pressware furnace was commissioned in the last week of March 2024 and accordingly, the capital employed has been considered for FY 2023-24. Our working capital days increased to 90 in FY 2024-25, primarily due to higher inventory levels maintained to ensure supply continuity amid regulatory uncertainties related to BIS/Quality Control Order implementation in the Appliances and Hydra categories. Inventory for Borosilicate glassware rose due to lower capacity utilization, while the shift to in-house manufacturing led to increased stocking of raw materials, packing materials, and bought-out components. The fixed assets as of March 31, 2025 (including capital work in progress, capital advance and capital creditors) were Rs 596.48 crores. After the implementation of the Borosilicate facility and the expansion of the Larah opalware capacity, the maintenance and plant upgrades, including furnace rebuild capex in the business, is anticipated to be in the range of Rs 30-35 crores each year.

OUTLOOK

The consumerware industry in India, valued at Rs 24,058 crores in FY 2022-23, is anticipated to grow to Rs 41,083 crores by FY 2027-28, reflecting a CAGR of 11.3% over the period from FY 2023-28. This expansion is largely propelled by rising disposable income, nuclearization of families, and the demand for organized and functional kitchen spaces, alongside deeper product reach in Tier 2 and Tier 3 cities. A notable transition from unorganized to organized market segments continues, fueled by consumers growing preference for branded, functional, and visually appealing kitchen and tableware.

At Borosil, we have solidified our leadership in this evolving market by delivering affordable, high-quality products designed with the modern homemaker in mind. Our product range has grown beyond core glassware to encompass opalware dinner sets under the Larah brand, along with small kitchen appliances, storage solutions, glass lunch boxes, stainless steel cookware, and stainless steel vacuum insulated flasks and bottles under the Borosil brand.

We anticipate sustained brand growth by strategically expanding glassware and opalware markets while ramping up our branding, promotional, and digital engagement efforts. Additionally, our focus on embedding technology- driven solutions throughout operations enhances efficiency and reinforces our commitment to innovation.

Our advanced manufacturing hub in Jaipur, featuring a newly commissioned borosilicate glass pressware unit, strengthens production capacity and reduces dependence on imports. This investment aligns with emerging customer demands and offers a competitive advantage through cost- efficient manufacturing.

With a diverse portfolio of approximately 18,000 SKUs, spanning multiple categories and price points, we cater to a wide array of consumer needs. Supported by sturdy supply chain management and prudent inventory control, Borosil remains well-positioned to withstand market volatility.

Our products reach customers nationwide via an extensive pan-India distribution network, modern trade outlets, e-commerce platforms, and our own websites. We also maintain solid export relationships and cater to bulk orders from corporate clients and government departments.

Our comprehensive marketing and promotional initiatives, including the recent commercial featuring glass lunch boxes, effectively highlighted how even everyday homemade meals gain greater appeal when carried in Borosil Glass lunch boxes. This campaign reinforced our brand promise that our products Perform Beautifully.

Looking forward, we remain confident in sustaining growth by consistently innovating and broadening our product portfolio to align with changing consumer preferences. By focusing on quality, affordability, and modern design, supported by our strong distribution network and technological progress, we are well positioned to seize emerging market opportunities. This approach also helps us uphold our leadership in the consumerware sector.

Internal Control Systems and Their Adequacy

To ensure our financial reporting remains reliable, we have put in place strong Internal Control Systems that match the scale and nature of our business. These controls are designed to guarantee the accuracy and integrity of our financial statements. Internal audits are continuously conducted by an in-house Internal Audit department, in tandem with an external audit firm. Our Audit Committee reviews these reports every quarter to maintain compliance and effectiveness.

Material Developments in Human Resources, Industrial Relations, and Number of People Employed

Our journey of sustained excellence is powered by the passion, resilience, and performance of our people. We recognize that human capital is our most valuable asset, and our achievements in the glass manufacturing industry are a direct outcome of their unwavering commitment. We are continuously nurturing a culture that is people-first, future-ready, and performance-driven.

We remain focused on creating a workplace that promotes collaboration, inclusivity, and empowerment. The key pillars of our HR philosophy include:

• People-First Culture: We have a culture where every individual feels valued, included, and inspired to contribute their best.

• Transparency and Trust: Open and honest communication is the bedrock of our employee relations, fostering mutual respect and alignment.

• Leadership from Within: We are committed to nurturing internal talent by identifying high-potential individuals and investing in their growth through structured leadership development programs.

• Empowered Workforce: We promote ownership and accountability by encouraging innovation and initiative at all levels.

• Proactive and Approachable Leadership: Through our open-door philosophy, senior leaders remain accessible to employees, promoting agility in decision-making and responsiveness to feedback.

• Commitment to Growth: We believe in long- term relationships with our employees and invest consistently in their learning, well-being, and career development.

• Managerial Support & Capability Building: Our people managers are being equipped with tools and skills to support, coach, and lead high-performing teams.

• Goal Alignment: We align individual aspirations with business goals through robust performance management and employee engagement frameworks.

Industrial relations remained stable and constructive across all our locations, supported by consistent dialogue and mutual trust with our workforce. We continue to maintain a healthy, safe, and productive work environment in line with regulatory compliance and industry best practices.

We are refining our structure, assessing leadership capabilities, and identifying key talent and measures to attract, retain, and engage top performers. By offering new roles and growth opportunities, we aim to build an agile, resilient, and dynamic workforce.

Our Learning and Development (L&D) function continues to play a strategic role in building future-ready capabilities. We design programs aligned to business goals and evolving needs of our employees. This year, we have expanded our trainings to cover a wide range of competencies - from core functional skills to emerging digital proficiencies.

As part of our commitment to customer-centricity, we launched a specially curated Interpersonal Skills training program to strengthen employees communication, empathy, and relationship-building abilities with both internal and external stakeholders. In line with our future- readiness agenda, we introduced Al-focused training programs to empower employees to embrace emerging technologies and harness AI tools for enhanced efficiency and productivity.

Our in-house curated training program of Borosil Essentials (which includes POSH, Code of Conduct, and Borosil Values) continues to strengthen the foundational aspects and instill our core values in the team. To ensure a safe and respectful work environment, we launched the POSH e-learning module across the organization, making compliance training more effective and accessible to employees.

Beyond functional and behavioral training, we have also conducted wellness training sessions, reinforcing our commitment to employees holistic well-being.

As of March 31, 2025, the Company had 642 permanent employees.