Brand Concepts Ltd Management Discussions

Economic Overview

Global Economy

The global economy remained resilient during CY2025 because of moderating inflationary pressures and sustained domestic demand across major economies. Global growth remained steady at 3.5% despite persistent geopolitical uncertainties, elevated trade policy tensions and ongoing supply chain realignments. The U.S. economy maintained strong momentum, with GDP growth estimated at approximately 2.1% during CY 2025, bolstered by resilient labour markets, robust consumer spending and continued investments in technology and artificial intelligence-led infrastructure. The Euro Area witnessed relatively subdued growth of around 1.4% reflecting weak industrial activity, softer external demand and continued energy-related pressures.

Emerging Market and Developing Economies (EMDEs) outperformed advanced economies, expanding by 4.5% compared with 1.9% driven by stronger domestic consumption, public infrastructure investments and improving capital inflows. Because of manufacturing resilience and expanding services activity, Asian Economies remained key contributors to global growth. Global inflation moderated to approximately 4.1% in CY2025, as supply chain disruptions eased and the impact of earlier monetary tightening measures filtered through global economies.

Lower commodity prices and stabilising logistics costs also contributed to easing price pressures. Rising international travel activity, improved consumer mobility and premiumisation trends supported growth across the luggage, handbags and fashion accessories segments. Additionally, the expansion of e-commerce platforms and evolving lifestyle preferences are driving higher demand for branded and design-led consumer products globally.

Outlook

Global growth is projected to moderate to 3.0% in CY 2026 and improve to 3.4% in CY 2027. The outlook remains constrained by heightened geopolitical uncertainty, rising trade fragmentation risks and the economic effects of regional conflicts and energy market volatility. The U.S. economy is projected to grow by approximately 2.3% in CY 2026 amid moderating consumer demand and tighter financial conditions. Advanced economies are expected to witness relatively slower growth amid softer industrial output, fiscal consolidation measures and persistent structural challenges. Emerging market and developing economies are expected to remain the primary drivers of global expansion, as a result of domestic demand, infrastructure spending and continued digital and manufacturing investments. EMDE growth is projected at approximately 3.8% in CY 2026 and 4.5% in CY 2027, significantly outpacing advanced economies.

Global inflation is expected to remain elevated in the near term due to energy market disruptions and geopolitical tensions, before gradually moderating over the medium term as monetary conditions stabilise and supply-side pressures ease. Central banks across major economies are expected to continue balancing inflation management with growth support through calibrated monetary policy actions.

Despite near-term uncertainties, long-term global economic fundamentals remain positive because of technological innovation, supply chain diversification, digital transformation and investments in sustainable infrastructure. However, risks relating to geopolitical conflicts, trade protectionism, commodity price volatility and tighter financial conditions may continue to influence the global economic trajectory over the coming years.

World Economic Outlook Projections (in % terms)

Region	CY25	CY26 (P)	CY27 (P)
Global Economy	3.5	3.0	3.4
Advanced Economies	1.9	1.7	1.8
United States	2.1	2.3	2.2
EMDE	4.5	3.8	4.5

P: Projections
Source: IMF World Economic Outlook, July 2026

Indian Economy

Overview

India remained among the fastest-growing major economies in FY2025-26, demonstrating resilience amid persistent geopolitical tensions, evolving global trade realignments, tariff-related uncertainties and intermittent commodity price volatility. Strong domestic consumption, sustained government capex and expanding manufacturing activity underpinned economic momentum during the year. Real GDP growth for FY 2025-26 is estimated at approximately 7.7% driven by robust performance across the manufacturing, construction and services sectors.

Government-led infrastructure development played a pivotal role in sustaining economic growth. The Governments capex outlay stood at approximately 11.21 lakh crore during FY 2025-26, reflecting continued emphasis on infrastructure creation, logistics enhancement and crowding in private sector investments.

Indias external sector remained resilient despite ongoing global trade disruptions. Total exports stood at approximately USD 860.09 billion during FY 2025-26, registering growth of around 4.2% over the previous year, driven by healthy performance across engineering goods, electronics, pharmaceuticals, chemicals and technology-led services exports.

Foreign Direct Investment (FDI) inflows remained strong during the year, reflecting sustained investor confidence, policy reforms, improving ease of doing business and Indias growing role within global supply-chain diversification strategies. India also benefited from its demographic advantage, rising digital adoption and expanding formalisation of the economy.

Rising discretionary consumption, increasing urbanisation and recovery in travel and tourism activity supported demand across lifestyle, fashion and travel-related categories during the year. Growth in domestic air passenger traffic, organised retail penetration and digital commerce adoption also contributed to higher consumer spending on premium and branded products, benefiting sectors such as luggage, backpacks and fashion accessories. Investments in infrastructure, renewable energy, defence manufacturing and industrial corridors further strengthened long-term growth prospects across multiple sectors.

Outlook

Indias economic outlook remains favourable, aided by strong domestic demand, resilient investment activity and continued policy support for manufacturing and industrial development. Real GDP growth for FY 2026-27 is projected to be at 6.6% positioning India among the fastest-growing major economies globally despite external macroeconomic uncertainties. Infrastructure-led development is expected to remain a key driver of economic growth, with capital expenditure for FY2026-27 budgeted at approximately 12.22 lakh crore. Continued investments in transportation networks, urban infrastructure, renewable energy, logistics and industrial corridors are expected to strengthen Indias manufacturing competitiveness and improve supply-chain efficiency.

Indias external outlook remains constructive, supported by ongoing trade negotiations, increasing global interest in India as an alternative manufacturing hub, continued diversification of global supply chains and expanding aviation connectivity. Rising domestic tourism, improving air connectivity and growing middle-class consumption are expected to sustain demand for travel gear, lifestyle products and organised retail over the medium term.

Continued policy support for manufacturing, electronics, defence, textiles and advanced engineering is expected to strengthen industrial value chains and enhance long-term growth opportunities. While geopolitical tensions, commodity price volatility and evolving global trade dynamics may create near-term uncertainties, Indias strong macroeconomic fundamentals, sustained public investment, structural reforms, digitalisation and increasing private sector participation position the economy favourably for broad-based long-term growth.

Indian GDP Growth Trend (in %)

Year	GDP Growth
FY25	7.1
FY26	7.7
FY27 (P)	6.6*

P- Projected Source: MOSPI, RBI*

Industry Overview

Global Luggage Industry

The global luggage market continued to expand steadily, supported by sustained growth in international tourism, rising business travel and increasing consumer expenditure on travel and lifestyle products. Valued at USD 26.4 billion in 2024, the market is projected to grow from USD 27.43 billion in 2025 to USD 40.21 billion by 2035, registering a CAGR of 3.9% during the forecast period. Rising demand across leisure, business and everyday mobility segments, together with the expansion of organised retail and digital commerce, continues to strengthen market penetration and support long-term industry growth.

The industry is witnessing a structural shift towards premium, lightweight and technologically advanced luggage solutions, driven by evolving consumer expectations for durability, functionality and design. Manufacturers are increasingly incorporating sustainable materials, advanced manufacturing processes and smart features such as GPS-enabled tracking, USB charging and enhanced security systems to differentiate product offerings. Looking ahead, continued product premiumisation, deeper omnichannel integration and investments in innovation and manufacturing capabilities are expected to reinforce competitive positioning and create sustainable growth opportunities across global markets.

2024 2025 2035 Source: Market Research Future

Key Market Trends & Insights

Expansion of Leisure and Experiential Travel

Increasing preference for leisure, adventure and experiential travel is diversifying demand across hard luggage, backpacks, cabin baggage, travel accessories and multifunctional travel gear.

Short-Haul and Frequent Travel Influencing Product Design

The growing popularity of short-duration trips and hybrid work arrangements is driving demand for compact, lightweight and cabin-friendly luggage with enhanced portability.

Rising Demand for Organised and Branded Products

Consumers are increasingly shifting from unorganised offerings to branded luggage, supported by greater product awareness, quality assurance and stronger after-sales service expectations.

Omnichannel Retail Strengthening Consumer Reach

Online channels are playing a larger role in product discovery and purchase decisions, with digital engagement, customer reviews and omnichannel fulfilment influencing brand selection.

Licensing and Brand Collaborations Enhancing Market Differentiation

Partnerships with global fashion, lifestyle and travel brands are enabling manufacturers to broaden product portfolios, strengthen brand positioning and address diverse consumer segments.

Indian Luggage Industry

The Indian luggage industry has emerged as a steadily expanding market, supported by favourable demographics, increasing travel frequency, improving air connectivity and rising consumer aspirations. Increasing air connectivity, rapid urbanisation and higher mobility across work and lifestyle segments are strengthening demand for travel products across both metropolitan and emerging cities. According to IMARC Group, the India luggage and suitcases market reached USD 4.0 billion in 2025 and is projected to grow to USD 7.3 billion by 2034, registering a CAGR of 6.72% during 2026-2034.

Consumer preferences are increasingly shifting towards branded, lightweight and premium luggage that combines durability, functionality and contemporary design. Demand is expanding beyond traditional suitcases to include backpacks, travel accessories and cabin luggage, supported by evolving travel patterns and higher replacement purchases. The growing influence of organised retail, omnichannel distribution and e-commerce platforms, together with increasing penetration in Tier II and Tier III cities, is accelerating the transition from unorganised to organised market participants while enhancing product accessibility across customer segments.

Looking ahead, continued investments in product development, manufacturing capabilities and technology-enabled travel solutions are expected to strengthen industry competitiveness. Increasing localisation, design innovation, wider export opportunities and stronger organised market participation are expected to support the industrys long-term growth trajectory.

Indian Luggage Industry Market Trend (In USD Billion)

Year	Market Size
2025	USD 4.0 B
2026	—
2027	—
2028	—
2029	—
2030	—
2031	—
2032	—
2033	—
2034	USD 7.3 B

Source: Imarc

Indian Backpack Industry

The Indian backpack industry registered a steady growth during the year, supported by rising travel activity, increasing workforce participation, expanding higher education enrolment and growing demand for functional everyday carry solutions. Backpacks are increasingly being adopted across travel, education, business and recreational applications owing to their convenience, storage efficiency and ergonomic design.

The industry is expected to grow at a CAGR of 8.80% during the forecast period of 2026-2035 to attain a valuation of USD 2.65 Billion by 2035. Favorable demographic trends, including a large working-age population and a growing student base, continue to support sustained category demand.

The industry is witnessing increasing demand for specialised product categories, including travel backpacks, work and laptop bags, and sports and recreational backpacks, reflecting evolving consumer lifestyles and mobility requirements. Expansion of organised retail networks and digital commerce platforms is improving product accessibility across metropolitan as well as emerging markets, while increasing product differentiation and premium offerings are further strengthening market growth. The industry is expected to benefit from sustained consumer demand and continued expansion across multiple end-use segments.

Indian Backpack Market Trend (In USD Billion)

Year	Market Size
2025	1.14
2035	2.65

Indian Leather Goods Industry

The Domestic leather goods industry demonstrated steady growth during the year, driven by premium fashion consumption and evolving lifestyle preferences. The Indian leather goods market generated revenue of approximately USD 15.13 billion in 2023 and is projected to reach nearly USD 25.48 billion by 2030, reflecting a CAGR of around 7.7% during the period from 2024 to 2030. Industry expansion continues to be underpinned by rising domestic consumption, rapid urbanisation and growing preference for branded products across categories such as handbags, wallets, belts, footwear and travel accessories.

While genuine leather remained the dominant segment, vegan leather emerged as the fastest-growing category driven by increasing consumer preference for sustainable and ethically sourced products. India continues to remain an important player within the Asia-Pacific leather goods market, supported by strong craftsmanship capabilities, competitive manufacturing costs and a well-established production ecosystem across states such as West Bengal, Maharashtra, Uttar Pradesh, Karnataka and Madhya Pradesh. Rising export demand, continued design differentiation and material diversification are further strengthening the industrys growth prospects.

Manufacturers continue to expand their portfolios through differentiated textures, finishes and fashion-led offerings to cater to shifting consumer preferences. Increasing product premiumisation, greater emphasis on design-led innovation and expansion into international markets are expected to support long-term industry growth.

Growth Drivers

Growth Driver	Description
Higher Travel Intensity	Increasing frequency of business, leisure and short-duration travel is expanding demand across multiple luggage categories and travel accessories.
Premium Product Mix	Consumers are gradually shifting towards premium products offering superior aesthetics, durability and functionality, supporting higher value realisations.
Faster Product Replacement Cycles	Growing preference for contemporary designs, improved product features and changing fashion trends is encouraging faster replacement demand.
Manufacturing and Supply Chain Localisation	Increasing domestic manufacturing capabilities and supply chain optimisation are improving cost competitiveness and product availability.
Technology-led Product Development	Integration of smart features, advanced materials and ergonomic designs is enhancing product differentiation and consumer experience.
Expanding Consumer Base	Rising workforce participation, younger demographics and increasing mobility requirements continue to broaden the addressable market.

Opportunities and Challenges

Opportunities

Premium Lifestyle Positioning

Rising consumer preference for differentiated, technology-enabled and premium travel products is creating opportunities for manufacturers to enhance product portfolios and improve value realisation. Continuous innovation in design, materials and functionality is expected to strengthen competitiveness across premium segments.

Export Market Expansion

Diversification of global sourcing destinations and growing demand for quality travel products are creating favourable export opportunities for Indian manufacturers. Strengthening manufacturing capabilities and competitive cost structures are expected to support expansion into international markets.

Digital Travel Ecosystem Integration

Increasing adoption of smart luggage equipped with digital tracking, USB charging, anti-theft features and enhanced security systems is opening new growth avenues in premium categories. Rising consumer preference for convenience and technology-enabled travel products is expected to accelerate market adoption.

Sustainable Product Portfolio

Growing environmental awareness and changing consumer preferences are driving demand for products manufactured using recycled materials, vegan leather and sustainable production practices. Manufacturers focusing on environmentally responsible product development are well positioned to capture emerging demand.</p>

Brand-led Category Expansion

Expanding into adjacent lifestyle categories such as backpacks, travel accessories, business bags and everyday carry solutions provides opportunities to diversify revenue streams and strengthen brand presence. Wider product portfolios also enable manufacturers to address evolving consumer needs across multiple usage occasions.

Direct-to-Consumer and Omnichannel Expansion

Continued expansion of organised retail formats and branded outlets across Tier II and Tier III cities is improving product accessibility and consumer reach. Stronger omnichannel strategies and wider distribution networks are expected to support sustained market expansion and brand visibility.

Challenges

Intense Market Competition

Intense competition across value and mid-premium segments continues to exert pressure on pricing, margins and market share.

Volatility in Raw Material Prices

Fluctuations in prices of raw materials such as polymers, fabrics, leather and metals may impact manufacturing costs and profitability.

Dependence on Consumer Discretionary Spending

Demand for luggage and lifestyle products remains sensitive to economic slowdowns, inflationary pressures and changes in consumer spending patterns.

Supply Chain and Import-related Risks

Global supply-chain disruptions, logistics costs and dependence on imported components may continue to create operational and procurement challenges.

Company Overview

Brand Concepts Limited is one of the leading player in Indias fashion and lifestyle accessories industry, engaged in the design, manufacturing, branding and distribution of luggage, handbags, backpacks, small leather goods and travel accessories. Over the years, the Company has evolved from a brand distributor into an integrated lifestyle accessories platform with capabilities spanning product design, sourcing, manufacturing, warehousing, retail and digital commerce.

The Company manages a diversified portfolio comprising licensed international brands including Tommy Hilfiger, United Colors of Benetton, Juicy Couture, Aeropostale, Superdry and OFF-WHITE, alongside its in-house brands such as Sugarush and The Vertical. This diversified brand architecture enables the Company to address multiple consumer segments while strengthening its presence in the premium and aspirational lifestyle accessories market.

Brand Concepts has established an omnichannel distribution network spanning exclusive brand outlets, Bagline stores, large-format retailers, multi-brand outlets, institutional sales and leading e-commerce platforms, including Bagline.com. Complementing its distribution capabilities, the Company has invested in its in-house manufacturing and warehousing infrastructure to improve supply-chain agility, enhance product development capabilities, strengthen margin profile and support scalable long-term growth.

40+ Total Stores in India
950+ POS

Key Categories

The Company maintains a diversified portfolio across travel gear, handbags, small leather goods, apparel and other fashion and lifestyle accessories supported by a portfolio of international and own brands. Its product offering spans multiple consumer segments, price points and use occasions, with the portfolio continuing to broaden through the addition of premium and lifestyle categories.

Backpacks

The Company offers a range of backpacks, laptop bags, school backpacks, rucksacks, gym bags and business cases, catering to students, professionals and everyday consumers. The products combine functionality, durability and contemporary design across varied consumer needs and price points.

Luggage and Travel Gear

The Company offers hard and soft luggage, luggage trolleys, duffle bags and other travel gear, combining functionality with design-led aesthetics. Travel Gear remains an established category within the portfolio, with the Company offering luggage across both hard and soft formats. The Company is also strengthening its in-house manufacturing capabilities in hard luggage, supporting greater manufacturing integration.

Handbags and Fashion Accessories

The Company offers womens handbags, clutches, cross-body bags, shoulder bags, totes and related fashion accessories, addressing evolving consumer preferences and the growing demand for branded lifestyle products. Womens handbags represent an important growth opportunity, with management highlighting the category as a significant avenue for future value creation.

Small Leather Goods

The Company offers a range of small leather goods, including mens and womens wallets, belts, card holders and other compact accessories. The portfolio includes bifold, slimfold, trifold, coin and zip-around wallets, along with leather and reversible belts, combining functionality with contemporary styling for both casual and formal occasions.

Apparel

The Company has expanded into apparel through its international brand portfolio, broadening its presence beyond travel gear and accessories. Off-White provides exposure to mens, womens and childrens ready-to-wear apparel, while the Company has also expanded its Juicy Couture licensing arrangement to include apparel. Management has highlighted strong consumer response to Juicy Couture apparel and views the category as an additional avenue for brand expansion.

Footwear and Swimwear

The Company is further broadening its lifestyle offering through footwear and swimwear, particularly through its international brand portfolio. Off-White provides exposure to these categories alongside bags, apparel and other fashion accessories, enabling the Company to participate across a wider lifestyle product ecosystem.

Financial Performance

Particulars	FY26	FY25	FY24	FY23	FY22
Net Sales	3,480.91	2,919.19	2,901.49	1,632.28	861.7
EBITDA	2969.20	205.89	252.70	212.47	77.5
EBITDA Margin (%)	8.53	7.05	8.71	13.00	9.00
Profit Before Tax (PBT)	54.20	76.80	181.97	134.61	0.4
Profit After Tax (PAT)	96.80	52.33	121.27	100.47	7.6
PAT Margin (%)	0.28	1.79	4.18	6.20	0.90
Reported Earnings per share (in INR)	0.78	4.22	10.04	9.6	0.66

Key Financial Ratios

Particulars	FY26	FY25
Debtors turnover ratio	4.75	5.36
Inventory turnover ratio	1.51	1.88
Current ratio	1.14	1.31
Debt to equity ratio	1.63	1.29
Net profit margin ratio	0.28	1.79

Segment-wise Performance

During the year, the Company continued to strengthen its position across the Travel Gear, Small Leather Goods and Womens Handbags categories, supported by portfolio expansion, new brand launches and increasing manufacturing capabilities. Revenue growth remained healthy despite a challenging operating environment, while the Company continued to focus on strengthening its market presence and improving operating efficiency.

On a standalone basis, the total revenue stood at 349.94 crore as compared to 293.02 crore in the previous year, registering a growth of 19.43%. The net profit for the year was 0.97 crore, compared to 5.23 crores in the previous year.

On a consolidated basis, the total revenue was 349.95 crore, against 293.02 crore in the previous year, registering growth of 19.43%. The consolidated net profit stood at 1.09 crore as compared to 5.23 crore in the previous year.

The moderation in profitability during the year was primarily attributable to higher fixed costs, investments in new brands and channel expansion, while the Company continued to build capabilities for improving operating leverage. Going forward, the focus remains on channel consolidation, improving unit economics and leveraging manufacturing and product development capabilities to enhance cost efficiency.

Sales Channels

Sales Channel	Overview
Exclusive Retail Stores	Operates a network of exclusive retail stores across key markets, enabling direct consumer engagement, enhancing brand visibility and delivering a premium shopping experience across its portfolio of travel gear and lifestyle accessories.
Modern Trade & Multi-Brand Outlets	Leverages partnerships with leading organised retail chains and multi-brand outlets to expand market reach, improve product accessibility and strengthen its presence across premium retail destinations.
Traditional Trade & Institutional Sales	Serves customers through an established dealer and distributor network, corporate institutions and government channels, supporting wider market penetration and diversified revenue streams.
E-commerce Marketplaces	Maintains a strong presence across leading online marketplaces, enabling nationwide accessibility, enhanced digital visibility and convenient shopping experiences for consumers.
Direct-to-Consumer (D2C) Platform	Operates its proprietary digital platform to support its omnichannel strategy by integrating online and offline channels, improving inventory visibility, fulfilment efficiency and customer engagement.

Bagline and Bagline.com

Bagline is the flagship retail and omnichannel platform of Brand Concepts Limited, positioned within Indias premium and bridge-to-luxury fashion, travel and lifestyle accessories market. The platform offers a curated portfolio spanning luggage, backpacks, handbags, small leather goods, lifestyle accessories, apparels and fashion accessories. Its product range includes luggage trolleys, hard and soft luggage, overnigers, duffle bags, laptop and business cases, crossbody bags, clutches, belts and wallets, catering to evolving consumer preferences across travel and lifestyle needs.

The Company operates a network of over 40+ Bagline stores across India, complemented by its proprietary digital platform, Bagline.com. Designed to deliver a seamless omnichannel experience, the platform integrates online and offline channels by enabling customers to browse products, access nearby store inventory and choose convenient fulfilment options, thereby enhancing customer convenience and engagement.

The Company is expanding its premium branded retail footprint through exclusive stores for Tommy Hilfiger, Juicy Couture and Off-White, enabling each brand to build a more differentiated and immersive consumer proposition. Tommy Hilfiger Travel Gear is offered through dedicated retail formats focused on travel gear and soft leather goods, while Juicy Couture has expanded its presence with a new store at Lakeshore Mall, Hyderabad, strengthening its positioning in the casual-luxury lifestyle segment. Off-White marked its entry into Indias dedicated retail landscape with its first store at Mall of Asia, Bengaluru, offering a broader fashion proposition spanning apparel, footwear, bags and fashion accessories.

Bagline combines a premium brand portfolio with an integrated retail ecosystem to cater to evolving consumer preferences. In addition to an extensive product offering, the platform provides value-added services such as doorstep delivery, loyalty programmes, gifting solutions and dedicated B2B ordering capabilities, supporting customer retention and strengthening long-term relationships.

Backed by a design-led product strategy, expanding digital capabilities and a well-integrated omnichannel ecosystem, Bagline continues to strengthen Brand Concepts Limiteds direct-to-consumer presence while enhancing retail productivity, customer engagement and its positioning within Indias organised fashion accessories and travel gear market.

Strengths

Diversified International Brand Portfolio:

Exclusive licensing rights for globally recognised brands across travel gear, handbags and lifestyle accessories strengthen market positioning across multiple consumer segments.

Integrated Business Model:

In-house manufacturing, warehousing and product development capabilities enhance supply chain control, improve operational efficiency and support long-term margin expansion.

Strong Omnichannel Presence:

Well-established presence across e-commerce, modern trade, exclusive stores, Bagline outlets and institutional channels enables broad market reach and customer engagement.

Premiumisation and Design Capabilities:

Strong product design, category expansion and premium brand positioning enable differentiation in a competitive market.

Opportunities

Growing Organised Lifestyle Accessories Market:

Increasing consumer preference for branded travel gear, handbags and lifestyle accessories is expected to support long-term demand.

Expansion of Premium and Luxury Portfolio:

Recently added international brands provide opportunities to strengthen presence in premium and luxury lifestyle categories.

Manufacturing-led Margin Improvement:

Higher in-house manufacturing, backward integration and product premiumisation are expected to improve operational efficiencies and profitability over time.

Digital and Omnichannel Growth:

Increasing adoption of online retail and direct-to-consumer platforms offers opportunities to enhance customer engagement and improve channel economics.

Weaknesses

Working Capital Intensive Business:

Expansion across new brands, inventory and manufacturing operations increases working capital requirements and financing costs.

Profitability Under Investment Phase:

Ongoing investments in manufacturing, retail formats and brand development may moderate profitability in the near term.

High Dependence on Licensed Brands:

Continued growth remains linked to the successful management and renewal of international licensing agreements.

Threats

Intensifying Market Competition:

Aggressive expansion by established players and well-funded digital-first brands may increase pricing pressure and customer acquisition costs.

Raw Material and Input Cost Inflation:

Volatility in the prices of polymers, fabrics, leather and other materials may affect margins.

Foreign Exchange and Global Sourcing Risks:

Currency fluctuations and global supply chain disruptions may increase procurement costs and impact product availability. productivity, customer engagement and its positioning within Indias organised fashion accessories and travel gear market.

Risk Management

The Company has established a structured risk management framework to proactively identify, assess and mitigate key business and operational risks. Risks are evaluated based on their likelihood and potential impact, enabling timely implementation of appropriate mitigation measures. The business remains exposed to external factors such as economic uncertainties, fluctuations in consumer demand, raw material price volatility and supply chain disruptions, as well as operational, workforce and technology-related risks. Through continuous monitoring, periodic risk assessments and defined mitigation strategies, the Company seeks to minimise potential disruptions and strengthen operational resilience while safeguarding long-term business performance.

Human Resources

The Companys human resources strategy focuses on building capabilities to support its expanding brand portfolio, omnichannel operations and manufacturing footprint. During the year, emphasis remained on strengthening functional expertise across design, sourcing, merchandising, manufacturing, retail and digital commerce, while enhancing employee development, performance management and leadership capabilities. The Company also strengthened its management bandwidth by adding experienced professionals and engaging consultants where required. Programmes such as PRAGATI and Monthly Intellectual Hours support role-specific learning, knowledge sharing, cross-functional collaboration and continuous capability building, fostering a collaborative and performance-driven work environment.

Total Employees as on 31st March, 2026

Internal Control System and Their Adequacy

The Company upholds a robust internal control system to safeguard its assets from potential loss, unauthorised usage, or disposal. All financial transactions undergo thorough authorisation, meticulous recording and accurate reporting to the managerial team. Adhering strictly to applicable Accounting Standards, the Company ensures precision in maintaining financial records and statements. Internal control mechanisms are customised to align with the Companys scale and operational scope, with clear roles and responsibilities delineated and standard operating procedures enacted to provide a reasonable level of assurance. Regular internal assessments validate the effective execution of these responsibilities. Management rigorously evaluates suggestions and observations, leading to continuous strengthening of controls across various business functions.

Disclaimer

Statements made in this report in describing the Companys objectives, projections, estimates and expectations may be forward-looking statements within the meaning of applicable securities laws and regulations. Many factors may affect the actual results, which could be different from what the directors envisage in terms of future performance and outlook. Important factors that could influence the Companys operations include global and domestic supply and demand conditions affecting selling prices of finished goods, availability of inputs and their prices, changes in the Government policies, regulations, tax laws, economic developments within the country and outside and other factors such as litigation and industrial relations. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, based on subsequent developments, information or events.