Calcom Vision Ltd Management Discussions

Economic Overview

Global economy 1

The global economy returned to a normalcy after a few challenging years in CY 2024. Global GDP increased by about 3.3%, supported by easing inflation and improving job markets. Advanced economies such as the United States (US) and Europe expanded by 1.8%, while Emerging Market and Developing Economies (EMDEs) grew at a faster rate of about 4.3%. Inflation trends improved significantly, with global consumer prices rising at a slower pace of 5.7%. Inflation in advanced economies stood at 2.6%, while EMDEs saw a rise of nearly 7.7%, indicating progress toward price stability across regions. As technologies evolved, power consumption became a critical factor across multiple sectors such as data processing, semiconductor manufacturing, and AI-driven services saw a sharp increase in energy requirements, largely due to the rapid growth of data centres that manage vast volumes of information. These developments depend heavily on stable and scalable power infrastructure, bringing attention to the need for more energy-efficient solutions. In this context, these sectors have gained prominence, not only for their role in driving innovation but also for their significant electricity usage, and playing a key role in technological and economic advancement.

The global economy is expected to grow at a slower pace of around 2.8% in CY 2025, mainly due to the rising trade tensions and the impact of the new tariffs. However, by 2026, growth is projected to improve by about 3.0%, as economies adjust and stabilise in the new trade environment. Despite short-term challenges, strong domestic demand, along with progress in digital technologies and Artificial Intelligence (AI), is likely to support overall recovery in some countries. EMDEs are expected to grow faster than advanced economies, supported by expanding industries, growing population and improved infrastructure. Inflation is estimated to decline between CY 2025-26. Global inflationisexpectedtobearound4.3%inCY2025,easingfurther to about 3.6% in 2026. This slowdown is driven by improving supply chain conditions and stringent monetary policies in many countries. As the inflation cools, purchasing power is expected to improve, especially in advanced economies. The demand for smart devices and energy-efficient lighting are increasing. In response, energy producers across the world are preparing to expand electricity generation, opening up new opportunities for investment and development. While future energy needs for AI may vary, this also encourages smarter planning and innovation in infrastructure.

Indian economy 2

The Indian economy grew at a steady pace of 6.5% in FY 2024?€“25, driven by a solid performance in services, private consumption and capital investment. This growth was supported by strong infrastructure spending and high capacity utilisation in the manufacturing sector. Inflation eased, falling to 4.7% in FY 2024-25, supported by lower food and fuel prices. This improved purchasing power and created a positive environment for both businesses and consumers.

Trade continues to be a key driver in electronic and lighting industry in India, with electronic goods making a significant contribution to both exports and imports in FY 2024?€“25. Input cost indicators, such as the Wholesale Price Index, help track production trends. Rising electricity demand highlights the sectors expanding footprint. Financial conditions, including access to credit and manageable interest rates, provide a supportive environment for investment and growth. Steady domestic demand driven by consumer spending and captured in indicators like the Index of Industrial Production for consumer durables strengthens the sector.

-april-2025

The Indian economy is expected to grow steadily at a rate of 6.5% in FY 2025?€“26, followed by a slightly increased growth of 6.7% in FY 2026?€“27. This will be supported by healthy rural demand, strong investment activities and higher capacity utilisation across industries. Improved financial conditions, ongoing infrastructure spending by the government and the recovery of private consumption are also expected to boost the economy. Despite global uncertainties, Indias service sector remains resilient and the manufacturing sector continues to show signs of revival. Inflation is expected to stay under control in the coming years. Consumer Price Index (CPI) inflation is projected to reach 4.0% in FY 2025?€“26 and 4.3% in FY 2026?€“27, backed by lower food and fuel prices, stable supply conditions and ongoing policy support. These prices are likely to support household spending and boost demand for various consumer goods. The electronics and lighting industry in India is expected to maintain its positive momentum during this period.

Industry Overview

Indian electronics market

Indias electronics manufacturing industry experienced robust growth in the year under review. The total demand rose by USD 540 billion. The Electronics System Design and Manufacturing (ESDM) market reached to USD 220 billion. This growth was driven by key segments like Information Technology (IT) and office automation, industrial electronics and automotive electronics, which showed the fastest growth. India achieved USD 300 billion in electronics manufacturing and aimed to export goods worth USD 120 billion. The National Policy on Electronics supported this target by encouraging local manufacturing. One of the main focus area was mobile phones and India aimed to produce 1 billion handsets valued at USD 190 billion, with 600 million of them meant for export. 3

In FY 2024-25, India made strong progress in electronics manufacturing, aided by the Make in India initiative. The country went from depending on imports to becoming one of the top places in the world for making electronics. India became the second-largest mobile phone maker in the world. The number of mobile phone factories grew over 300 from FY 2014 to FY 2024-25. In FY 2024-25, 99.2% of mobile phones sold in India were made locally. Now, over 325-330 million mobile phones are made in India every year.

The PLI scheme has led to cumulative investment of 10,905 crore, cumulative production of 7,15,823 crore and cumulative exports of 3,90,387 crore.

Government support played a big part in the growth of the electronics industry during FY 2024-25. The Production Linked Incentive (PLI) scheme for Large Scale Electronics, gives rewards to companies that increase their local production. In FY 2024-

25, 5,747 crore was given under this scheme and the budget for next year is expected to be 8,885 crore. This scheme also created around 1.4 lakh direct jobs. Another scheme, called Scheme for promotion of Electronic Components and Semiconductors (SPECS), gives 25% support on spending for setting up units to make electronic parts and chips.

India also focused on semiconductor development in FY 2024-25. At the Global Investors Summit 2025, it was shared that Indias first locally made semiconductor chip would be ready. A deal was signed to set up Indias first commercial chip factory in Dholera, Gujarat. Factory is a joint effort between Tata companies and a partner from Taiwan and it will be able to produce about 50,000 chips each month. Other major projects were also approved, including large investments by Tata Electronics, CG Power and Kaynes Technology. These projects, worth nearly 1.52 lakh crore in total, shows that

India is serious about becoming a major player in the global semiconductor industry. 4

Electronic manufacturing exports 5

In FY 2024-25, Indias electronic goods exports experienced significant growth. Exports rose by 32.47%, going up from USD 29.12 billion in FY 2023-24 to USD 38.58 billion in FY 2024-25. This increase shows that Indias electronics manufacturing sector is becoming stronger and more competitive in global markets. This growth is supported by rising mobile phone production, better local supply chains and support from government schemes like the Production Linked Incentive (PLI). India is now sending more electronic products to countries around the world with more factories and improved production capacity.

Indias lighting market

Indias lighting market in FY 2024-25 has experienced robust growth, driven by rapid urbanisation, government initiatives and a shift toward energy-efficient solutions, particularly LED lighting. This sector encompasses a wide range of applications, from residential and commercial to industrial, agricultural and infrastructure projects. Indian LED lighting market was valued at USD 5.0 billion in FY 2024-25 and it is expected to grow at a rate of 19.35% each year until 2033. India is one of the largest lighting markets in the world, offering good opportunities for manufacturers. Most of the demand is coming from the northern and southern regions, driven by urban growth and government programmes that support energy-saving lights. One of the reasons for this growth is the expanding car industry, more investment in infrastructure, wider use of LED streetlights, reduced prices of LED products and the rise of smart buildings. This industry is highly competitive with many companies involved, creating room for innovation and growth.

Opportunities and threats

Opportunities

Rapid LED and Smart Lighting Adoption

India is experiencing a rapid shift from traditional lighting to LED and smart lighting. This change is pushed by the need to save energy, reduce electricity bills and meet government regulations. Programmes like Ujala and bans on outdated lighting systems have played a big role in this shift. As more people and businesses switch to LED and smart lighting, there is a huge chance for industries to grow.The demand for smarter and more efficient lighting is only expected to rise in the coming years.

Smart Home and IoT Integration

The number of smart homes in India is growing and people are now looking for lighting products they can control with their phones, voice commands or automatic sensors. This trend is expanding the market for smart and connected lighting solutions. Companies that build lights with features like scheduling, remote access and automation are likely to benefit from this trend. The shift to smart living is creating more space for innovation in lighting design. As more homes adopt IoT-based systems, the need for smart lighting will continue to grow.

Government Support and Sustainability Initiatives

The government is supporting the growth of energy-efficient lighting through several policies and programmes. These include rules from the Bureau of Energy Efficiency (BEE) and financial help for solar and off-grid lighting solutions. These initiatives makes it easier for companies to introduce new and greener lighting products. Government-backed programmes help increase awareness and lower the cost of adopting energy-saving lights. This encourages both people and businesses to make the switch. The companies focused on sustainability and clean energy have more chances to enter and grow in the market.

Urbanisation and Infrastructure Development

India is urbanising rapidly, with more people moving to cities and new buildings coming up in both residential and commercial areas. The government-initiated smart city projects are also helping increase the need for modern lighting. As the cities expand and infrastructure grows, there is more demand for advanced lighting solutions, including smart streetlights and energy-efficient lighting for homes, offices and public places. Companies providing reliable and cost-effective lighting options can tap into this large marketplace.

Innovation and Research and Development (R&D)

Innovation is a major driver in the lighting market. Companies that invest in Research and Development (R&D) can create new products that offer better performance, design and features. New technologies like Li-Fi, which uses light to transmit data and solar-powered lights are opening up newer possibilities. Some companies are also working on using biodegradable materials to reduce environmental impact. Businesses that focus on innovation are more likely to find new customers and stay ahead of their competitors.

Threats

Intense Competition and Market Fragmentation

The LED lighting market in India is very crowded, with its local and international players. This has created a tough competition and led to price wars among industries. As a result, profit margins are often low, especially for smaller firms. There is also a growing problem of fake or low-quality products being sold in the market. Industries must find ways to stand out, either through better quality, service or innovation. Surviving in such a competitive market requires strong brand identity and customer trust.

Technological Obsolescence

Technology in lighting is changing quickly and industries that fail to keep up may fall behind. New features like IoT connectivity, energy-saving systems and smart controls are becoming standard. Businesses that do not invest in upgrading their products are at a risk of becoming outdated. Regular R&D is needed to stay relevant. Falling behind in technology can lead to customer loss and reduced market share, making it a serious risk.

Regulatory and Compliance Challenges

The government has set strict rules on how lighting products should perform, especially in terms of energy use and environmental safety. Smaller firms may find it harder to keep up with changing standards and required certifications. Industries that do not comply with the rules may face fines or be excluded from the market.

Supply Chain Vulnerabilities

Components of LED lights, like chips and special materials, are still imported from other countries. This makes Indian companies vulnerable to global supply chain problems, such as shipping delays, price hikes or trade restrictions. Changes in currency value or global politics can also affect the imports. When the supply chain is disrupted, production slows down and costs go up.

Price Sensitivity and Counterfeit Products

Indian buyers are price-conscious and this makes it difficult for companies to increase the prices for high-quality or advanced products. At the same time, the market is flooded with low-cost, fake products that do not meet quality standards. These counterfeit items can confuse customers and damage the image of trusted brands.

Indias electronics industry is expected to experience growth, with the market set to reach USD 300 billion by FY 2025?€“26 and exports estimated at USD 120 billion. A key factor supporting this growth is the development of Indias semiconductor manufacturing, including the countrys first commercial chip-making plant in Dholera, Gujarat, which is being built with Taiwans Powership Semiconductor Manufacturing Corporation (PSMC) and expected to start production by 2026.

These efforts represent a total investment of nearly 1.52 lakh crores. The governments PLI Scheme is also helping the sector grow, with the budget for electronics expected to rise to 8,885 crore in FY 2025 26. Looking ahead, rising demand for household electronics is likely to push consumption to USD 270 billion by 2030, ensuring long-term growth and expansion of the industry.

Company Overview

Calcom Vision Limited began its journey in 1976 as Calcom Electronics. In the early years, the Company focused on manufacturingcalculatorsforexporttoRussiaandtheUSA.Soon after, the Company expanded into television manufacturing and introduced the Original Equipment Manufacturer (OEM) model in India. This helped it become one of the largest TV manufacturers in the country, producing up to 1 million TVs annually for leading brands like Philips, Thomson, BPL, LG and Samsung. Over the years, the Company made several key advancements like upgrading its Enterprise Resource Planning (ERP) system, strengthening its leadership team and nearly doubled its turnover compared to the previous year.

The Company is one of the largest suppliers of lighting products to several international brands today. As an Original Design Manufacturer (ODM), the Company offers complete solutions from design to production. The Company is known for being reliable and cost-effective and focuses on efficiency, scale and experience to maintain cost leadership. The Companys senior management team has deep industry knowledge and its skilled workforce is quick to adapt to market trends and meet customer expectations. The Companys manufacturing facilities are certified with ISO 9001:2015, ISO 14001:2015 and SA 8000:2014. The Company also focuses on providing environment-friendly and energy-efficient lighting solutions. It has evolved from a manufacturer of calculators and televisions into a trusted name in LED lighting, traditional luminaires and electronic ballasts.

Operational Highlights

FY 2024?€“25 marked a year of resilience and transformation for the Company. Strategic planning and timely execution by the Company helped it to adapt to these conditions, leading to strong recovery in the later months. As a result, overall sales picked up momentum and the Company recorded its highest EBITDA in five years, along with healthy growth in profit before and after tax.

To drive growth and stay ahead in the industry, the Company took proactive steps throughout the year. It introduced the process of automation in the production of low-wattage bulbs to reduce costs and increase efficiency. The product portfolio was enhanced with high-value lighting solutions such as street lights, well glass, high bay lights and linear suspended lights. In addition, the Company expanded into new segments like Solar Lighting. In-house capabilities were further strengthened by setting up a plastic extrusion plant, supporting better control over quality and cost.

The Company also made significant investments to scale operations. Approximately 50,000 square feet of additional factory space was added to accommodate new equipment including high speed & multi chip component mounters (SMT) lines, Plastic Extrusion Plant with 10 Extruders. The Company was reinforced with experienced professionals and the R&D and marketing functions were expanded to support innovation and customer outreach. The customer base grew with the addition of reputed names like RR Kabel, Eveready and HPL.

The Company also upgraded its PLI scheme target from 10 crore to 25 crore, enabling further growth in the key product segments. With export initiatives gaining pace and strong business momentum, the Company is optimistic about closing FY 2025 with record fourth-quarter sales and achieving its highest-ever revenue of 250 crore in FY 2025 26.

Financial Highlights

(INR in Lacs except Earnings per Share)

	(Standalone)		(Consolidated)
Particulars
	FY 2024-25	FY 2023-24	FY 2024-25	FY 2023-24
Revenue From Operations	15,726.32	16,019.85	15,726.32	16,019.85
Other Income	195.54	143.05	195.54	143.05
Total Income	15,921.86	16,162.90	15,921.86	16,162.90
Finance costs	580.54	491.39	580.54	491.39
Depreciation And Amortisation Expense	395.77	298.88	395.77	298.88
Other Expenses	600.25	630.94	602.21	630.94
Profit Before Tax	205.03	216.19	203.07	216.19
Profit after tax	144.90	132.06	111.53	128.20
EPS (Diluted)	1.04	0.95	0.80	0.93

Risk and Mitigation Strategies

Risk	Description of Risk	Mitigation strategy
	The lighting market is shifting from Driver	The Company is automating the
	Type to DOB Type products, causing LED	production of low-wattage bulbs to
	prices to drop sharply up to 60% for bulbs	reduce costs and increase output. It
Technology shift
	and 40% for battens.	is also expanding into higher-margin
		products such as street lights and well
		glass to improve profitability.
	To meet growing demand and stay	The Company is adding 50,000 sq. ft.
	competitive, the Company must scale up	of factory space and installing new
	production and expand its infrastructure,	equipment like a plastic extrusion
Production expansion
	which may involve risks related to capacity	plant. It is also improving the SMT
	planning, timely execution, cost overruns,	lines, tool rooms and adding new
	and integration of new facilities.	assembly lines.
	The Indoor Lighting has been facing stiff	The company has expanded its
	price erosion due to its commoditised	Products Portfolio to include Outdoor
Market pressure	nature therefore reducing profit margins.	and Professional Lighting Product
		which offers better margins and has
		lesser competition.

Human Resources

Calcom Vision Limited values its people and sees its workforce as one of its biggest strengths. The team is well-trained to market needs, handle customer requirements and deliver quality products on time. The Company also has an experienced senior management team with deep industry expertise. To further improve its capabilities, Calcom has strengthened its team by hiring senior professionals in key areas, adding more engineers to the R&D team and boosting the marketing team. A key leadership change was also made with a new Chief Executive Officer taking charge from April 1, 2025.

Internal control systems and their adequacy

The Company has a strong internal control system suited to the size of its operations. It follows local laws to ensure smooth business operations, protect its assets and prevent fraud or mistakes. This system also makes sure that accounting records are complete and financial reports are prepared on time. The Company checks the effectiveness of these controls through regular self-audits and reviews by internal and external auditors.

Cautionary statement

The Management Discussion and Analysis (MDA) section often includes statements about future prospects. These statements, which address both known and unknown risks and uncertainties, can lead to significant differences between actual outcomes and the predictions made. The reports estimates rely on the Companys assumptions, which consider the most recent internal and external data. While these assumptions reflect present circumstances, they remain subject to change as underlying factors evolve. Its essential to recognise that forward-looking statements apply only to the date they are made and reflect the Companys current intentions, beliefs, or assumptions. The Company is not obligated to revise or update these statements based on new information or future events.