Davin Sons Retail Ltd Management Discussions

[Pursuant to Schedule V (B) of the Securities and Exchange Board of India (Listing Obligations and

Disclosure Requirements) Regulations, 2015]

The Management Discussion and Analysis Report has been prepared in accordance with the provisions of Regulation 34(2)(e) of the LODR Regulations, read with Schedule V(B) thereto, with a view to provide an analysis of the business and Financial Statements of the Company for F.Y. 202425 and should be read in conjunction with Companys financial statements, the Directors report and other information included elsewhere in the Annual Report.

1. Industry Structure and Developments

The Indian garments and FMCG sectors are among the fastest-growing industries, driven by rising disposable incomes, evolving consumer preferences, and the growth of organized retail.

Garments: The apparel industry is witnessing increased demand for branded and sustainable clothing, growth of e-commerce platforms, and a shift towards fashion-conscious younger consumers.

FMCG: The FMCG sector continues to expand, supported by rural consumption, digital marketing, and rising awareness towards health, hygiene, and personal care products.

2. Opportunities and Threats Opportunities:

Expansion of e-commerce and omni-channel distribution.

Rising middle-class population and urbanization.

Government initiatives like Make in India and PLI schemes supporting manufacturing.

Growing demand for sustainable, eco-friendly, and organic products.

Threats:

Intense competition from unorganized sector and global brands.

Volatility in raw material prices (cotton, fabrics, packaging).

Changing consumer preferences and short product life cycles.

Regulatory challenges and compliance costs.

3. Segment-wise / Product-wise Performance

Garments Segment: The company achieved steady growth driven by premium apparel, casual wear, and festive collections. Strong sales were recorded through online platforms and exclusive brand outlets.

FMCG Segment: The company maintained consistent performance in personal care, home care, and packaged food categories. New product launches in health & wellness range contributed positively.

4. Outlook

The company remains optimistic about future growth. Increasing focus will be on:

Strengthening brand presence through digital marketing and influencer engagement.

Expanding distribution network in tier-II & tier-III cities.

Enhancing product innovation with sustainable fabrics and health-oriented FMCG products. Leveraging technology and automation to improve efficiency and reduce costs.

5. Risks and Concerns

Dependence on seasonal demand in garments.

Fluctuating raw material costs impacting margins.

Supply chain disruptions (domestic and global).

Intense pricing competition in FMCG leading to margin pressures.

6. Internal Control Systems and Their Adequacy

The company has adequate internal control systems to ensure operational efficiency, safeguard assets, accuracy in financial reporting, and compliance with applicable laws and regulations. Regular internal audits and management reviews strengthen the control environment.

7. Financial Performance (with respect to Operational Performance)

During the year, the company achieved revenue growth supported by strong sales in both garments and FMCG segments. Focused cost optimization measures and improved working capital management contributed to better profitability and liquidity.

8. Human Resources / Industrial Relations

The company believes employees are its key strength. It invests in skill development, training, and performance-linked incentives. Industrial relations remained cordial throughout the year.