Dollar Industries Ltd Management Discussions

Global Economic Review

The global economy in 2024 grew by 3.3%, supported by a recovery in several regions and the stabilisation of inflationary pressures, aided by improvements in supply chains and lower energy and food prices. While global economic activity remains positive, it continues to be shaped by ongoing shifts in trade dynamics and policy adjustments across major economies.

The introduction of new tariffs by the United States and subsequent responses from its trading partners have reshaped the trade environment, introducing new elements into the economic landscape. These changes have influenced global growth projections and necessitate careful monitoring of their effects on various regions and sectors. As countries adapt to these adjustments, their impact on economic activity continues to evolve.

Growth in advanced economies was steady, with the United States registering 2.8% growth in 2024. The advanced economies, as a whole, grew by 1.8%, supported by resilient services sectors and ongoing efforts to stabilise inflation, despite tighter policy measures, trade tensions and softer demand momentum. In contrast, growth in the euro area is projected at 0.8%, influenced by similar factors and the continuation of tighter monetary policies.

In emerging market and developing economies (EMDEs), growth remained steady at 4.3%, despite fluctuations in commodity markets. India, one of the most resilient economies in this group, is expected to continue benefiting from strong domestic consumption, a growing working-age population, and ongoing digital transformation; while Chinas growth is moderating, impacted by trade tensions and shifting global dynamics.

Looking ahead, global growth is projected to slow to 2.8% in 2025, primarily due to persistent trade tensions and the continuation of tighter monetary policies. This moderation is further compounded by geopolitical risks and shifting global supply chains. A modest recovery is expected in 2026, with growth forecast at 3.0%, but this remains contingent on the resolution of ongoing policy uncertainties and geopolitical challenges.

Region/Country	2024	2025	2026
World	3.3	2.8	3
Advanced economies	1.8	1.4	1.5
Emerging market and developing economies	4.3	3.7	3.9
China	5	4	4
India	6.5	6.2	6.3

(Source: IMF WEO, April 2025)

2.8%

Annual Global GDP Growth (2025)

3%

Annual Global GDP Growth (2026)

Indian Economic Review

Indias economy is estimated to grow at 6.5% in FY 2024-25, moderating from the previous fiscal years robust 9.2% growth. This is attributed to global trade uncertainties, including proposed U.S. tariffs on Indian goods, and subdued private investment activity. Despite these challenges, the economy demonstrated resilience, underpinned by strong domestic consumption, improved agricultural prospects due to favourable monsoon forecasts and sustained services sector performance.

Indias inflation rate eased to 3.34% in March 2025, the lowest in five years, primarily driven by a reduction in food inflation, which stood at 2.69%. Additionally, inflation in housing and fuel moderated, further contributing to the overall decline.

In response to the favourable inflationary conditions, the RBI took action by implementing two consecutive repo rate cuts, bringing the benchmark rate down to 6.0%. This monetary easing provides the RBI with the flexibility to support growth while keeping inflation under control, thus contributing to the ongoing recovery of the economy.

Sectorally, the Indian economy shows signs of positive momentum. The manufacturing sector is benefiting from improved capacity utilisation and a more favourable policy environment. Though the broader sector faces global trade uncertainties and margin pressures, domestic demand remains a key tailwind. Improved logistics efficiency, policy incentives for value-added production, and a stronger infrastructure push have supported industrial activity in pockets, especially where consumer-oriented goods and light manufacturing are involved. Government-led infrastructure initiatives and fiscal support have contributed to greater optimism within the sector, with increased business confidence and higher demand driving activity. The services and infrastructure sectors also maintain a positive outlook, driven by sustained demand and favourable pricing, which bolsters overall economic sentiment. This broader sectoral stability is expected to support growth moving forward, with strong expectations for continued demand, especially in rural areas, alongside anticipated urban recovery.

The continued buoyancy in Goods and Services Tax (GST) collections further underscores the strength of consumption in the economy. Indias gross GST revenue for FY 2024-25 stood at H22.08 lakh crore, marking a 9.4% increase from the previous fiscal year. This reflects both improved compliance and the resilience of the consumption base, especially in categories less exposed to discretionary cycles.

Looking ahead, the RBI has retained its growth projection at 6.5% for FY 2025-26. For FY 2026-27, early estimates suggest a slight uptick to 6.7%, driven by anticipated global recovery, stronger private capex cycles, and continued gains from supply chain diversification. While global uncertainties remain, the underlying fundamentals including favorable demographics, growing formalisation and steady policy reforms are expected to keep India on a stable growth path.

(Source: PIB press release, MoSPI, RBI document)

6.5% annually

RBI Forecast (FY 2025-26)

Indian Textile and Apparel Industry

Indias textile and apparel sector is one of its oldest and most critical industries, contributing significantly to its economic and export landscape. According to the February 2025 industry report, the sector contributes 2.3% to GDP, 13% to industrial production, and 10.5% to total export earnings. The market is projected to grow at a CAGR of 10%, reaching US$ 350 billion by 2030, up from US$ 160 billion in FY 2022-23.

India ranks as the second-largest producer of textiles and garments globally and maintains a 4.6% share in global trade. In FY 2023-24, the total exports of textiles and apparel, including handicrafts reached US$ 35.9 billion, with readymade garments (RMG) contributing 41%, cotton textiles 33%, and man-made textiles 15%. Export growth has remained steady, driven by increasing global demand, especially from markets like the U.S., EU, and UK. With a strong push, the country aims to reach US$ 100 billion in exports by 2030.

The industry benefits from extensive government support. A total of US$ 1.44 billion has been allocated under the Production Linked Incentive (PLI) scheme to encourage manufacturing in MMF and technical textiles. Additionally, the PM MITRA Parks, aimed at developing world-class textile infrastructure, are expected to attract investments exceeding US$ 1 billion. Budget 2025-26 also introduced a five-year Cotton Mission to enhance ELS cotton production, while customs duties on shuttleless looms were reduced to zero to modernise the value chain.

Regarding foreign investment, India has attracted US$ 4.56 billion in FDI (April 2000-Sep 2024) in the textile sector. With growing interest from global brands and technical textile players, 100% FDI is permitted under the automatic route. Strategic partnerships, SEZ development, and policy liberalisation continue strengthening the industrys global competitiveness.

Key growth drivers include rising disposable incomes, a young and fashion-conscious consumer base, supply chain modernisation, and the expansion of e-commerce. The sector also benefits from its abundant raw material base, including cotton and MMFS, and a skilled labour force of over 45 million. It is a crucial pillar in Indias journey toward becoming a global manufacturing hub. (Source: IBEF report on textiles)

Composition of Indias Textile &

Apparel Exports (FY 2024-25)

Indian Innerwear Industry

The Indian innerwear market was valued at H66,703 crore in 2024 and is projected to grow at a CAGR of 10%, reaching H1,07,308 crore by 2029. This rapid expansion is driven by urbanisation, rising disposable incomes, and changing consumer attitudes toward body positivity, self-care, and style. The sector includes a wide spectrum of offerings—from womens lingerie and mens basics to kids innerwear and shapewear—catering to diverse body types, fashion preferences, and lifestyle needs.

The lingerie segment dominates the market and is expected to grow from H44,185 crore in 2024 to H70,186 crore by 2029, at a CAGR of 9.7%. Womens lingerie forms the bulk of this growth, with the segment alone projected to surge from H24,302 crore to H38,602 crore during this period. Mens and kids undergarments are also witnessing robust growth, reaching estimated values of H24,565 crore and H7,019 crore, respectively, by 2029.

Digital channels play a pivotal role, with e-commerce and influencer marketing significantly shaping consumer preferences. The rise of D2C brands and curated in-store experiences has redefined retail for innerwear, making it more personalised and engaging.

Despite challenges like import pressures and fluctuating raw material prices, the Indian innerwear market is positioned for long-term growth. As comfort converges with couture, this sector is set to become one of the key pillars of Indias apparel industry.

Mens Innerwear Segment

The Indian mens innerwear market is a large and rising component of the broader garment industry. The market was valued at H110 billion in 2018 and is expected to reach H218 billion by 2028, with a CAGR of 7%. It accounts for around 34% of Indias entire innerwear market. While its growth rate is slower than the womens category, it continues to benefit from consistent demand and a shift toward branded items.

This segment contains a wide range of products that appeal to comfort, function and fashion, such as:

- Briefs

- Trunks

- Vests

- Boxer shorts

Once dominated by unorganised players, the innerwear market is now steadily transitioning toward branded and organised retail, with branded products making up approximately 61% of the market. This shift is driven by evolving consumer preferences influenced by greater brand awareness, rising income levels, and increased exposure to both domestic and international labels. Companies with strong brand recognition and extensive distribution networks capitalise on this trend to expand their reach. While multi-brand outlets (MBOs) still contribute to over 60% of total sales, the rapid growth of exclusive brand outlets (EBOs) and e-commerce platforms is accelerating the move toward premiumisation.

The price range in this segment varies significantly, allowing brands to cater to diverse consumer segments:

- Economy: H60-H120

- Medium/Sub-premium: H120-H300

- Premium: H300-H600

- Super Premium: H600-H1,200

Womens Innerwear Segment

The womens innerwear segment is the largest and fastest- growing component of Indias innerwear industry, accounting for 66% of the total market. Valued at approximately H210 billion in 2018, it is projected to grow at a CAGR of 12%, reaching nearly H679 billion by 2028. This growth is driven by increasing income levels, greater fashion consciousness, and a marked rise in working women and young urban consumers who redefine innerwear as a fusion of comfort, confidence and style.

The segment caters to a broad range of functional and aesthetic needs across categories such as:

- Bras

- Panties

- Camisoles/Slips

- Loungewear/Nightwear

- Shapewear

- Thermals

The womens segment is now rapidly formalising, with 38% of the market brand as of 2018, which is expected to rise significantly over the next decade. Urban centres, tier-2 cities, and e-commerce platforms are fuelling this shift, offering convenience, privacy and curated selections. Leading womens innerwear brands are building strong consumer connections by offering comfort-focused designs, inclusive sizing options, and fashion-forward collections that cater to evolving preferences and lifestyle needs.

Womens innerwear pricing has grown substantially, driven by premiumisation and the increasing appeal of value-added features such as seamless stitching, breathable fabrics, padded designs, and shapewear integration. The price segments are typically categorised as follows:

- Economy: Rs60-Rs250

- Medium/Sub-premium: Rs250-Rs400

- Premium: Rs500-Rs800

- Super Premium: Rs800-Rs2,000

Due to growing demand for diverse styles and premium aesthetics, the average selling price (ASP) in the womens segment has risen faster than in mens. With higher per capita consumption potential, especially in semi-urban and rural markets, the segment remains largely underpenetrated, offering considerable scope for expansion.

Kids Innerwear Segment

The kids innerwear segment, though smaller compared to mens and womens categories, is witnessing steady and promising growth driven by rising disposable incomes, greater awareness of hygiene, and increasing demand for quality and branded products among parents. As of 2018, the market size was estimated at H21 billion, with a projected CAGR of 8%, expected to reach H45 billion by 2028. It currently accounts for approximately 6-7% of the total innerwear market, with a growing emphasis on product quality, comfort and variety.

The segment serves a wide range of age groups, typically classified under infants (0-2 years), toddlers (2-4 years), and young children (4-14 years). Product offerings are largely functional but are becoming more fashion-forward with the use of character licencing, colours and playful patterns. Popular categories include:

- Briefs and Panties

- Vests and Camisoles

- Bloomers

- Nightwear (basic innerwear sets)

- Thermals

Although unorganised players have traditionally dominated the kids segment, the shift toward branded innerwear is gaining momentum, especially in urban and tier-2 regions. Parents are increasingly seeking trusted brands that offer skin-friendly fabrics, non-irritant stitching, and hygienic packaging. Several brands in the kids innerwear segment are expanding their presence by leveraging multi-brand outlets, supermarkets, and rapidly growing e-commerce platforms to reach a broader consumer base and enhance accessibility across regions.

Pricing in the kids innerwear segment is relatively more stable and value-driven, with affordability playing a key role in purchase decisions. The typical price range is:

- Economy: Rs40-Rs100

- Mid-range: Rs100-Rs250

- Premium: Rs250-Rs400

The average selling price (ASP) is lower than that of adult segments but gradually increases due to parental preference for quality, hygiene, and comfort. Organic cotton and antibacterial fabrics are also gaining attention in premium offerings.

Indias kids innerwear market is gradually evolving from a commoditised space to a hygiene and quality-conscious category, offering strong growth potential as more parents opt for branded, skin-friendly, and stylish innerwear options for their children.

Athleisure Segment

The athleisure segment in India has emerged as one of the fastest-growing categories within the innerwear and apparel ecosystem. Originally positioned at the intersection of sportswear and casualwear, athleisure is now a standalone lifestyle category, driven by growing health consciousness, comfort-seeking consumers and the increasing acceptance of casual dressing in everyday settings. The rise of work-from- home, home workouts and fitness culture has made items like track pants, performance t-shirts, leggings and joggers part of daily wardrobes. The key product categories include:

- Track Pants and Joggers

- Active T-shirts and Tank Tops

- Leggings and Yoga Pants

- Sports Bras and Compression Wear

- Hoodies and Zipper Jackets

Previously dominated by unorganised players and generic sportswear, the athleisure segment is now experiencing a marked shift toward premiumisation. This transformation is driven by increasing consumer demand for performance-oriented, stylish products, with significant contributions from both established fashion labels and emerging digital-first brands. Additionally, private labels from leading e-commerce platforms and a wave of D2C entrants are reshaping the market through innovation, targeted marketing, and a strong digital presence. Pricing in athleisure varies widely based on fabric technology, fit and brand positioning. The typical price range is:

- Economy: Rs300-Rs800

- Mid-range: Rs800-Rs1,500

- Premium: Rs1,500-Rs4,000+

Athleisure customers will pay for features like moisture-wicking fabrics, anti-odour technology, 4-way stretch, and seamless construction. This makes the segment highly innovation-led, often overlapping with innerwear functionality such as support, breathability, and coverage.

Indias athleisure market is evolving rapidly, blending fashion, fitness, and function. With rising disposable incomes, changing lifestyle patterns, and strong online engagement, the segment is poised to remain a key growth engine within Indias modern apparel and innerwear landscape.

Growth Prospects of the Indian Innerwear Sector

- Strong Market Expansion: The innerwear market is projected to grow from H320 billion (2018) to H897 billion by 2028 at a CAGR of ~11%.

- Favourable Demographics: Rising urbanisation, a young population, and increasing working women drive long-term consumption growth.

- Rising Disposable Income: Expansion of middle and upper- middle-income households (projected to be 140 million+ by 2026) is boosting demand for premium innerwear.

- Shift Toward Organised and Branded Segment: Consumer preference moves from unorganised to branded innerwear, emphasising quality, comfort, and style.p>

- Premiumisation Trend: Consumers are increasingly willing to pay more for comfort and brand value, pushing average selling prices across mens, womens and kids categories.

- E-commerce & D2C Boom: Rapid growth in online retail, D2C brands, and influencer marketing is expanding access and awareness across India, including Tier 2/3 cities.

- Product Innovation and Design-led Growth: Growth in seamless, anti-microbial, eco-friendly, plus-size product lines unlocks new consumer segments.

- Underpenetrated Market: Indias per capita innerwear consumption is 90 %+ lower than developed markets like China and Thailand, offering significant headroom for growth.

- Expansion into Athleisure & Shapewear: Newer categories like athleisure, sports innerwear, and shapewear are growing faster than core innerwear segments.

- Government and Policy Support: Supportive initiatives like the PLI scheme, MITRA parks, and FDI liberalisation enhance manufacturing and supply chain capabilities.

(Source: PIB, Intimasia, Univdatos, Motilal Oswal, SMIFS, Wazir,

Phillip Capital, Indian Retailer)

Emerging Trends

- Changing lifestyle and fashion trends

- Rising disposable incomes

- Awareness of health and fitness

- Influence of social media and celebrity endorsements

- E-commerce and online retailing

- Increased product innovation and technology

- Growing womens empowerment

- Urbanisation and western influences

- Focus on sustainable and ethical practices

- Government initiatives

(Source: Intimasia)

Undergarment Boom: Big Opportunity in a Small Package

Innerwear consumption in India is far below global levels-an untapped market with huge potential. A young, urbanising population is moving toward premium, branded options, valuing comfort, style and quality. Rising incomes and hygiene awareness are accelerating this shift. Still early in its growth cycle, the market is poised for a major expansion, offering strong upside for both legacy players and newcomers.

Company Overview

Founded in 1972 as Bhawani Textiles, Dollar Industries Limited (Dollar) has become a leading brand in Indias hosiery market, offering a wide range of products for men, women, and children. With four manufacturing facilities across India, the Company is establishing a new spinning mill in Dindigul and a centralised warehouse in Kolkatas Hosiery Park to enhance logistics, streamline production, and accelerate deliveries.

As part of its Vision 2025, Dollar has committed H120 crore to expanding and launching new products. The Company plans to open 125 exclusive brand outlets (EBOs) to increase its retail presence, mainly in Tier II and III cities.

The Company has enhanced its brand presence through strategic endorsements, with Mr. Saif Ali Khan representing the Dollar Always (Lehar) category and Mr. Mahesh Babu, a prominent Telugu actor, supporting growth in South India. Through its ‘Vision South India plan, Dollar aims for a 50% sales increase in the region and plans to generate 20% of its domestic revenue.

Dollar is adopting eco-friendly practices, including a zero- discharge technique with an evaporation system, highlighting its commitment to sustainability and innovation.

Analysis of the Statement of Profit and Loss

- Revenue from operations: Revenue from operations of the Company stood at H 1,710.46 crore in FY 2024- 25, increased by 8.79 % compared to H 1,572.27 crore in FY 2023-24. Revenues from the domestic market stood at H 1,644.69 crore and H 65.77 crore from exports.

- Operating profit: Operating profit or EBITDA increased by 15.15 % during FY 2024-25 to H 182.67 crore from H 161.49 crore in FY 2023-24.

- Depreciation: Depreciation for the year under review stood at H 37.56 crore compared to H 21.27 crore in FY 2023-24, increasing by 76.5%.

- Finance costs: Finance costs for the year under review remained at H 28.15 crore compared to H 18.49 crore in FY 2023-24.

- Other income: Other income for the year under review stood at H 5.35 crore as against H 4.50 crore in FY 2023-24.

- Net profit: Net profit for the year under review stood at H 91.04 crore compared to H 90.20 crore in FY 2023-24.

Analysis of the Balance Sheet

- Net worth: The Companys net worth stood at H 859.84 crore as of 31^st March, 2025, compared to H 783.82 crore as of 31^st March, 2024. The net worth comprised of paid- up equity share capital amounting to H 11.34 crore as on 31^st March, 2025 (5.67 crore equity shares of H 2.00, each fully paid up). The Companys other equity for the year stood at H 844.59 crore.

- Loan profile: The Companys total debt stood at H 329.68 crore, out of which the Company has H 298.85 crore payable in the current financial year. The working capital borrowings of the Company stood at H 298.85 crore and were outstanding in the cash credit accounts.

- Total assets: Total assets of the Company stood at H 1,476.09 crore in FY 2024-25 compared with H 1,346.54 crore in FY 2023-24, an increase of 9.62%.

- Inventories: Inventories increased by 11.87% to H 544.32 crore during the year under review from H 486.56 crore in FY 2023-24. Inventories consisted of raw materials worth H96.50 crore and finished goods worth H 284.48 crore and work-in-progress worth H 163.34 crore.

- Total loans and deposits: Total loans and deposits amounted to H 3.43 crore.

- Current liabilities: Current liabilities stood at H 564.69 crore, comprising short-term borrowings of H 298.85 crore and trade payables of H 208.49 crore.

Key Financial Ratios

Particulars	FY25	FY24	Change(%)
ROE	11.1%	12.1%	-8.26%
ROCE	13%	14.3%	-9.09%
Net debt/Equity	0.38	0.39	-2.56%
Net debt/Op EBITDA	1.80	1.92	-6.25%

Category-wise Revenue Contribution

Dollar Man	39%
Dollar Woman	8%
Dollar Junior	0.1%
Dollar Thermal	6%
Dollar Always	41%
Force Nxt	4%
Dollar Protect	2%

Geography-wise Revenue Contribution

East	24%
West	21%
North	47%
South	8%

SWOT Analysis

Strengths

Well-established brand identity: Dollar has established a strong foothold in the Indian innerwear and hosiery market, earning a reputation for delivering quality products at affordable prices.

Extensive retail and distribution reach: A robust pan- India distribution network helps the brand penetrate deep into urban and rural markets.

Broad product mix: The Company caters to men, women, and children across various innerwear and loungewear categories, ensuring wide market appeal.

Strong value proposition: Dollar offers quality products at affordable prices, making it a preferred choice among budget-conscious consumers.

Strong customer trust and loyalty: Dollars focus on quality and strategic endorsements has nurtured longterm consumer loyalty.

Weaknesses

Limited global footprint: The brands current focus is largely domestic, with comparatively lower presence in global markets.

Price-sensitive product range: Heavy focus on the mass market may restrict margins and limit entry into the premium segment.

Exposure to raw material price volatility: Volatility in cotton and synthetic yarn prices can directly impact production costs.

Opportunities

Entry into new markets: Expanding to untapped international and rural markets can drive new revenue streams.

Digital and e-commerce growth: Increasing online shopping trends offer potential for scaling through digital platforms and D2C models.

Portfolio diversification: Launching new segments such as premium lingerie, activewear, or sustainable collections can attract evolving customer bases.

Technology adoption: Embracing automation and smart manufacturing can enhance efficiency and product quality.

Threats

Rising competition: Established and emerging domestic and international brands compete aggressively on price, innovation, and reach.

Shifting consumer preferences: Rapid changes in fashion and innerwear trends require quick adaptation, failing which may lead to loss of relevance.

Economic volatility: Fluctuations in inflation, raw material costs, or policy changes can affect demand and profitability.

Enterprise Risk Management

Risk	Mitigation
Safety risk	The Company has developed and put into effect an extensive safety strategy, which is thoroughly enforced. We provide frequent personnel training and third-party inspections to reduce the dangers connected with machinery and equipment. With expert advice, we constructed our plants to reduce human involvement with machines. In addition, we have implemented a behaviour- based safety approach at our factories, and all safety occurrences, including risky acts, are reported and reviewed by our management team. These procedures are intended to reduce safety risks and ensure compliance with established safety requirements.
The Company acknowledges the potential safety hazards posed by our manufacturing operations, including the risk of injury to employees who interact with plant, machinery and material handling equipment.
Sustainability risk	The Company has implemented several initiatives. We prioritise water conservation and replenishment and have invested in solar and wind power facilities to reduce energy use. We developed an effluent treatment plant with zero liquid discharge. These activities are part of our ongoing efforts to promote sustainability and reduce environmental impact.
The Companys manufacturing operations involve environmental risks that can impact the ecosystem. Water usage, energy consumption, and hazardous waste generation are among the main concerns.
Statutory compliance risk	The Company has a well-defined mechanism in place. Corporate professionals monitor and ensure compliance with relevant rules and regulations. The Company aims to follow all applicable rules and regulations.
The Company is exposed to the risk of non-compliance with the rapidly changing laws and regulations, some of which are untested in courts and subject to interpretation.
Information security risk	The Company follows strong information security protocols, including regular monitoring of security records to avoid hacking attempts. We protect data throughout its life cycle, including creation, storage, transmission, and retrieval.
The company faces the risk of information security breaches, including cyber-attacks and internal data leakage, which can have a significant impact on our business operations.
Demand and supply risk	The Companys product line is diverse, catering to a wide range of customer demographics and lifestyle preferences. We also maintain a flexible supply chain network, allowing us to respond swiftly to changes in demand and supply. In addition, we constantly monitor industry trends and consumer input to identify potential possibilities and dangers and take proactive measures to address them.
The demand and supply landscape of our industry is constantly evolving, driven by changing customer preferences and economic factors. As a result, there is always a risk of demand fluctuations and supply chain disruptions, which can impact our business operations and financial performance.
Procurement risk	Over time, the Company has developed solid ties with a number of suppliers, allowing it to diversify its raw material sources. Furthermore, we apply tight quality controls and routinely examine the quality of the raw materials we receive to ensure that they exceed our expectations.
The shortage of cotton yarn in the domestic market has led to increased prices of Indian innerwear and knitwear products, posing a challenge to our procurement operations.
Human capital risk	The Company mitigates this risk by actively understanding employees needs and goals, providing long-term value for them, and prudently allocating resources through scenario planning and risk-reward analysis. The Company also prioritises employee involvement to foster a healthy work atmosphere and increase retention.
Non-availability of a competent workforce, high attrition rates, and retention challenges can pose significant human capital risks for companies. Moreover, a high attrition rate can lead to the loss of institutional knowledge and expertise, which can be difficult to replace. The cost of recruiting and training new employees can also add up quickly and impact the companys bottom line.
Currency risk	The Company monitors exchange rate movements and hedges any open risks. We aim to source raw materials from local sources whenever possible to avoid reliance on imports and mitigate currency concerns. We consider long-term contracts with suppliers and customers to stabilise cash flows and mitigate currency swings.
There is a risk of adverse impact on the financials of our Company due to fluctuations in the exchange rate of the local currency against the US dollar, as a considerable portion of our raw materials and capital equipment are imported, and we have operations in multiple countries.
Geography risk	The Company operates in several regions and markets, both domestic and foreign. We have successfully created a substantial presence in several nations, particularly the Middle East. By spreading revenue streams throughout regions, we can reduce the impact of economic downturns in specific areas. We regularly study market changes and consumer preferences to uncover chances for expansion and diversification, building a stronger and more resilient business model.
Overdependence on a single geographic location poses a potential threat to revenue if the economy of that region experiences a downturn.

Human Capital

During the year, Dollar prioritised attracting and retaining skilled employees through various engagement initiatives. The Company implemented structured, competency-based interviews to align new hires with its values and long-term goals. Dollar created tailored learning programmes to enhance core skills, emphasising employee development and safety. The leadership competency framework was integrated into recruitment, performance evaluations, and specific frameworks for different departments to boost functional performance.

To foster a more inclusive workplace, the Company initiated discussions on safety, health, and womens empowerment, focusing on challenges faced by women in sales. As of 31^st March, 2025, the organisation had 2,465 employees, including 1,856 men and 609 women, with no differently abled employees.

Corporate Social Responsibility

Since its inception, the Company has prioritised social responsibility, benefitting all stakeholders, especially low-income communities. It invested H 260.00 lakh in CSR programmes, mainly focusing on education and healthcare.

Internal Control Systems and their Adequacy

The Company has appropriate internal control systems for financial reporting for its size and industrial sectors. The Companys internal control policies and procedures aim to provide reasonable assurance in attaining the following objectives:

- The Company strives to ensure that its operations are both effective and efficient.

- The Company places great emphasis on the reliability of its financial reporting.

- The Company is committed to complying with all relevant laws and regulations.

- The Company has measures in place to prevent and detect fraudulent activity and errors.

- Safeguarding its assets is a top priority for the Company.

These systems ensure efficiency and production at all levels while protecting the companys assets. The Company follows tight standards for accurate recordkeeping and consistent financial and operational support. The internal team and Audit Committee continuously monitor corporate operations and immediately notify the Board of any anomalies. To maintain growth, the Company examines risks and creates mitigation methods accordingly.

Cautionary Statement

Certain statements in this report regarding the Companys objectives, projections, estimates, expectations, or predictions may constitute forward-looking statements under applicable securities laws and regulations. While these expectations are based on reasonable assumptions, actual results could significantly differ from those expressed or implied.