Empire Industries Ltd Management Discussions

The objective of this report is to convey the Managements perspective on the external environment and industry, as well as strategy, operating and financial performance, material developments in human resources and industrial relations, risks and opportunities and internal control systems and their adequacy in the Company during the FY

2024-25. This Report should be read in conjunction with the Companys financial statements, the schedules and notes thereto and other information included elsewhere in the Annual Accounts 2024-25. The Companys financial statements have been prepared in accordance with Indian Accounting Standards (‘Ind AS) complying with the requirements of the Companies Act, 2013, as amended and regulations issued by the Securities and Exchange Board of India (‘SEBI) from time to time.

In 2024, the global economy grew at a rate of 2.8%.

Despite positive trends like reducing inflation and monetary easing in several countries, geopolitical risks around trade policy uncertainty, and ongoing conflicts continued to weigh on global economic sentiment. The economy globally is projected to continue to grow in 2025. The global economy is expected to grow by 2.3% in 2025. The tension around trade and high levels of policy uncertainty are expected to have a significant impact on the economic activity.

India is one of the fastest-growing major economy. It demonstrated a growth rate of 6.5% in FY 2024-25. Despite global headwinds, Indias growth is expected to remain range bound, 6% - 6.5%, in the next couple of years. The economy is expected to be driven by strong domestic consumption, government capital expenditure, and robust expansion in the services and manufacturing sectors.

1(a) Industry Structure & Development

Empire Industries Limited (Company) is a multi - divisional public limited company engaged in diverse businesses, headquartered in Mumbai. Over 118 years of a strong customer focused approach and a continuous quest for world-class quality. The business verticals include Vitrum Glass, Empire Machine

Tools (EMT-MFTM), Empire Industrial Equipment,

Empire Vending (GRABBIT+), Empire Industrial Centrum, Ambernath, The Empire Business Centre (TEBC), Empire Commercial Property and Empire Foods.

The Vitrum Glass Division is manufacturing Amber

Glass Bottles of international quality and standard for the Pharmaceutical Industry by fully using operating efficiency in its production capacity. The division carries out R&D activities regularly in various manufacturing operations with the objective of improving quality, reducing energy consumption and improving the overall efficiency/productivity.

In Empire Machine Tools division, order in flow for the year was reasonably good and able to achieve the desired targets with combination of high value and niche projects. Division is able to book the orders in various key sectors like Defense, Automotive,

Steel Industries, Off- highway vehicle Industries,

Renewable energy and Aerospace.

Empire Industrial Equipment (EIE) Division achieved good result in terms of order booking revenue. Significant contributions were from Port &

Shipyard sector. Steel and Metallurgy from Private sector also made significant contributions. Shell

Forging line from ordinance factory was also a major achievement.

Empire Industries Limited revolutionized vending in India with the launch of Grabbit+, aiming to become the top vending solution provider for corporate offices.

The Empire Industrial Centrum is being developed on a 35-Acre property in Ambernath. The project started in the year 2014 - 2015 after obtaining all the necessary Government Approvals.

The Empire Business Centre opened in June 2013 at

Lower Parel, Mumbai. Catering to office space needs of companies and individuals, which were looking at serviced and furnished office space units as a main stay product.

The Empire Commercial Property Division manages Empire Industries Ltd.s owned properties located at Lower Parel and Vikhroli, Mumbai. The campuses are landmark addresses known for its verdant settings, great connectivity & well -maintained premises. The campuses comprise about 10 lakh Sq. ft. of Commercial and IT office space.

Empire Foods division imports and procures Frozen and chilled food products from all over the world and distribute to HORECA (Hotels, Restaurants and Caterers) sector throughout India. It has various branch office located throughout the country and largest importer and distributor of frozen and chilled food in India.

(b) Opportunities &Threats

The Company has developed its commercial Properties at its Lower Parel and IT & ITES premises at Vikhroli and has offered the same to various Multinational Companies and Banks for office use on Leave and License basis. The demand from the Pharmaceutical Industry for Glass Containers manufactured by Vitrum Glass Division is adequate in comparison to its present capacity and hence the Company does not foresee any risks for the demand for the product in near future. However, global surge in the price of crude oil has created a challenge for the unprecedented increase in the price of natural gas used in the manufacturing of glass bottles. The revenue of the Divisions involved in agency businesses for marketing the products manufactured by foreign principals are dependent on the Government Policies declared from time to time. Oil and Gas Sector continues to be major contributor with good contributions from fire and safety sector as well as from steel and metallurgical sector. The Central Governments "Atmanirbhar Bharat" policy is somewhat affecting the order pipeline of this business segment. In the business of Frozen & Chilled Foods, the Company imports various frozen foods from around the globe and sells to HORACA (Hotels, Restaurants and Caterers). The division has been focusing on trading indigenously produced food products. The Company is getting good support in the areas of providing office space on Leave &

License basis. Empire Industrial Centrum division has received very good response from customers for developing the property at Ambernath. The revenue as well as profitability has been increased over previous year and construction of new properties is in full swing.

Every division have different challenges and competitors, so there are no common competitors.

(c) Segment-wise or product-wise performance

The Company is engaged in the following activities:

VITRUM GLASS

The division achieved a turnover of Rs. 250.07 crores, with exports of Rs. 47.58 crores. Margins faced pressure due to rising fuel and input costs, but strong performance is expected in the coming year. Vitrum Glass is a leader in manufacturing and marketing high-quality glass bottles for the pharmaceutical industry in India and overseas. Its fully automated plant at Vikhroli produces over 1.9 million bottles daily (5ml to 650ml). is

EMPIRE MACHINE TOOLS – EMT

The division recorded highly encouraging order inflows across Defense, Automotive, Steel, Off-

Highway Vehicles, Renewable Energy, and Aerospace sectors. "Book and Bill" orders with advances ensured positive cash flow and steady profitability, further supported by exchange rate variation gains.

The "Make in India" initiative boosted private sector defense and aerospace orders, though government order finalization was slower due to complex approval processes. Revenue from shipments remained strong.

EMPIRE INDUSTRIAL EQUIPMENT

The division had a challenging year as several large project orders were postponed or dropped. However, prospects for FY 2025–26 are bright, with strong order expectations from Ports & Shipyards, Oil & Gas, and Steel & Metallurgy sectors.

EMPIRE VENDING (GRABBIT+)

Grabbit+ continued to strengthen its position through innovation and enhanced user experiences. The solution offers smart, cashless vending systems for modern workplaces, integrating digital wallets, centralized management, and data-driven inventory systems to support wellness-oriented, tech-savvy environments.

EMPIRE INDUSTRIAL CENTRUM, AMBERNATH

Spread across 35 acres, Empire Industrial Centrum continues to set new standards in design, construction, and delivery. The project is registered under RERA in phases, with Phases 1 to 4 delivered, Phases 5 and 6 under construction, and Phase 7 launched.

THE EMPIRE BUSINESS CENTRE (TEBC)

TEBC offers premium serviced and furnished office spaces in Mumbais Lower Parel

Airoli. The Lower Parel centre achieved strong occupancies following a lobby upgrade, while Airoli maintained stable revenues and premium positioning.

The co-working market remains strong, supported by corporate return-to-office and rapid new economy growth. TEBC is actively exploring further expansion opportunities in Mumbai and other key CBDs.

EMPIRE COMMERCIAL PROPERTY

This division manages prime properties in Lower Parel and Vikhroli, comprising around 10 lakh sq. ft. of commercial and IT office space.

The Vikhroli IT/ITES park is fully occupied, and Lower Parel maintains 98% occupancy.

EMPIRE FOODS

Empire Foods remains Indias largest importer and distributor of frozen and chilled foods for the HORECA sector. Strong growth was recorded, led by dairy products and an increased market share in imported cheese.

With more product launches planned and strong sales momentum, continued growth is expected in the coming year.

The performance of all these Divisions is reviewed in the Directors Report.

(d) Outlook

The demand for office space, virtual offices, rooms, co-working spaces and softened rentals have gradually increased and as a result the business support service segment sustained consequent to the outbreak of pandemic has slowed down.

As a result of capacity building, the Vitrum Glass, belonging to the pharma sector, has performed well post pandemic. The Real Estate business has successfully retained the performance. The opening up of real estate sector and cautious buyer sentiment may lead to an unprecedented increase in the unsold inventory in future.

Grabbit+ vending machine range from Snacks, Beverages & Perishable to Sanitary pad vending machines.

The overall outlook seems to be very positive with the prediction of GDP growth of 6.5 % by RBI. The Division-wise outlook and details are given in the Directors Report.

(e) Risks and concerns

The Company is investing its funds only for the purposes of normal business activities and there are no financial risks except normal business risks which are managed by the prudent business and risk management practices. A fresh challenge looms – the upturn in the interest rate cycle, which is caused by hike in Repo rate by RBI and thereby increase the overall cost of borrowing for the Company. The

Company is regularly taking adequate insurance policies for covering the risks to Companys properties.

(f) Internal control systems and their adequacy

The Internal Auditor of the Company is carrying out the internal audit functions of the Company and regularly carries out the internal audit and review of internal control mechanisms prevailing in all the Divisions of the Company and submits the report to the Audit Committee of Board of Directors of the Company from time to time. Immediate corrective actions are taken on the recommendations of such reports. Divisions operational performances are reviewed periodically by the senior management and appropriate policy decisions are taken from time to time.

(g) Discussion on financial performance with respect to operational performance

The Sr. General Manager-Accounts circulates daily drawing power statements to the management. The said statement discloses division-wise daily transactions of cash inflows / outflows, Loans Advances, receivables positions etc. and required actions are taken immediately to bring the financial position in order so that no inconvenience in terms of liquidity is caused to any Division in carrying out its business activities smoothly.

(h) Material developments in Human Resources / Industrial Relations front, including number or people employed.

During the year under review, cordial relationships were maintained between the management and the employees. The Directors place on record their appreciation for the support and contribution from all the employees of the Company. The total numbers of people employed in the Company are shown in the Annexure to the Directors Report.

2. Disclosure of Accounting Treatment:

Financial statements are prepared in accordance with the applicable Accounting Standards specified in terms of

Sections 129 and 133 of the Companies Act, 2013 along with generally accepted accounting principles in India under the historical cost conversion on accrual basis.

All assets and liabilities have been classified as current or non-current as per Companys normal operating cycle and other criteria set out in the Schedule-III of the Companies Act, 2013 as amended from time to time.

There are no significant changes (i.e. change of 25% or more as compared to the immediately preceding financial year) in key financial ratios.