Flair Writing Industries Ltd Management Discussions

Economic Environment

Global Economic Overview¹

The global economy exhibited growth of 3.3% in CY 2024, supported by fall in global inflation level and robust activity in the United States that overcame the softer performance in Europe. Headline inflation softened from 6.6% in CY 2023 to 5.7% in CY 2024, driven primarily by easing price pressures in advanced economies and a gradual deceleration of global demand.

However, prolonged trade tensions and the imposition of tariffs at record levels continued to weigh on international trade and business sentiment. Supply-chain disruption persisted, with ongoing bottlenecks in principal manufacturing and logistics networks.

Governments across the globe have implemented specific measures to boost economic activity and shore up their domestic economies. These include infrastructure investments, social welfare schemes, and business incentives. These actions are intended to enhance economic resilience and reduce the impact of geopolitical risks.

Advanced economies undertook structural reforms, utilising digitalisation and sustainable investments to mitigate demographic challenges and productivity constraints. Emerging markets and developing economies maintained steady growth driven by decreasing inflation level and robust manufacturing industries. In general, the global economy is at a crossroads between greater cooperation and rising fragmentation.

Outlook

Global expansion is anticipated to slow further in the near term as policy rebalancing picks up steam and trade policy volatility continues. Headline inflation will remain on a gradual downtrend, but with notable variation across regions based on regional demand conditions and policy measures. Exuberant trade tensions can cloud near-term consumption and long-term investment, which highlights the necessity of a stable trading environment to underpin a sustainable recovery. Enhanced global co-operation will be crucial to insulate from negative external shocks and maintain open markets.

Healthy ageing policies, technological innovation and increased labour force participation, can ease fiscal pressures and maintain growth. Upholding policy credibility will lock in inflation expectations for both emerging and advanced economies. Judicious fiscal management is crucial to maintain buffers against shocks. Investment in robust infrastructure can contribute to improved long-term growth and policies aimed at reconciling structural imbalances should go along with revived multilateral co-operation to navigate the prevailing uncertainty. These measures can provide both internal and external economic stability and steer the global economy towards a more sustainable growth trajectory.

Indian Economic Overview²

The Indian economy continued to exhibit strong growth and show resilience during the turbulence worldwide in FY2024-25. Gross Domestic Product (GDP) grew at 6.5% for the year, led by solid private consumption and high government capital spending. The subdued growth in the second quarter rebounded by 6.2% in the third quarter, in account of increased activity in construction, trade and financial services.

Consumer price inflation headline averaged to 3.16% during the year, as food prices eased and supported base effects.³ Merchandise exports grew strongly in double digits while a significant fall in oil and gold imports contributed to trimming the trade deficit. Factory jobs increased at one of the quickest paces since the initiation of the PMI survey and hiring by the services industry also continued to be robust. Urbanisation, paired with structural labour-market changes, have raised demand for private education as families pursue quality and accessibility.

Rural activity took advantage of a record foodgrain output as well as firm farm incomes while urban demand commenced showing signs of recovery. Government infrastructure projects like Pradhan Mantri Awas Yojna (PMAY) and Gati Shakti drove an 8-9% boost in steel demand for building and consumer durables.⁴ Foreign portfolio outflows put intermittent pressure on the rupee, although domestic institutional investors stabilised market ownership. The real effective exchange rate of the rupee softened from its late 2024 high, giving some respite to exporters. Overall, good macro-fundamentals, including ample foreign exchange reserves, sustainable public debt ratios and a conservative fiscal stance have supported Indias growth path and cushioned external headwinds.

Outlook

Looking ahead, GDP growth is projected to remain around 6.5% in FY2025-26. The Union Budgets balanced fiscal approach, with a rising capital expenditure-to-GDP ratio, is expected to support both the infrastructure sector and household consumption. The Government has significantly increased budget allocations for key sectors under the PLI Scheme in FY2025-26 to stimulate industrial expansion.

Retail inflation is likely to remain within the central banks comfort zone, at 4% in FY2025-26, allowing for measured monetary easing if downside risks recede.

However, ongoing global trade tensions and tariffs uncertainty could restrain export growth and business investment. More robust supply-chain reconfigurations and diversified Foreign Direct Investment (FDI) inflows will be essential to maintaining export momentum. For the domestic economy, policies supporting increased labour-force participation, skill acquisition and rural income growth can support productivity. Increased integration of migrants and focused upskilling programs will also mitigate upcoming workforce shortages.

Sound fiscal management, along with greater financial inclusion and digital infrastructure, should maintain buffers for imminent shocks. International collaboration on trade and investment and sustained policy credibility will be critical in addressing external volatility and steering a consistent course towards inclusive and sustainable growth.

Indias real GDP growth (in %)

Industry Overview

Global Writing Instrument Industry⁵

The global writing instrument industry attained a market size of USD 45.36 billion in CY 2024⁶. The market has adjusted by innovation and repositioning instead of giving way to electronic substitutes. Premium and luxury writing instruments, especially fountain pens and limited runs are in demand among enthusiasts and collectors. Corporate gifts offer an additional source of revenue. The industry cuts across a range of product types from the pens and pencils that one uses every day, to specialty markers and professional drawing tools. Educational facilities continue to be key customers of this industry. The Asia-Pacific region has shown an increasing demand, with rising literacy levels and a focus on education. Digitalisation has disrupted distribution channels, making it possible to reach all corners of the globe and grow the market share without establishing large-scale physical presence. Top brands are employing personalisation, technology incorporation and environmentally conscious practices to remain relevant and command consumer attention amid an evolving marketplace. Further to this, the global industry is anticipated to attain a market size of USD 69.84 billion by 2032, with a CAGR of 5.62% between 2025 and 2032.

2https://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/0BULL22042025F03F83AE118C4B3B84E662D980C8DE33.PDF ³https://www.mospi.gov.in/sites/default/files/press_release/CPI_PR_13May25.pdf ⁴https://www.icicidirect.com/research/equity/finace/rise-of-steel-demand-in-india-in-2025 ⁵https://www.researchandmarkets.com/report/writing-instrument ⁶https://www.fortunebusinessinsights.com/writing-instrument-market-113154

Key Market Trends

• Digital Integration: Conventional writing instruments now feature smart technology, such as Bluetooth capability and digitisation features that synchronise with electronic devices.

• Environmental Awareness: Increased demand for eco-friendly writing products created from recycled plastics, bamboo and other biodegradable materials.

• Personalisation Demand: Increased demand for customised writing products with initial engraving, bespoke design and ergonomic features specific to individual needs.

• Innovative Partnerships: Strategic alliances among writing instrument producers and artists, designers or legendary brands to produce limited series collectibles.

• Online Sales Growth: Transition toward online sales channels and direct-to-consumer strategies increasing global accessibility and market presence.

• Art Revival: Revival of calligraphy, hand lettering and niche writing arts driving demand for good writing instruments.

Indian writing instrument industry

The Indian writing instrument industry is characterised as highly competitive and price-sensitive. Key players in the industry focus on product innovation, affordability, and sustainability. The growth of the domestic industry in FY 2025 was supported by rising literacy rates, expanding educational initiatives and increased enrolment in schools as well as colleges across the country. Additionally, the growing popularity of premium and ergonomic writing tools among students and professionals has further supported the industrys growth. The geographical landscape of the Indian writing instruments market is shaped by diverse consumer preferences and varying educational infrastructure. During the reported year, northern India held the largest market share, driven by strong demand across educational hubs and government institutions. Looking ahead, the Indian writing instrument industry is anticipated to reach a market size of USD 1,274.31 million by 2031, exhibiting a growth rate of CAGR of 7.64% from 2024 to 2031.⁷

Global stationery industry

The global market is highly fragmented, with numerous medium and large players operating across both domestic and international markets. In CY 2024, the global stationery products industry reached a market size of USD 158.39 billion, and it is expected to grow at a CAGR of 5.32% from 2025 to 2032, reaching USD 238.46 billion by 2032. During the reported year, Asia Pacific led the stationery products market, accounting for a 37.00% share in 2024.⁸

Moreover, the residential segment dominated during the reported year, driven by the everyday use of stationery products such as notepads, pens, and glue in households. Additionally, growth was supported by the increasing popularity of online and e-commerce platforms for stationery items, as well as the rapid digitisation of academic institutions. The global industry was influenced by several trends, including rising demand for eco-friendly stationery products, with key players focusing on recyclable and chemical-free alternatives.

Indian stationery industry

The Indian stationery industry can be described as a dynamic and competitive sector, dominated by the education sector, corporate offices, and increasing demand for premium and digital stationery. The rising literacy levels and increasing enrolment in schools and colleges are considered among the key factors that drove growth in the domestic industry during FY 2025. Moreover, the rise in remote work culture has also influenced growth in the Indian stationery industry. In addition to this, e-commerce platforms have helped make a wide range of stationery items accessible to a larger customer base. Additionally, the Indian stationery industry is anticipated to exhibit strong growth in the coming years. This growth will be driven by schools, colleges, and coaching centres.

Key Market Trends

• Eco-Innovation: Increased focus on renewable materials, refilling systems and non-toxic inks to minimise environmental footprint.

• Premiumisation: Increased demand for luxury and handcrafted instruments as status symbol and family heirlooms.

• Artistic Revival: Revival of calligraphy, journaling and hand-lettering drives specialty tools such as fountain pens and brush markers.

• Corporate Branding: Personalised pens continue to be a promotional campaign mainstay, fuelled by brand visibility initiatives.

• Direct-to-consumer Channels: Growth of online channels allows niche brands to circumvent traditional retail hurdles.

Government Initiatives

PM-YUVA 3.0 Mentorship Scheme

Launched in March 2025, this flagship programme mentors young writers under the age of 30 with organised mentorship on themes such as the Indian knowledge systems and the contribution of the Indian diaspora. The chosen writers are given I 50,000 every month for six months, workshops with literary mentors and publication assistance through the National

Book Trust. It also promotes multilingual writing in English and 22 Indian languages, bringing forth a new generation of writers to chronicle Indias cultural and intellectual heritage.⁹

Union Budget 2025: Education Overhaul¹⁰

The 2025 budget allocated I1,28,650 crore to education, with focus on digital infrastructure, AI-based learning platforms and vocational training. Some of the important programmes are:

• Atal Tinkering Labs: 50,000 laboratories in government schools for encouraging Science, Technology, Engineering and Mathematics (STEM) creativity.

• One Nation One Subscription (ONOS): I 6,000 crore programme providing nation-wide access to academic journals and e-resources, making research opportunities accessible to all.¹¹

PM-Vidyalaxmi Scheme¹²

The Union Cabinet, led by Honble PM Shri Narendra Modi, has approved the PM-Vidyalaxmi scheme to support meritorious students by providing financial assistance for quality higher education. This scheme offers education loans to students admitted to the top 860 institutions across India, benefitting over 22 lakh students each year. This programme strives to provide an extra benefit to 7 lakh students with a budget of H 3,600 crores during 2024-25 to 2030-31. The PM-Vidyalaxmi scheme is operational across all digital, transparent and student-friendly platforms to facilitate accessibility and hassle-free interoperability by students anywhere across the country.

Foundational Literacy and Numeracy (FLN)¹³

The Government of India launched the ULLAS-Nav Bharat Saaksharta Karyakram to empower adults from the age of 15 and above. More than 8.8 million learners were certified in 2024 under tests such as FLNAT (Foundational Literacy and Numeracy Assessment Test). FLN proficiency is now required in schools up to Grade 3, aided by interactive e-content and teacher upgradation. Understanding of Lifelong Learning for All in Society (ULLAS) initiative has set a is target to impact 50 million learners in the 15+ age group during FY 2022–27 under National Literacy Mission Authority (NLMA).¹⁴

Global Steel Bottle Industry¹⁵

The stainless steel water bottle market, worth $1.23 billion in CY2024. This growth is primarily fuelled by the increased environmental consciousness, with people opting for reusable bottles as opposed to single-use plastics. The increasing health awareness among consumers is also a driving factor-stainless steel bottles do not contain toxins or BPA, offering a healthier alternative to plastic bottles. Stainless steel bottles can also keep beverages warm or cool for a longer time period, contributing to their usage in everyday life, work and vacations.

The main reason these bottles have gained popularity is their durability. Stainless steel bottles do not rust, corrode or get damaged and will last longer than plastic or aluminium ones. They are ideal for sports enthusiasts who want tough bottles to carry around for games, gym and outdoor adventures. Thus, stainless steel bottles are perceived as a long-term and sensible investment for consumers who are looking for reliable and environment-friendly water containers.

Moving forward, the market is estimated to grow up to $2.43 billion by CY2030, at a CAGR of 6.81%. Smart hydration tracking and temperature-control innovations are expected to redefine the premium space, whereas circular economy models favouring bottle recycling will get popular. Collaborations with fitness brands and corporate wellness programs are expected drive applications beyond individual consumption.

Indian Steel Bottle Industry

The India Insulated Bottle Market was valued at USD 368.34 Million in CY 2024 and is expected to reach USD 582.78 Million by CY 2030.¹⁶ With the governments restrictions on single-use plastics, urbanisation and a growing demand for high-quality hydration products, the stainless steel water bottle industry in India is envisioned to grow at a steady rate in the foreseeable future. The Government of India enacted the Bureau of Indian Standards (BIS) guidelines for stainless steel bottles, which support the Make in India and Aatma Nirbhar Bharat campaigns and promote a vision of a healthier country under Swasth Bharat by supporting environmental conservation. As consumers are becoming more eco-friendly and looking for sustainable alternatives, stainless steel bottles have become extremely popular due to their reusability, recyclability and safety over its plastic alternatives.

Health concerns have also driven this shift as these bottles are free from harmful chemicals and maintain beverage quality. Their durability and resistance to damage make them ideal for activities such as sports, outdoor activities and daily commutes. The market is also witnessing significant growth following the leap in bottle technology- better temperature retention, internal filtration and other smart functionalities such as tracking water intake-making it more user-friendly and attractive.

Personalisation and innovative design are becoming key factors which enable brands to tap into niche tastes and differentiate in a competitive landscape. Fitness and wellness collaborations along with growth in distribution channels, increase the market prospects. In general, the future of this market will be driven by sustainability, technological integration and changing consumer taste for trusted, fashionable and sustainable hydration solutions. Government campaigns against plastic and health-aware urban consumers will lead to adoption, with rural markets coming through low-cost, long-lasting alternatives. Domestic production of niche alloys may minimise import dependence, making India a cost-effective manufacturing base.

Global Houseware Market¹⁷

The global houseware market is estimated to be worth $343 billion in CY2024. In CY2023, the value was tipped to be $332 billion. The world houseware market is developing steadily, supported by increasing construction activity in nations such as China and India which drives the demand for home products. Increasing disposable incomes and better lifestyles are encouraging consumers to spend on essential and luxury houseware, prioritising fashionable and innovative designs that match their home furnishings. Smart home technology is also increasing the demand for high-tech and networked houseware products. Nevertheless, the market is challenged by various counterfeit products, which can damage brand reputation and discourage consumers.

The market is projected to show considerable growth over the period of CY2024 to 2034, with a CAGR of 4.1%. By 2034, the size of the market is predicted to expand by $513 billion. Multifunctional, compact designs in harmony with minimalist urban living are expected to remain popular, supplemented by AI-enabled kitchen appliances for individualised cooking. Sustainability requirements could spur material innovation, especially in modular and biodegradable products.

Indian Houseware Market¹⁸

Indias houseware market is growing steadily driven by increased disposable incomes, urbanisation and changing consumer lifestyles that appreciate convenience and modernity. Indias kitchenware market was valued at $1.70 billion in 2024. As Indians increasingly become part of the middle-income segment, there is a notable shift away from low-cost traditional utensils to branded, modern and premium kitchenware. Urban families are spending on multi-functional and advanced tools like modular cookware and automated devices. The growing trend of nuclear families and reduced living space is also propelling demand for space-saving and compact kitchenware.

Health and environmental concerns are also responsible for influencing consumer behaviour, with an increasing preference for non-toxic, eco-friendly cookware made from stainless steel, ceramic and glass. Environmentally friendly products such as biodegradable packets and bamboo cutlery are becoming popular, as part of a larger shift toward healthier and greener lifestyles.

The growth of e-commerce and online retail has brought kitchenware within reach for more people all over India, including smaller cities. Online stores provide an extensive range of products, reasonable prices and easy delivery, making them popular among a wide consumer base. Personalised suggestions and hassle-free return policies further increase the convenience of online shopping, aiding the growth of the market.

Driven by these tailwinds, the market is expected to reach $2.04 billion by 2030 with a CAGR of 3.09% during the forecast period. The markets growth momentum is led by a trend towards green traditional products and small, technology-based products for urban buyers. Government initiatives and the growth of online retailing will continue to deepen domestic manufacturing and driving market reach into rural and smaller cities.

Company Overview

Incorporated in 2016, Flair Writing Industries Limited has grown to become one of Indias largest pen manufacturers. The brand ‘Flair was founded in 1976 and has since emerged as a leading name in the writing industry. In its nearly five decades of operation, the organisation has diversified its product portfolio, manufacturing base and international presence while upholding its values of quality and innovation.

Currently, Flair sells over 1126 products in various brands. Its core stationery and writing instruments are sold under the FLAIR brand, supplemented by luxury lines like HAUSER and PIERRE CARDIN. The innovative collections are sold under FLAIR CREATIVE and ZOOX and houseware products like steel bottles are made by a subsidiary company. Flair also designs and distributes calculators with the Flair brand, thus covering a complete portfolio to cater to various customer requirements.

Flair has eleven strategically positioned manufacturing units in India-three in Valsad (Gujarat), one in Naigaon (Maharashtra), five in Daman, one in Surat and one in Dehradun (Uttarakhand). These facilities provide an annual production capacity of over 2.30 billion units. This scale of operation allows Flair to distribute its extensive assortment of products effectively and ensure uniform standards of quality. Moreover, the Companys manufacturing units are equipped with advanced facilities such as robots, that improves the production efficiency.

Flair has a strong domestic network of distribution over 192 super stockists and over 8,000 distributors, covering over 3,30,000 wholesalers and retailers in 2,380 towns and cities covering 6500+ pin codes in India. Globally, the Company has been Indias largest exporter of writing instruments for the majority of the last 40 years, with products available in over 115 countries.

Flair has ISO 9001:2015 and ISO 14001:2015 certifications in order to maintain its commitment to best practices around the world. It also demonstrated the Companys compliance with international quality management and environmental standards. The Company also works in association with major companies in the writing business and engages actively with main trade associations. Motivated by master craftsmanship, endless innovation and a flexible approach to production, Flair Writing Industries remains committed to developing its products in line with user requirements.

Segment-wise Performance

Writing Instruments

The Company manufactures, develops and markets a variety of writing instruments locally and globally. Its core brand, FLAIR, is supplemented by lead marques HAUSER and PIERRE CARDIN. The Company has recently introduced ZOOX, one of its newest brands in Indian Market. Apart from its brands, the Company also makes writing instruments on an Original Equipment Manufacturer (OEM) basis for export destinations as well as the Indian local market.

The pen category comprises of the Companys largest, fastest-growing and most margin-accretive business segment, contributing 77% of overall revenues in FY 2024-25. These segments include ball pens, fountain pens, gel pens, roller pens and metal pens that cater to varied writing needs and quality requirements.

Strategy Forward

Flair Writing Industries Limited is pursuing a multi-pronged strategy to drive its writing instruments segment forward. The Company is focusing on the development of value-driven and sustainable products through the use of eco-friendly materials and refillable design, with the aim of targeting eco-conscious consumers. It is also investing in smart packaging and customer-centric product design to enhance shelf visibility and user experience. In order to widen its market scope, Flair is tailoring its products for specific user segments such as students, professionals and artists, while adding specialised sub-brands as and when needed.

Flair is also venturing into Tier II and Tier III cities while using data analytics to improve inventory management and demand forecasting, thus strengthening its domestic market position. Globally, Flair is looking to new export markets with product ranges specific to regional preferences.

Stationery Products

Flair launched the FLAIR CREATIVE brand in 2021, providing a new line of creative and stationery products mostly for the Indian market. Since then, Flair Creatives sales have increased annually, demonstrating high acceptance in the market with proper utilisation of its brand equity and widespread distribution channel. Continuing this success, the Company began exporting these products. It also creates, produces and distributes calculators under the Flair brand.

In FY 2024-25, 15.85% of the Companys revenue came from creative and stationery segment. The range consists of school stationery-pencils, mechanical pencils, highlighters, correction pens, markers and gel crayons-along with childrens specialised stationery kits and other accessories. Every product created by the Company aims to encourage imagination and enhance productivity for people of all ages, making them essential tools for learning, work and creative endeavours.

Strategy Forward

In the stationery products segment, Flair plans to expand its product base to offer additional school, office and creative writing supplies. The Company aims to leverage its strong brand to introduce innovative and quality products responding to varied consumer needs. The Company is making efforts to expand retail presence in both traditional and modern trade channels, with greater focus on e-commerce and digital marketing for wider reach. Flair is also looking at export opportunities and strategic alliances to enter new overseas markets, backed by investment in manufacturing capacity and supply chain optimisation, to address growing demand.

Steel Bottles and Houseware Products

In FY2024-25, the Companys subsidiary, Flair Cyrosil Industries Private Limited (FCIPL) initiated mass production of stainless steel bottles. The full year of operations includes single-wall and double-wall vacuum-insulated types in a variety of sizes and designs to suit varied consumer tastes.

The Company has set up three committed manufacturing lines for its steel bottle business. It has begun distribution in general trade and modern trade in India. Its factorys success in attaining mandatory BIS certification for stainless steel bottles further strengthens the Companys competitiveness by breaking the import dependence.

Strategy Forward

For Steel Bottles and Houseware products, the Companys focus is building product range, enhancing design and functionality, and enhanced market penetration. It seeks to launch innovative, ergonomic and eco-friendly products aligned with evolving consumer trends, especially in the premium and lifestyle categories. Investments in capacity enhancement and automation will allow the Company to achieve accelerated scalability and cost efficiency.

To improve visibility and sales, Flair is leveraging modern trade, e-commerce platforms, contemporary retail and global distribution channels, as well as focused marketing efforts. The Company is also exploring strategic partnerships and brand extensions to make this segment a key growth driver in domestic and international markets.

Brands

FLAIR

Under the Flair brand, the Company focuses on precision writing instruments, evolving its products to suit todays dynamic market.

PIERRE CARDIN

Pierre Cardin pens amalgamate world-class quality with bold, premium designs and in-house branding capabilities tailored for corporate and gifting solutions.

HAUSER

The brand provides German-engineered simplicity and aerodynamics, making writing effortless at the highest quality standard.

FLAIR CREATIVE

Flair Creative offers a broad range of creative tools that stimulate both professional and amateur artists.

FLAIR STEEL BOTTLES & DESIGNER HAUSERWARE

The brand expands the portfolio to specially designed, rugged everyday household items engineered for long-lasting performance.

Strategy Forward

The Company plans to expand its offerings in the Disney range across different verticals including geo boxes and kits, while introducing additional new kits for gifting and basic colouring range for students. The Company continues to rely on celebrity endorsement to drive brand visibility and revenue growth.

Financial Overview

In FY 2024-25, the number of writing instruments sold by the Company increased to 191.22 million from 181.28 million in 2023-24. The Companys distributor/dealer network stood at 8,000+ in FY 2024-25. The Companys network of wholesalers/ retailers was expanded to over 3,30,000 in FY 2024-25, owing to a strong market penetration and wider product availability.

Flairs revenue from operations, including domestic and export sales, experienced a surge to I 1,07,986.03 lakhs from I 97,872.48 lakhs recorded in the previous year. This growth can be credited to our ability to capitalise on emerging market opportunities. The Companys operational efficiency and more controlled material costs compared to FY 2023-24 led to an increase in the gross material margin from I 49,303.01 lakhs to I 54,770.03 lakhs in FY2024-25. The EBITDA decreased from I 19,124.13 lakhs in FY2023-24 to I 18,474.24 lakhs in FY 2024-25, while the EBITDA margin fell from 19.54% in FY 2023-24 to 17.11% in FY 2024-25. PAT grew to I 11,908.43 lakhs in FY 2024-25 from I 11,848.11 lakhs in 2023-24.

Metric	FY 2024-25	FY 2023-24	% Change
Inventory Turnover (COGS /	3.18	3.26	(2.29%)
Average Inventories)
Current Ratio (Current	5.43	5.11	6.27%
Assets / Current Liabilities)
Debtors Turnover (Revenue / Average Trade Receivables)	4.56	5.08	(10.22%)
Operating Profit Margin (PBIT / Net Sales)	12.97%	15.78%	(17.83%)
Net Profit Margin (PAT / Net Sales)	11.03%	12.11%	(8.90%)
Return on Net Worth (PAT/	12.43%	17.76%	(30.04%)
Average Net Worth)
Interest Coverage Ratio (EBIT / Interest Expenses)	26.61%	15.21%	74.91%
Debt–Equity Ratio (Net	0.06	0.08	(20.73%)
Debt / Net Worth)

Ratio Analysis (Consolidated Basis)

Metric	FY 2024-25	FY 2023-24
Number of Pens Sold (in lakhs)	14,376.30	13,213.20
Number of Distributors/Dealers	8,000+	8,080
Number of Wholesalers/Retailers	3,30,000+	330,000
Revenue from Operations (I in	1,07,986.03	97,872.48
lakhs)
Revenue from Domestic Operations (I in lakhs)	89,820.38	79,288.02
Revenue from Export Operations ( I in lakhs)	18,165.65	18,584.46
Gross Material Margin (I in lakhs)	54,770.03	49,303.01
Gross Material Margin (%)	50.72	50.37
EBITDA (I in lakhs)	18,474.24	19,124.13
EBITDA Margin (%)	17.11	19.54
PAT (I in lakhs)	11,908.43	11,848.11
PAT Margin (%)	11.03	12.11
Return on Capital Employed (%) (PBT & finance costs/Capital Employed)	15.13	17.32
Return on Equity (%) (PAT/ Average Total Equity)	11.74	13.23
Trade Receivable Days	80	72
Inventory Days (based on COGS)	115	112
Trade Payable Days	37	47
Working Capital Cycle (Days)	158	137
Debt–Equity Ratio	0.06	0.08
Net Debt/EBITDA	0.03	0.09
Sales & Marketing Expenditure	1.92	2.36
Ratio (%)
Earnings per Share (I)	11.35	12.19

Financial Highlights

Business Outlook

The Company plans to keep investing in its talent and streamlining its sales and distribution structure to enhance efficiency. To aid this, the Company is reinforcing its teams both in sales as well as manufacturing functions. The Company also plans to raise in-house production capacity in various categories of products.

Besides investing in manpower and upscaling in-house production, Flair Writing Industries is also implementing a number of initiatives to improve its operational effectiveness for both the domestic and international markets. These initiatives include the implementation of high-end automation and digital technologies to enhance manufacturing effectiveness and reduce costs of operations. The Company is further strengthening its supply chain with improved vendor management and real-time inventory tracking.

Flair is also exploring international expansion through establishing strategic partnerships and product customisation to suit local tastes. The Companys increased emphasis on e-commerce, data-driven sales and localisation of marketing is expected to drive sustainable growth across segments.

Risk Mitigation

Risk	Impact	Mitigation Strategy
Macro-economic Risk	The Companys international and domestic business are at risk due to the prevailing geo-economic uncertainties and possibility of global economic downturn.	The Company addresses macroeconomic risks by adopting the following steps:
		1. Diversification of Markets - Export Expansion and Product Diversification
		2. Cost Structure Flexibility- Variable Cost Focus and Raw Material Substitution
		3. Financial Risk Management
		4. Strategic Partnerships and Supplier Resilience- Multi-Sourcing and Local Sourcing
		5. Innovation and Automation
		6. Policy and Regulatory Engagement
		7. Liquidity and Cash Flow Management.
Supply Chain Risk	Geopolitical turbulences disrupting crucial supply chains can result in operational delays of the Company and impact the sourcing costs.	The Company continuously tracks price actions and controls inventory to respond to market conditions and limit exposure to risk.
Seasonal Volatility	Seasonal sales cycles and sudden spikes in short-term demand have the potential to disrupt the Companys production, causing less market demand during the rest of the year and potentially impacting business performance.	The Company over the period has expanded its products and customers over the last year, as well as enhanced its ability to respond to changing industry demands.
Product Quality Risk	The businesses need to maintain high quality standards to meet the consumers expectations.	The Companys steady provision of high-quality products has created a good reputation and enhanced favourable customer perceptions. Further to this, the Company also ensures that its product innovation is aligned with the quality standards.
Brand Image	Compromised quality can cause reputational damage to the Company	The Company concentrates on effective organisational management and continued competitiveness to ensure brand protection against customer preference changes or bad experiences.

 

Risk	Impact	Mitigation Strategy
Competition Risk	The Company faces several competition risks that can impact its operations and profitability both domestically and internationally. In addition, the expansion of the Company into new segments will invite challenge from established players.	To mitigate competition risk in both new and existing segments, the Company focuses on continuous product innovation, strong branding and competitive pricing strategies. The company invests in R&D to develop differentiated, high-quality products and leverages a robust distribution network across retail and digital platforms to maintain market presence.
		By building strong relationships with dealers, closely monitoring competitor activities and offering value- driven promotions, Flair ensures responsiveness to market trends. Additionally, the Company protects its intellectual property and enters new segments through careful market research and pilot launches to minimise risk and maximise impact.

Human Resources

Flair regards its workforce of 7,432 individuals, including permanent employees, contractual staff, workers, labourers and consultants, as the primary driver of its success. The Company is dedicated to cultivating an environment that supports professional growth, nurtures innovation and upholds a culture of excellence.

To attract and retain top talent, Flair provides competitive compensation, structured opportunities for skill development and a supportive workplace that embraces diversity and inclusion. Human resource policies are designed to empower employees, build leadership capabilities and promote a healthy work-life balance. Flair aims to secure long-term sustainable growth and a competitive advantage in the industry by investing in its people.

Corporate Social Responsibility

The Companys CSR Policy demonstrates its commitment to the communities it operates in and its desire to create a positive social impact. The Company has initiated a number of focused CSR programs to benefit local communities and meet their specific needs.

To enable its goal of ‘empowerment through employment, the Company recently distributed sewing machines to enable people to become financially independent.

To increase educational opportunities, the Company distributed laptops to tribal and minority students. In Rajasthan, it facilitated a school bus to enhance access to education for rural children.

Internal Control Systems

Flair operates a structured internal control system overseen by its Board of Directors and Executive Committee. Over time, the Company has invested in strengthening this framework and refining its processes. These enhancements complement the existing embedded controls, standards and monitoring mechanisms that support consistent operational stability.

The control framework governs all aspects of business conduct, ensuring compliance with corporate policies and safeguarding company assets. It is designed to prevent and detect fraud or errors, guarantee the accuracy and completeness of accounting records and facilitate the timely preparation of reliable financial information.

Cautionary Statement

The statement made in this section describes our objectives, projections, expectation and estimations which may be ‘forward-looking statements within the meaning of applicable securities laws and regulations. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised by the Company. Actual result could differ materially from those expressed in the statement or implied due to the influence of external factors which are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments.

Disclosure Of Accounting Treatment

The financial statements of our Company have been prepared in accordance with the Indian Accounting Standards (IndAS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) (Amendment) Rules, 2016 read with Section 133 of the Companies Act, 2013.