Global Surfaces Ltd Management Discussions

ECONOMIC REVIEW Global Economy

The global economy in 2025 presents a significantly different landscape than initially projected. Global The OECD projects global growth slowing from 3.3% in 2024 to 2.9% in both 2025 and 2026, representing a notable decline from earlier optimistic forecasts. OECDwide inflation is projected to reach 4.2% in 2025, up from earlier projections of 3.7%. However, annual headline inflation in the G20 economies is collectively expected to moderate from 6.2% to 3.6% in 2025 and 3.2% in 2026. Regional disparities are stark: US GDP growth is projected to decline from 2.8% in 2024 to 1.6% in 2025, while the euro area shows modest improvement from 0.8% in

2024 to 1.0% in 2025. Chinas economic expansion is moderating from 5.0% in 2024 to 4.7% in 2025.

Outlook and Key Challenges

The economic outlook for 2025 is dominated bysubstantial barriers to trade, tighter financial conditions, diminishing confidence and heightened policy uncertainty projected to have adverse impacts on growth. The slowdown is expected to be most concentrated in the United States, Canada, Mexico and China, with smaller downward adjustments in other economies. Higher trade costs in countries raising tariffs are expected to push inflation up further, although the impact will be partially offset by weaker commodity prices. This creates complications for central banks worldwide as they transition from restrictive to neutral monetary policy stances. The silver lining comes from artificial intelligence, which has driven productivity growth to nearly quadruple in Al-exposed industries, rising from 7% in 2018-2022 to 27% between 2018-2024. McKinsey research estimates the long-term Al opportunity at $4.4 trillion in added productivity growth potential.

Indian Economic Review

Indias economic performance in 2025 has continued to outshine global peers, maintaining its distinction as the fastest-growing major economy. The World Bank projects GDP growth at 6.3% for 2025-26, reinforcing Indias robust fundamentals amid global uncertainty. Effective inflation control has further boosted confidence, with CPI inflation easing to a six-year low of 2.82% in May 2025. The March

2025 inflation rate of 3.34% reflects successful monetary interventions and supply-side measures. In Q4 FY25, the economy grew by 7.4%, surpassing expectations and underscoring the resilience of Indias consumption-led growth model.

Private consumption remains the engine of expansion,

backed by a young, urbanizing population. With over 65% of citizens under 35 years and a median age of 28, Indias demographic profile fuels rising consumption. Nuclear families, now 70% of all households, are spending up to 30% more per capita than joint families, creating structural demand. Deloitte projects FY25 GDP growth between 6.5% and 6.8%, driven by resilient domestic consumption and investment. Manufacturing exports, especially in electronics, semiconductors, and chemicals, are deepening Indias integration into global value chains, reinforcing a dual-growth model of domestic strength and export competitiveness.

However, the demographic dividend also brings challenges. With a labor force of over 600 million, Indias growth depends on aligning workforce capabilities with industry needs. Skill gaps remain a concern, with studies showing a significant portion of graduates unfit for key sectors like software development and communication. This underscores the need for targeted education and upskilling reforms to fully unlock the demographic advantage.

Outlook

Indias growth outlook for 2025 and beyond remains firmly optimistic, supported by favorable demographics, sound policies, and sectoral momentum. Government initiatives like the Production Linked Incentive (PLI) scheme are catalyzing manufacturing expansion. With

over ? 21,000 crore disbursed and a new ? 25,000 crore scheme for electronic components in the pipeline, India expects investments exceeding ? 40,000 crore. Electronics production has already doubled to $115 billion and is expected to scale further, driven by strategic incentives.

Infrastructure and digital investments continue to be strong growth enablers. By 2025, India is projected to invest up to $23 billion in digital infrastructure, including macro towers and fiber deployment. The expected rise of 5G users to 330 million further highlights the digital transformation underway. Meanwhile, agriculture remains a stabilizing force, with favorable monsoon rains boosting kharif sowing and rural income levels.

Exports in services, pharmaceuticals, and electronics are sustaining momentum, even as global trade faces headwinds. On the supply side, strength in manufacturing and services is expected to persist. Indias strategic position in global supply chain diversification particularly under the "China+1" strategy enhances its long-term relevance.

With inflation under control and monetary policy appropriately calibrated, India is well-positioned to continue its growth trajectory. The key will be ensuring that employment generation, skill development, and innovation keep pace with macroeconomic expansion. By leveraging its demographic dividend and policy stability, India is poised to consolidate its position as a global economic powerhouse.

positions engineered stone as one ofthe most promising segments within the broader construction materials industry, driven by superior performance characteristics and evolving consumer preferences.

Engineered stone, comprised of approximately 90% ground natural quartz combined with resins and pigments, offers unparalleled durability, aesthetic appeal, and customization possibilities. The manufacturing process creates a non-porous surface that provides exceptional resistance to scratches, stains, and heat, making it an ideal choice for high-traffic applications including kitchen countertops, bathroom vanities, flooring, and wall cladding. This material offers significant advantages over natural stone alternatives, requiring no sealing for protection against bacteria and stains while maintaining its appearance over extended periods.

The markets composition reveals strong diversification across applications, with countertops dominating market share due to widespread use in kitchens and bathrooms. The industry serves both residential and commercial sectors, with increasing adoption in luxury hospitality, healthcare facilities, and corporate environments where hygiene, durability, and aesthetic appeal are paramount considerations.

Robust Growth Projections and Market Outlook

Looking forward, the engineered stone industry presents compelling growth prospects across multiple forecasting horizons. The market is projected to expand

INDUSTRY STRUCTURE AND DEVELOPMENT

Global Engineered Quartz Stone Industry

The global engineered quartz stone industry has emerged as a dynamic and rapidly expanding sector, demonstrating exceptional resilience and growth potential in the construction and design materials market. The global engineered stone market reached USD 27.64 billion in 2024, showing a year-overyear growth of 6.2% from USD 25.9 billion in 2023. This significant growth trajectory

steadily, reaching USD 35.47 billion by 2029 with a compound annual growth rate (CAGR) of 4.8% during the forecast period. This sustained growth reflects the industrys fundamental strength and its alignment with key global trends including urbanization, infrastructure development, and increasing focus on sustainable building materials.

North America continues to be the largest market for engineered quartz, with a U.S.-centric market of USD 25 billion (2024) and high-volume adoption in premium residential and hospitality projects. Europe follows closely, underpinned by renovation trends and sustainability mandates.

Asia-Pacific is the fastest-growing market for engineered quartz, with the regional market valued at approximately USD 3.5 billion in 2024 and expected to grow at a CAGR of 8.5% through 2033. Rapid urbanization in China, India, and Southeast Asia is driving increasing adoption of

engineered quartz in both residential and commercial construction. While exact project- level usage data is limited, industry surveys indicate strong applications across countertops, flooring, and wall cladding now comprising over 40-45% of total engineered stone end-use

APAC captured nearly 38% of global engineered stone revenues in 2023, underscoring its growing influence in the market. Emerging markets in the Middle East, Africa, and Latin America, while smaller (each under USD 400 million), present future upside through infrastructure and luxury real estate investments."

The market outlook is further enhanced by technological innovations and product development initiatives. Manufacturing advancements include the development of engineered stone from recycled materials, introduction of PVC-free formulations, and creation of easily installable products. These innovations address environmental concerns while improving functionality and installation efficiency, broadening the markets appeal to environmentally conscious consumers and construction professionals.

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Looking forward, the engineered stone industry presents compelling growth prospects across multiple forecasting horizons. The market is projected to expand steadily, reaching USD 35.47 billion by 2029 with a compound annual growth rate (CAGR) of 4.8% during the forecast period.

Key Growth Drivers Shaping Market Expansion

Growing Demand for Durable and Visually Appealing Materials: The construction

and interior design sectors are experiencing unprecedented demand for materials that combine exceptional performance with aesthetic versatility. Engineered stone addresses this demand by offering superior strength and resistance to environmental factors while providing extensive customization options through colors, patterns, and finishes. The materials ability to replicate natural stone appearances while delivering enhanced durability has positioned it as the preferred choice for discerning consumers and commercial applications.

The surge in construction activities globally serves as a cornerstone driver, with the material finding applications in residential, commercial, and infrastructure projects aligned with urbanization trends. Asia-Pacific regions demonstrate particularly strong adoption, with over 60% of new construction projects employing engineered surfaces for flooring, cladding, and countertops. This widespread adoption reflects the materials proven performance in demanding applications and its cost-effectiveness compared to natural stone alternatives.

Technological Advancements and Product Innovation: The industry continues to benefit from substantial investments in research and development, resulting in breakthrough innovations that expand application possibilities and improve performance characteristics. Recent technological developments include enhanced durability through advanced manufacturing techniques using higher pressures and temperatures during production, resulting in denser and more resilient surfaces. These advancements have produced quartz surfaces capable ofwithstanding extreme environmental conditions, including UV exposure and temperature fluctuations, making them suitable for outdoor applications.

Manufacturing innovations have introduced cutting-edge vein techniques backed by globally issued utility patents, enabling the creation of exceptionally natural-looking veining

The surge in construction activities globally serves as a cornerstone driver, with the material finding applications in residentialcommercial, and infrastructure projects aligned with urbanization trends.

patterns. Companies are utilizing premium raw materials like Cristobalite to achieve superior brightness and translucency, with some manufacturers exclusively using 100% Cristobalite formulations to create unique optical effects. These innovations have elevated engineered stone from a mere natural stone alternative to a premium material category with distinct performance advantages.

Digital printing technologies now replicate marble veining and granite patterns at 98% visual accuracy, meeting luxury expectations without geological limitations. This technological capability has opened new market segments and enabled designers to achieve previously impossible aesthetic effects while maintaining the practical benefits of engineered materials.

Sustainability and Environmental Consciousness:

Environmental considerations have become increasingly influential in material selection decisions, creating significant opportunities for engineered stone manufacturers who have embraced sustainable practices. Artificial stone production generates 40% less quarrying waste compared to natural stone extraction, addressing growing concerns about environmental impact in construction. This reduced environmental footprint aligns with global sustainability initiatives and appeals to environmentally conscious consumers and corporate buyers.

The industry is witnessing increasing adoption of recycled materials, with some manufacturers incorporating up to 90% recycled content in their products. Calcium carbonate-rich industrial byproducts constitute up to 30% of engineered stone composites, supporting circular economy principles. These developments have created products that not only perform exceptionally but also contribute to waste reduction and resource conservation.

Regulatory pressures favoring sustainable materials create structural market advantages, with 78 countries implementing strict regulations on mining activities. The EUs Revised Construction Products Regulation (2023) explicitly prioritizes surface materials with over 20% recycled content, directly benefiting manufacturers incorporating recycled glass and ceramic waste. This regulatory support provides long-term market stability and encourages continued innovation in sustainable manufacturing processes.

Expanding Application Scope and Market Diversification: The versatility of engineered stone has enabled its adoption across an expanding range of applications, driving market growth through diversification. The materials non-porous surface and resistance to bacteria make it particularly valuable in

healthcare facilities, commercial kitchens, and laboratory environments where hygiene is critical. In 2023, North Americas kitchen and bath remodeling sector generated revenues of $162.4 billion, within a broader home renovation market of $527 billion . The share of engineered quartz surfaces continues to increase in mid-to-premium renovations, as homeowners prioritize materials with superior resilience, low porosity, and contemporary aesthetics.Commercial applications continue expanding as businesses recognize the long-term value proposition of engineered stone. The materials durability and low maintenance requirements make it cost-effective for high-traffic commercial spaces including airports, hotels, and retail environments. This commercial adoption creates stable, high-volume demand that supports industry growth and encourages continued innovation.

Industry Challenges and Strategic Responses

Competition from Alternative Materials and Market Positioning: The engineered stone industry faces ongoing competitive pressure from various alternative materials, requiring continuous innovation and strategic positioning to maintain market share. Competition from natural stone, solid surface materials, ceramic tiles, and emerging materials like porcelain slabs necessitates clear value proposition communication and product differentiation. Manufacturers have responded by emphasizing the unique benefits of engineered stone, including consistent quality, customization capabilities, and superior performance characteristics.

Price sensitivity remains a significant factor in market dynamics, with consumers comparing engineered stone costs against alternative materials. The industry has addressed this challenge through improved manufacturing efficiency, economies of scale, and value-based marketing that emphasizes long-term cost benefits including reduced maintenance requirements and extended service life.

Manufacturing Complexity and Installation Requirements: Professional installation and fabrication expertise requirements present ongoing challenges due to the materials weight, size, and specific installation requirements. The industry has responded through comprehensive training programs, improved installation tools, and development of easier-to-handle product formats. Companies are introducing easily installable engineered stone products that reduce installation complexity and associated costs.

The availability of qualified installers and fabricators varies by region, potentially limiting market adoption in certain

areas. Industry associations and manufacturers have addressed this through certification programs, technical training initiatives, and partnerships with installation professionals to expand the skilled workforce.

Raw Material Sourcing and Cost Management:

Challenges in sourcing high-quality quartz aggregates and resins can impact production and supply chain stability. Fluctuating raw material costs due to mining regulations, supply chain disruptions, and global market dynamics affect manufacturing costs and profit margins. The industry has responded through supply chain diversification, long-term supplier relationships, and development of alternative material formulations that reduce dependence on specific raw material sources.

The cost of establishing manufacturing facilities requires substantial capital investment, creating barriers for new market entrants. However, this also provides competitive advantages for established manufacturers with existing production capabilities and economies of scale.

Regulatory and Health Considerations: The

industry faces evolving regulatory landscapes, particularly regarding worker safety and environmental impact. Following an unprecedented decision by Safe Work Australia, the Australian government imposed a nationwide ban, effective July 2024, on all engineered- stone products containing > 1% crystalline silica, due to skyrocketing silicosis cases among workers. With this, Australia also initiated an import embargo from January 2025. These measures have prompted a global reassessment of engineered quartz manufacturing practices, pushing the industry toward lower-silica formulations, enhanced worker safety technology, and stringent dust-control standards. Manufacturers have responded by developing glass-based engineered stone alternatives and low-silica formulations that address health concerns while maintaining performance characteristics.

Regulatory compliance requirements increase operational costs but also drive innovation toward safer and more sustainable products. The industrys proactive response to these challenges has resulted in improved manufacturing processes, enhanced worker safety measures, and development of next-generation products that address health and environmental concerns.

Indian Engineered Quartz Stone Industry

The Indian engineered quartz stone industry has established itselfas a formidable force in the global market, demonstrating exceptional growth momentum and positioning the country as a key player in both domestic

consumption and international exportsThe Indian engineered stone market was valued at $3,643 million in 2022. The industry is expected to grow at a CAGR of 7-8% in the projected years between 2022 to 2027. By the year 2032, the Indian engineered stone market is expected to reach $ 7,355 million. This remarkable growth trajectory significantly outpaces global averages, establishing India among the fastest-growing engineered stone markets worldwide.

India ranks as one of the top three global quartz exporters alongside China and Turkey, benefiting from extensive mineral deposits and growing industrial

applications. The countrys strategic advantages include abundant raw material availability, advanced manufacturing capabilities, and competitive production costs that have made Indian quartz products attractive to international buyers. Rajasthan emerges as the largest producer, leveraging its abundant natural resources to meet both domestic and international demand, with the state accounting for the majority of Indias quartz production capacity.

India holds third place in global production of natural stones and accounts for nearly 11% share of the global natural stone market. This established foundation in

natural stone production has provided a strong platform for expansion into engineered stone manufacturing, leveraging existing infrastructure, expertise, and supply chains to drive industry growth.

Export Performance and Global Reach

Indias engineered quartz stone export performance demonstrates exceptional international competitiveness and growing global recognition. The total export market for engineered quartz slabs increased significantly by 21.5% from Rs 29,541 million (approximately $354 million) in fiscal 2023 to Rs 35,894 million (approximately

$431 million) in fiscal 2024. The United States, United Kingdom, Canada, and the UAE are the top importers of Indian engineered quartz slabs. The US market accounted for approximately 93% (Rs 27,474 million or $330 million) and 91% (Rs 32,663 million or $392 million) of total engineered quartz slabs exported from India in fiscal 2023 and 2024, respectively. This substantial export volume reflects Indias competitive positioning and quality reputation in international markets. India is a significant exporter of quartz slabs to the US market and has a long-standing reputation for quality craftsmanship and innovative designs. The geographical concentration primarily on the US market provides stability, though it also creates dependency on a single major market for engineered stone products.

Government Support and Policy Framework

The Indian governments supportive policy framework has played a crucial role in industrys development and expansion.The Rajasthan Mineral Policy 2024 emphasizes sustainable mining practices, advanced technology integration, and investor-friendly environments that enhance the states position as Indias primary quartz production hub. This policy framework provides longterm stability and encourages continued investment in mining and processing infrastructure.

While specific Production Linked Incentive (PLI) schemes for engineered stone are not currently implemented, the broader industrial policy framework supports manufacturing expansion and export promotion. The governments steel PLI scheme demonstrates the rQ policy approach to supporting specialty manufacturing In sectors, with the recent launch of PLI Scheme 1.1

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· Revenue generation from minor minerals c including quartz in Rajasthan has shown < consistent growth, with the state collecting substantial revenues that support further infrastructure development and industry expansion. This revenue generation creates a positive cycle of reinvestment in mining infrastructure and technology upgrades.

Outlook

The outlook for Indias engineered quartz stone industry remains exceptionally positive, supported by multiple growth drivers and strategic advantages. The projected growth

represents a near tripling of market size over the forecast period, indicating unprecedented expansion opportunities driven by both domestic demand and export growth. Domestic demand drivers include rapid urbanization, rising disposable incomes, growing preference for durable modern construction materials, and expanding commercial construction activities. The governments infrastructure development initiatives, smart city projects, and affordable housing schemes create consistent demand for premium building materials including engineered stone.

Global Natural Stone Industry

The global natural stone industry continues to demonstrate resilience and relevance, with an estimated market value of USD 40.4 billion in 2024, projected to grow to USD 54.9 billion by 2033 at a CAGR of 3.5%. Natural stone encompasses materials such as granite, marble, limestone, slate, and quartzite, used across residential, commercial, and infrastructure applications. Post-pandemic recovery has been strong, supported by construction activity worldwide, with U.S. construction spending alone reaching USD 2.13 trillion in 2024.

Regionally, Asia-Pacific leads the market, holding a 54.41 % share, fueled by urbanization, large-scale infrastructure projects, and resource abundance in countries like India and China, which collectively contribute over 40% of global natural stone production. India, in particular, is known for its wide granite and marble portfolio. Europe follows in premium and heritage applications, while North America sustains steady demand in high-end housing and commercial construction.

Natural stones long-standing appeal lies in its durability.

aesthetic diversity, and alignment with timeless architectural trends, positioning it as a preferred material across geographies.

Growth Opportunities

Urbanization and Infrastructure Investment are major growth engines. Global cities are expanding rapidly, with ongoing investments in roads, metros, public buildings, and urban redevelopment programs driving consistent demand for stone in structural and aesthetic roles. Government-led infrastructure projects across emerging markets ensure long-term demand stability.

Sustainability is a rising catalyst. Natural stones eco- friendly profile zero VOC emissions, recyclability, and over a century of usable life aligns well with the construction industrys shift toward green practices. Increasing adoption of green certifications like LEED, BREEAM, and Living Building Challenge gives natural stone a strategic edge over synthetic materials. Producers who embrace sustainable quarrying and minimal-impact processing will benefit from evolving market expectations.

Premium and luxury markets offer another avenue of growth. Eligh-net-worth consumers, hospitality groups, and luxury commercial projects are seeking bespoke and visually impactful materials an area where natural

stone excels. Applications in hotels, retail spaces, and upscale residences support premium pricing for rare and customized stone varieties.

Technological advancements in quarrying, digital design, and surface treatment are improving efficiency, quality, and product diversity enabling manufacturers to respond to dynamic customer needs with precision and reduced waste.

Challenges and Risk Factors

The industry faces ongoing supply chain complexities, from fluctuating input costs and rising energy prices to geopolitical tensions impacting shipping and logistics. These factors elevate operational risks and affect globa trade timelines. Labor shortages, particularly in quarrying and precision processing, pose significant productivity constraints. Investments in workforce training and semiautomation are becoming essential to maintain quality and output consistency.

There is also intensifying competition from engineered materials like ceramic tiles and synthetic quartz, which offer lower cost and consistent aesthetics. To remain competitive, natural stone suppliers must reinforce their unique selling points authenticity, natural variation, sustainability, and long life.

Lastly, environmental and regulatory compliance is becoming more stringent, especially around quarry expansion, water usage, and waste management. Adapting to these requirements while maintaining cost efficiency will be critical for long-term sustainability.

Indian Natural Stone Industry

India has cemented its position as a global leader in the natural stone industry, both in terms of production capacity and export strength. The Indian natural stone market was valued at USD 709.2 million in 2024 and is projected to reach USD 1,061.1 million by 2030, growing at a CAGR of 7.1% between 2025 and 2030. As the worlds largest producer of dimensional stone, India contributes over 27% of global output, generating more than 16 million tonnes annually. This dominance reflects the countrys natural resource richness, cost-effective production ecosystem, and skilled labor force.

Indias export performance continues to underscore its global competitiveness. In 2024, the country exported around 764,000tonnes of granite blocks and slabs valued at USD 116 million, despite a volume decline of 8.4% from the previous year highlighting pricing resilience and strong international demand. The nations natural stone exports are widely sought in key markets like the USA, UK, and UAE, driven by product quality, aesthetic appeal, and affordability.

Key Growth Drivers

The industry benefits from concentrated production zones, with Rajasthan as the dominant hub home to JTj over 90% of the countrys sandstone deposits. Major districts like Bharatpur, Kota, and Jodhpur support a

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1 development, urbanization, and the shift toward < sustainable construction. Government programs such

as Smart Cities Mission, PMAY and Bharatmala are significantly boosting demand for premium natural stones in highways, urban public spaces, and housing. Simultaneously, the growing urban middle class is driving residential and commercial real estate, further expanding market consumption.

Natural stones like granite and marble are increasingly favored for their environmental compatibility being durable, recyclable, and low-emission materials. The global green building movement is opening up new opportunities for Indian exporters, as certifications like LEED and BREEAM prioritize sustainable inputs.

Value-added segments such as custom-finished

architectural elements, ornamental stones for luxury spaces, and precision-cut slabs·present further growth avenues. Manufacturers that invest in design, customization, and finishing technologies are well- positioned to tap into urban luxury and export markets.

The industry also plays a crucial socio-economic role, employing over 2 million people directly across quarrying, processing, transport, and trading activities. With 13% of Indias workforce engaged in construction, the natural stone sector remains a vital employment generator across skill levels.

Challenges and Risk Factors

Despite its strengths, the industry faces pressing challenges. Environmental compliance is a growing concern, with quarrying linked to land degradation, water scarcity, and biodiversity loss. Regulatory scrutiny has increased, mandating improved mining practices and ecological safeguards.

Technology adoption is another critical issue. While global markets demand precision and quality, several players still rely on outdated methods. Modernization of mining and processing, coupled with workforce training, is essential to maintain competitiveness and meet international standards.

Addressing these challenges through sustainable practices, regulatory compliance, and technological upgrades will be crucial for ensuring long-term industry viability and continued global leadership.

Global Counter-top Industry

The global countertop industry continues to exhibit strong momentum, emerging as a key segment in the construction and interior design ecosystem. Valued at USD 148.3 billion in 2024, the market is expected to grow to USD 217.8 billion by 2030, at a CAGR of 6.7%. This growth is driven by rising urbanization, increased home renovation activity, and consumer preference for aesthetic and durable surfaces. A significant demand driver is the global hospitality sector, projected to reach USD 5.5 trillion by 2024, and the building construction sector, expected to exceed USD 10.5 trillion by 2033. These segments fuel sustained usage of countertops in residential kitchens, bathrooms, hotels, retail, and commercial interiors. Asia-Pacific leads the market with a 37.1% share in 2024, bolstered by infrastructure development and rising disposable incomes. North America, particularly the United States, holds a dominant 87.8% regional share, with U.S. demand projected to grow 2.4% annually to 935 million sq. ft. by 2028. Europe, with its emphasis on luxury materials and sustainability.

sustains demand through remodeling and heritage restoration projects.

Key growth drivers include urban construction, government infrastructure investments, and the surge in remodeling trends, especially in single-family homes. Countertop upgradesshifting from laminatesto premium materials like engineered stone and porcelain·enhance aestheticsand home resale value. Emerging opportunities lie in technology integration, such as smart countertops with touch controls, thermal sensors, digital displays, and loT connectivity. These innovations enhance kitchen utility, safety, and convenience, aligning with evolving consumer lifestyles. As sustainability, technology, and premium design converge, the countertop industry is well-positioned for continued global expansion.

Challenges

The global countertop industry faces challenges including high production costs for sustainable materials, supply chain disruptions, skilled labor shortages, and slow adoption of smart features. Regulatory compliance, intense competition, and rising freight costs further strain operations. Balancing innovation, affordability, and environmental standards remains critical for sustaining growth and market competitiveness.

Indian Counter-top Industry

The Indian counter-top industry has emerged as a dynamic and rapidly expanding sector, demonstrating exceptional resilience and positioning the country as a key player in both domestic consumption and international markets. The India countertops market generated revenue of USD 10,958.2 million in 2023 and is expected to reach USD 19,392.6 million by 2030, exhibiting a robust growth rate of 8.5% CAGR from 2023 to 2030. This impressive growth trajectory reflects the industrys strong fundamentals and alignment with key domestic trends including urbanization, rising disposable incomes, and evolving consumer preferences for premium materials.

Key Growth Opportunities

Construction Sector Expansion and Urbanization: The surge in construction activities is fueling demand, with rising new home constructions creating parallel uptick in demand for kitchen furniture spanning cabinets, countertops, and storage solutions. The India kitchen cabinets market is projected to grow from USD 9.29 billion in 2025 to USD 17.68 billion by 2032, exhibiting a CAGR of 9.62%, providing strong foundation support for countertop demand.

The industrys future success depends on balancing innovation with cost competitiveness, environmental responsibility with performance requirements, and global reach with local market responsiveness. Companies that successfully navigate these challenges while capitalizing on growth opportunities in construction, renovation, and emerging markets will achieve sustainable competitive advantages in this dynamic and expanding global industry.

Government initiatives: Smart Cities Mission, affordable housing schemes, and infrastructure development create sustained demand for modern building materials. The commercial and residential construction sectors are expected to show strong growth over the forecast period on account of rising urbanization coupled with government initiatives. Over 3,200 real estate projects across metropolitan regions such as Mumbai, Delhi NCR, and Bengaluru have incorporated engineered quartz surfaces for flooring, countertops, and wall cladding.

Challenges

The India countertop industry faces several acute challenges despite its robust growth. Skilled labor shortages and rising raw material costs driven by volatile quartz sand and resin prices, high taxes and levies, plus supply chain disruptions squeeze manufacturers margins and slow project timelines. Intense competition from lower cost alternatives and stringent health, safety and environmental regulations further complicate production and installation, forcing companies to invest heavily in workforce training, technology upgrades and compliance measures while striving to keep products affordable and high-quality. But with continued government support for infrastructure

development, rising consumer preference for premium materials, and ongoing innovation in manufacturing processes, the industry is well-positioned for sustained

expansion.

BUSINESS AND FINANCIAL OVERVIEW

Global Surfaces Limited is a leading Indian manufacturer and exporter of premium surface materials, specializing in natural stone and engineered quartz. With a strong focus on design excellence, product quality, and sustainability, the company continues to meet the rising global demand for aesthetic and durable surfaces used in modern construction and interior design. Founded by Mr. Mayank Shah and headquartered in Jaipur, India, the company has progressively expanded its domestic and international presence by aligning its operations with evolving customer preferences and industry benchmarks.

Over the years, Global Surfaces has built a robust operational foundation, with state-of-the-art production capabilities and a diversified product portfolio tailored to residential, commercial, and architectural applications. The companys strategic expansion into overseas markets, particularly in the United States, has reinforced

its position as a trusted global partner in the surfacing industry.

In line with its commitment to excellence, the company emphasizes sustainable sourcing, technological advancement, and customer-centric innovation. This forward-looking approach has enabled Global Surfaces to consistently deliver superior products while maintaining strong relationships across its value chain.

From a financial standpoint, the companys performance during the fiscal year was prepared in accordance with the Indian Accounting Standards (Ind AS), as prescribed by the Ministry of Corporate Affairs under the Companies Act, 2013. The adoption of Ind AS ensures transparent, consistent, and comparable reporting across reporting periods, aligned with global financial disclosure practices.

The financial year reflected operational resilience amid shifting macroeconomic dynamics, with the company continuing to manage costs prudently, enhance operating efficiencies, and strengthen its export capabilities. Backed by a clearvision and an agile business model, Global Surfaces Limited remains well-positioned to pursue sustainable growth in both domestic and global markets.

Brief financial performance for F.Y. 2023-24:

Standalone Financial Summary		(Rs. in Million)
Particulars	Year ended March 31,2025	Year ended March 31,2024
Revenue from Operations	1419.12	1,621.35
5 EBDITA	(4.51)	364.30
C\ o Interest and Financial Charges	45.40	35.43
o Tax expenses	40.45	47.20
g Net Profit	78.33	210.64

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Consolidated Financial Summary:

(Rs. in Million)

Particulars	Year ended March 31,2025		Year ended March 31,2024
Revenue from Operations	2076.44		2,252.91
EBDITA	19.29		386.83
Interest and Financial Charges	154.39		45.03
Tax expenses	39.72		54.71
Net Profit	(289.00)		197.81
Particulars		2024-25		2023-24
Debtors Turnover (Days)		209		125
InventoryTurnover (Days)		151		98
Debt Service Coverage Ratio		0.20		1.02
Current Ratio (Times)		1.58		2.22
Debt Equity Ratio (Times)		0.66		0.44
Operating Profit Margin (%)		-4.94%		12.65%
Net Profit Margin (%)		-13.72%		9.05%
Return on average Net Worth (%)		-8.95%		6.87%

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established a robust internal control framework designed to ensure operational efficiency, safeguard assets, ensure accuracy and completeness of accounting records, and secure compliance with applicable laws and regulations. These systems are tailored to the nature, size, and complexity of the companys business operations.

The internal controls are periodically reviewed and strengthened to respond effectively to evolving risks. Independent internal audits, conducted by qualified external professionals, supplement the internal control mechanisms and provide assurance on their adequacy and effectiveness. The Audit Committee of the Board maintains active oversight, engaging regularly with both statutory and internal auditors to review key audit findings and monitor implementation of corrective actions.

The management team also undertakes continuous evaluation of business processes to enhance fiscal prudence, operational efficiency, and statutory compliance. This proactive approach enables the company to optimise resource utilisation, minimise operational risks, and uphold the highest standards of corporate governance.

RISKS AND CONCERN

Global Surfaces Limited has a structured risk management framework in place to identify, assess, and mitigate potential business and operational risks. The Company conducts regular evaluations of both internal and external risk factors, supported by trend analysis and impact assessment. The Audit Committee and the Board periodically review key risks and recommend mitigation measures to ensure business continuity and resilience.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

At Global Surfaces Limited, employees are regarded as the cornerstone of the Companys sustained growth and success. The organisation is supported by a team of skilled, committed, and performance-driven professionals whose collective efforts have been instrumental in driving operational excellence and strategic progress. The year saw the hiring of professionals in areas such as international sales, surface design, ERP support, digital marketing, and production planning. Attrition levels remained within the industry benchmarks, supported by structured induction and performance review mechanisms

The Company fosters a culture of continuous learning and inclusive participation. Regular on-site training, skill development initiatives, and cross-functional exposure are encouraged to enhance individual capabilities and align workforce potential with business goals. Employees are empowered to contribute ideas and take ownership, promoting a sense of belonging and shared responsibility.

Industrial relations remained harmonious and collaborative at all operating units throughout the year. The Companys open communication culture, regular employee engagement programs, and adherence to statutory norms helped maintain a conducive and productive work environment. No instances of labour unrest, material disciplinary actions, or compliance violations were reported during the year.

The managementsincerely acknowledges the dedication and contributions of its workforce at all levels. The cordial industrial relations maintained throughout the year reflect mutual respect and a strong spirit of collaboration enabling the Company to build a resilient and agile workforce ready to meet future challenges.

INFORMATION & TECHNOLOGY

Global Surfaces Limited recognises the pivotal role of technology in enabling business efficiency, transparency and scalability. The Company continues to invest in strengthening its IT infrastructure to support operational excellence and data-driven decision-making. Integrated and customised software systems have been implemented across functions, ensuring seamless coordination, enhanced process control, and real-time insights. The Company has also invested in ERP systems, CRM modules, and cloud-based collaboration tools to strengthen data integrity, reporting accuracy, and digital control layers. Cybersecurity policies are in place to ensure data protection, with periodic audits conducted by specialized third-party consultants. This digital foundation equips the Company to adapt swiftly to dynamic market needs and future growth opportunities.

CAUTIONARY STATEMENT

Statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable securities laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and domestic demand supply conditions, finished goods prices, raw material cost and availability, changes in Government regulations, tax regimes, economic developments within India and other factors such as litigation and industrial relations. The Company assumes no responsibility to publicly amend, modify or revise any forward -looking statements on the basis of any subsequent developments, information or events.

TO THE MEMBERS OF GLOBAL SURFACES LIMITED