Greenchef Appliances Ltd Management Discussions

Annexure-A

ECONOMIC OVERVIEW GLOBAL ECONOMY

The global economy is projected to grow modestly in FY 2024-25. Demonstrating remarkable resilience, growth patterns remain divergent between advanced and developing economies, influenced by employment dynamics, consumer behaviour, regulatory shifts, geopolitical tensions, sustainability initiatives, and monetary policies.

Growth & Resilience

• Advanced economies: Growth momentum is supported by disinflation, easing supply chain pressures, and a steady labour market.

• Emerging markets: Outlook remains uneven, with structural challenges such as currency depreciation and supply-side bottlenecks continuing to weigh on growth.

• Global drivers: Consumption trends, regulatory reforms, and sustainability initiatives are key to shaping medium-term resilience.

Inflation & Consumer Behaviour

• Stabilisation signs: Inflationary pressures have moderated, though risks persist due to energy price volatility, global supply chain disruptions, and labour costs.

• Advanced economies: Experiencing faster disinflation, aided by monetary tightening.

• Emerging markets: Facing mixed inflation dynamics—some benefiting from easing input costs, while others continue to grapple with imported inflation and structural inefficiencies.

• Consumer spending: Remains moderate, with households adapting to higher interest rates and favouring essential goods over discretionary items.

Sustainability remains a core theme of the global economy:

• Countries and corporates are prioritising renewable energy, green infrastructure, and circular economy models.

• Governments are implementing regulatory reforms to address climate change, data privacy, cybersecurity, and energy consumption.

• Investments in carbon neutrality pathways are expected to support long-term resilience, though transition costs remain high.

Geopolitics & Risks

Global growth faces headwinds from:

• Geopolitical tensions impacting supply chains, energy markets, and investment flows.

• Monetary policy divergence between advanced and emerging economies, creating volatility in capital flows.

• Financial market volatility, with concerns around liquidity and global trade financing. Regional Focus

• Growth Outlook: Inflation in China is expected to remain low. Growth forecast has been revised slightly upward to 4.6% in 2025, largely due to carryover effects from 2024 and a fiscal package designed to cushion trade-policy uncertainty. Growth is projected at 4.5% in 2026, supported by demographic reforms such as an increase in the retirement age.

Supply Chain Realignment

The China Plus One strategy continues to reshape global manufacturing and trade dynamics:

• Sectors impacted: Automotive and electronics manufacturers are leading diversification efforts.

• Destinations: India, Vietnam, and Mexico are emerging as key hubs for supply chain diversification.

• Strategic shifts: Companies are investing in local production facilities, ensuring longterm global presence beyond China.

• Broader debates: This shift raises concerns over geopolitics, intellectual property rights, and environmental sustainability, underscoring the complexity of global trade restructuring.

US Federal Reserve & Global Implications

The US Federal Reserve reduced interest rates by 25 basis points (from 4.50% to 4.25%) to stimulate domestic economic activity. While the easing move aims to support growth and credit conditions, its impact is overshadowed by rising trade protectionism.

• Trade Risks: Recent tariff escalations are projected to reduce global output by at least 1%, with further risks of recession if trade conflicts intensify.

• Market Volatility: The rate cut coincided with heightened market instability. Investors shifted towards safe-haven assets such as gold and US Treasuries, reflecting caution amid uncertainty.

• Opportunities in Diversification: While global equities remain under pressure, opportunities are emerging in European stocks, the Japanese yen, and defensive assets. Diversification strategies are gaining importance in mitigating risks linked to global market turbulence.

OUTLOOK

The global economy is projected to grow at a steady pace of 3.3% in 2025 and 2026, remaining below the historical average of 3.7%. While uncertainties persist, signs of stabilisation are emerging as inflation rates edge closer to central bank targets. However, tightened monetary conditions are likely to slow growth in advanced economies.

Uncertainty around trade, fiscal and regulatory policy is expected to soften the growth momentum of the US economy. Consumer spending is also expected to advance at a measured

pace, mostly due to higher cost of living and elevated interest rates. TheEurozone is expected to see a gradual recovery, driven by an improved financial stance and stronger domestic spending. Chinas economic expansion is projected to decelerate due to long-term

structural issues and demographic changes, while India is expected to maintain its robust growth.

India Economic Overview (FY 2024-25)

Indias economy remained one of the fastest-growing among major economies, despite global headwinds and moderating momentum. Real GDP growth is estimated at 6.4% in FY25, reflecting a slight deceleration from the upwardly revised growth of FY24, but still underpinned by robust domestic demand, resilient agriculture, and steady services sector performance.

Growth Drivers & Sectoral Trends

• Private Consumption: Supported by improving urban employment and rising incomes, while rural consumption remained strong on the back of agricultural resilience.

• Services Sector: Continued as a key driver of growth, with digital services, IT, and financial services expanding steadily.

• Manufacturing & Exports: Strength in electronics, semiconductors, and pharmaceuticals highlights Indias rising role in global value chains. However, manufacturing faced headwinds from weaker global demand and seasonal domestic slowdowns.

• Public Investment: Sustained government capital expenditure under flagship programmes like Make in India, Startup India, Digital India, Smart Cities Mission, and AMRUT created fresh opportunities for industrial and infrastructure growth.

Inflation & Monetary Policy

• Retail Inflation: Eased to 4.6% in FY25 from 5.4% in the previous year.

• Food Inflation: Remains a concern due to supply-side disruptions.

• RBI Outlook: Headline inflation projected at 4.8% for FY25, gradually aligning with the medium-term target by FY26.

• Repo Rate Cut: RBI reduced the repo rate by 25 bps to 6%, lowering borrowing costs for banks. This is expected to reduce interest rates on housing, personal, and vehicle loans—providing relief to borrowers and supporting consumption.

Consumption & Household Dynamics

• Stress Factors: A surge in inflation, wage pressures, and a slowdown in credit origination volumes have constrained discretionary spending.

o Credit card uptake fell by 30%; home loan volumes declined by 10%, reflecting tighter financial conditions.

• Real Wages: Remained below pre-COVID (FY18) levels in FY24, limiting disposable income.

• Policy Boost: The governments decision to waive personal income tax of ~^1 lakh crore is expected to boost demand, especially in consumer durables and premium products.

Policy & Industrial Developments

• Budget 2025 Measures:

o Increased customs duty on interactive flat panel displays, o Reduced customs duty on open cells (key input for LED TVs), o These measures aim to encourage local manufacturing and promote self-reliance in electronics.

• Consumer Durables: Expected to benefit from tax relief measures and lower borrowing costs, driving demand for household and premium products.

Outlook

While growth moderated in FY25, India remains firmly on a steady expansion path, supported by domestic consumption, government-led reforms, and rising integration into global value chains. Structural challenges—such as food inflation, credit growth slowdown, and global demand weakness—remain, but policy measures on taxation, industrial reforms, and monetary easing are expected to provide resilience and sustain Indias growth momentum.

OPPORTUNITIES AND THREATS Opportunities:

The Indian kitchen appliance market presents significant opportunities due to rising disposable incomes, urbanization, and changing lifestyles, but also faces threats from increasing competition, supply chain disruptions, and the need for energy-efficient and sustainable products.

Growing Market Size:

The Indian kitchen appliance market is experiencing robust growth, with projections indicating a strong CAGR in the coming years.

Increasing Urbanization and Disposable Incomes:

As the urban population expands and disposable incomes rise, more consumers can afford and are willing to purchase a wider range of kitchen appliances.

Changing Lifestyles and Demand for Convenience:

Busy lifestyles and a preference for convenience are driving demand for modern kitchen appliances that simplify cooking and meal preparation.

Growing Demand for Smart and Energy-Efficient Appliances:

Consumers are increasingly seeking smart and energy-efficient appliances that offer convenience, cost savings, and environmental benefits.

Expansion of E-commerce:

Online retail channels are playing an increasingly important role in the distribution and sale of kitchen appliances, providing greater access to consumers across the country.

Government Initiatives:

Initiatives like "Make in India" encourage domestic manufacturing, potentially reducing costs and improving the availability of appliances.

Growth in the Food Service Industry:

The expansion of food chains, cloud kitchens, and QSRs is driving the demand for commercial kitchen appliances.

Customer Preference:

Customers generally prefer branded kitchen items over unbranded ones because branded products are associated with higher quality, safety, and durability. A brand gives assurance of trust, consistency, and after-sales service such as warranty and repair support, which unbranded products usually lack. Branded kitchen appliances also offer innovative features, better design, and compliance with safety standards, making them more reliable for everyday use. Moreover, branded items carry an aspirational value and are often seen as a reflection of lifestyle and status, especially during gifting occasions. While unbranded items may be cheaper, customers perceive branded products as offering greater value for money in the long run due to their reliability, service support, and longer lifespan.

GST Rate Slash on Home Appliances Set to Boost Consumer Durables Sector:

The Central Government has suggested a reduction in the tax slab to 5 & 18 % . Further, suggested reduction of % from higher to lower rates for many goods including kitchen and home appliances. The move is expected to make these essential home appliances more affordable for consumers, potentially stimulating demand in the consumer durables market. Industry experts anticipate a surge in demand, especially during the upcoming festive season, and increased production by manufacturers. The decision is likely to benefit both consumers and the consumer durables sector. This will increase the Competition with unorganized sector.

Threats:

Intense Competition:

The Indian kitchen appliance market is highly competitive, with numerous domestic and international players vying for market share.

Supply Chain Disruptions:

Disruptions in the supply chain, such as those caused by global events or transportation issues, can impact the availability and cost of components and finished products.

Regulatory Compliance:

Adhering to evolving regulations and standards related to product safety, energy efficiency, and environmental impact can pose challenges for manufacturers.

Rising Costs:

Increasing costs of raw materials, manufacturing, and transportation can squeeze profit margins and impact pricing strategies.

Focus on Sustainability:

Consumers are increasingly aware of environmental issues and are demanding more sustainable and energy-efficient appliances, which can require significant investments in research and development.

Competition from Unorganized Sector:

The presence of a strong unorganized sector, offering lower-priced appliances, can pose a threat to organized players.

Slowdown in Economic Growth:

A potential slowdown in economic growth could dampen consumer spending and impact demand for non-essential appliances.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE-

Product wise	Qty Sold
	(in Lac)
GreenchefLpg Stove	7.66
Greenchef Mixer Grinder	2.76
Greenchef Pressure Cooker	6.93
Greenchef LPG Hose Pipe	40.32
Greenchef SS Cookers	3.82

RISKS AND CONCERNS

The various general economic risks and concerns which can impact your Company have already been outlined in the preceding sections. The concerns largely center around external factors.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established adequate internal control system, commensurate with the nature of its business and size of its operations in order to ensure quality and reliability of underlying processes focused towards achieving operational efficiency, supported by Management reviews. All audit observations and follow up actions thereon are initiated for resolution by the finance function and Reported to the Audit Committee. Attention is also drawn to the statement on internal financial control in the Directors Report.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Companys revenue stood at Rs. 37,256 /- Lakhs in FY 2024-2025 compared to Rs. 33,0657- Lakhs in F.Y. 2023-2024. The EBITDA stood at Rs. 1601 Lakhs in F.Y. 2024-2025 compared to Rs. 1,335 Lakhs in F.Y. 2023-2024. The Company reported a PAT stood at Rs. 595 Lakhs in F.Y. 2024-25 compared to Rs. 483 Lakhs in F.Y. 2023-24. Offline revenues witnessed strong growth backed by the contributions from retail touchpoints during the year.

Additionally, the Company has seen the contributions from the Online/digital markets like Flipkart, Insta market.

Contribution through the Distribution channel:

HUMAN RESOURCES

Your Company recognizes the Human Resources are vital to an organizations success and company continued with its focus on implementing strategic HR initiatives in areas of learning, recruiting, promotion, work environment, succession planning etc. The Company is committed to creating a supportive environment not only to attract but also retains top talent.

The Company has adopted a non-discrimination policy which is essential aspect in work life. The Company believes in equal opportunity in recruitment and in the course of employment among employees regardless of color, race, gender, social origin, caste or religion. Women employees are continuously encouraged and supported to take new roles of responsibility ensuring career growth and retention.

INDUSTRY OVERVIEW

The India kitchen appliances market size was valued at USD 6.06 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 12.40 Billion by 2033, exhibiting a CAGR of

7.40% during 2025-2033. South India currently dominates the market, holding the market share of 32.9%. the market is driven by rapid urbanization, rising disposable incomes, lifestyle changes, increased demand for smart, energy-efficient appliances, government initiatives like rural electrification and PMUY, along with growing e-commerce access and modular kitchen adoption are some of the major factors fueling the India kitchen appliances market share.

Rapid urbanization and the expansion of nuclear families have led to a greater demand for compact, efficient, and time-saving kitchen solutions, which is driving the growth of the market across India. Rising disposable incomes and improving living standards are encouraging consumers to invest in modern appliances.

Source:https://www.imarcgroup.com/india-kitchen-appliances market?utm source=chatgpt.com

The India kitchen appliances market is valued at USD 5.6 Billion based on historical analysis, driven by an increase in consumer disposable incomes and evolving consumer preferences toward modern kitchen technologies. The markets growth is further supported by government initiatives promoting energy-efficient products through BEE (Bureau of Energy Efficiency) ratings and consumer demand for eco-friendly appliances. The introduction of smart and connected kitchen appliances has also significantly contributed to the markets expansion as urban households increasingly adopt advanced technology.

Cities like Delhi, Mumbai, and Bengaluru dominate the India kitchen appliances market due to their high population density, rapid urbanization, and increasing consumer spending on home improvement products. These cities have become hubs for premium and smart kitchen appliances owing to the growing middle-class population, which seeks to enhance their lifestyle and embrace modern, technology-driven solutions. Additionally, robust retail infrastructures and the presence of top global and domestic brands have strengthened the market in these regions.

The Bureau of Energy Efficiency (BEE) has been instrumental in promoting energy efficiency across various appliance categories. As of 2023, over 23 categories of household appliances, including kitchen equipment, must adhere to BEEs star rating program. This program incentivizes manufacturers to produce energy-efficient appliances, while consumers are encouraged to opt for higher-rated products to save on energy costs. BEEs rating program has significantly impacted the adoption of energy-saving kitchen appliances in both urban and rural India.

India Kitchen Appliances Market Segmentation

By Product Type: The market is segmented by product type into cooking appliances, refrigeration appliances, cleaning appliances, small kitchen appliances, and other appliances. Among these, cooking appliances such as microwaves, ovens, and induction cookers hold a dominant market share due to their widespread adoption across Indian households. The rising demand for convenience, the integration of smart technology, and consumer inclination toward energy-efficient cooking solutions have played a pivotal role in the dominance of this segment.

By Distribution Channel: The market is also segmented by distribution channel into online retail and offline retail. Online retail has seen a significant uptick in market share due to the increasing penetration of e-commerce platforms like Amazon and Flipkart, as well as a shift in consumer behavior towards online shopping. This is primarily driven by convenience, better pricing, and the availability of a wide range of products. Additionally, the ongoing trend of digitalization has propelled online channels to grow faster than traditional brick-and-mortar outlets.

India Kitchen Appliances Market Competitive Landscape

The India kitchen appliances market is dominated by both global and domestic players. The consolidation of major companies in the market has heightened competition, with brands focusing on innovation, technological advancements, and expanding their distribution networks.

Market Growth Drivers

Rising Disposable Income: The increasing disposable income in India has directly impacted the kitchen appliances market, particularly in urban and semi-urban areas. In 2022, Indias per capita income stood at INR 172,000, and it is projected to increase steadily into 2025, leading to more households investing in modern kitchen appliances. According to the Reserve Bank of India, household consumption expenditure rose to INR 143 trillion in 2023, highlighting greater affordability for premium and smart kitchen products. This increase in income levels supports a growing demand for advanced kitchen appliances, which cater to the evolving needs of a larger, wealthier consumer base.

Urbanization and Lifestyle Changes: Urbanization continues to transform Indias kitchen appliances market. The urban population grew to 35% in 2023, as per the World Bank, contributing to the rising demand for modern kitchen equipment to suit fast-paced urban lifestyles. Urban households are increasingly opting for smart and multifunctional appliances to enhance convenience. Moreover, the shift towards nuclear families has amplified the preference for compact and efficient appliances that save time and energy. This trend is backed by an increase in residential real estate investments in major urban centers, creating more potential customers for the kitchen appliances sector.

Government Initiatives on Energy-Efficient Appliances: The Indian government has introduced various initiatives to promote energy-efficient kitchen appliances under its Energy Efficiency Services Limited (EESL] program. In 2023, the Bureau of Energy Efficiency (BEE) mandated energy labels for specific household appliances, pushing for the adoption of more eco-friendly kitchen products. This initiative has been crucial in driving demand for energy-efficient appliances, as manufacturers now incorporate technology to comply with these guidelines. As of 2024, BEEs labeling program covers over 23 appliance categories, with millions of energy- efficient units sold.

Market Challenges

High Import Dependence on Raw Materials: Indias kitchen appliance industry heavily depends on the import of raw materials like steel, aluminum, and electronic components. In 2023, imports of electronic components, a key input for modern appliances, were valued at INR 1.6 trillion, as reported by the Directorate General of Commercial Intelligence and Statistics. This import reliance makes the industry vulnerable to international supply chain disruptions, such as the global semiconductor shortage. To mitigate this, the government has announced policies promoting domestic manufacturing, but the sector still struggles with high raw material costs and availability issues.

Regulatory Compliance and Certifications (BIS Standards): Meeting regulatory requirements remains a challenge for kitchen appliance manufacturers in India, with the Bureau of Indian Standards (BIS) setting stringent safety and quality norms. As of 2023, all major kitchen appliances like refrigerators, mixers, and microwaves require BIS certification, which ensures that products meet domestic safety standards. However, manufacturers often face hurdles in acquiring certifications due to compliance costs and time delays in testing and approvals, impacting smaller players in the market. This regulatory burden creates barriers for new entrants and increases operational costs for manufacturers.

India Kitchen Appliances Market Future Outlook

The India kitchen appliances market is set to experience strong growth in the coming years, driven by rapid urbanization, increased consumer disposable income, and the growing penetration of smart appliances in Indian households. As energy-efficient products continue to gain traction, manufacturers are likely to focus on innovative product offerings that cater to ecoconscious consumers. The governments push for sustainable energy solutions through BEE certification is expected to further boost the demand for energy-efficient kitchen appliances.

Market Opportunities

Rising Demand for Premium Kitchen Appliances: As the Indian middle and upper-middle classes expand, demand for premium kitchen appliances has surged. According to a 2023 report by the National Sample Survey Office (NSSO), households with annual incomes above INR 1 million are more inclined to invest in high-end kitchen appliances that offer better features, durability, and aesthetics. Premium brands focusing on smart, sleek, and durable products, such as built-in ovens and refrigerators, are capitalizing on this trend, leading to significant growth in the luxury kitchen appliances segment.

Growing Online Retail Channels: The proliferation of e-commerce platforms has opened new growth avenues for the kitchen appliances market in India. In 2023, online retail sales of kitchen appliances reached INR 450 billion, driven by increased internet penetration and the convenience of home delivery. Major e-commerce players, including Amazon and Flipkart, have expanded their product offerings, and many kitchen appliance manufacturers are now embracing a direct-to-consumer model through their websites. This digital shift allows manufacturers to reach a broader audience, particularly in tier 2 and tier 3 cities, where physical retail presence is limited.

Source: https://www.marketresearch.com/Ken-Research-v3771/India-Kitchen-Appliances-

Outlook-40720120/

OUR COMPETITIVE STRENGTHS

One stop shop for kitchen solutions with a diverse range of products across consumer preferences

We initiated our operations as a modest trading entity specializing in kitchen appliances and have since transitioned into a reputable manufacturing company offering a diverse and expansive portfolio of products, including Gas Stoves, Pressure Cookers, Mixer Grinders, Wet Grinders, Electric Rice Cookers, Induction Cooktops, Non-stick Cookware, Kettles, Hose Pipes, Gas Cylinder Trolleys, and Spin Mops. Operating under the brand Greenchef, we have firmly established ourselves in the Indian kitchen appliances industry, catering to a wide spectrum of customers by providing high-quality products that are tailored to accommodate various budgets and lifestyles.

Through strategic co-branding collaborations with esteemed oil companies such as Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited, and Bharat Petroleum Corporation Limited, we have effectively leveraged their vast sales and distribution channels, thereby significantly enhancing the outreach and market penetration of our Gas Stoves.

In recognition of our innovative approach, we have secured various design registrations for various products, including Mixer Grinders, Wet Grinders, and Gas Stoves. These registrations further substantiate our commitment to diversification and continuous product development. Our product diversification strategy is deeply rooted in customer-centricity, and we continuously seek feedback and insights from our consumers to ensure our offerings are aligned with their evolving needs and preferences. Over the years, we have successfully developed an extensive range of SKUs across multiple product categories, underscoring our unwavering commitment to innovation, quality, and customer satisfaction.

Emerging player in some of the key verticals

Greenchef is an emerging player in the Indian kitchen appliances sector, offering a diverse range of products, including Gas Stoves, Pressure Cookers, Wet Grinders, Non-stick Cookware, Induction Cooktops, Kettles, and Rice Cookers.

We attribute our progress to our extensive experience in manufacturing, successful backward integration, design expertise, and the strong, mutually beneficial relationships we have established with our suppliers and customers. These factors have contributed to our growing market presence across several key product categories. We believe that our emerging position enables us to procure components at competitive prices, realize operational efficiencies, expand our customer base, and reinforce our relationships with existing customers. Moreover, this advantageous position further strengthens our capacity to diversify into related product segments and expand into new geographical regions.

Key demand drivers shaping the industry in India include increasing disposable income, urbanization, favorable demographics, and a growing domestic customer base. Additionally, evolving consumer behaviors, easy access to financing, the shift towards digital platforms, growing e-commerce, quick commerce.

We are confident that our current market penetration, combined with our plans to expand manufacturing capabilities and further integrate operations, positions us strategically to capture the increasing demand within the sector.

Widespread, well connected distribution network with a presence across multiple retail channels and online e-commerce platforms and a dedicated after-sales network.

We are confident that the integration of our supply chain and distribution network with our manufacturing facilities provides us with a distinct competitive advantage in the Indian kitchen appliances industry. Our manufacturing facilities are strategically connected to Clearing and Forwarding (C&F) agents located in the different states.

In addition, we have established an extensive network of distributors across India, covering nearly 22 states and 3 Union Territories. These C&F agents and distributors are further linked to a robust dealer network, which facilitates the sale of our products through their respective retail outlets. Moreover, we are approved vendors for several major retail chains, including DMART, Reliance Retail Limited, Metro Cash and Carry, and Star Bazaar, ensuring our products are available at multiple retail locations nationwide. Our products are also sold through prominent e-commerce platforms such as Flipkart India Private Limited, Jiomart, Bigbasket, and Amazon Seller Services Private Limited, as well as quick-commerce platforms like Zepto and Blinkit.

Despite our extensive geographical outreach across India, we remain agile and responsive to the complexities of our supply chain, evolving consumer preferences, and fluctuating market demand. We are committed to ensuring that the superior quality of our products is complemented by exceptional after-sales service, which is supported by a dedicated customer relationship management (CRM] team and a large workforce of service personnel to cater to the needs of our customers across various segments.

We engage in a comprehensive range of marketing and advertising activities to maintain brand visibility and consumer recall. These include in-store displays, banners, and hoardings, such as advertisements on flex boards, MDF display boards, backlit boards, glow sign boards, ACP boards, and flange-glowing boards. Our marketing efforts extend to social media campaigns, arch installations, road shows, advertisements in theatres, newspapers, television channels, bus shelter branding, and tricycle campaigns, among others.

Furthermore, in line with our goal of enhancing brand recognition, the company is actively expanding its digital and online presence to reach a broader consumer base. Simultaneously, we are focusing on increasing our operational footprint and distribution reach across all states in India to capture a larger share of the growing kitchen appliances market.

Strong manufacturing capability with efficient backward integration.

We operate three manufacturing facilities located in Bengaluru, Karnataka, and one in Parwanoo, Himachal Pradesh. These facilities are accredited with the ISO 9001:2015 certification, which signifies our commitment to maintaining a high standard of quality management.

Our in-house manufacturing capabilities extend to the production of various components, including railing pipes, mixing tubes, brass burners, pan supports, weight valves, vent tubes, sheet metal components, die-cast parts, and fixtures, all of which are integral to the production of our products. We believe that the backward integration of our manufacturing processes has significantly reduced our reliance on third-party suppliers for these critical components, providing us with greater control over the manufacturing workflow. This integration not only enhances our ability to design superior products but also ensures higher product quality and strengthens customer retention.

The Company has successfully completed the construction of its own factory on a 15-acre land plot a state-of-the-art Manufacturing Facility at Vasanthanarasapura (Near Tumkur, Karnataka). Our new factory facilitates increasing our production capacity, backward integration, saving of high rental costs, and will also result in various operational and financial synergies.

Consistent Focus on Quality

We firmly believe that quality is a fundamental prerequisite for delivering a positive consumer experience and fostering long-term brand loyalty. This philosophy has been the cornerstone of our product expansion and diversification since the inception of our company. We ensure that our commitment to quality is upheld at every stage of the process, starting with the careful sourcing of raw materials from reputable manufacturers, continuing through the manufacturing and assembly stages, and culminating in a comprehensive review and monitoring process at our facilities. For products procured from third-party suppliers, we have established dedicated sourcing and quality assurance teams that closely oversee and ensure the quality of these products, maintaining the same high standards across all our offerings.

OUR BUSINESS STRATEGIES

Increase Our Geographical Reach and Expansion of Addressable Market

We continually seek to enhance our addressable market through our network of C&F agents, distributors and dealers across the country. We have expanded our network towards the new sates like Jammu and Kashmir. We plan to continue our strategy of diversifying and expanding our presence in these regions for the growth of our business.

Through further diversification of our operations geographically, we hope to hedge against risks of operations in only specific areas and protect from fluctuations resulting from business concentration in limited geographical areas. Appointment of C&F agents to undertake our stocking and distribution, enables us to reach our customers faster by reducing transportation

time, optimize inventory, and limit trade over-dues. We further intend to extend our network of C&F agents, distributors, and dealers.

Backward Integration

The new plant enhances the Companys backward integration capabilities through the establishment of in - house facilities such as corrugated box manufacturing unit and an injection moulding unit. This stratergic move expected to ensure the better quality control, reduce dependency on external supplies and achieve the optimization across the production process.

Automation of Manual process

Automation of manual process in new plant by implementing automated polishing systems for stainless steel cookers to replace manual processes leads to ensuring the uniform finish and improved product quality with reduced human error, cost savings.

Scale up branding, promotional and digital activities

Our extensive market presence and scale of operations enable us to increasingly focus on branding and promotional activities to enhance our visibility within the kitchen appliances industry. We are committed to enhancing brand awareness and fostering customer loyalty through strategic marketing and promotional efforts, with a particular emphasis on expanding our digital presence and engagement.

We ensure the availability of our products to customers through an omni-channel distribution network, encompassing both online and offline touchpoints. We believe that our consumercentric products, coupled with detailed product information, significantly boost customer confidence and influence purchasing decisions.

Additionally, we plan to continue our offline marketing initiatives, including in-store displays, banners, and hoardings, such as advertisements on flex boards, MDF display boards, backlit boards, glow sign boards, ACP boards, and flange-glowing boards. Our marketing efforts will also extend to social media campaigns, arch installations, roadshows, theatre advertisements, print media, TV commercials, bus shelter branding, and tricycle campaigns, all aimed at reinforcing the companys brand-building initiatives.

Continue to strengthen our existing product portfolio and diversify into products with attractive growth and profitability

Our product portfolio under the brand Greenchef consists of Gas Stoves, Mixer Grinder, Wet Grinder, Pressure Cookers, Induction cooktops, Non-stick Cookwares, with number of SKUs for each product item, thereby aiding different functions and utilities in the kitchen and home. We have consistently focused on expanding and optimizing our product range to offer utility, a range of features and value for money. We seek to develop new products to cater to the evolving requirements of a large customer base and cover newer customer segments. The customer base in India is witnessing rising income levels and improvement in overall employment.

India has over 808 million individuals, constituting approximately 66 percent of its total population, under the age of 35. Among these, ages 13 to 35 make up more than 40% of the Indian population, as defined by the National Youth Policy.

Source: https://india-evisa.it.com/nations-with-the-youngest-populations/

As this vast resource of young citizens enter the workforce, it could create a demographic dividend. Our Nation with worlds youth demographic and this population advantage could play a critical role in growth of Kitchen Appliances industry. Apart from changing lifestyles and working styles urbanization has led to growth in the organized retail sector, this in turn has led to change in consumer buying behavior.

Rising urbanization in India leads to increase in overall retail spending in India which would directly benefit the kitchen appliances and cookware market as the highest share of peoples expenditure is on food.

We have introduced a various new products like Induction, Cook Top - Ember, Steel Crest Tri ply, Fans, Water bottles etc to which enhance the lifestyle of consumers.

Invest in new manufacturing facility and increase backward integration in the plant

Our manufacturing facilities are equipped to produce a broad and diverse range of products, as well as several critical components used in their production.

At present, Company has three manufacturing/production facilities, and we are in the process of shifting it to the new factory at Plot Nos. 503, 504 & 505, Survey No. 96, Vasanthanarasapura, 2nd Phase Industrial Area, Yalladadllu Village, Kora Hobli, Tumakuru Taluk, Tumakuru District.

The land for this facility was acquired from KIDAB, and we are in the process of setting up an integrated factory dedicated to manufacturing our kitchen appliances. Consolidating our manufacturing activities within a single facility will significantly enhance operational efficiency by reducing both production time and costs, from the initial design phase to commercial production, as well as optimizing our in-house testing and quality assurance processes. This, in turn, will contribute to improved profit margins.

In line with our strategy to offer diversified product solutions, strengthen control over our supply chain, and improve margins, we intend to focus further on backward integration at our manufacturing facilities. This includes the addition of machinery to produce high-quality tools and dies, which will support the production of precise components and sub-assemblies. Such investments will not only improve cost efficiency but also reduce our reliance on third-party suppliers, providing us with enhanced control over production timelines and the quality of components used in our products. These investments in new machinery will ultimately lead to a reduction in costs and an increase in production efficiency. We remain committed to pursuing similar opportunities that we believe will add value to our business, stakeholders, and customers.

Continue to strive for cost efficiency

We are committed to maintaining a strong focus on cost management, leveraging our in-house integrated manufacturing capabilities to drive growth and achieve economies of scale. Our ongoing strategy includes managing supply chain costs through optimal inventory management, backward integration, economic order quantities, and other efficiency-driven measures. By capitalizing on economies of scale, we aim to continuously enhance our operational efficiencies, thereby supporting sustainable business expansion.

RISK MANAGEMENT

To safeguard the interests of its stakeholders, the Company has implemented a comprehensive risk management framework to identify, analyze and manage business risks. The Companys risk management framework focuses on ensuring that risks are recognized and managed in a timely and reasonable manner and are kept flexible to adapt to evolving business requirements. Companys risk management framework identifies and undertake appropriate mitigation measures for various types of external and strategic risks, few are as below:

• COMPETITION RISK

A growing consumer base in India with brand awareness, value of money, and high disposable income has led to overall growth in the Kitchen Appliances Industry, due to which the Company faces the risk of entry on new players and strong competition for already existing players of the industry. This may result in a loss in revenues and/or on the profitability of the company.

To mitigate this risk, we ensure that we provide unique, innovative, and quality products to our customers. Continuous innovation and timely launching of new products and new product lines help to reach new customers and ensure that we are one step ahead of our competitors. We are constantly focused on building a strong brand by using effective marketing strategies and campaigns to maintain visibility and customer engagement. Our widespread network of distributors, and dealers and presence on various channels helps to enhance our reach and increase our customer base.

• RISK OF PRICE FLUCTUATION OF RAW MATERIAL

Major raw materials for our products are commodities like Stainless Steel, Aluminium, Copper, and various types of plastic granules. Any major fluctuation in the prices of said raw material will increase our input cost and negatively impact our profitability.

Our company has implemented a multi-pronged approach to effectively mitigate the Risk of fluctuation in raw material prices. One key strategy is the utilization of a cost-plus model, which allows us to incorporate our production and operational costs, along with a reasonable profit margin, into our pricing structure. However, weve gone a step further by incorporating backward integration into our supply chain. Through strategic backward integration, weve gained control over key elements of our supply chain, such as raw material sourcing or production processes. This not only enhances cost efficiency but also reduces our exposure to external commodity price fluctuations. By combining the cost-plus model with backward

integration, weve created a robust risk mitigation strategy that not only maintains our profitability but also ensures a greater degree of stability in the face of volatile commodity markets, ultimately benefiting both our company and our customers.

• INTEREST RATE RISK

The companys borrowing includes an Overdraft facility from the bank priced at the floating interest rate. Any fluctuation in interest rates thus has a direct impact on interest costs and profitability.

Our company places strong emphasis on mitigating the risks associated with interest rate fluctuations through two key strategies: improving our credit rating and maintaining a prudent capital structure. By proactively enhancing our creditworthiness, we not only gain access to more favorable borrowing terms but also reduce the interest rate risk associated with our debt portfolio. This allows us to secure financing at lower interest rates and shield ourselves from sudden rate hikes. Additionally, our commitment to maintaining a balanced capital structure ensures that we have a healthy mix of equity and debt, which provides us with greater financial flexibility and resilience in the face of changing interest rate environments. These strategies collectively enable us to navigate interest rate fluctuations with confidence, protecting our financial stability and sustainability.

• CREDIT RISK

The company provides a credit line to most of its customers. Any delay or default in repayment by the customer may result in a loss to the company.

Our company takes a proactive approach to mitigate the risk of default on credit extended to our customers. We have implemented stringent credit policies and parameters, which include thorough credit assessments and ongoing monitoring of customer financial health. By maintaining strict credit standards, we ensure that credit is extended only to customers with a solid repayment history and the ability to meet their financial obligations. Furthermore, we offer channel financing facilities to our customers, enabling them to access financing options through our trusted financial partners. This collaborative approach not only provides our customers with convenient financing solutions but also reduces the risk of default for us by leveraging the expertise of financial institutions in evaluating and managing credit risk. These combined efforts help us maintain a healthy credit portfolio and minimize the potential impact of customer defaults on our financial stability.

CAUTIONARY STATEMENT

This document contains statements about expected future events, financial and operating results of your Company, which are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is a significant risk that the assumptions, predictions, and other forwardlooking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as several factors could cause assumptions, actual future results and events to differ materially from those expressed in the forward-looking statements. Accordingly, this document is subject to the disclaimer and qualified in its entirety

by the assumptions, qualifications, and risk factors referred to in the managements discussion and analysis of Greenchef s Annual Report F.Y. 2024-25.