Haria Exports Ltd Management Discussions

The management of Haria Exports Ltd. presents the analysis of the Company for the year ended on March 31^st, 2025 and its outlook for the future. This outlook is based on assessment of the current business environment. It may vary due to future economic and other developments both in India and abroad.

This management discussion and analysis ("MD&A") of Haria Exports Ltd. for the year ended on March 31, 2025 contains financial highlights but does not contain the complete financial statements of the Company. It should be read in conjunction with the Companys audited financial statements for the year ended on March 31, 2025.

Industry Structure & Development:

EXPORTS IN INDIA

Indias export business in 2025 is characterized by a strong growth trajectory, supported by government initiatives and diversification into key sectors. Heres an overview of the export landscape:

Overall Export Performance and Projections

Strong Growth: Indias total exports (merchandise and services) are showing significant momentum. For the financial year 2024-25, total exports reached a record-high of USD 825 billion, a 6% increase from the previous year.

Outlook for FY 2025-26: The Federation of Indian Export Organisations (FIEO) projects that Indias total exports could reach USD 1 trillion in FY 2025-26. This growth is expected to be driven by robust performance in both goods and services. Merchandise exports are projected to be around USD 525-535 billion.

Services exports are expected to reach USD 465-475 billion.

Key Export Sectors and Trends

India is moving beyond traditional export goods and diversifying into high-tech and value-added products. Some of the most promising sectors for export in 2025 include: Electronics: This sector is a major growth driver, with exports reaching over USD 38 billion in FY 2024-25, a 32% increase. Non-smartphone electronics like solar panels, telecom equipment, and medical electronics are also showing significant growth. Engineering Goods: This remains a key export category, with major destinations being the USA, UAE, Saudi Arabia, UK, and Germany.

Drugs & Pharmaceuticals: India is a major exporter of pharmaceuticals, and the sector is witnessing continued strong growth. Textiles and Apparel: The textile and apparel sector is resilient and growing, driven by demand for ready-made garments, jute, and sustainable fabrics like organic cotton and khadi.

Agriculture & Processed Foods: India, known as the "spice capital of the world," is seeing high demand for its spices, organic food, and other agricultural products. Rice exports, in particular, have seen a substantial increase.

Other Promising Areas:

Handicrafts and Home Decor: The handicrafts market is growing, with demand for unique, eco-friendly designs from countries like the US, UK, and Germany.

Ayurvedic Products and Herbal Cosmetics: The global wellness market is driving demand for these natural products from India.

Footwear: Traditional Indian footwear like Juttis and Kolhapuris are gaining global attention.

Government Initiatives and Support

The Indian government is actively implementing policies and schemes to boost exports and improve the ease of doing business for exporters. Key initiatives include:

Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme: This scheme, with a budget allocation of $16,575 crore for FY 2024-25, provides for the refund of various duties and taxes incurred during the production and distribution of exported goods.

Production Linked Incentive (PLI) Schemes: These schemes for 14 key sectors, including electronics, pharmaceuticals, and automobiles, are designed to strengthen domestic manufacturing and export capabilities.

Districts as Export Hubs Initiative: This initiative identifies products with export potential in each district and provides support to local exporters and manufacturers.

E-Commerce Export Hubs (ECEHs): This initiative aims to create dedicated zones to facilitate cross-border e-commerce exports by providing integrated services like customs clearance and logistics at a single location.

Free Trade Agreements (FTAs): India is actively negotiating and signing FTAs with various countries and blocs to reduce tariffs and non-tariff barriers, thereby expanding market access for Indian products. A notable recent example is the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom signed in July 2025.

PM Gati Shakti and National Logistics Policy (NLP): These initiatives are aimed at overhauling transport infrastructure and reducing logistics costs to make Indian goods more competitive in the global market.

Challenges and Considerations

While the outlook is positive, Indian exporters face some challenges:

Global Trade Uncertainties: Disruptions and protectionist measures in some key markets, such as the imposition of tariffs, can impact certain export sectors.

Trade Deficit: Despite strong export growth, Indias imports are also rising, leading to a persistent trade deficit.

Market Diversification: While India is diversifying its export basket, a significant portion of its exports are still concentrated in a few key markets, making it vulnerable to economic shifts in those regions. The government is pushing for greater geographical diversification, with a focus on markets in Africa and West Asia.

Performance:

• Revenue from operations during the year was Rs.Nil however the other income was Rs.33.70 Lacs as compared to previous year revenue from operations Rs.Nil and other income Rs. 33.85 Lacs

• The Company has incurred Profit of Rs.11.42 Lacs during the year as Compared to Last Years Profit of Rs. 8.75 Lacs

Human Resources:

The Company believes that its people are a key differentiator, especially in knowledge driven, competitive and global business environment. Adapting work culture to suit the dynamic balancing of people requirements and employee needs is an ongoing process. Fundamental HR processes which enable higher performance orientation, speed, skill and competency development, talent management and human asset are corner stones for the success of any organization. During the year Company operated at minimum number of employees.

Internal Control System And Their Adequacy:

The Company has an effective and adequate internal control system to ensure that all assets are safeguarded against loss and all transactions are authorised, recorded and reported correctly. All operational activities are subject to internal controls at frequent intervals. The existing control procedures are reviewed periodically to enhance their effectiveness, usefulness and timeliness.

Cautionary Statement:

Readers are cautioned that this Management Discussion and Analysis may contain certain forward looking statements based on various assumptions on the Companys present and future business strategies and the environment in which it operates. The Companys actual performance may differ materially from those expressed or implied in the statement as important factors could influence Companys operations such as effect of political conditions in India and abroad, economic development, new regulations and Government policies and such other factors beyond the control of the Company that may impact the businesses as well as its ability to implement the strategies.

By Order of the Board of Directors

For Haria Exports Limited

 

BIMAL KANTILAL HARIA

Managing Director

DIN No. 00585299

 

Date : 14th August, 2025

Place : Mumbai