Harshdeep Hortico Ltd Management Discussions

Our Company was originally incorporated as a Limited Company under the name “Harshdeep Hortico Limited” on December 30, 2022 under the provisions of the Companies Act, 2013 with the Registrar of Companies, Mumbai, Maharashtra bearing CIN U26994MH2022PLC396421. Later, on April 03, 2023, our Company took over the business of proprietorship concern of the promoter Hitesh Chunilal Shah, namely M/s Harshdeep Agro Products along with the assets and liabilities of the proprietorship concern as going concern.

We are primarily engaged in the business of designing, developing, manufacturing, and supplying of various types of pots and planters like: plastic Indoor Planters, Outdoor Planters, Illuminated Planters, Decorative Planters, Roto Moulded Planters, Fiber Reinforced Plastic (FRP) Planters, Eco series Planters etc. along with related accessories like Garden Hose Pipe & Water Can. Apart from this recently we have also entered into the field of Roto Moulded Outdoor Furniture.

Further we have also started the business of manufacturing, processing, buy, sell, distribute, import, export of various types of shade nets like Agro Shade Net, Green Net, Plastic Net, Agriculture net, Construction Safety Net, Anti Hail Net, Sun Shade Net, Green Shade Net, Nursery Shade Net.

Market Overview:

The global market for gardening pots, outdoor furniture, and green shade nets is poised for significant growth, driven by increasing demand for sustainable and eco-friendly products.

Key Statistics:

- Gardening Pots: $18.33 billion (2023) ? $25.17 billion (2030), CAGR: ~4.7% - Outdoor Furniture: $53.27 billion (2024) ? $81.44 billion (2032), CAGR: ~5.5% - Green Shade Nets: $1.5 billion (2023) ? $2.4 billion (2032), CAGR: ~5.1% - Agriculture Shade Nets: $1.2 billion (2024) ? $2.4 billion (2033), CAGR: ~8.5%

Growth Drivers:

- Urbanization and lifestyle shifts: Increasing demand for urban gardening and outdoor living spaces - Sustainability and eco-materials: Growing adoption of eco-friendly materials in furniture and netting segments - Agricultural efficiency and climate resilience: Shade nets becoming essential in horticulture and crop protection - Digital penetration: E-commerce and direct farmer outreach expanding market reach

Regional Focus:

- Asia-Pacific region is expected to lead growth due to infrastructure development, agriculture expansion, and government support - India and China are key markets in the region, driven by large agricultural sectors and growing urban populations

The Government of India, from time to time, has made policy pronouncements on Foreign Direct Investment (“FDI”) through press notes and press releases.

Strengths:

Diverse range of products across consumer preferences. Consistent focus on Quality Revenue from multiple geographies In-house Manufacturing capabilities Experienced and Qualified Management

Opportunities:

Growing demand for sustainable and eco-friendly products Increasing adoption of technology in agriculture and gardening Expanding market reach through e-commerce and digital channels

Threats:

We operate in a competitive atmosphere. Some of our competitors may have greater resources than those available to us. While product quality, brand value, distribution network, etc are key factors in client decisions among competitors, however, price is the deciding factor in most cases. We face fair competition from both organized and unorganized players in the market. We believe that our experience in this business and quality assurance will be key to overcome competition posed by such organized and unorganized players. Although, a competitive market, there are not enough number of competitors offering services similar to us. We believe that we are able to compete effectively in the market with our quality of services and our reputation. We believe that the principal factors affecting competition in our b usiness include client relationships, reputation, and the relative quality and price of the services.

Our company has diverse product portfolio across various segments of pots and planters which includes Roto Moulded Series, Grower Series, Indoor Series, FRP Series, Illuminated Planters etc. along with related accessories. We deal in a wide range of products, which enables us to cater widespread customer base across various states in India and also expand our reach in international locations. We believe that we have necessary resources and experience that can be customized and leveraged to cater to wider range of planters as per requirements of the customers.

Recently, we have also entered into the field of Roto Moulded Outdoor Furniture that designs outdoor illuminated furniture for gardens keeping in mind customers outdoor living area, offering options to accommodate gardens of any size or shape. We have also introduced an Eco-friendly series of planters “Eco Series” which are planters crafted from a blend of sustainable materials, including rice husk and natural fibers. Our commitment to diversity empowers us to meet the requirements of customers.

Further we have altered the object clause of Company and entered in the business of manufacturing, processing, buy, sell, distribute, import, export of various types of shade nets like Agro Shade Net, Green Net, Plastic Net, Agriculture net, Construction Safety Net, Anti Hail Net, Sun Shade Net, Green Shade Net, Nursery Shade Net etc.

The Company has an effective and reliable internal control system commensurate with the size of its operations. At the same time, it adheres to local statutory requirements for orderly and efficient conduct of business, safeguarding of assets, the detection and prevention of frauds and errors, adequacy and completeness of accounting records and timely preparation of reliable financial information. The efficacy of the internal checks and control systems is validated by self-audits and internal as well as statutory auditors.

Share Capital: During the year under review, there are no changes in the Authorised and paid-up share capital of the company.

Your Company follows a policy of building strong teams of talented professionals. People remain the most valuable asset of your Company. The Company recognizes people as its most valuable asset and the Company has kept a sharp focus on Employee Engagement. The Companys Human Resources is commensurate with the size, nature, and operations of the Company.

10.FORWARD-LOOKING STATEMENT:

Certain statements made in the Management Discussion and Analysis Report relating to the Companys objectives, projections, outlook, expectations, estimates, and others may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, whether expressed or implied. Several factors could make a significant difference to our operations. These include climatic and economic conditions affecting demand and supply, government regulations and taxation, any epidemic or pandemic, and natural calamities over which we do not have any direct/indirect control.