Harshdeep Hortico Ltd Management Discussions

1. INTRODUCTION:

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.

2. INDUSTRY STRUCTURE:

TheMarket globalOverview:market for gardening products, planters, outdoor furniture and agricultural shade nets terracecontinues to witness steady growth, supported by increasing urbanisation, rising interest in home andgardening, expansion of outdoor living spaces, changing consumer preferences towards aesthetically appealing and functional products, and the growing adoption of protected cultivation resilient agricultural practices. The growing use of lightweight, durable and recyclable materials such as^practices.The industry is also benefiting from increasing awareness of sustainability, resource efficiency and climate-plastics, polymers and fibre-reinforced materials is supporting product innovation across planters, outdoor ^{furniture and allied gardening products.}The agricultural shade-net segment is gaining further importance as farmers and horticultural growers ^{increasingly adopt protected cultivation and crop-protection solutions to mitigate the impact of excessive}sunlight,nurseries and high-value crops is expected to provide additional opportunities for the shade-net industry.heat, wind, hail and other climatic conditions. The expansion of horticulture, floriculture, The key trends influencing the industry include:Key Industry Trends

??Urbanisation demand for planters and related gardening products. traditional garden spaces and growing interest in balcony, terrace and indoor gardening are supporting and growth of urban gardening: Increasing urban populations, limited availability of ??balconies,furniture and decorative products. Growth interraces,outdoorgardensliving and outdoorrecreational recreationalspaces: areasRisingis consumercontributingexpenditureto demandonforresidential outdoor

-Preference reinforcedrequirements, design flexibility and suitability for outdoor applications. productsfor durable are and increasinglylightweight preferredmaterials: due to their durability, relatively low maintenance

-Sustainability ^{products manufactured using recyclable, reusable and resource-efficient materials. Manufacturers are} consequently focusingand circular-economy on material optimisation,initiatives:product Consumers and businesses are increasingly seeking longevity and environmentally responsible manufacturing processes.

??Expansion solutions is being driven conserve resources and reduce exposure to adverse weather conditions. of protected cultivation: by the need to improve crop quality, manage temperature and solar radiation, Increasing adoption of shade nets and other protective agricultural ??climate-resilient agricultural solutions. solar radiation, hailClimate variability and strong winds are encouraging growers to adopt protective netting and other crop protection: Rising weather variability and instances of excessive heat, ??direct-to-consumerE-commerce and digital channelsdistribution: is enabling The expansion of e-commerce platforms, digital marketing and manufacturers and distributors of gardening, outdoor and agricultural products to reach a wider customer base.

??colours, designs and functional specifications is encouraging manufacturers to expand product portfolios and develop application-specific solutions. Product innovation and customisation: Increasing demand for products in different sizes, shapes,

Market The outlookOutlook for the industry remains positive, although the pace of growth is expected to vary across gardening,individual product segments. Demand for gardening pots and planters is expected to be supported by urbanlandscaping, nursery development and increasing consumer interest in indoor and outdoor commercial outdoor spaces, hospitality projects, landscaping and recreational infrastructure. Demand is^plants.The outdoor furniture segment is expected to benefit from the continued development of residential and ^{also expected to be supported by the replacement of conventional materials with lightweight and weather-} resistant alternatives. expansion of horticulture and protected cultivation, increasing focus on agricultural productivity and theThe agricultural shade-net market is expected to record comparatively strong growth, supported by the need to mitigate climate-related risks. Government initiatives promoting modern agricultural practices, term growth of the segment.

Theoutdoor furniture and agricultural shade nets, supported by rapid urbanisation, expanding agricultural andhorticultural Asi -Pacific activities, infrastructure development and rising consumer spending.region is expected to remain an important growth market for gardening products, India urban population, increasing adoption of terrace and balcony gardening, development of nurseries and represents a significant opportunity due to its large agricultural and horticultural base, expanding improving horticultural productivity, promoting protected cultivation and supporting modern agriculturallandscaping activities, and growing awareness of protected cultivation. Government initiatives aimed at practices are expected to provide further impetus to the market. regionalOther Asian markets, includinggrowth owing to expandingChina and urbanSoutheast populations,Asian economies agricultural, are also expected to contribute todevelopment and increasing investment in landscaping, horticulture and outdoor infrastructure. TheOpportun Compities anysand productGrowth portfolioDriversis positioned across multiple complementary segments, including Theplanters, garden accessories, roto-moulded outdoor furniture and agricultural/construction shade nets.diversification across these segments provides opportunities to cater to both consumer and ^{institutional customers.}The principal factors expected to support the Companys industry segments include: 1. 2. Incre Rising popularity of indoor, balcony and terrace gardening; asing urbanisation and development of residential and commercial landscaping; 3. 4. Increasing expenditure on outdoor furniture and recreational spaces; Growing preference for lightweight, durable and weather-resistant products; 5. 6. Expansion of horticulture, floriculture, nurseries and protected cultivation; Increasing requirement for agricultural solutions capable of mitigating climatic risks; 7. 8. Growing penetration of organised retail and e-commerce channels; Product innovation, design differentiation and customisation; and

9. Increasing awareness of sustainability and recyclable materials.

The Comp Outlook for any operates across diversified product categories comprising plastic, FRP and roto-moulded the Company planters,various agricultural and construction shade nets. The Companys diversified product portfolio enables it todecorative and illuminated planters, garden accessories, roto-moulded outdoor furniture and ^{participate in multiple growing segments rather than relying on a single end-use market.Going forward, the Company intends to focus on product innovation, expansion of its product portfolio,}improvement in manufacturing efficiencies, development of distribution and digital channels and strengthening its presence across domestic and, where commercially viable, international markets. ^{While the industry presents attractive long-term growth opportunities, factors such as fluctuations in raw-} economicmaterial prices,conditionscompetitiveand regulatory/environmentalintensity, changes in consumerrequirementspreferences,may continueavailabilityto ofinfluencesubstitutes,the performance of individual segments. Overall, th segments e medium-to-long-term outlook for the gardening, outdoor furniture and agricultural shade-netremains favourable, supported by structural trends in urbanisation, lifestyle changes, landscaping, horticulture, protected cultivation and climate-resilient agricultural practices.

3. INVESTMENTS/ DEVELOPMENTS:

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

4. OPPORTUNITIES AND THREATS:

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

-Expanding market reach through e-commerce and digital channels Increasing adoption of technology in agriculture and gardening

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 business include client relationships, reputation, and the relative quality and price of the services.

5. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

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 Company is 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 Netetc.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

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.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE: Financial Performance: During the year under review, the Company has earned a total revenue of Rs. 6874.46 (in Lakhs) for the year ended March 31, 2026 as against Rs 5641.94 (in Lakhs) in the previous financial year.

The Company has recorded a profit (PBT) of Rs 1,604.34 (in Lakhs) for the year ended March 31, 2026 as compared to Rs 1,140.52 (in Lakhs) in the previous financial year.

The Profit after Tax (PAT) for the year ended March 31, 2026 stood at Rs 1,252.13 (in Lakhs) as compared to Rs. 970.08 (in Lakhs) in the previous financial year.

Share Capital:

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

8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

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.

9. DETAILS OF KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFORE:

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.