Heads UP Venture Management Discussions


The global economy is gradually recovering from the impact of pandemic and at the same time facing new challenges emerging from Russias invasion of Ukraine. Tightening of monetary policy by most Central Banks is expected to have a positive impact. Despite monetary tightening, inflation is persistent in many key economies and it is anticipated that global inflation will fall from 8.7% last year to 7% this year and settle at around 5% in the year 2024. Global growth is expected to fall from 3.5 % in 2022 to 3% percent in both 2023 and 2024, according to World Economic Outlook (WEO).

Indian Economy

The Indian Economy continues to show resilience amid Global Uncertainties. Despite significant challenges in the global environment, India was one of the fastest growing economies in the world. Indias overall growth remains robust and GDP has grown up by 7.2% in the financial year 2022-23. Growth was driven by strong investment activity augmented by the governments capex push and buoyant private consumption. Dwelling on the outlook for FY2023-24, the Economic Survey 2022-23 issued by Ministry of Finance projects that, Indias recovery from the pandemic was relatively quick, and growth in the upcoming year will be supported by solid domestic demand and a pickup in capital investment. It further affirms that aided by healthy financials, incipient signs of a new private sector capital formation cycle are visible and more importantly, compensating for the private sectors caution in capital expenditure, the government raised capital expenditure substantially. Explaining the economic outlook factoring global rudiments, the slowdown in global growth and economic output coupled with increased uncertainty is likely to dampen global trade growth. Strong domestic demand amidst high commodity prices will raise Indias total import bill and contribute to unfavorable developments in the current account balance. These may be exacerbated by plateauing export growth on account of slackening global demand. Should the current account deficit widen further, the currency may come under depreciation pressure. Also, entrenched inflation may prolong the tightening cycle, and therefore, borrowing costs may stay ‘higher for longer. In such a scenario, global economy may be characterized by low growth in FY24. However, the scenario of subdued global growth presents two silver linings – oil prices will stay low, and Indias CAD will be better than currently projected. The overall external situation is expected to remain manageable for India.

Indian Retail

Indias retail sector is on a trajectory of growth and estimated to be US$ 1.1 trillion by 2027 and US$ 2 trillion by 2032. Currently, India is the worlds fourth-largest preferred retail destination and has the second-largest internet market, boasting a user base of 780 million. The retail market size is expected to range from US$ 740-760 billion in 2022, with a 2% increase in the share of e-commerce channels witnessed in the past three years. Offline retail channels have also shown a 15% increment in CAGR for top channels in 9M FY23 vs 9M FY20. India ranks among the best countries to invest in the retail space, primarily due to its vast population, a rising middle-income class of around 158 million households, increasing urbanisation, connected rural consumers, and increased discretionary spending. The retail sector currently accounts for over 10% of Indias GDP and around 8% of the workforce, with projections estimating that it will create 25 million new jobs by 2030. The demand for organised retail space has helped create a capacity of approximately 120 million sq. ft. in retail space across major Indian cities such as Delhi and Mumbai.

The Indian ecommerce market is estimated to grow by 21.5% reaching USD 74.8 billion in 2022 and is likely to reach USD 350 billion by 2030 with grocery and fashion/ apparel likely to be its key growth drivers. Indias e-commerce festive season sales clocked in a gross merchandise value of US$ 9.2 billion, an increase of 23% compared 2020. With the number of internet connections in 2021 significantly increasing to 830 million, internet penetration increased from 4% in 2007 to 45% in 2021. Online penetration of retail is expected to reach 10.7% by 2024 compared to 4.7% in 2019, while online shoppers in India are expected to reach 220 million by 2025. According to a report published by IAMAI and Kantar Research, India internet users are expected to reach 900 million by 2025 from ~658 million internet users in 2020, increasing at a CAGR of 45% until 2025. The online retail market in India is estimated to be 25% of the total organized retail market and is expected to reach 37% by 2030.

In India, several international apparel brands have commenced operations realizing that the Indian market is likely to emerge as one of the largest apparel markets in the world in the next few decades.


During the FY 2022-23, The Company has acquired all the rights, title and interest in the new brands "HUP" and "Device of Turtle" by executing Deed of perpetual assignment for the purpose of its operations from one of its promoter, Mr. Manish Mandhana at the cost as incurred by him i.e. Rs. 6.90 lakh according to valuation report.

During the year, the Company has developed new range of products into fashion apparels and accessories business including T-shirts, Caps, Hats, socks, Underwear and such different categories of products. The Company has also launched its own website www.hupessentials.com and activated social media handles in the last quarter of the financial year and started selling the inventories designed and manufactured. The Company has entered into an outright purchase agreement with Reliance Retail Limited for sale of the fashion apparels and accessories under the brand "HUP" on their e-commerce platform.

As the Company is in the process of establishing the brand across all channels, an inherent risk of new business operations becoming futile is the ultimate risk which the Company is facing. As there were no business operations during the FY 2022-23, the details pertaining to segment-wise revenue could not be provided.

Establishing a non-celebrity brand within an increasingly saturated market characterized by intense brand rivalry, surplus supply pressures, online platform discounts impact margin, elevated procurement costs, and operational challenges presents a significant challenge for the company. The company is dedicating considerable efforts toward producing high-quality goods at affordable prices.

It anticipates receiving constructive responses regarding its existing product inventories, which will serve as a foundation for refining its market penetration strategy. This involves devising plans for enhanced procurement to amplify production volume and expand the reach of the brand.

Performance Review

During the year, we achieved sales of Rs. 151.07 lakh, reflecting a (decline of 60% over Rs. 251.64 Lakh in FY22. Net loss after tax stood at Rs. 965.54 Lakh, as compared to net loss of Rs. 536.06 Lakh in FY22.

(Rs in lakh)


Year ended
31.03.2023 31.03.2022
Total Income 151.07 251.64
Net Profit/(Loss) for the Period before tax (974.97) (536.06)
Net Profit / (Loss) for the Period after tax (965.52) (536.06)

Total Comprehensive Income for the Period (Comprising Profit / (Loss) for the period (after tax) and Other Comprehensive Income (after Tax)

(962.00) (537.08)
Equity Share Capital 2208.26 2208.26

Human Assets

Our people are at the heart of everything we do and we implement a variety of initiatives to augment their operational capabilities. As on 31st March, 2023, our workforce strength is recorded at 20 (excluding the Executive Directors of the Company).


We have set up a comprehensive system of internal controls, along with a structured internal audit process, vested with the task of safeguarding the assets of the organisation, and ensuring reliability and accuracy of the accounting and other operational data. Internal audit is conducted for all the processes to identify risks and verify whether all systems and processes are commensurate with the business size and structure. These internal controls are verified by the Audit Committee to monitor existing systems and take corrective measures, wherever required.

Key Financial Ratios

Details of significant changes (i.e., change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations thereof, including:

Sr. Ratio Nos.

31st March 2023 31st March, 2022 Variance
1 Current Ratio 6.71 4.84 39%
2 Return on Equity Ratio (53.18) (29.52) 80%
3 Trade Receivables Turnover Ratio 0.15 0.14 1%
4 Trade Payables Turnover Ratio 1.19 0.28 320%
5 Net Profit Ratio (1314.03) (551.91) 138%
6 Return On Capital Employed (50.47) (17.57) 187%

Note: Kindly refer Note No.36 for major variations in the Ratio Figures in brackets represent negative number.