[Pursuant to Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations. 2015,
ECONOMY:
Currently the worlds fourth-largest economy, India is on track to become the third-largest by 2030 with a projected $7.3 trillion GDP. This momentum is powered by decisive governance, visionary reforms, and active global engagement. Notably, growth is accelerating, with real GDP expected to rise by 7.8% in Q1 FY 2025-26, up from 6.5% a year earlier.
The ascent is powered by strong domestic demand and transformative policy reforms, making India a prime destination for global capital. With easing inflation, higher employment, and buoyant consumer sentiment, private consumption is expected to further drive GDP growth in the coming months.
INDUSTRY HIGHLIGHTS:
The Indian soap and detergent industry, one of the oldest segments of the countrys Fast-Moving Consumer Goods (FMCG) sector, has undergone significant transformation over the decades. The India laundry detergent market size reached USD 4.79 Billion in 2024. Looking forward, the market is expected to reach USD 7.30 Billion by 2033, exhibiting a growth rate (CAGR) of 4.30% during 2025-2033. The market is expanding due to rising urbanization, increasing washing machine penetration and growing demand for liquid and eco-friendly detergents. Additionally, competitive pricing, premium product offerings and rural market expansion further contribute to the India laundry detergent market growth.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE OPERATIONS:
During the current financial year, the turnover of the Company increased to Rs 2156.42 (in Lacs) compared to Rs. 1973.12 (in Lacs) in previous year. The company has incurred loss of Rs. 327.70 (In lacs) in the year 2024-25.
OPPORTUNITIES:
To outperform in this retail and consumer goods sector understanding consumer behavior is crucial. Indian consumers prioritize effectiveness, fragrance, price, and eco-friendliness when selecting laundry detergents. Urban households lean towards liquid detergents due to convenience, while rural areas still favor powder detergents because of affordability and ease of use. Recent trends indicate a growing preference for eco-friendly, skin-sensitive, and biodegradable detergents, especially among health-conscious urban families. Consumers are also drawn to products that promise superior stain removal, color protection, and fabric care.
The India laundry detergent market is witnessing a surge in e-commerce and direct-to-consumer (D2C) sales driven by increasing internet penetration, digital payment adoption and changing shopping preferences.
THREATS:
The company faces cut-throat competition in the market from various emerging FMCG producers. Thus, to create Companys Brand loyalty is a costly affair by means of a very aggressive marketing in all Medias like TV Advertisements, slide shows, hoardings etc. An average customer is too price sensitive & may leave Companys brand for a marginally costly product compared to a competitor just because of heavy dose of marketing cost. Brand building & generating brand loyalty in the minds of consumers like multinationals & national competitors may eat the companys major portion of resources.
RISKS AND CONCERNS:
1) The Company faces stiff & cut throat competition not only from multinationals but also from national/domestic competitors.
2) More expenses of advertising & marketing calls for deployment of funds result in higher burden of interest.
3) Inflationary tendency in cost elements like raw material cost, interest cost, marketing cost & transportation cost affect adversely to net margins as in competitive market selling price cannot be increased to absorb them all and hence generate low profit margin.
SEGMENT-WISE PERFORMANCE:
Companys segment-wise performance reflected its continued reliance on detergent powder and cake products, which remained the companys primary revenue driver.
OUTLOOK:
The company remains committed to navigating the evolving landscape of Indias FMCG sector with resilience and innovation. The domestic detergent market continues to expand, driven by rising urbanization, increased washing machine penetration, and growing consumer preference for eco-friendly and liquid-based cleaning solutions. Hipolin aims to capitalize on these trends by enhancing its product portfolio, improving operational efficiency, and deepening its reach in both urban and rural markets.
INTERNAL CONTROL SYSTEMS:
The Company has an adequate system of Internal Controls aimed at achieving efficiency in operations, optimum utilization of resources and compliance with all applicable laws and regulations. The observations and recommendations given by the Internal Auditors, a reputed firm of Chartered Accountants, for improvement of the business operations and their implementations are reviewed by the Audit Committee.
HUMAN RESOURCES:
Talent acquisition, retention and development are an integral part of the HR Initiatives.
Your Company recognizes that transformation is successful only if the human capital is prepared for change & trained to accept new challenges. The Company has got very cordial relations with the employees at all the levels particularly with the workers. This year, as at March 31, 2025, the Company had 25 employees on the payroll of the Company.
CAUTIONARY STATEMENT:
Certain statements in the Management Discussion and Analysis describing the Companys analysis and interpretations are forward looking. Actual results may vary from those expressed or implied. The Company assumes no responsibility to publicly amend, modify or revise any such statements on the basis of subsequent developments, information or events. The risks outlines are not exhaustive. Readers are requested to exercise their own judgment in assessing the risk associated with the Company.
BY ORDER OF THE BOARD OF THE DIRECTORS | |
Sd/- | |
PRAFULLA GATTANI | |
MANAGING DIRECTOR | |
DIN: 00777653 | |
Sd/- | |
DAXESH B. SHAH | |
DATE: 6th September 2025 | DIRECTOR |
PLACE: AHMEDABAD | DIN: 00325284 |
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