Indef Manufacturing Ltd Management Discussions

Industry Structure and Development:

Material handling continues to be a critical enabler of industrial operations, playing a vital role in enhancing productivity through the efficient movement, storage, and control of goods. An effective material handling strategy not only reduces operational costs and product damage but also significantly improves workplace safety by minimizing the risk of injuries.

As a leading manufacturer specializing in hoists and cranes, Indef Manufacturing Limited offers an extensive portfolio of overhead material handling solutions, encompassing lifting, moving, and storage applications. Our products are engineered to deliver superior operational efficiency and safety across diverse sectors such as manufacturing, construction and infrastructure, warehousing, distribution, and waste management.

Our product range includes mechanical hoists such as chain pulley blocks and ratchet lever hoists, as well as electric chain hoists and electric wire rope hoists. In the crane segment, we offer electric overhead travelling (EOT) cranes, gantry cranes, jib cranes, and light profile cranes. Our storage and retrieval systems include floor-operated stackers and roll-out racks. These offerings are marketed under our trusted brands: ‘Bajaj Indef, ‘iCrane, and ‘iStacker.

We serve a wide spectrum of industries including automotive, energy, infrastructure, engineering, metals, chemicals, logistics, textiles, and food processing. Our solutions are designed to cater to the unique needs of large corporations, EPC contractors, and MSMEs operating across both the public and private sectors.

Our manufacturing infrastructure, located at Khalapur and Chakan in Maharashtra, enables efficient production and timely delivery. Both facilities are ISO 9001:2015 certified, while the Khalapur plant is additionally certified for ISO 14001:2015 and ISO 45001:2018. Our products meet stringent national and international quality standards, including ISI and CE certifications, with flame-proof hoists compliant with ATEX standards.

We have continually invested in advanced manufacturing technologies and maintain strong relationships with reliable suppliers to ensure consistent quality in every component. This focus on innovation and quality forms the cornerstone of our commitment to customer satisfaction.

Our expansive pan-India distribution and service network is driven by a strong ecosystem of Authorized Business Partners (ABPs) and sub-dealers. ABPs also operate Indef Clinics that provide specialized after-sales support. We have established regional sales offices in Pune, Delhi, Chennai, and Kolkata, supported by regional sales engineers in other strategic locations to ensure deep market penetration. Our dedicated service team, equipped with modern diagnostic tools and technical expertise, ensures responsive and reliable service support. Regular capability-building programs for ABPs and their sales and service personnel reinforce our commitment to delivering superior customer experience.

Opportunities and Threats:

Intrinsic Factors:

In 2023, we embarked on a transformative journey by initiating a strategic rebranding exercise, drawing upon the 97-year legacy of the Bajaj Group to reinforce our identity as a trusted name in industrial solutions. The new Bajaj Indef logo·symbolizing integrity, honesty, and transparency·represents our long-standing commitment to reliability and continuity.

A major milestone during the year was the successful demerger of the company, resulting in the formation of Indef Manufacturing Limited as the focused operating entity for our material handling business. This was followed by the landmark listing of Bajaj Indef shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) a move that has enhanced corporate visibility and investor confidence while enabling greater strategic clarity.

To further augment our market presence, we successfully acquired the SWIFT brand, a long-established name known for affordable and reliable hoisting and crane solutions. This acquisition has enabled us to penetrate the price-sensitive MSME segment and broaden our product positioning across customer tiers.

Our products are designed to maximize productivity, safety, and efficiency while offering a low total cost of ownership across their lifecycle. We continue to enhance our service capabilities through deep collaboration with Authorized Business Partners (ABPs) and the expansion of Indef Clinics, delivering strong post-sales support to customers nationwide.

Additionally, our continued investments in market research, digital marketing, and lead generation platforms are expanding our market reach and strengthening brand visibility across both domestic and international markets. Our commitment to technological advancement and operational excellence positions us well to seize new opportunities and drive sustained longterm growth.

Extrinsic Factors:

The growth of the material handling industry remains intrinsically tied to macroeconomic drivers such as construction, infrastructure development, manufacturing output, transportation, and logistics. Additionally, modernization in sectors like food processing, pharmaceuticals, agriculture, and chemicals, coupled with the growing emphasis on automation and supply chain efficiency, is expected to drive sustained demand for material handling solutions.

However, during FY 2024-25, the industry experienced a temporary slowdown due to the national elections, which led to delays in project approvals, capex spending, and decision-making cycles across several customer segments. This macro-level inertia reflected in our performance as well, with a 1.5% year-on-year decline in revenue from material handling equipment.

Despite this short-term headwind, we remain confident in the sectors long-term potential, with industry growth projected to stabilize at 7-10% annually, supported by continued government focus on infrastructure, manufacturing push under ‘Make in India, and increasing private sector investments.

Our adaptability to changing market conditions has been a hallmark of our operations. We continue to focus on strengthening our supplier ecosystem, improving operational efficiency, and enhancing service responsiveness to not only mitigate risks but also to deliver better value to our customers.

Product wise Performance:

(Rs. in lakhs)

Product	FY 2024-25	FY 2023-24	Growth %
Material Handling Equipment	17,671.53	17,952.51	(1.52)
Earnings before interest, tax, depreciation, and amortization [EBITDA]	4763.10	4240.74	12.32

Internal Control Systems and Their Adequacy:

The Company maintains a robust framework of internal control systems, designed in alignment with its scale, complexity, and nature of operations. These controls are aimed at ensuring operational efficiency, safeguarding of assets, reliable financial reporting, and compliance with applicable laws and regulations.

To strengthen this framework, we have engaged a reputed independent internal audit firm that conducts periodic audits across key business functions. The internal audit process is monitored closely by the Audit Committee and the Board of Directors, ensuring rigorous oversight and adherence to established standards.

Management adopts a proactive and responsive approach in addressing any control gaps or improvement areas identified during the audit process. Corrective actions are promptly implemented based on recommendations from both the internal auditors and the Audit Committee.

Through our steadfast commitment to transparency, accountability, and continuous improvement, we uphold the highest standards of corporate governance, ensuring the integrity and reliability of our business operations.

Risks and Concerns:

We recognize that all businesses operate in an environment of uncertainty, making risk identification and mitigation a critical aspect of sustainable operations. The Company has implemented a comprehensive Risk Assessment and Management Policy, which is overseen by a dedicated Risk Management Committee.

This framework enables us to proactively identify and assess key risks, including market volatility, competitive pressures, employee well-being, supply chain disruptions, and credit exposures. Each risk is evaluated in terms of its potential impact and likelihood, with appropriate mitigation strategies put in place.

Risk reports are reviewed periodically and presented to the Audit Committee and the Board of Directors, facilitating informed and timely decision-making that aligns with our long-term business objectives. Through this structured and vigilant approach, we aim to minimize operational vulnerabilities and strengthen organizational resilience.

Business Outlook

Our business remains closely linked to the investment cycle in new projects, industrial capacity expansions, and the overall sentiment in the manufacturing and infrastructure sectors. In FY 2024-25, steady demand from capital expenditure-intensive industries was supported by positive government signals, including increased infrastructure outlays, push for domestic manufacturing under the Production Linked Incentive (PLI) schemes, and sustained focus on logistics and supply chain modernization.

Adopting a customer-centric and future-ready approach, we are committed to enhancing our market competitiveness by improving supply chain efficiency, cost optimization, and product portfolio refinement. In addition to expanding our presence across India, we are actively strengthening our global reach through targeted export initiatives and strategic partnerships in key international markets.

Aligned with our long-term growth vision, we are also exploring new opportunities to diversify our product offerings, both organically and through collaborations, to address evolving customer needs across different industry segments and geographies.

Recognizing the need for digital transformation, we have accelerated the digitization of business data, workflows, and service processes. We are integrating the latest tools, platforms, and technologies including AI and ML-driven analytics·to enhance decision-making, improve demand forecasting, and optimize internal operations. These initiatives enable us to deliver smarter, faster, and more personalized solutions to our customers and strengthen our responsiveness in a dynamic market environment.

While we remain optimistic about long-term sectoral growth, we are also cognizant of potential headwinds such as policy shifts, political or geopolitical instability, fluctuations in metal prices and freight costs, supply chain disruptions, and delays in customer approvals or project execution. We continue to monitor these risks closely and respond with agility to ensure business continuity and resilience.

Development in Human Resources / Industrial Relations front:

At Indef Manufacturing Limited, we firmly believe that our people are our greatest asset. Our human resource strategy is built on the pillars of capability development, engagement, and empowerment to drive sustained business performance.

During FY 2024-25, we launched Project Saksham, a structured initiative focused on enhancing employee centricity and building future-ready capabilities. Through Saksham, we are investing in comprehensive training programs designed to upskill our workforce on the latest tools, technologies, and best practices. These programs span functional, behavioral, and leadership domains, enabling employees to contribute more effectively to business growth.

We continue to attract and retain high-caliber talent through transparent hiring practices, competitive compensation, and clear career progression paths. New employees undergo a structured induction process to align them with the companys values, processes, and performance expectations.

Employee engagement remains a key priority. Regular town halls, team-building initiatives, and feedback mechanisms ensure two-way communication and foster a sense of ownership and belonging across all levels of the organization.

Industrial relations remained cordial throughout the year, with mutual respect and collaboration between the management and workforce. Our people-first approach has helped us maintain a productive and motivated work environment, aligned with our vision for long-term success.

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 therefor:

1) Debtors Turnover (in times): 6.97

2) Inventory Turnover (in times): 4.18

3) Interest Coverage Ratio: Not applicable as the Company did not have any borrowings or interest obligations during the year ended March 31,2025

4) Current Ratio (in times): 1.97

5) Debt Equity Ratio: Nil

6) Operating Profit Margin (%): 14.19%

7) Net Profit Margin (%): 19.38%

8) Details of any change in Return on Net Worth as compared to the immediately previous financial year: Return on Net Worth increased from 12.41% in FY 2023-24 to 13.53% in FY 2024-25, showing a rise of 1.12 percentage points.

Cautionary Statement:

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations, or predictions may be forward-looking statements. Actual results could differ materially due to various factors such as economic conditions, raw material prices, government policies, regulations, tax laws, and other incidental factors.

	For and on behalf of the Board of Directors
	Shekhar Bajaj
Dated : May 27, 2025	Chairman
Place : Mumbai	(DIN No. 0089358)