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, steel, cement, 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. In parallel, we continue to invest in the development of new products and the enhancement of our existing range, ensuring our portfolio evolves in step with changing customer requirements and industry trends. 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 Delhi, Chennai, and Kolkata, supported by regional sales engineers in other strategic locations to ensure deep market penetration. Beyond India, we continue to strengthen our export footprint through a growing network of sales engineers and ABPs across international markets, including Saudi Arabia, UAE, Oman, Tanzania, Uganda, Angola, Nepal, and Bhutan. 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 strengthen our portfolio of reliable material handling solutions, we acquired the SWIFT brand, known for affordable and reliable lifting equipment and crane enabling us to penetrate the price-sensitive MSME segment and broaden our positioning across customer tiers. In parallel, we completed the acquisition of an 80% equity stake in Daedalus Lift & Access Equipments Private Limited, operating under the brand “Daedalus by Bajaj Indef”. This acquisition marked our entry into the Aerial Working Platform (AWP) segment, meaningfully expanding our product portfolio.

Our products are designed to maximize productivity, safety, and efficiency while offering a low total cost of ownership across their lifecycle. During the year, we expanded our product range with the introduction of the Transfer Trolley, CRH Wire Rope Hoist, Glacier, and Stainless Steel Chain Pulley Block (CPB) for clean room applications, reinforcing our commitment to addressing evolving and specialized customer needs. We also continued to strengthen our global presence by expanding our network of ABPs across the Middle East and Africa (MEA) region, reinforcing our footprint in key international markets.

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. We have also stepped up our focus on digital transformation and AI integration across our operations, driving greater efficiency in processes ranging from marketing and sales to service delivery. On the capability-building front, we launched the Saksham project, a structured learning and development initiative aimed at enhancing productivity and building future-ready capabilities across our workforce. Our commitment to technological advancement and operational excellence positions us well to seize new opportunities and drive sustained long-term 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.

F.Y. 2025-26 was a strong year for the Indian economy, with real GDP growing at an estimated 7.6-7.7%, well above initial projections and up from 7.1% in the previous fiscal year, driven by robust manufacturing and services activity alongside a sustained pickup in investment. The manufacturing sector recorded double-digit GVA growth in parts of the year, supported by rising capacity utilisation, continued momentum under the National Manufacturing Mission and ‘Make in India, and strong government and private capital expenditure. This provided a broadly favourable backdrop for capital equipment and industrial demand through much of the year.

That said, the operating environment was not without headwinds. Industrial activity moderated somewhat toward the close of the fiscal year, with rising input costs and supply-chain disruptions linked to geopolitical tensions in West Asia weighing on select manufacturing segments in the final quarter. These pressures, combined with cautious capex and decision-making cycles in certain customer segments, translated into a 1.5% year-on-year decline in our revenue from material handling equipment.

Despite this short-term headwind, we remain confident in the sectors long-term potential, with industry growth expected to remain healthy in the 7-10% range annually, supported by continued government focus on infrastructure, the manufacturing push under ‘Make in India and the National Manufacturing Mission, and increasing private sector investment.

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)

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 M/s. Deloitte Touche Tohmatsu India LLP who 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 overall sentiment across the manufacturing and infrastructure sectors. In FY 2025-26, steady demand from capital expenditureintensive industries was supported by positive government signals, including increased infrastructure outlays, the push for domestic manufacturing under Production Linked Incentive (PLI) schemes, and sustained focus on logistics and supply chain modernization.

Adopting a customer-centric and future-ready approach, we remain committed to strengthening our market competitiveness through improved supply chain efficiency, cost optimization, and continuous product portfolio refinement. Alongside deepening our presence across India, we are actively strengthening our global reach through targeted export initiatives and strategic partnerships in key international markets, with a focus on scaling our footprint across the Middle East and Africa and other priority geographies.

A key pillar of our growth strategy going forward is the accelerated scale-up of our subsidiary businesses. We are placing strong emphasis on growing SWIFT and Daedalus as independent growth engines, each addressing distinct customer segments and price points, while leveraging the trust and reach of the broader Bajaj Indef ecosystem. This multi-brand approach allows us to serve a wider spectrum of customers, from large enterprises to price-sensitive MSMEs, more effectively.

Aligned with our long-term growth vision, we continue to invest in expanding our product offerings, both organically and through collaborations, to address evolving customer needs across industry segments and geographies. We are also sharpening our focus on penetrating new and emerging customer segments, including data centres, where the rapid build-out of digital infrastructure is creating fresh demand for reliable, efficient material handling solutions. We see this as a significant growth opportunity and are building dedicated go-to-market strategies to capture it.

Recognizing the importance of digital transformation, we have accelerated the digitization of business data, workflows, and service processes. We continue to integrate advanced 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, while strengthening our responsiveness in a dynamic market environment.

While we remain optimistic about long-term sectoral growth, we remain mindful 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, ensuring business continuity and resilience as we pursue our growth priorities across products, geographies, and customer segments.

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 F.Y. 2025-26, under Project Saksham, a structured initiative aimed at enhancing employee centricity and building future- ready capabilities, the Company invested in comprehensive training and development programmes to upskill its workforce on the latest tools, technologies and industry best practices. These initiatives covered functional, behavioural and leadership development areas, enabling employees to enhance their capabilities and contribute more effectively to the Companys longterm growth and success.

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 (Ratio): 6.88

2) Inventory Turnover (Ratio): 4.27

3) Interest Coverage Ratio: Not applicable as the Company did not have any borrowings or interest obligations during the year ended March 31,2026

4) Current Ratio (in times): 1.61:1

5) Debt Equity Ratio: 0:1

6) Operating Profit Margin (%): 9.74%

7) Net Profit Margin (%): 13.31%

8) Details of any change in Return on Net Worth as compared to the immediately previous financial year: Return on Net Worth decreased from 13.53% in F.Y. 2024-25 to 9.57% in F.Y. 2025-26.

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.