Meera Industries Ltd Management Discussions

For the Financial Year 2024-25 Meera Industries Limited

1. Global Economic Overview

The global economic landscape in 2024-25 was shaped by a complex interplay of moderate growth, inflationary pressures, and evolving trade flows. The world economy is estimated to have grown by approximately 3.2% in 2024, with advanced economies moderating and emerging markets, particularly Asia, providing relative momentum. While broad monetary policy easing and rising real wages have supported consumer sentiment, persistent geopolitical risks and supply chain adjustments have impacted the manufacturing sector across regions.

Looking ahead, monetary easings, continued innovation, and digital adoption are expected to sustain a gradual global growth trajectory into 2025. However, uncertainty from inflation, volatile commodities, and regional instabilities could impact the pace and distribution of growth across economies.

2. Indian Economic Scenario

India continued its impressive run as a high- growth, resilient economy in FY 2024-25. The nation posted robust GDP growth-estimated at 6.6%-underpinned by strong domestic demand, financial stability, targeted policy reforms, and a favorable demographic profile.

- Agriculture & Allied Sectors: Real GVA projected at 3.8%, boosted by a normal monsoon, higher MSP, and ample fertilizer availability.

- Infrastructure & Construction:

Growth at 8.6% supported by increased public investment.

- Private Consumption: Significant increase in Private Final Consumption Expenditure, projected to rise by 7.3%.

- Exports: Despite global headwinds, Indias merchandise and services exports are projected to cross $800 billion, a new record.

- Inflation: CPI and food inflation rates declined through most of the year before stabilizing at multi-month lows.

- Policy Reforms: Government initiatives like the new Textile Policy 2024, RoSCTL scheme, and PM MITRA Parks have strengthened sector competitiveness, fostered export growth, and promoted sustainability and employment generation. The outlook remains positive, with India positioned to remain the fastest-growing major global economy, supported by easing inflation, rising consumption, improved fiscal balance, and sustained government focus on capital expenditure. Risks include external volatility, energy price spikes, and global policy shifts.

3. Textile Industry Dynamics

The Indian textile sector continues to be a cornerstone of the nations economy, playing a critical role in employment generation, exports, and manufacturing. FY 2024-25 witnessed a notable rebound in both domestic consumption and export performance, signaling a resurgence of momentum in the post-pandemic landscape:

• Textile Exports: Registered a year-on- year growth of 4.01%, with apparel exports rising sharply by 11.6% during the first seven months of FY25 · reflecting steady global demand recovery and competitive positioning of Indian manufacturers.Key Trends: Growing demand for technical textiles, digital printing, apparel, and carpet yarns; focus on sustainability and localized manufacturing.

• Domestic Demand: Expanding e-retail, home furnishing, athleisure, and functional textiles have broadened the market.

• Policy Tailwinds: Strategic government initiatives · including incentives for technical textiles, infrastructure development, and labor reforms · created a conducive environment for sectoral growth and export competitiveness.Challenges remained from global competition, cheap imports, volatile raw material prices, and cost pressures. Fragmentation, regulatory compliance, and sustainability also required close attention. The industry is rapidly evolving towards higher value addition, digitalization, and environmental stewardship.

4. Company Overview - Meera Industries Limited

Meera Industries Limited is an ISO 9001- certified, innovation-driven manufacturer specializing in high-performance twisting, cabling, winding, and heat-setting machines. With a global footprint spanning over 39 countries, the company has established itself as a trusted partner in the textile machinery industry.

Leveraging its DSIR-recognized R&D capabilities, proprietary technologies · including the patented TPRS system · and a proven track record of execution, Meera Industries continues to lead the transformation of Indias textile machinery landscape. Its strong market presence, customer-centric approach, and commitment to engineering excellence position it at the forefront of industry innovation and competitiveness.

a) Financial & Operational Performance- FY 2024-25

- Revenue from Operations: 3,984.93

lakhs (32% growth YoY), driven by strong domestic and international demand.

• EBITDA: 611.43 lakhs (104% growth YoY); EBITDA margin at 15.34%, indicating better cost efficiencies and operating leverage.

• Profit After Tax (PAT): 372.18 lakhs (155% growth YoY), showcasing enhanced profitability and margin expansion.

• Return on Equity: 12.76%; Return on

Capital Employed: 17.71%

- Balance Sheet: Maintained a conservative net debt-to-equity ratio of 0.12x, reflecting prudent financial management and a healthy capital structure.

b) Strategic Initiatives & Milestones

<p >• Diversification: Successfully launched the CPP Film Division in June 2025 marking a strategic entry into the high-growth flexible packaging segment. With an installed capacity of 300 tonnes per month, the division is expected to contribute 20-25 crore in revenue during FY 2025-26.Product Innovation: Rolled out iTPRX-50 (advanced PLC-based S/Z twister); expanded winding and cabling portfolio; continued R&D for energy efficiency and productivity enhancements.

• Customer Base: Added marquee clients (Welspun, Garware, Ganesha Ecopet, Pioneer Embroideries, SRF, DNH Spinners) and research institutions (SASMIRA).

• Exports: Continues expansion in Europe, Central Asia, Africa, and the Americas.

• Manufacturing: The Surat manufacturing facility currently operates at 35% utilization, supported by advanced automation systems and ERP-driven quality control, ensuring scalable growth and consistent production excellence.

c) Product & Market Expansion

• Machinery: Meera Industries offers 14+ advanced product lines catering to technical textiles, industrial yarns, carpet yarns, FIBC (Flexible Intermediate Bulk Containers), and medical yarns. Each machine is designed with agility and adaptability to meet both global standards and India-specific requirements. Plastic Division: CPP films for packaging (food,

FMCG, pharma), addressing import substitution and Local demand surges postpandemic.

• R&D: The companys R&D initiatives remain focused on energy-efficient technologies, operator-friendly automation, and highly customizable solutions tailored through active customer feedback loops, ensuring continued relevance and market leadership.

5. Industry Outlook and Growth Drivers

a) Major Growth Drivers

- Expansion in technical textiles, packaging, FIBC, and specialty fibres.

- Import substitution, “Make in India,” and re-shoring trends supporting domestic manufacturing of advanced machinery and packaging materials.

- Digital transformation and sustainability: Adoption of Industry 4.0, realtime monitoring, and energy efficiency.

- Strategic location in Gujarat, enabling efficient access to industrial/consumption hubs.

- Targeted market penetration through a strong distributor network and a differentiated, value-driven product suite.

b) Opportunities

- Rising demand for automation and high-productivity machines.

- Surge in packaging solutions for food processing, e-commerce, and FMCG.

- Global supply chain realignment opens new export markets.

- Government policy focus on manufacturing excellence and exports.

c) Risks & Challenges

- Raw material price volatility, especially for metals and polymers.

- Persistent global competition and potential cheap imports.

- Regulatory, compliance, and environmental sustainability requirements.

- Geopolitical and macroeconomic uncertainties.

6. Internal Control Systems

Meera Industries has established robust internal controls spanning the entire value chain:

- ISO 9001-certified quality management system

- In-house testing lab and precision manufacturing practices

- ERP-enabled, real-time tracking for process optimization, inventory, and risk management

- Team empowerment through continuous training and open communication

7. Human Resources, People, and Culture

The companys people-centric philosophy is a key driver of innovation, agility, and long-term success. Continuous investment in employee training, skill development, motivation, and transparent communication fosters high levels of engagement and alignment with the companys strategic goals.

Management firmly believes that a skilled, empowered, and future-ready workforce is essential to sustaining operational excellence, nurturing innovation, and building organizational resilience in a rapidly evolving business landscape.

8. Outlook

With a strong foundation built on innovation, sustainability, and customer-centricity, Meera Industries enters FY 2025-26 well-positioned for sustained growth and industry leadership. The companys dual-pronged strategy · strengthening its core presence in technical textile machinery while scaling up its CPP packaging division · is expected to unlock long-term value for all stakeholders.

Meeras forward-looking approach is anchored in operational discipline, technological advancement, strategic market expansion, and prudent financial management, ensuring both resilience and agility in a rapidly evolving global business environment.

Cautionary Statement:

This Management Discussion and Analysis contains forward-looking statements that reflect the companys current beliefs, expectations, and projections. These statements are subject to inherent risks and uncertainties, including but not limited to economic conditions, policy changes, technological developments, and competitive dynamics.

Actual outcomes may differ materially from those expressed or implied, and Meera Industries undertakes no obligation to update these forward-looking statements, except as required by applicable law.

Meera Industries Limited “Twisting the boundaries of innovation, quality, and sustainability, empowering the global textile and packaging industry for tomorrows challenges.”