nandani creation ltd Management discussions


With an overall slowdown in the global economy which is estimated to have contracted by around 3.3% in 2020 on account of COVID-19 pandemic, the prospects in 2021 have shown sizeable improvement and the negative growth is expected to be reversed with positive growth of 6% expected to moderate to 4.4% in 2022. These are unprecedented and uncertain times. Globally, the COVID-19 pandemic has caused massive disruptions across every sphere of human and business activity. There has been an adverse economic impact on people, communities and countries.

The vaccination drive has picked up momentum pan-India and the outlook remains positive with the advent of new vaccines reaching the market. Emerging Markets like India have witnessed a slowdown and there is economic fallout registered on account of sustained lockdowns in various parts of the Country. Growth in India is estimated to have contracted to -7.3% in FY 2021 with the country witnessing a second wave of the pandemic in March, 2021. The localized lockdowns have resumed which are likely to impair economic activity. However, the COVID-19 pandemic has severely impacted economies worldwide. Basis the fallout, the International Monetary Fund has projected a sharp contraction of the global economy to a status much worse than what resulted from the 2008-09 financial crisis.

The measures taken by the government to contain spread of the COVID-19 pandemic have had an impact on the economic activities as well as on the data collection mechanisms. Estimates are, therefore, likely to undergo sharp revisions for the aforesaid causes in due course. V-shaped economic recovery is expected due to mega vaccination drive, recovery in the services sector and strong growth in consumption and investment coupled with resurgence in high frequency indicators such as power demand, rail freight, e-way bills, GST collection, steel consumption, etc.


The COVID-19 pandemic has impacted each and every business in some way or the other, the global textile industry has been drastically impacted.

Indias textiles sector is one of the oldest industries in the Indian economy, dating back to several centuries. The close linkage of textiles industry to agriculture (for raw materials such as cotton) and the ancient culture and traditions of the country in terms of textiles makes it unique in comparison to other industries in the country. Indias textiles industry has a capacity to produce wide variety of products suitable for different market segments, both within India and across the world.

The textiles and apparel industry can be broadly divided into two segments - yarn and fibre and processed fabrics and apparel. The domestic textiles and apparel market was estimated at US$ 100 billion in FY19. The textile industry has around 4.5 crore workers including 35.22 lakh handloom workers all over the country. In FY19, growth in private consumption was expected to create strong domestic demand for textiles. Growth in demand is expected to continue at 12% CAGR to reach US$ 220 billion by 2025-26.

Exports of textiles (RMG of all textiles, cotton yarn/fabs/made-ups/handloom products, man-made yarn/fabs/made-ups, handicrafts excl. handmade carpets, carpets and jute mfg. including floor coverings) stood at US$ 2.94 billion, as of May 2021.

The Indian textile and apparel industry is expected to grow to US$ 190 billion by FY26.

Union Budget 2021-22- Focus to bring back Growth for Textile Sector:

Indian government has come up with several export promotion policies for the textiles sector. It has also allowed 100% FDI in the sector under the automatic route.

Initiatives taken by Government of India are:

• In April 2021, Union Minister Smriti Irani has assured strong support from the Textile Ministry to reduce industrys dependence on imported machine tools by partnering with engineering organisations for machinery production. She also stated that the PLI scheme for the textile industry is almost ready. The scheme aims to develop Man Made Fiber (MMF) apparel and technical textiles industry by providing incentive from 3-15% on stipulated incremental turnover for five years.

• To support the handloom and handicrafts sector, the government has taken steps to onboard weavers/artisans on Government e-Marketplace (GeM), provide a wider market and enable them to sell their products directly to various government departments and organisations. As of December 31, 2020, 171,167 weavers/artisans/handloom entities have been registered on the GeM portal.

• Under the Scheme for Integrated Textile Parks (SITP), 59 textile parks were sanctioned, out of which, 22 have been completed.

ADVANTAGE INDIA * Robust demand: The Indian techn cal textiles m arket is expectec to expand to US$ 23.3 billion by 2027, driven by increased awareness or goods and higher disposable incomes. Additionally, the pandemic has led to increased demand for technical texties in the form of PPE kits and equipment. Government s supporting the sector through funding and machinery sponsoring.
* Competitive advantage Abundant availability of raw materials sucn as cotton, wool., sik and jute.
* Policy support: 100 % FDI {automatic route) is allowed in textiles. The upcomirg textile policy is Ekeiy to focus on setting up man ufacturing hubs for textile m achineries with the help of FDIs.
• Increasing Investments: Huge funds in schemes such as Integrated Textile Parks {SfTP) (US$ 184.98 million) and Technology Upgracation Fund Scheme {US$ 961.11 million) •eleased by Government during 2015-16 to 2019-20 to encourage more private equity and provide employment.


E-commerce has transformed the way business is done in India. The Indian E-commerce industry has been on an upward growth trajectory and is expected to surpass the US to become the second largest E-commerce market in the world by 2034. India e- commerce sector will reach US$99 billion by 2024 from US$ 30 billion in 2019, expanding at a 27% CAGR, with grocery and fashion/apparel likely to be the key drivers of incremental growth. According to Forrester Research, Indian e-commerce sales rose by ~7-8% in 2020. The Indian online grocery market is estimated to reach US$ 18.2 billion in 2024 from US $1.9 billion in 2019, expanding at a CAGR of 57%.

The Indian e-commerce sector is ranked 9th in cross-border growth in the world, according to Payoneer report. Indian e- commerce is projected to increase from 4% of the total food and grocery, apparel and consumer electronics retail trade in 2020 to 8% by 2025. Indias e-commerce orders volume increased by 36% in the last quarter of 2020, with the personal care, beauty and wellness (PCB&W) segment being the largest beneficiary. E-commerce sales in India were estimated to increase by only 78% in 2020, compared with 20% in China and the US. The e-commerce market is expected to touch the US$ 84-billion mark in 2021 on the back of healthy growth in the Indian organised retail sector.

As most Indians have started shopping online rather than stepping outside their houses, the Indian e-commerce sector witnessed an increase. Indias e-commerce festive sale season from October 15 to November 15 in 2020 recorded Rs. 58,000 crore (US$ 8.3 billion) worth of gross sales for brands and sellers, up 65% from Rs. 35,000 crore (US$ 5 billion) last year.

Through its Digital India campaign, the Government of India is aiming to create a trillion-dollar online economy by 2025. It has formed a new steering committee that will look after the development of a government-based e-commerce platform. The new committee, set up by the Commerce Ministry, will provide oversight on the policy for the Open Network for Digital Commerce (ONDC), which is an e-commerce platform that the government is backing for the development. The ONDC will serve as the infrastructure for setting up the final storefront, which will be similar to Flipkart and Amazon.

Propelled by rising smartphone penetration, launch of 4G network and increasing consumer wealth, the Indian E-commerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion in 2017. Online retail sales in India is expected to grow 31% to touch US$ 32.70 billion in 2018, led by Flipkart, Amazon India and Paytm Mall.

Government Initiatives- Focus to bring back Growth for Indian E Commerce Sector:

Since 2014, the Government of India has announced various initiatives, namely Digital India, Make in India, Start-up India, Skill India and Innovation Fund. The timely and effective implementation of such programs will likely support growth of E-commerce in the country. Some of the major initiatives taken by the Government to promote E-commerce in India are as follows:

• The Consumer Protection (e-commerce) Rules 2020 notified by the Consumer Affairs Ministry in July directed e-commerce companies to display the country of origin alongside the product listings. In addition, the companies will also have to reveal parameters that go behind determining product listings on their platforms.

• Under the Digital India movement, Government launched various initiatives like Umang, Start-up India Portal, Bharat Interface for Money (BHIM) etc. to boost digitisation.

• In order to increase the participation of foreign players in E-commerce, Indian Government hiked the limit of FDI in E-commerce marketplace model to up to 100% (in B2B models).

• Heavy investment made by the Government in rolling out fiber network for 5G will help boost E-commerce in India.


Government e- Market Place (GeM) National Retail Policy Consumer Protection Rules 2020
ADVANTAGE INDIA • Growing demand: Indias e-commerce order volume increased by 36% in the last quarter of 2020, with the personal care, beauty & wellness (PCB&W) segment being the largest beneficiary.
• Increasing Investment: The recent rise in digital literacy has led to an influx of investment in E-commerce firms, levelling the market for new players to set up their base, while churning out innovative patterns to disrupt old functioning.
• Policy support: 100% FDI is allowed in B2B e-commerce. As per the new guidelines on FDI in E-commerce, 100% FDI under automatic route is permitted in the marketplace model of E-commerce.
• Attractive opportunities: Despite depressed consumer spending, economic slowdown and uncertainty created due to COVID-19, e-commerce players are expecting strong sales growth in 2021. Online grocery, e-pharmacy and social commerce are expected to see a bulk of the action in 2021.


The Indian apparel industry, which is the second-largest contributor in retail after food and grocery, is also witnessing major shifts. In addition to fashion apparel, the growing demand for fashion accessories makes the Indian fashion market both interesting and lucrative.

A country is best known by its culture, and a culture is best known by its tradition. In an endeavour to bring the best of our countrys cultural fabric, quite literally, we "NANDANI CREATION LIMITED" launched ""- a brand centered around representing Indian traditional wear for all occasions. was created to explore the varied dynamics of Indian ethnic wear, presenting this heritage to modern women at its widest range. We are a leading fashion house specializing in traditional designs, culturally rich styles and ethnic wear for women. A Tryst with Indias Tradition (Where Tradition meets Trends- A Production House for the Women of Today)

The three things necessary for a good style choice- fresh vibe, trend and comfort- are all displayed on the products of

Your Company "NANDANI CREATION LIMITED" is engaged in the manufacturing and online trading of Women Apparels like kurtis, ethnic tops, palazzo, Patiala salwar suits, dupattas, quilted jackets, leggings, different variety of Bottom Wears, Shirts, etc. We are popularly known and Identified in apparel market by our brand name "" and "Amaiva-By Jaipur Kurti". Our brand is best known for its ethnic wear, kurtis and traditional designs having wide range of colours, patterns and sizes. We distribute our products by following e-retail model and have developed a sustainable business model over the period.

The Retail Journey of the Company started in the year 2018 with the opening of our 1st Retail Flagship Store "Amaiva-By Jaipur Kurti" which later got converted in "Jaipur" in January, 2020.

• Later the Company opened its 2nd Retail Store in December, 2020 at Triton Mall, Jhotwara Jaipur.

• The 3rd Retail Store was opened in February, 2020 at MGF Mall, Jaipur.

• The 4th Retail Store was opened in July, 2021 at Gaurav Tower (GT), Jaipur.

We are moving towards the expansion of our Business and opening of our Retail Stores. We have opened 2 offline stores in the FY2020-21 and are eyeing the next phase of expansion to take the count of our stores total to 20-25 by the end of the FY2023.

Founded by Anuj Mundhra and Vandana Mundhra, our promoters have adequate experience in the line of business and looks after strategic as well as day to day business operations. Our Company started its commercial production in the F.Y. 2012-13 with an Annual Turnover of Rs. 59.20 Lakhs; thereby growing manifold in past eight years and recently recorded an Annual Turnover of Rs. 48.26 Cr for the F.Y. 2020-21. Brand Development and customer loyalty are one of the key factors of success in our industry. Our Brand has been well received uptil now and we shall, continue to endeavour to build brand equity by supplying qualitative products at competitive prices.

Business Strategy:

• We manufacture the products after deep future predictions.

• A dynamic yet consistent approach to product development.

• Wide range of products, resulting in plenty of liberty of choice.

• Strict adherence to immaculate quality standards and control

• Supply in a short span of time

• A combination of technology and designs, leading to innovation

• Balanced use of different business activities to uphold a strong market position

• Team of Designers from Top Institutes



The Company is engaged in the manufacturing of Women Apparels such as Kurtas/Kurtis, Kurti with Palazzo, Kurti with Skirt, Pants, Salwar Dupattas etc. The Bifurcation of the total units sold by us in the FY 2020-21 is as follows:

UNITS SOLD (01.04.2020-31.03.2021)








The scope and authority of the Internal Audit function is well defined in the organization. To maintain its objectivity and independence, the internal audit function reports to the Chairman of the Audit Committee of the Board. The Internal Audit Department monitors and evaluates the efficacy and adequacy of internal control systems in the Company, its compliance with operating systems, accounting procedures and policies at all locations of the Company. Based on the report of the internal audit function, process owners undertake corrective action in their respective areas and thereby strengthen the controls. The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The internal financial controls as laid down are adequate and were operating effectively during the year.


Our people are at the heart of how we do business. It is their talent and skills that will take us to our dream of becoming a $1 billion brand. We continue to invest in building best-in-class fashion teams. Recognizing that the workforce will provide critical competitive edge in its growth endeavor, the Company has laid emphasis on recruiting, maintaining and developing its human asset base.

The Company treasures its human resource as it is the most critical element responsible for the growth of the Company. It ensures a safe, conducive and productive work environment across its properties. The Company provides regular skill and personnel development training to enhance employee productivity and keep pace with technological advancements. The experienced and talented employee pool plays a key role in enhancing business efficiency, devising strategies, setting-up systems and evolving business.


Analysis of the profit and loss statement:


2020-21 2019-20 2020-21 2019-20
TOTAL REVENUE 4826.52 4709.38 4609.48 4374.00
TOTAL EXPENSES 4563.45 4571.57 4363.20 4261.78
PBT 258.08 125.80 246.28 107.62
PAT 190.43 85.22 178.01 74.17
EARNING PER SHARE 2.30 1.14 2.15 0.99
DEBT EQUITY RATIO 0.32 1.02 0.28 0.49


The Future prospectus/Business Highlights are as follows:

• OPENING OF NEW RETAIL STORES: We have opened 2 offline stores in the FY2020-21 and are eyeing the next phase of expansion to take the count of our stores total to 20-25 by the end of the FY2023.

• REVENUE GENERATION: Soon to touch 100 Crore group in next 3-4 years.

• E-RETAILERS (GAME CHANGERS): E retailers are the major Game changers for the Indian Economy in the year 2021 post COVID-19 pandemic

• MAIN BOARD MIGRATION: The Company has received In-principle approval from the Stock Exchange regarding Main Board Migration and the Principle/Final Approval from the Stock Exchange is awaited. The Listing on the Main Board is likely to have wider participation from investors at large and trading in the Equity Shares of the Company on the Main Board will go on the long way in enhancing the image and goodwill of the Company. The benefits of listing on the Main Board in the form of market Capitalization, enhanced liquidity, larger participation, visibility etc., will accrue to the Members of the Company.

By Migrating on the Main Board the goodwill and the growth of the Company will increase and Company will be able to expand its business


Being a responsible corporate citizen, your Company strongly follows to giving back to the society. CSR initiatives help elevate the quality of life of the people by promoting healthcare, education and employment opportunities. Your Company will take numerous initiatives to develop local community around its manufacturing facilities and aims to continue its efforts to build on its tradition of social responsibility to empower communities.


This Management Discussion & Analysis Report contains statements about expected future events and financial and operating results of Raymond Group, which may be classified as forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the assumptions, predictions and other forward-looking statements will not prove to be accurate. Further, certain key performance indicators mentioned in the Annual Report are based on classifications made by the Company. Do not place undue reliance on forwardlooking statements as a number of factors could cause assumptions and actual future results or events to differ materially from those expressed in these forward-looking statements.


Statements in the Management Discussion and Analysis and Directors Report describing the Companys strengths, strategies, projections and estimates, are forward looking statements and progressive within the meaning of applicable laws and regulations. The Actual results may vary from those expressed or implied, depending upon economic conditions, Government Policies and other incidental factors. Readers are cautioned not to place undue reliance on the forward looking statements.