Omfurn India Ltd Management Discussions

A) Industry Structure and Developments:

The Indian interior solutions and modular furniture industry is at the cusp of transformation. Rapid urbanisation, real estate expansion, rising consumer aspirations, and government initiatives such as Housing for All, Smart Cities Mission, and infrastructure-led growth are creating new opportunities for the sector.

Hospitality, commercial spaces, and institutional infrastructure continue to drive strong demand for complete solutions, while residential projects are increasingly embracing modular and sustainable furniture. Customers today seek customisation, functionality, and eco-friendly products, which has accelerated the demand for organised, quality-driven manufacturers.

Within this environment, Omfurn India Limited has positioned itself as a reliable and innovative player, delivering end-to-end solutions across wooden and metal doors, modular furniture, wardrobes, vanities. With a reputation built over two decades, modern infrastructure, and a diversified portfolio, the Company is well placed to meet the evolving needs of its clients.

B) Company Overview

Omfurn India Limited is one of Indias leading providers of modular furniture and interior solutions. The Companys strength lies in offering comprehensive, turnkey services that cover design, manufacturing, and installation. Its customer base spans across real estate developers, corporate offices, premium hotels and institutions, giving it a balanced exposure to multiple growth drivers.

A defining milestone for the Company has been the commissioning of its state-of-the-art metal door plant, enabling the production of fire-rated at scale. This vertical adds a significant growth engine and aligns with increasing demand from institutional and real estate projects.

The Companys product portfolio, backed by modern technology and in-house design expertise, positions Omfurn as a one-stop interior solutions provider.

C) Business Performance – FY 2024-25

FY 2024-25 was a year of growth and operational strengthening for Omfurn.

• Revenue from Operations stood at Rs.8412.59 Lakhs, up from Rs.8028.82 Lakhs in FY 2023-24.

• EBITDA increased to Rs. 1279.54 Lakhs, with margins improving to 14.94%, compared to 10.39% in the previous year.

• Net Profit rose to Rs.642.57 Lakhs, up from Rs.366.32 Lakhs in FY 2023-24, reflecting a 75% growth.

A major achievement during the year was the signing of a Memorandum of Understanding with a leading real estate developer for the supply and installation of modular furniture and doors across selected projects. This partnership demonstrates growing confidence in Omfurns execution capabilities and is expected to open new avenues for expansion in the real estate vertical.

D) Infrastructure and technology

Omfurns infrastructure forms the backbone of its competitiveness. The Company operates advanced manufacturing facilities equipped with CNC woodworking machines, automated finishing systems, and precision fabrication equipment. These facilities allow Omfurn to handle complex, large-scale projects while adhering to international standards.

Technology integration remains a key focus. The adoption of SAP-based enterprise systems has enhanced operational transparency, efficiency, and financial monitoring. The in-house design and R&D team plays a crucial role in developing new solutions, including fire-rated doors, modular wardrobes, and vanities, ensuring the Company stays ahead of market trends.

E) Human Capital and Culture

The strength of Omfurn lies in its people. The Company nurtures a culture of teamwork, accountability, and continuous learning. Training programs focus on advanced manufacturing techniques, project execution, and quality standards, ensuring employees are equipped with the latest skills.

Employee welfare and engagement remain top priorities, supported by industry certifications such as ISO 45001 for occupational health and safety. Industrial relations were cordial during FY 2024-25, reflecting strong collaboration between management and employees.

F) Sustainability and ESG

Sustainability is integral to Omfurns growth strategy. The Company holds certifications in ISO 9001 (Quality), ISO 14001 (Environment), and ISO 45001 (Health & Safety). As a Green Building Certified Company, Omfurn integrates eco-friendly practices across operations.

During the year, efforts were directed towards energy efficiency, solar power usage, waste minimisation, and sustainable sourcing. These initiatives not only reduce environmental impact but also enhance cost efficiency and stakeholder confidence.

G) SWOT Analysis: Strengths

• Established brand with more than two decades of industry experience.

• Diversified product portfolio: modular furniture, wooden, metal and engineered wooden doors, institutional furniture.

• Strong order book and client relationships across hospitality, real estate, and corporate segments.

• State-of-the-art manufacturing infrastructure and in-house design capabilities.

• Certified quality and sustainability credentials (ISO, Green Building).

Weaknesses

• Dependence on cyclical sectors like real estate and hospitality.

• Working capital requirements due to project-driven business model.

Opportunities

• Rising demand for branded, organised complete solutions in India.

• Growing adoption of modular and sustainable furniture.

• Expansion potential in the metal doors vertical, especially fire-rated wood finish on metal door.

• Opportunities to strengthen partnerships with leading real estate developers and hospitality chains.

• Export potential in Middle East and African markets.

Threats

• Raw material price volatility impacting profitability.

• Intense competition from organised as well as unorganised players.

• Execution risks in large-scale projects.

H) Outlook FY 2025-26:

The Company enters FY 2025-26 with optimism and confidence. With a healthy order book of over ? 150 crore, a strengthened product portfolio, and new partnerships with leading real estate and hospitality clients, Omfurn is poised for sustainable growth.

Key priorities will include:

• Scaling up the metal door vertical into a major revenue contributor.

• Expanding partnerships with real estate developers, hotel operators, and institutional clients.

• Strengthening focus on automation, digital integration, and cost competitiveness.

• Enhancing sustainability practices and expanding the range of eco-certified products.

• Exploring export opportunities to diversify revenue streams.

Our Mission is to achieve set corporate objectives and goals to offer world class furniture, solutions with innovative design based on price, quality and services and Our Vision is to create a Company that always delivers quality products with a focus and commitment towards total customer satisfaction so that we remain a benchmark in the furniture industry.

Your Company continues to maintain its relatively stable and progressive growth outlook. The initiative taken by your Company for technology up gradation, reducing overheads and finance costs, improving operating parameters and optimizing operating costs will enable the company to face challenges in coming times.

I) Risks and Concerns:

Omfurn operates in industries closely tied to real estate and hospitality, both of which are subject to cyclical variations. Rising input costs, supply chain challenges, and competitive pricing pressures are key risks. However, these are mitigated through strategic vendor relationships, diversified product offerings, strong execution capabilities, and prudent financial management.

J) Internal control system and their adequacy:

The Company has the Internal Control systems in place, adequate for the size of the Company and the nature of its business. The company has engaged the services of an independent Chartered Accountant to conduct internal audits and ensure that the recording and reporting processes are adequate and accurate, that internal controls are within the system, and necessary measures are taken to update the internal control system from time to time. The Internal Audits are carried out by the Internal Auditor of the Company. Internal Audits are conducted at regular intervals to assure the management of fair transactions. Efficacy of Internal Control systems are tested periodically by the Internal Auditors and internal control over financial reporting is tested and certified by statutory auditors. The Company also has an Audit Committee to interact with Statutory Auditors, Internal Auditors and Management in dealing with matters including financial reporting and internal controls.

K) Conclusion and Disclaimer

FY 2024-25 was a year of consolidation, growth, and strategic progress for Omfurn India Limited. The Company delivered robust financial results, strengthened its order pipeline, invested in technology, and expanded its product range. With a strong workforce, modern infrastructure, and a forward-looking strategy, Omfurn is well positioned to create long-term value for its stakeholders.

Statements in the Boards Report and the Management Discussion & Analysis that describe the Companys objectives, expectations, or forecasts may be considered forward-looking in accordance with the applicable securities laws and regulations. It is important to note that actual results may differ materially from those expressed in these statements. There are various factors that could influence the Companys operations, including global and domestic demand and supply conditions that impact the selling prices of finished goods, availability and prices of inputs, changes in Government regulations and tax laws, economic developments within the country, as well as other factors such as litigation and industrial relations.

These factors are subject to uncertainties and risks, and the Company does not assume any obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of the report. It is advised that stakeholders and investors exercise caution and rely on their own analysis and judgment when evaluating the Companys objectives, expectations, and forecasts.

SUDHIR J SHAH

CHAIRMAN DIN: 00302584

PLACE: MUMBAI Date: May 24, 2025