On Door Concepts Ltd Management Discussions

Annexure-I

Pursuant to regulation 34(2) (e) of the Securities Exchange Board of India (Listing Obligations & Disclosure requirements) Regulation, 2015 the Board of Directors are hereby presenting the Management Discussion and Analysis report.

1. BUSINESS OVERVIEW

On Door is a fast-upcoming national level omni-channel retailer of groceries and household essentials. The company has the advantage of being one of early entrants in the supermarket industry to offer the convenience of both the colony stores as well as hyperlocal home delivery through online orders. Most of our stores also fulfil the on-line orders from their respective shelves. Our Company facilitates one-stop-shop convenience for our customers everyday shopping needs, along with our competitive pricing due to our local market knowledge, careful product assortment and supply chain efficiencies, has helped us achieve growth and success.

The Company opened its first store in Bhopal, Madhya Pradesh in January 2015. As of March 31, 2024, the company operates 63stores in the cities of Madhya Pradesh. The Company expects more contribution from smaller cities to grow rapidly as Company is focusing on smaller cities with Franchise Model. We open new stores using a cluster approach on the basis of adjacencies and focusing on an efficient supply chain, targeting densely-populated residential areas with a majority of middle and aspiring upper-middle class consumers.

2. INDUSTRY STRUCTURE AND DEVELOPMENTS

India has emerged as the fastest-growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships. Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10% of the countrys gross domestic product (GDP) and around 8% of the employment. India is the worlds fifth-largest global destination in the retail space.

The Retail sector in India has seen a lot of investments and developments and India has the third-highest number of e-retail shoppers (only behind China, the US). The new-age logistics players are expected to deliver 2.5 billion Direct-to-Consumer (D2C) shipments by 2030. Online used car transaction penetration is expected to grow by 9x in the next 10 years and the Government of India has taken various initiatives to improve the retail industry in India. Over recent decades, Indias rapid economic growth has led to a substantial increase in its demand for exports. Besides this, a number of the governments flagship programmes, including Make in India, Start-up India, Digital India, the Smart City Mission, and the Atal Mission for Rejuvenation and Urban Transformation, are aimed at creating immense opportunities in India.

3. EXPANSION AND FUTURE PROPOSAL

Our Management is hopeful that Company will register even higher growth rate in Future. The Company is working rapidly and looking forward for opportunities to grab more and more business and develop its business activities in such a way by minimizing its risk of losing business through others, the positive results of which will be seen in the years to come.

Further, we believe that the listing of our Equity Shares will enhance our visibility and brand name among existing and potential customers and enable us to avail of future growth opportunities.

4. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financial performance of the Company for the year 2023-24 is described in the Directors Report under the head Financial Result.

5. OPPORTUNITIES AND THREATS:

OPPORTUNITIES:

Opportunities highlight the key short, medium and long-term objectives of a brand, based on a review of a companys sales force, market research and performance. Industry insights, the relationships between us and our suppliers, and seasonal events are all powerful sales drivers and form the basis for growth. Major opportunities for the Company are as follows:

• Increase in emerging technologies.

• Long experience of the promoters in the industry;

• We follow the Quality standards which are followed by leading companies working in the same segment.

• To bring modern trade benefits to the rural and small-town customers.

• Omni-channel and convenient purchase experience to urban consumers.

• Track record of successful execution of projects.

• Experience across various Industry Vertical.

THREATS:

Threats can be both internal and external, and are classified as anything that might have an adverse effect on the revenue growth in store. Major Threats/Challenges to the Company are as follows:

• Technology dependency

• Integration with various technology

• Manpower retention

• Price Wars with Competitors

6. RISKS AND CONCERNS

Key factor in determining a companys performance is the companys ability to manage the risks in it business/environment effectively. Many risks exist in a companys operating environment and they emerge on a regular basis, viz Currency Risk, Market risk, Credit risk, Liquidity risk, Commodity price Risk, Human Resource Risk, statutory approvals. Risk management is embedded in operating framework of your Company. Your Company believes that managing risks helps in maximizing returns. Risk management framework is reviewed periodically by the Board and the Audit Committee. Like any other industry, the retail industry is also exposed to risk of competition, government policies, fluctuation of commodity price, natural factor like change in climate etc.

7. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company maintains a system of internal controls designed to provide reasonable assurance regarding the following:

• Effectiveness and efficiency of operations

• Prevention and detection of frauds and errors

• Effective use of resources

• Adherence to applicable Accounting Standards and policies

• Timely preparation of reliable financial information

Internal controls and governance process are duly reviewed for their adequacy and effectiveness on periodical basis.

8. CHANGES IN KEY FINANCIAL RATIOS:

Pursuant to provisions of Regulation 34 (3) of SEBI (LODR) Regulation, 2015 read with Schedule V part B (1) details of changes (i.e., change of 25% or more as compared to the immediately previous financial year) in Key Financial Ratios is given hereunder:

9. MATERIAL DEVELOPMENT IN HUMAN RESOURCES AND INDUSTRIAL RELATION FRONT INCLUDING NUMBER OF PEOPLE EMPLOYED

Our Company believes that a good Human Resource Policies are very effective for supporting and building the desired organization culture and to maintain the same our company taking actions on the day-to-day problems of the organization. The Company recognizes the importance and strategic value of its human capital as well as the cultural diversity and dignity of all employees, regardless of their position. It prioritizes employee empowerment to achieve organizational effectiveness and fosters a corporate environment that promotes self-motivation and teamwork. The Company continues to focus on creating strong and long-term relationship with all employees as employee retention and development are among the highest priorities of the Company. The Company is working on enhancing its competencies to take care of current and future business. The industrial relations of the Company continue to remain harmonious and cordial with focus on improving productivity and quality.

10. DISCLOSURE OF ACCOUNTING TREATMENT

In the Preparation of Financial Statements, Company has followed accounting principles generally accepted in India.

11. CAUTIONARY STATEMENT

Statements in this Annual Report, particularly those which relate to Management Discussion and Analysis, describing the Companys objectives, projections, estimates and expectations may constitute ‘forward-looking statements within the meaning of applicable laws and regulations. Actual results may materially differ from those expressed or implied. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.