Oriental Trimex Ltd Management Discussions

We are excited to present Oriental Trimex Limited s Management Discussion and Analysis Report a comprehensive overview packed with insights into our business strategy, industry dynamics, upcoming trends, and operational performance. This report is a key part of our commitment to transparent Corporate Governance.

Industry Structure and Development:

Did you know that marble is not just a beautiful stone but a product of nature s incredible metamorphic process? Formed when limestone experiences heat and pressure, marble is composed of calcite (CaCO3) and often features a mix of minerals, including clay, quartz, and graphite.

The marble industry is an intricate tapestry of players, from colossal multinational corporations to small, privately owned businesses. A mere handful of countries China, Turkey, India, Iran, Italy, Spain, Brazil, Egypt, Portugal, and Greece command just 3.76% of the global market. Notably, beige and cream marbles dominate the European scene, while striking black, white, and green varieties also make a mark. The India natural stone market (broader materials including slabs and decorative applications) stood at USD/ 709.2/ million in 2024, with growth forecast to reach USD/ 1,061.1/ million by 2030 at a 7.1% CAGR. The broader Indian construction ornamental stone market (which includes natural stone such as marble, granite, sandstone, limestone) is estimated at about/ USD/ 18.8/ billion by 2025, with a projected CAGR of 5.17% from 2025 to 2030. The leading producers in this dynamic market include giants like China, India, and Turkey.

Delhi NCR (National Capital Region) is among India s largest real estate and construction hubs, with a nominal GSDP of roughly USD/ 270 370/ billion in FY/ 2023 24, growing at 9.2% annually. As NCR includes Delhi plus satellite cities like Gurugram, Noida, Faridabad etc., the market demand for natural stone in residential, commercial, and infrastructure is significant.

One of the critical factors driving marble producers is the cost of raw materials, and remarkably, how quickly these costs can be passed on to customers. While the U.S. Geological Survey (USGS) assures us that global stone resources are abundant, local availability may vary. Countries like Italy, with its rich deposits of high-quality marble, stand out as essential producers and exporters, while Turkey benefits from its strategically located natural stone regions.

Interestingly, prices for marble tiles tend to lag behind those for marble blocks, creating variability in producer margins. To combat this, many producers opt for contracts with pass-through clauses to cushion against these fluctuations.

In India, the marble market is primed for significant growth, particularly within the booming building and construction sector. The surging demand for high-end residential and non-residential infrastructure makes marble and granite materials the go-to choice for durable and aesthetically pleasing flooring, walls, and columns the masses like marble-design vitrified tiles. The company is trying hard to establish its Rare Earth brand for vitrified tiles nationwide. This growth is further accelerated in developing nations like China and India, where infrastructure development is rising.

MACROECONOMIC OVERVIEW:

The global economic landscape is facing some headwinds, Geopolitical tensions, revision in US Trade policy recently, ongoing war in Ukraine falling energy prices, soaring inflation, and tightening monetary policies from major central banks, have collectively dampened growth prospects.

As we navigate these challenges, we remain committed to leveraging opportunities within our industry, confident in our strategies for sustainable growth.

THE INDIAN CONSTRUCTION MARKET:

A Journey Through Challenges and Opportunities.

The past year has seen an upward trend for the Indian construction market, marked by uncertainty and volatility. Extended monsoons, severe flooding in key states, and a cautious economic outlook have hampered consumer demand, leading to a sluggish housing market. This unique combination of a real estate slowdown and a credit crisis has taken a toll on the Marble and Granite sector.

In recent months, we ve witnessed the Indian real estate sector showing signs of recovery, largely thanks to renewed liquidity fuelled by various government initiatives. Improved cash flows, bolstered by easier access to financing at lower interest rates, have enabled many real estate players to restart stalled projects and even launch new ones.

India, cementing its status as the largest economy in the region, is poised for an impressive Real GDP growth rate of 8.2% in 2025-26, a leap from 7.0% in 2026-27.

The nominal GDP, also known as GDP at Current Prices, is projected to reach an astounding above? 310 lakh crore in 2025-26, up from ? 269.50 lakh crore in previous fiscal year, reflecting a vibrant growth rate of 9.6%.

Navigating Opportunities and Challenges.

While a nationwide construction boom may still be on the horizon, we see promising improvements in various regions. Demand for natural stone is burgeoning in places like Bangalore, the National Capital Region (NCR), and other urban centres. Yet, challenges remain, with thousands of unsold luxury flats in major cities such as Mumbai and Delhi NCR, leaving numerous construction companies grappling with significant financial strains. A widespread boom might take a few more years to fully materialise.

Our Strategy and Outlook

We have reached out to numerous marble dealers and shopkeepers in Northern India.Many dealers make their purchases independently, albeit not every month, creating a steady channel for product sales. We ve also nurtured relationships with franchisee dealers, whom we initially supported, and they continue to rely exclusively on us for their needs. Our dedicated marketing team works tirelessly on retail and project sales, collaborating closely with various developers across India. When needs arise, our marketing staff promptly engages with their purchasing departments, organises factory visits, and wraps up transactions. Participation in exhibitions and other platforms significantly boosts our customer outreach.

As for the future, we are not planning any significant capital expenditure (CAPEX) shortly. However, an exciting opportunity is on the horizon we re gearing up to export our products to Middle Eastern countries, having built strong connections with buyers and project stakeholders over the last three years. Our export operations will be conducted from our unit near Chennai Port Airport at Jewar in Greater Noida will be operative soon. Our showroom s proximity to this monumental development places us in a prime position to cater to the needs of infrastructure project developers and hotel builders.

We have several innovative plans in the pipeline, including ventures into exports withinthisyear. The future looks bright, and we are excited to be part of India s evolving construction landscape!

Exciting Updates from Oriental Trimex Ltd

At Oriental Trimex Ltd, we re proud to be a certified ISO 9001:2000 company, specialising in the mining, importing, and processing of unique natural stones like Marble, Travertine, and Onyx from every corner of the globe. We re thrilled to announce our latest initiative to expand our product offerings, adding a diverse range of related products. This strategic move is designed to deepen the loyalty of our customers toward our well-respected Oriental brand, built over two decades of excellence. With minimal extra costs, we aim to unlock new revenue opportunities!

Our industry prestige is reflected in our expansive presence across India, where we showcase premium Italian, Spanish, Turkish, Egyptian, Greek, and Chinese marbles. We re currently in discussions with renowned international brands such as KMEW from Panasonic Japan, exploring innovative cladding options for the exteriors of both residential and commercial buildings.

Our brand "Rare Earth" symbolises our commitment to quality. We offer naturally grained marbles selectively handpicked from the finest quarries worldwide. Thanks to our robust sourcing capabilities and deep understanding of local preferences something many of our competitors struggle with we have uniquely positioned ourselves in the market.

In exciting news, the marble under the Rare Earth brand will now be complemented with budget-friendly Indian Granites and stunning porcelain tiles that mimic the rich colours of our imported stones. This approach addresses customer needs and provides options for varying budgets, making elegant choices accessible to a broader audience. Twelve cities in Uttar Pradesh have been earmarked for rapid urbanisation as part of the Central Government s Smart City initiative. Our longstanding presence in Greater Noida over the past 25 years equips us to connect with customers in these emerging urban spaces, particularly in tier 2 and tier 3 cities, where we see significant potential.

Debt Status Update: A Path to Financial Freedom.

We re thrilled to share our recent milestone regarding debt management. On January 30, 2024, we reached a successful one-time settlement with Edelweiss ARC in Mumbai, repaying INR 38.25 Crores to clear all outstanding debts. With this payment confirmed, we are on track to become debt-free.

A) New Showroom in Greater Noida: A Gateway to Innovation.

We are excited to announce the upcoming launch of a 21000 SFT showroom in Greater Noida s building materials market. This well-planned township, just a short commute from Noida and New Delhi, offers exceptional infrastructure, featuring high-rise buildings, spacious roads, and ample green areas. With the promising developments surrounding the Jewar Airport, including an atrocity project, we foresee tremendous opportunities. Our new showroom and warehouse, slated to open by September 2024, will provide our clients with a comprehensive range of flooring solutions.

The strategic advantages surrounding Jewar, including cutting-edge infrastructure and diverse hospitality options, align perfectly with our vision. Our showroom will be stocked with top-quality marbles ready for use, sourced from our processing plant in Chennai and granites procured from Rajasthan and Southern India. A thorough survey confirmed a consistent demand for flooring products in the area, further solidifying our decision to expand. We re also gearing up to open a showroom in Delhi next year!

B) Jet-Black Granite Quarry Update: A Bright Future Ahead**

We re proud to announce that we ve secured a Jet Black Granite Quarry lease spanning 4.961 hectares (approximately 534045.6 sq. ft.) in Village Poteru, Malkangiri District, Orissa. The Government of Orissa has issued a Letter of Intent for 30 years, and our mining plan has been officially approved.

At Oriental Trimex, we cherish these milestones as they pave the way for future growth and success. Stay tuned for more updates as we continue transforming the industry and exceeding our customers expectations!Exciting developments are on the horizon for our quarry project! The approved mining plan reveals a substantial deposit of decorative stones, particularly Jet-Black granite, renowned for its export potential. Expert assessment from Mr M.K. Mehta, a Registered and Approved Valuer (Mines & Quarries) and Chartered Engineer under the Indian Bureau of Mines, has valued this mineral treasure at an impressive ? 258.77 crores.

Here s a snapshot of the granite quarry we ve secured:

Sr. No	Category of Land	Area (Acres)	Area (Hectares)	Location	Type of Granite	Remark
1	Non-Forest	12.260	4.961	Village Poteru, Motu Tahasil, Malkangiri District, Odisha	Decorative Stones and Black Coloured Granite	The quarry is making strides toward becoming operational!

On May 21, 2025, we received an official mining lease from the Odisha Government for a quarry of Jer Black Granite, expanding our product offerings. We are poised to commence quarry operations this quarter and anticipate initiating commercial production shortly thereafter. As we drive export initiatives and collaboration forward, we are actively engaging with several Far East and Middle East companies, with discussions with a Vietnam-based partner currently in the final stages which will significantly boost our revenue and profitability

C) Revolutionary Leap Forward in Stone Industry Processing**

Our company has been at the forefront of processing and trading natural stones for over twenty years, catering to high-end residential and commercial construction projects. We re thrilled to announce an exciting development: we have imported Ultra-Thin Wire Machine from GASPARI MENOTTI TECHNOLOGIES S.r.l. Via Lotizzazione 25 54100, Massa - Italy, known as the Cable Machine for Slab Cutting. This innovative piece of equipment is being installed at our facility in Gummidipoondi, just outside Chennai.

What sets this machine apart?

Traditional gang saws rely on multiple blades to cut stone, but our new wire gang saw uses a series of diamond cables each only 0.4 to 0.6 mm in diameter for ultra-precise cuts. This breakthrough technology will make us the first company in the region to process imported marble using such an advanced machine!

Let s dive into some of the standout features and advantages of our new wire gang saws:

-**Sturdy Chassis Structure: **

Designed for stability, our wire gang saws ensure smooth cutting operations and minimise disruptions.

- **Pneumatic Wire Tensioning: **

The cables are independently tensioned pneumatically, enabling precise cuts across varying plate thicknesses.

- **Hydraulic Cylinder Support: **

With hydraulic cylinders enhancing the cutting group, this technology increases the machine s lifespan by alleviating operational stress

- **Durable Bellows Protection: **

Fully encased linear rails protect the system, enhancing longevity and reliability.

-**Incredible Speed:**

Expect to see cuts made approximately three times faster than traditional gang saw blades, while also significantly reducing power consumption.

-**Thin Slab Capability: **

Unlike traditional multi-blade machines requiring a minimum slab thickness of 18 mm, our multi-wire cutting machine can achieve slabs as thin as 8 mm, thanks to its unique shifting technique. This efficiency conserves raw materials and makes the machine s purchase cost recoverable within one year.

**Mitigating Risks**

Despite these challenges, the Indian marble and granite industry has undergone substantial modernisation, aligning with global standards. Our natural and engineered stones cater to large infrastructure projects, which have been instrumental in revitalising the sector. All three of our production units are equipped with state-of-the-art imported machinery, and we are now expanding our focus to include development work and retail customers.

The government s commitment to building a second airport for the NCR expected to commence operations by mid-2026 opens up new opportunities for us. We see remarkable potential in supplying our premium materials for the airport, the hotels, and the commercial spaces developed in the vicinity. Plus, with our sales outlet in Greater Noida, delivering to this site will be proficient and cost-effective.

Forecasting Future Growth.

Thanks to our unique presence in southern and northern India, our company is poised to grow its share significantly in premium-quality marble flooring, marble design tiles, and high-end granite slabs. The company is also

Ensuring Quality Control

At our marble processing plant in Gummidipoondi, Tamil Nadu, we pride ourselves on being among the first few companies in India installing the Smart ultra-thin wire cutting machine, a costly machine, almost five times that of a traditional Gangsaw machine. We ve implemented a rigorous 100% inspection protocol for Rough Blocks and final products, maintaining the highest quality standards to meet our customers evolving expectations nationwide. Rough Blocks are often wrapped with resin and fibre to fill minor cracks and holes on their surface. We usually use impregnation practice to protect the blocks from internal cracks and fissures.

We are excited about the future and the remarkable journey ahead in the stone processing industry.