Oriental Trimex Ltd Management Discussions

We are pleased to present Oriental Trimex Limiteds Management Discussion and Analysis Report, offering an insightful overview of our business strategies, industry trends, prospects, and operational achievements. This report underscores our steadfast commitment to transparent corporate governance.

Industry Structure and Development:

Did you know that marble is more than just a beautiful natural stone—its a testament to Earths incredible transformative power? Formed deep within the Earths crust under intense heat and pressure, limestone transforms into stunning calcite-rich marble, often infused with minerals like clay, quartz, and graphite.

The global marble industry is a diverse landscape of players, ranging from large multinational corporations to small, private enterprises. A few countries—China, Turkey, India, Iran, Italy, Spain, Brazil, Egypt, Portugal, and Greece—control about 80.4% of the worlds quarry production of dimension stone, based on 2020 data. China and India alone produce over half of this volume. However, while India offers a wide variety of marble, its limited colour options led many to import from abroad. European markets, in particular, prefer warm beige and cream shades, but striking black, white, and green varieties also hold significant appeal.

The Indian natural stone market, encompassing a wide range of applications such as marble, granite, slabs, tiles, and decorative and architectural uses, is projected to reach approximately USD 5.91 billion by 2027 and grow to around USD 8.12 billion by 2032, with an impressive CAGR of about 6.6%. Globally, the natural stone industry is valued at roughly USD 60.6 billion in 2027 and is expected to rise to about USD 75.2 billion by 2032, with a steady CAGR of approximately 4.2%. This indicates that Indias market is poised to outpace global growth during this period.

South India stands out as a key hub for stone processing and granite production, particularly in Karnataka, Tamil Nadu, and Andhra Pradesh. As a result, competition from granite is more intense here than in Delhi-NCR. However, opportunities are abundant for marble slabs in luxury homes, villas, hotels, upscale apartments, and high-end commercial interiors. The surge in luxury apartment developments across major cities further fuels the demand for natural stones.

Indias market conditions are currently very favourable. The tiles and marble sector remains robust, driven by strong domestic demand for housing despite rising international freight and supply chain costs. Delhi-NCR is experiencing vibrant construction activity and offers advantages due to its diverse market volume and longterm geographical expansion. Meanwhile, South India complements these prospects with its rich granite resources and vibrant marble usage, making it an ideal region for growth.

The India-Oman Comprehensive Economic Partnership Agreement (CEPA), which took effect on June 1,2026, opens exciting new opportunities for Indian marble processors. For the first time, rough marble blocks—previously restricted by the Omani government—are now available for export, creating fresh avenues for growth. This agreement offers Indian buyers substantial customs duty concessions, making procurement more attractive and competitive.

With this pact, a structured, ongoing supply chain is established, enabling buyers to source high-quality marble directly from Oman to meet the demands of builders, developers, architects, fabricators, and retail customers across India. Oman, already celebrated for its natural stone, remains a key supplier as India continues to import marble and related products.

Aligned with the broader trade framework under CEPA and related DGFT notifications, the arrangement covers marble blocks, tiles, and other products. It requires specific documentation, such as a Chartered Engineer certificate for marble blocks and a valid pre-purchase agreement with an Omani supplier for marble slabs.

Interestingly, marble tile prices often lag behind those of marble blocks, causing fluctuations in producer margins. To counter this, many producers include ‘passthrough clauses in their contracts, helping them cushion against market volatility.

Indias marble market is poised for remarkable growth, driven by a booming construction sector. Rising demand for luxurious residential and commercial projects positions marble and granite as the materials of choice for stunning flooring, walls, and columns— many consumers also favour design vitrified tiles. Companies are actively building brands like "Rare Earth for vitrified tiles across the country. This expansion is further accelerated by infrastructure development in growing markets like China and India, promising an optimistic future for the industry.

MACROECONOMIC OVERVIEW:

The global economic landscape is facing significant headwinds that challenge growth and stability. Geopolitical tensions, recent shifts in US trade policy, the ongoing conflict in Ukraine, unrest in Iran and the Middle East, soaring inflation, and tighter monetary policies by major central banks have all combined to cast a shadow over prospects.

The US-Iran conflict and disruptions around the Strait of Hormuz present specific risks for the marble industry, especially for companies importing marble blocks and slabs from Oman, as freight costs rise. Thankfully, imports from Turkey, Italy, and Greece, along with sales into India, have remained steady despite these pressures.

Amid these hurdles, our commitment to seizing opportunities remains unwavering. With confidence in our strategic direction, we continue to pursue sustainable growth and steer through these complex times with resilience and optimism.

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, the Indian real estate sector has shown 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. Nominal GDP, also known as GDP at Current Prices, is projected to reach an astounding ¹ 360 lakh crore in 2026-27, up from ¹ 310.00 lakh crore in the 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, Hyderabad, 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. But this is not the case with luxury apartments, and our product is more in demand there. A widespread boom may take a few more years to materialise fully.

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. Weve 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.

Looking ahead, we do not plan any significant capital expenditure (CAPEX) in the near term. However, an exciting opportunity is on the horizon—were 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

The Jewar Airport in Greater Noida is now operational. Our showrooms 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 within this year. The future looks bright, and we are excited to be part of Indias evolving construction landscape!

Exciting Updates from Oriental Trimex Ltd

At Oriental Trimex Ltd, were 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. Were 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 customer loyalty to our well- respected "Oriental " brand, built over Three decades of excellence. With minimal additional cost, 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. Were 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 Governments ‘Smart Cities 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.

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

We have opened a new warehouse-cum-showroom in Greater Noidas 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.

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 indigenous 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. Were also gearing up to open a showroom in Delhi next year!

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

Were proud to announce that weve 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 30-year Letter of Intent, 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 Qualified Mining Professional, Approved Valuer (Mines & Quarries) and Chartered Engineer under the Indian Bureau of Mines, has valued this mineral treasure at an impressive ¹ 258.77 crores.

Heres a snapshot of the granite quarry weve secured:

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!

The quarry is making strides toward becoming operational! Last year, on May 21,2025, we received an official mining lease from the Odisha Government for a Jet-Black Granite quarry, expanding our product offerings. We are poised to commence quarry operations this quarter and expect to begin 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. Were thrilled to announce an exciting development: we have imported an "Ultra-Thin Wire Machine" from GASPARI MENOTTI

TECHNOLOGIES S.r.l. Located at Via Lotizzazione 25 - 54100, Massa, Italy, its known as the "Cable Machine for Slab Cutting." This innovative piece of equipment has been 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 ultraprecise cuts. This breakthrough technology will make us the first company in the region to process imported marble using such an advanced machine!

Lets 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 machines lifespan by alleviating operational stress

- **Durable Bellows Protection: **

Fully encased linear rails protect the system, enhancing longevity and reliability. -**Incredible Speed: **

Expect cuts made about three times faster than traditional gang saw blades, while significantly reducing power consumption.

-**Thin Slab Capability: **

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

**Mitigating Risks**

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

The governments commitment has already resulted in the construction and launch of the second airport for the NCR in 2026, which has opened up new opportunities for us. We see remarkable potential in supplying our premium materials for the hotels and the commercial spaces developed in the vicinity of this new airport. Plus, with our sales outlet in Greater Noida, delivering materials to these sites will be efficient 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 to install the Smart ultra-thin wire cutting machine, a costly machine, almost five times that of a traditional Gangsaw machine.

Weve 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 wrapping/ impregnation 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.