Osia Hyper Retail Ltd Management Discussions

Your directors are pleased to present the Management Discussion and Analysis Report for the year ended on 31^st March 2025.

ECONOMIC OVERVIEW

Indias economy is in the worlds top five economy by nominal GDP, experiencing robust growth driven by domestic demand, infrastructure, and policy reforms, positioning it as the fastest-growing major economy and on track to become the third-largest by 2030. Key sectors like services, manufacturing, and construction are expanding, supported by stable inflation and strong exports, although per capita income remains below the global average. The country is also making strides in digital transformation and remains a significant destination for global capital, reinforcing its role as a global growth engine.

Globally, there are concerns of slowdown in growth due to uncertainty in the financial markets. Geo-political risks also continued to remain heightened in some regions. In India, inflation continues to be the key economic indicator for regulators. However, the domestic economy remains resilient led by several inherent factors such as growing urbanization, stable geo-political environment and favorable demographics.

INDUSTRY STRUCTURE & DEVELOPMENTS:

The Retail/supermarket industry is evolving from traditional markets to organized formats like corporate chains and franchises, driven by rising incomes, urbanization, and increased FDI. Key developments include the growth of e-commerce and omnichannel retailing, with an increased focus on private labels, omnichannel shopping, and customer loyalty programs. The industry structure includes agricultural producers, wholesalers, diverse retail formats (supermarkets, warehouse stores, specialty stores), and consumers, all connected by a complex, evolving supply chain.

INDUSTRY DEVELOPMENT:

• Shift to Organized Retail:

The Indian retail sector, in particular, has transformed from traditional unorganized stores to large supermarkets and malls.

• Growth of FDI:

Foreign Direct Investment (FDI) in retail has been a crucial factor, especially in developing countries, facilitating the expansion of global retail multinationals.

• Rise of E-commerce:

The advent of e-commerce has significantly transformed the landscape, with consumers increasingly using online channels for shopping.

• Omnichannel Retailing:

A significant portion of consumers uses a mix of online and in-store channels for purchasing various categories.

• Increased Consumer Demand:

Rising incomes, increased urbanization, and growing consumer aspirations are driving the demand for modern retail formats.

• Focus on Private Labels:

The trend towards increased use of private-label brands is a key development in supermarkets.

• Health and Wellness:

Growing consumer interest in nutrition and high-quality ingredients, especially in the food and beverage sectors.

• Customer Loyalty Programs:

Growing popularity to enhance customer retention, increase spending, and gather valuable data on customer behavior.

ORGANISATION PROFILE:

The company was originally incorporated in Ahmedabad as Mapple Exim Private Limited on October 2013.Later it was converted into a Public Limited Company and the name was changed to Mapple Exim Limited. Mapple Exim Limited was renamed as Osia Hyper Retail Limited from September 2017. The company is currently being promoted by Mr. Dhirendra Gautamkumar Chopra and Mrs. Kavita Dhirendra Chopra with their rich experience of more than 15 years and 10 Years respectively. Osia opened its first store in Ahmedabad, Gujarat in 2014, in the name of "Osia Hyper Mart". As on date, Osia operates 43 stores with business spread across Ahmedabad, Vadodara, Gandhinagar, Gandhidham, Palanpur, Mehsana and Dehgam and one distribution center located at Rakhial, Ahmedabad.

Osia offers thousands of products under a single roof which caters to every need of a family and making Osia Hyper Mart publics favourite shopping destination with a modern ambience and feel of a large retail mall. These incorporate Menswear, Womens wear, Kids wear, Footwear, Cosmetics, Perfumes and Handbags, Household Accessories, lingerie, Gifts, FMCG, crockery, Handicrafts, utensils, handlooms, etc.

INDIAN RETAIL INDUSTRY

Indian Retail industry is expected to touch $1.8 tn by FY 26@ CAGR of 15%. The retail sector is experiencing exponential growth, with retail development taking place not just in major cities and metros, but also in Tier-II and Tier-III cities. According to a recent report by India Brand Equity Foundation (IBEF), India is expected to become the Worlds third largest consumer economy. At Present, India leads in terms of per capita retail store availability making it a favorable market for retailers. India is Asias third largest retail market and the worlds fourth largest after the US, China, and Japan. It is one of the fastest growing major economies in the world, in turn leading to high growth in consumer and retail markets, thus presenting massive investment and business opportunities.

EXPANSION & FUTURE PROPOSAL:

Osia Hyper Mart came out with a SME IPO in March 2019 and raised Rs. 39 crores (1578400 Equity shares issued @ Rs.252 per share) for further expansion to newer geographies for next level of growth. This Issue is being undertaken to meet the objects, as set forth herein, and to realize the benefits of listing of our Equity Shares on Stock Exchanges, which in our opinion would enhance our Companys visibility, brand name and enable us to avail of future growth opportunities. The other Objects of the Issue also include creating a public trading market for the Equity Shares of our

Company by listing them on NSE EMERGE Platform and company has migrated to Main board of NSE w.e.f. 01.12.2022.

Further, we believe that the listing of our Equity Shares will enhance our visibility and brand name among existing and potential customers.

RISKS AND CONCERNS:

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

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The financial performance of the Company for the year 2024-25 is described in the Directors Report under the head Financial Result.

INTERNAL CONTROL SYSTEM:

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 processes are duly reviewed for their adequacy and effectiveness on a periodical basis.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS FRONT:

Company takes pride in the commitment, competence and dedication shown by its employees in all areas of business. Your directors wish to convey their gratitude and place on record their appreciation for all the employees at all levels for their hard work, solidarity, cooperation and dedication during the year. Industrial relations were cordial throughout the year.

DISCLAIMER:

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.