Forward Looking Statement
The statements in this Management Discussion and Analysis Report concerning the Companys goals, projections, estimates, expectations, or predictions may be considered forward-looking statements as per applicable securities laws and regulations. It is important to acknowledge that actual outcomes may differ significantly from those indicated in these statements. Several key factors could influence the Companys operations, including the availability and pricing of raw materials, cyclical demand and pricing trends in its primary markets, changes in government regulations and tax regimes, economic developments both in India and in the countries where the Company operates, and other related factors.
Unless otherwise specified or the context otherwise requires, all references to "we," "us," "your", "our," "the Company," or "REDTAPE" pertain to REDTAPE Limited.
INDUSTRY STRUCTURE AND DEVELOPMENTS
Footwear Industry
Economic think tank "
Global Trade Research Initiative" said that the Indian footwear market, valued at USD 26 billion, is projected to reach USD 90 billion by 2030.This growth will be driven by two main changes a significant increase in the demand for non-leather footwear (like sports shoes, running shoes, casual wear, and sneakers), rising from 25% to 75% market share by 2030; and a shift in leather shoe production from small-scale, cottage industries to large corporates.According to Statista
In 2025, the revenue generated in the Footwear market in India amounts to USD 33.86bn.
It is expected that the market will grow annually by 7.73% (CAGR 2025-2030).
In relation to the total population figures, it is expected that per person revenues of USD 23.28 will be generated in the Footwear market in India in 2025.
The market volume is expected to amount to 4.0bn pairs by 2030, with a volume growth of 9.5% expected in 2026.
The average volume per person in the Footwear market is expected to be 1.86pairs in 2025.
It is also noteworthy that by 2025, 97% of sales in the Footwear market in India will be attributable to non-luxury.
Indias footwear market is thriving due to a growing middle class and a rise in e-commerce sales.
India is increasingly adopting non-leather footwear, a trend driven by younger, fashion-conscious consumers with more disposable income. This shift is supported by factors like rising middle class, urbanization, and a preference for branded and casual footwear. E-commerce has also expanded access to various footwear styles. Footwear has become a fashion statement, leading to an increase in both the volume and price of sales. People now own multiple pairs of footwear for different occasions, including casual, formal, dress, and athletic styles.
India has solidified its position as the second-largest producer and consumer of footwear in the world, following only China.
Apparel Industry
The apparel market size has grown strongly in recent years. It will grow from $692.42 billion in 2024 to $736.58 billion in 2025 at a compound annual growth rate (CAGR) of 6.4%. The growth in the historic period can be attributed to strong economic growth in emerging markets, a rise in foreign direct investments, increased demand for man- made fibers, and technological development.
Opportunities:
Due to the increasing disposable income among consumers in emerging economies is significantly driving the global apparel market.
Emerging economies such as China, India, Brazil, and others are experiencing rapid urbanization, industrialization, and economic growth, enabling the middle class with higher purchasing power.
Growing consumer demand for sustainable and environmentally friendly products, including apparel, is likely to develop growth trends for this market.
Consumers are urging brands to adopt transparent supply chains, minimize waste, and enforce fair labour practices to meet this demand.
Sustainable practices mitigate negative ecological, social, and economic impacts while promoting long- term well-being and resilience.
Social media has greatly influenced fashion preferences, shaping consumer choices and shopping preferences. Influencers use social media to showcase multiple fashion trends, offering inspiration and guidance on incorporating these styles into everyday or special occasion attire.
The female fashion industry is experiencing a surge in demand for new trends and diverse options.
Threats:
Due to likelihood of returns or exchanges pursuant to incorrect sizing or dissatisfaction with the product, jolts the confidence of Customers.
Indias apparel industry faces challenges including economic instability and rising costs for raw materials and labour.
Whenever global supply chain disruptions and geopolitical events become adverse then apparel industry comes under the doldrums.
Intensified competition from international brands and an unorganized sector, alongside a talent deficit and outdated infrastructure, create barriers to growth.
The apparel industry continues to grapple with infrastructure gaps, leading to inefficiencies, especially in its supply chain.
Global brands are imposing stricter environmental norms and compliance requirements, demanding higher use of renewable energy and waste recycling.
While digital tools like AI and 3D design offer opportunities, widespread adoption for efficiency and innovation remains a challenge.
There is a significant need for increased textile recycling efforts to address the growing problem of fashion waste and meet sustainability goals.
Strategic Brand Positioning & Innovation at REDTAPE Limited
In view of the rapid and transformational growth of the Indian footwear industry,
REDTAPE has consistently embraced innovationnot just in the design, comfort, and performance of its products, but also in the way it connects and communicates with consumers. The Company believes that in todays competitive market, brand identity is not limited to the product alone but is deeply rooted in the overall experience offered to the customer.As consumer behaviour evolveswith preferences shifting toward style, versatility, affordability, and personalization
REDTAPE has proactively redefined its brand presentation strategies. From revamping retail formats and enhancing digital touchpoints, to leveraging influencer-led campaigns and immersive storytelling, the Company has adopted a more dynamic and youth-centric brand narrative.REDTAPE sees
innovation in brand expression as a critical pillar of long-term growth. Every stepfrom packaging and product visuals to advertising tone and customer engagementis aligned with the Companys commitment to remain relevant, relatable, and reliable to modern consumers.At its core, however,
REDTAPE continues to stand firmly by its foundational valuesquality, trust, affordability, and forward-thinking design. These values are not just part of its heritage but serve as the driving force behind its expanding brand equity across India and global markets.Through this balance of
tradition and transformation, REDTAPE has strengthened its position as a market leader in the mid-premium footwear segment, delivering both performance and perception that resonate with diverse customer segments.We have strong Promoter relationships, and our credit rating has already been improved.
The outlook for the Indian economy remains optimistic. Structural tailwinds, including demographic advantage, sustained infrastructure investment, a deepening digital ecosystem and manufacturing competitiveness, are expected to drive long term growth. The Indias internet economy will likely to reach $ 1 Trillion by Financial Year 2030, accounting for roughly one fifth of the nations GDP in Financial Year 2030, as per State of Indias Digital Economy (SIDE) Report Financial Year 2025.
Through our live social media engagements & in stores events, we collaborate with leading fashion bloggers, vloggers & influencers and organise our brand messages to a wider audience. Our customers our largest influencers and advocates. We reach a growing online audience through Amazon, AJIO, Flipkart, Myntra, Nykaa Fashion & Tata CliQ etc.
We are striving to achieve the following undermentioned milestone by the Financial Year 2030-31. Also note that these milestones are projection which can be change as per the prevailing market conditions, cost of inputs & geopolitical scenarios.
Estimated turnover of Rs. 5000 Crore.
Creation of two brands.
Listing in the foreign county.
Opening of 1000 retail stores.
Enhancement of revenue from the women category by 50 %.
For our products, kindly refer initial pages the of Annual Report.
Apparel Industry
Global Industry
According to McKinseys analysis of fashion forecasts, globally the apparel and retail industry will post top-line growth of 2 to 4 percent in 2025, with regional and country-level variations. Once again, the luxury segment is expected to generate the biggest share of economic profit.
The global apparel market size was valued at USD 1.77 trillion in 2024 andis projected to reach USD 2.26 trillion by 2030, growing at a CAGR of 4.2% from 2025 to 2030.
The increasing expenditure on apparel by customers worldwide is a key factor driving the market growth.Indias Apparel Sector: Growth Outlook and Strategic Drivers
With Indias per capita income witnessing consistent growthexpected to surpass USD 3,000 by 2027
consumer priorities are gradually shifting from essentials to discretionary categories such as fashion and lifestyle. Among all retail categories, fashion apparel is projected to register the highest growth rate, maintaining its dominance as one of the largest retail segments in the country.Increasing affluence, especially among urban and semi-urban middle-class households, is directly contributing to an elevation in fashion preferences, with consumers now seeking better quality, trend alignment, and brand value. This shift is further amplified by increasing social media influence and access to global fashion via digital platforms.
Indias demographic profile remains one of its greatest strategic advantages. With a median age of
28.2 years, the country boasts one of the youngest consumer bases among major global economies.
This youth-centric demographic is:
More open to experimental and fast fashion,
Highly responsive to digital marketing and influencer culture,
And naturally aligned with mobile commerce and app-based shopping.
The rising influence of Gen Z and Millennialswho together account for over 65% of Indias working populationis expected to be the single-largest driver of demand in the apparel sector over the next decade. These consumers are digitally savvy, brand-aware, and highly aspirational, propelling demand not only for western wear and athleisure, but also for sustainable and inclusive fashion
Outlook
The Indian footwear industry is poised for robust growth in the coming years, driven by evolving consumer preferences, advancements in technology, and an increased focus on sustainability. Here are the key trends and opportunities shaping the future:
Expected Growth Trajectory
The industry is projected to grow at a CAGR of 8
10%, with the market size expected to cross 1.4 lakh crores ($17 billion) by 2030. Rising disposable incomes, urbanization, and the growing popularity of branded footwear will be key drivers of this growth.Premiumization and Branded Footwear
Indian consumers are increasingly leaning toward premium and branded footwear, with a focus on quality, design, and comfort. This shift is particularly prominent in urban areas, where global and domestic brands are expanding their reach.
Role of Technology
Technology will play a pivotal role in shaping the future of the industry. From AI-driven manufacturing processes to smart footwear with integrated health trackers, innovation will cater to a tech-savvy consumer base.
Focus on Sustainability
Sustainability will remain a key focus area, with consumers demanding eco-friendly materials and ethical production practices. Companies like RedTape Footwear are expected to lead the way by adopting sustainable manufacturing practices and leveraging innovative, environmentally conscious materials.
Export Opportunities
Indias position as a leading footwear producer presents significant opportunities in global markets. With government support for exports and growing demand for affordable yet high-quality footwear, Indian brands have the potential to further strengthen their foothold in international markets.
Free Trade Agreement (FTA), a emerging boon:
The world is looking at India, and several developed economies are negotiating FTAs with our Country. The Commerce industry is engaged in the negotiations day in and day out. In the morning, offices open in Australia and Japan; by afternoon Europe is active; in the evening, discussion begin with the US and with Peru and Chile and such development will surely bring favourable result for our Economy.
OPPORTUNITIES AND THREATS
Key Challenges in the Footwear Industry
Supply Chain Disruptions:
Global events have exposed vulnerabilities in footwear supply chains. Raw material shortages, shipping delays, and increased logistics costs impact production and delivery.Rising Costs:
Inflation, increasing labour expenses, and fluctuating material prices pressure profit margins throughout the industry.Market Saturation:
With numerous brands competing for consumer attention, differentiation becomes increasingly difficult.Retail Evolution:
The decline of traditional retail channels forces brands to reconsider distribution strategies and customer engagement approaches.Emerging Opportunities in the Footwear Industry
Localized Production:
Nearshoring and local manufacturing reduce supply chain risks while appealing to sustainability-minded consumers.Premium Positioning:
Brands counter rising costs by adding value through innovation, sustainable materials, or enhanced customer experiences.Niche Specialization:
Focusing on underserved segments offers growth potential in the crowded footwear market.The Footwear Industrys Path Forward
The footwear market stands at a pivotal juncture where tradition meets innovation. As consumers increasingly expect personalized experiences, sustainable practices, and technological integration, brands must evolve their approaches to remain competitive. The most successful companies will blend digital convenience with authentic brand storytelling, creating meaningful connections with consumers across multiple touchpoints.
With projected growth exceeding $570 billion by 2030, the footwear industrys continued adaptation to changing consumer behaviours, technological advancements, and sustainability demands will define its success in the years ahead.
REDTAPEs proactive risk management, with Board of Directors reviews and Risk Management Committee oversight, enables effective navigation of uncertainties and challenges, ensuring sustained growth and success in the dynamic footwear industry.
RISK AND CONCERNS AND CONTINGENT LIABILITIES
The
footwear industry is witnessing a period of significant transformation. Customer needs, expectations, and buying behaviours are evolving rapidly, with a growing emphasis on convenience, product discoverability, and enhanced shopping experiences across both offline and digital channels. These shifts are emerging as key business drivers and are influencing the Companys strategic initiatives.The Company also acknowledges that
competition is intensifying, with both domestic and international playersparticularly in the value-driven segment posing new challenges. To maintain the relevance of the RedTape brand among Millennials and Gen Z consumers, the Company recognizes the importance of continuously evolving its product portfolio mix in line with changing fashion trends and consumer preferences.Technology enablement is another area of focus. The
modernisation of IT systems is being pursued alongside robust measures to protect against risks of data loss, cyber threats, and other vulnerabilities. These initiatives are critical for ensuring seamless customer experiences and business continuity.The Company also remains proactive in
complying with changes in government laws, regulations, and policies, thereby minimizing potential adverse impacts on sales, costs, and operations. In addition, close monitoring of external macroeconomic and geopolitical factors including raw material price fluctuations, inflationary pressures, and global uncertaintiesis carried out to mitigate risks that could affect business performance.To ensure structured oversight, the Company reviews its
major risks and concerns at regular intervals. Mitigation measures are taken in consultation with relevant stakeholders, including the Risk Management Committee (RMC) and the Audit Committee of the Board, ensuring a comprehensive and proactive approach to risk management.INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
We have an adequate system of internal financial controls in place commensurate with the size, scale and complexity of the operations of the Company. We have documented policies and procedures covering all financial and operating functions. These controls have been designed to provide a management efficiency, measurability and verifiability, assurance regarding maintaining of proper accounting controls for ensuring reliability of financial reporting, monitoring of operations, and protecting assets from unauthorized use or losses, executing transactions with proper authorisation, compliances with regulations. This is to timely identify and manage the Companys risks (operational, compliance-related, economic and financial).
We have continued our efforts to align all our processes and controls with global best practices.
Some significant features of the internal control of systems are:
The Audit Committee has been constituted, and it regularly reviews the audit plans, significant audit findings, adequacy of internal controls, compliance with accounting standards as well as reasons for changes in accounting policies and practices, if any.
A monitoring process is in place to track the implementation of audit recommendations, including those related to enhancing the Companys risk management systems.
Documentation of major business processes and testing thereof including financial closing, computer controls and entity level controls, as part of compliance program, as required under the Companies Act, 2013.
Robust Enterprise Resource Planning, supplier relations management and customer relations management connect our different locations, dealers and vendors for efficient and seamless information exchange.
Detailed business plans for each segment, Investment Strategies, year-on-year reviews.
A well-established, independent, multi- disciplinary Internal Audit team operates in line with governance best practices. It reviews and reports to Management and the Audit Committee about compliance with internal controls and the efficiency and effectiveness of operations as well as the key process risks.
The Board of Directors, responsible for the internal control system, sets the guidelines and verifies its adequacy, effectiveness and application.
As part of the efforts to evaluate the effectiveness of internal control systems, the Internal Audit Department review control measures on a periodic basis and recommend improvement, wherever appropriate.
The Audit Committee regularly reviews the audit findings as well as adequacy and effectiveness of the Internal Control measures.
During the last year, our Company got its Internal Financial Control System (IFCS) checked & verified by the Grant Thornton Bharat LLP as well and the report of the same was duly presented to the Audit Committee, Internal Auditors, Statutory Auditors and further discussed with the Board of Directors. No adverse findings were recognized during such verification although there were suggestions for the more improvements. We shall endeavours our efforts for above financial controls for the better financial functioning of the Company because money saved is money earned.
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES
At
REDTAPE LIMITED, employees remain at the core of our operations and are recognized as the driving force behind our sustained success. We firmly believe that our workforce is the cornerstone of organizational growth across all business segments.The Company places significant emphasis on human resource development, focusing on identifying key competencies,
nurturing talent, and providing employees with structured training and learning opportunities. Continuous development initiatives ensure that employees are well-equipped to address present challenges while also preparing them for future growth prospects within the organization.
As a new-age organization, REDTAPEs approach to talent management includes:
Building sustainable talent pools
by engaging with businesses to recruit the right candidates for vacant positions.Leadership development,
wherein high- performing employees are identified, mentored, and provided with clear growth pathways.Employee motivation
through performance-linked incentives that drive engagement and enhance productivity.Succession planning
to ensure business continuity and leadership strength across functions.To foster innovation, employees are encouraged to experiment with new ideas and processes that break away from routine practices. Teamwork is further strengthened through structured team-building events and collaborative initiatives. Additionally, strategic employee retention measures have been integrated across the companys operations to sustain long-term engagement.
REDTAPE
also maintains a fair, safe, and inclusive work environment, enabling employees to learn from one another and achieve their full potential. With an emphasis on continuous improvement, our people remain agile and responsive in an ever-evolving business landscape.The Human Resources and Secretarial Departments, in collaboration with functional heads, work actively to uphold workplace ethics and address concerns. Notably, during the year under review, no complaints were filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013, reflecting our commitment to a safe and respectful workplace.
The Company is equally focused on employee health and safety, with robust systems in place to foster a safe working environment across all units. Our "zero-injury" culture is driven by continuous improvement initiatives and employee-driven suggestions, reinforcing a strong sense of belonging and accountability.
Through these initiatives,
REDTAPE continues to uphold ethical standards, strengthen inclusivity, and reinforce its commitment to employee excellence ensuring that our workforce remains aligned with the organizations vision and long-term objectives.As of March 31, 2025, the companys on-roll employee strength stood at
819 compared to 867 the previous year.Segment -wise or product -wise performance of the Company for FY 2024-25.
Sales Composition by Category:
Footwear & Footwear Material: 60%-61%
Garments & Accessories: 37%-38%
Others: 0%-1%
Sales Composition by Channel:
Retail Sales: 62% 64%
Online Sales: 31% 33%
Licensee Sales: 3% 4%
FINANCIAL PERFORMANCE
The key indicators of the financial performance of the Company for the Financial Year 2024-25 were as under:
Amount in INR Lakhs
S r . Particulars Standalone Consolidated
No. |
F.Y. 2024-25 |
F.Y. 2023-24 |
F.Y. 2024-25 |
F.Y. 2023-24 |
1 Total Revenue | 206375 |
184464 |
205293 |
185597 |
2 Total Expenses Excluding Finance Cost & Depreciation | 168274 |
152615 |
168563 |
152798 |
3 EBITDA (Earnings before Interest, Depreciation & Tax) | 38101 |
31849 |
36730 |
32799 |
4 Finance Costs | 5087 |
3244 |
5094 |
3251 |
5 Depreciation & Amortization Expenses | 8287 |
5876 |
8343 |
5924 |
6 Profit/ Loss before Exceptional items | 24727 |
22729 |
23292 |
23624 |
7 Add: Exceptional items [Gain (+)/ Loss(-)] | 0 |
0 |
0 |
0 |
8 Profit/Loss from continuing operations before Tax | 24727 |
22729 |
23292 |
23624 |
9 Tax Expense | 6279 |
5749 |
6292 |
6000 |
10 Profit/Loss from continuing operations After Tax | 18448 |
16980 |
17000 |
17624 |
11 Profit/Loss from discontinued operations After Tax | 0 |
0 |
0 |
0 |
12 Profit/ Loss for the year after Tax | 18448 |
16980 |
17000 |
17624 |
13 Other Comprehensive Income | -90 |
-33 |
-149 |
-20 |
14 Total Comprehensive Income | 18358 |
16947 |
16852 |
17604 |
15 Basic EPS (Per Share of Rs. 2/-) (in Rs.) | 3.34 |
3.07 |
3.08 |
3.19 |
16 Diluted EPS (Per Share of Rs. 2/-) (in Rs.) | 3.34 |
3.07 |
3.08 |
3.19 |
--
Details of significant changes in key financial ratios along with explanationAmount in INR Lakhs
Standalone Consolidated
FY 2024-25 |
FY 2023-24 |
Variation (in %) |
FY 2024-25 |
FY 2023-24 |
Variation (in %) |
|
Debtors Turnover | 20.02 |
20.98 |
-4.58% |
19.87 |
21.08 |
-5.74% |
Inventory Turnover | 2.04 |
2.61 |
-21.84% |
2.04 |
2.62 |
-22.14% |
Interest Coverage Ratio | 5.87 |
1.98 |
196.47% |
5.57 |
2.04 |
173.04% |
Current Ratio | 1.33 |
1.46 |
-8.90% |
1.33 |
1.48 |
-10.14% |
Debt Equity Ratio | 0.46 |
0.25 |
84% |
0.46 |
0.25 |
84.00% |
Operating Profit Margin (%) | 14.45 |
14.38 |
0.49% |
13.83 |
14.81 |
-6.68% |
Net Profit Margin (%) | 9.14 |
9.27 |
-1.40% |
8.42 |
9.56 |
-11.92% |
Return on Net Worth | 23.41 |
27.25 |
-14.09% |
21.55 |
27.7 |
-22.20% |
Cautionary Statement
The Management Discussion and Analysis Report contains certain statements about the Companys objectives, expectations, projections, and future outlook, which may be considered
"forward-looking statements" within the meaning of applicable laws and regulations. These statements are based on assumptions and expectations of future events and are subject to risks and uncertainties.Actual results, performance, or achievements may differ materially from those expressed or implied in such forward-looking statements due to several factors, including but not limited to:
Demand and supply dynamics in domestic and international markets,
Volatility in raw material costs and availability,
Changes in government policies, regulatory frameworks, and tax regimes,
Global and regional economic and political developments,
Competitive pressures and market conditions,
Outcomes of legal proceedings and labour negotiations, and
Other risks inherent to the Companys business operations.
The Company does not undertake to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law.
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