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Sanghvi Brands Ltd Management Discussions

14.5
(3.35%)
Sep 26, 2025|12:00:00 AM

Sanghvi Brands Ltd Share Price Management Discussions

Against the backdrop of the external environment of our value creation model and strategy your Board of Directors is pleased to share with you the Business Performance along with the Audited Financial Statements for the financial year ended 31st March 2025.

GLOBAL ECONOMY

The global economy continued its recovery through 2024 and into 2025, building on the momentum that began in 2023 after years of pandemic-related disruptions. According to the latest World Economic Outlook, policy tightening has increasingly curbed economic activity, though core inflation has proven more persistent than headline figures. Risks to the outlook are now more balanced, as earlier banking sector stress has subsided and financial conditions have stabilized. Global inflation has steadily declined, falling from 8.7 percent in 2022 to 6.9 percent in 2023, and further down to 5.8 percent in 2024. This trend has been driven by tighter monetary policy, alongside a continued easing in international commodity prices. Core inflation, however, is easing at a slower pace, and in many economies, inflation is only now approaching central bank targets. Most projections indicate inflation will return to target levels by late 2025 or early 2026.

Industry is taking all possible measures to survive in the short term, revive in the medium-term, and thus thrive in the long-term.

INDIAN ECONOMY: THE YEAR IN REVIEW

India has maintained its position as the world’s fastest-growing major economy in 2024 and into 2025, continuing the strong momentum from its 8.4% expansion in the final quarter of 2023. According to the latest estimates, India’s economy grew by approximately 6.5% in 2024, significantly outpacing China’s 4.6% growth, as projected by the International Monetary Fund (IMF). Robust domestic demand, structural reforms, and a resilient services sector have supported this performance. Additionally, India has become an increasingly attractive destination for multinational companies, with foreign direct investment (FDI) remaining strong across sectors such as manufacturing, digital services, and renewable energy. As global firms diversify supply chains and seek stable growth markets, India’s strategic importance in the global economy continues to rise.

Within services, ‘ trade, hotels, transport, communication and broadcasting related services constituting about a third of overall services. India’s economic recovery where certain sectors like information technology, e-Commerce and financial services registered healthy recoveries while other sectors such as retail trade and consumer discretionary were highly impacted. Travel and hospitality remained beneficiaries of such a recovery.

SALON AND SPA INDUSTRY

The beauty and personal care industry is a rapidly growing sector in India, and the salon industry is no exception. Over the past few years, the Indian spa and salon industry has seen significant growth, driven by several factors, including the growing middle class, increasing consumer awareness of the importance of personal grooming, and the rise of e-commerce and social media.

Explore everything from how hotel spas have been the fastest-growing subsector to how Asia is inching towards becoming the #1 market (now Europe) for spa revenues and facilities.

BUSINESS OVERVIEW

Our BRANDS are those that take action to make sustainable living commonplace in a way that is relevant for the society and motivating to consumers. Branding is becoming more and more important. So is brand identity. Your Company strive for better quality and also keep up with the demand for different services.

The year also saw strong performance of by the domestic location after pandemic. Your Company continues to improve its on-shelf quality of services to enhance consumer experience. Our belief remains firmly embedded in ‘Delighting consumers Everyday’.

The Company frequent measures to protect the health of its employees and guests by implementing renewed health and hygiene standards. New and detailed standard operating procedures were formulated as a comprehensive guide covering all areas of operations and service design, factoring in social distancing, digital-first approach and heightened precautionary processes for guests and employees.

The Company has reopened all of its location after establishing thorough and well-rehearsed safety protocols. Due to the unprecedented drop in revenues consequent to COVID-19 the Company decided to shut down its operations internationally. However, it expects demand for its services to pick up at a slow pace. Business recovery is likely to be driven by domestic and international leisure tourism, staycations, international business travel. The trust that the Company’s brands enjoy and its emphasis on the health and safety of guests and employees will help it gain market share as and when the economy revives.

HUMAN RESOURCES

An important challenge for the wellness industry is the need for professionally qualified personnel. Sustainable, profitable growth can only be achieved in an organization which focuses on performance culture and where employees are engaged and empowered to be the best they can be. While quality of talent has been your Company’s strength, there has been an impetus on building future ready leadership that is equipped and empowered to thrive in this dynamic environment.

RISKS AND CONCERNS

The Company has identified certain risks that are regard as the most relevant to our business. These are the risks that see most material to business and performance at this time. There may be other risks that could emerge in the future. However, the management is doing to ensure business continuity and working tirelessly to mitigate the risks. The management is monitoring the evolving situation carefully to understand the potential impact on the people and business.

Cautionary statement

This statement made in this section describes the Company’s objectives, expectation and estimations which may be ‘forward looking statements’ within the meaning of applicable securities, laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. Actual result could differ materially from those expressed in the statement or implied due to the influence of external factors which are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments.

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