Shangar Decor Ltd Management Discussions

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The Reserve Bank of India has projected real GDP growth at 6.5 per cent for 2025 26, maintaining the same rate as estimated for 2024 25, following a strong expansion of 9.2 per cent in the preceding year. The quarterly projections stand at 6.5 per cent in Q1, 6.7 per cent in Q2, 6.6 per cent in Q3, and 6.3 per cent in Q4. This marks a downward revision of 20 basis points from the February estimate, reflecting heightened global volatility. Agriculture remains on a positive footing, supported by healthy reservoir levels and robust crop production, which is expected to sustain rural demand. Manufacturing is showing early signs of revival amid improved business sentiment, and the services sector continues to demonstrate resilience.

On the investment side, activity is gaining pace on the back of higher capacity utilisation, continued government focus on infrastructure, and strong balance sheets of banks and corporates. Easing financial conditions have also aided this recovery. While services exports are likely to remain steady, merchandise exports could face headwinds from global uncertainties and trade disruptions. Looking ahead, the RBI has projected real GDP growth at 6.7 per cent for 2026 27, suggesting continued recovery momentum.

Headline inflation eased during January and February 2025, driven by a sharp decline in food prices. With uncertainties around the rabi crop largely resolved, and second advance estimates indicating record wheat output and higher pulse production than last year, food inflation is expected to soften further. This favourable trend is supported by robust kharif arrivals and a sharp fall in inflation expectations over the next three and twelve months, as reflected in recent surveys. The decline in crude oil prices has further strengthened the disinflationary outlook. Accordingly, Consumer Price Index (CPI) inflation for 2025 26 is projected at 4.0 per cent, with quarterly estimates at 3.6 per cent in Q1, 3.9 per cent in Q2, 3.8 per cent in Q3, and 4.4 per cent in Q4.

While the inflation outlook appears stable, global uncertainties and the possibility of weather-related supply shocks continue to pose upside risks to the inflation path. The Reserve Bank of India has assumed a normal monsoon in framing its projections, and it considers the risks to be evenly balanced at this stage.

(REF: Reserve Bank of India)

The global MICE market was valued at approximately USD 1,051.41 billion in 2024 and is projected to grow from USD 1,148.35 billion in 2025 to USD 2,269.16 billion by 2032, at a compound annual growth rate (CAGR) of 10.22%. Another estimate suggests the market could reach USD 2,309.4 billion by 2032, with a CAGR of 11.6% from 2023 to 2032. The meetings segment dominates, accounting for over 60% of the market share in 2022 due to its frequency and role in corporate activities, while the incentives segment is expected to grow fastest at a CAGR of 9.8% through 2028. Europe holds the largest market share (50.66% in 2024), followed by Asia-Pacific (44%) and North America (38%).

https://www.thebusinessresearchcompany.com/report/meetings-incentives-conferences-and-exhibitions-mice-global-market-report Indias MICE industry is supported by its extensive infrastructure, which includes over 1,300 star-category hotels and more than 70 world-class convention centres capable of hosting international summits and exhibitions. Major cities such as Delhi, Mumbai, Bangalore, Hyderabad, and Chennai are gaining popularity for their top-tier facilities and strong government support promoting MICE tourism. Indias Meetings, Incentives,

Conferences, and Exhibitions (MICE) sector is witnessing remarkable growth, with an annual expansion rate of around 8, and is currently valued at approximately INR25,000 crore. Hospitality sector in India is expected to grow 7 9% in FY 2025 and 6 8% in FY 2026, with MICE as a key growth driver.

Indias MICE industry sees 8% growth, valued at INR 25,000 cr amid technological innovations.

FAVOURABLE GOVERNMENT INITIATIVES

Recent Development and News in Meetings, Incentives, Conventions, And Exhibitions (MICE) Market In February 2024, International Exhibition and Convention Center (IECC) Shanghai announced the opening of its new 150,000 square meter expansion, increasing its total exhibition area to 370,000 square meters (Shanghai Daily). This expansion underscores the growing demand for larger and more sophisticated MICE facilities in China. In April 2025, C-vent, a leading global event management platform, partnered with Google to integrate Google Meet video conferencing technology into its event management software (Business Wire). This collaboration aims to provide seamless virtual event solutions for organizers, addressing the increasing trend towards hybrid events. In June 2025, Hilton Worldwide Holdings Inc. Acquired Event Scape, a digital event platform, for USD150 million (Hotel News Now). This acquisition strengthens Hiltons position in the MICE market by offering a comprehensive suite of event solutions, including both physical venues and virtual event technologies.

Opportunities:

Good Brand Image: Company has a good brand image and quality Services in the Indian market.

Wide Service range: Company has very wide service coverage for social and cultural events.

Superiority over its competitors: Company remains eager in providing latest designs and Service to its customers.

Online Services: Company provides Online Services to its Customer. The company will take effective steps to take benefit of this opportunity.

Expand Market Network: The Company continues to expand its marketing networks by appointing Consignment Agent, branches, distributors, dealers etc. in various states in all over the country.

Threats:

High Competition Era: The Decor Industry has entered into the orbit of the high competition. The market fights are set to intensify with unstoppable capacity build up. The Competition from both unorganized and other organized players, leading to difficulties in improving market share.

Manpower: The one of the common problems emerged for finding talent with competence or even skilled man power for Decor industries irrespective of the company Brand or Size.

Under cutting of price: Due to high competitions in market, the competitors are doing price cutting of Services to compete or keep their existence in markets which is ultimate big problems for the industries.

New Entrance: More and more new organized players are entering into market which will increase competition in organized sector also.

Segment-wise or Product-wise performance:

The Company is primarily engaged in single segment i.e. Decoration and Event Management.

The Turnover of the Company for the Financial Year 2024-25 is Rs. 1858.95

F. Future Outlook:

The Companys outlook for the year 2024-25 is to add more services in the service range as per requirement in the market.

G. Risks and concerns:

Our growth is directly or indirectly, linked with infrastructure development and real estate industry. Any ups and downs in these industry space impacts the growth. Increasing competition may lead to dilution of market share. Operational disruption owing to several factors like pandemic or breakdown may lead to decline in production. Untimely recovery of payment from customers may impact the working capital of the Company.

H. Internal control system and their adequacy:

The Company has an independent Internal Audit function with a well-established risk management framework. The scope and authority of the Internal Audit function are derived from the Internal Audit Charter approved by the Audit Committee. The Company has engaged a reputable external firm to support the Internal Audit function for carrying out the Internal Audit reviews.

The Audit Committee meets every quarter to review and discuss the various Internal Audit reports and follow up on action plans of past significant audit issues and compliance with the audit plan. The Chairperson of the Audit Committee has periodic one-on-one meetings with the Chief Internal Auditor to discuss any key concerns.

Additionally, the following measures are taken to ensure proper control:

Budgets are prepared for all the operational levels.

Any material variance from budget has to be approved by the Commercial director. Any major policy change is approved by the managing director. Any deficiency in not achieving target is reviewed at management meetings.

I. Discussion on financial performance with respect to operational performance