Shine Fashions (India) Ltd Management Discussions

For the Financial Year Ended March 31, 2025

1. GLOBAL ECONOMIC OVERVIEW

In 2024, the global economy demonstrated modest resilience amid persistent challenges.
According to the International Monetary Fund (IMF), global GDP growth was estimated at
3.2%, mirroring the pace of 2023.Advanced economies experienced a slight acceleration,
with growth rising from 1.6% in 2023 to 1.7% in 2024, while emerging markets and
developing economies saw a modest slowdown from 4.3% to 4.2% over the same
period.Inflation showed a declining trend, with global headline inflation projected to
decrease from 6.8% in 2023 to 5.9% in 2024 and further to 4.5% in 2025.

Despite these positive indicators, the global economic landscape was fraught with
uncertainties.Geopolitical tensions, particularly trade disputes and policy shifts, posed
significant risks to international trade and investment flows.The textile and apparel
industry, while resilient, faced challenges such as high input costs, fluctuating freight
charges, and supply chain disruptions.Nevertheless, demand recovery was notable in
regions like Asia-Pacific and the Middle East, driven by urbanization, e-commerce growth,
and evolving consumer preferences.

2. INDIAN ECONOMY OVERVIEW

India remained a bright spot in the global economy, with GDP growth estimated at 6.3% for
FY2024-25, according to ICRA.This growth, although a deceleration from the 9.2% recorded
in FY2023-24, was underpinned by robust industrial activity and stable performance in the
services and agriculture sectors.

Key drivers of this growth included increased government spending, a recovery in rural
consumption, low interest rates, and strong consumer demand.The governments continued
emphasis on initiatives like "Make in India" and Production-Linked Incentive (PLI) schemes
for textiles bolstered investor confidence and enhanced the competitiveness of the textile
value chain.

3. TEXTILE INDUSTRY OVERVIEW

The global textile market was valued at approximately USD 1,837.27 billion in 2023 and is
anticipated to grow at a compound annual growth rate (CAGR) of 7.4% from 2024 to
2030.This growth is driven by increasing apparel demand from the fashion industry and the
rapid expansion of e-commerce platforms.

India continues to be a significant player in the global textile industry, being the worlds
second-largest producer of fiber and a leading exporter of textiles and clothing.The Indian
textile manufacturing market was valued at USD 128.28 billion in 2024 and is projected to

reach USD 190.57 billion by 2033, growing at a CAGR of 4.15% during 2025-2033. The
sector benefits from government initiatives, technological advancements, and a growing
focus on sustainable and eco-friendly textiles.

4. COMPANY OVERVIEW - SHINE FASHIONS (INDIA) LIMITED

Shine Fashions (India) Limited specializes in the manufacturing, processing, trading,
importing, and exporting of various interlining fabrics and textile raw materials. The
companys product portfolio includes:

• Non-woven interlinings

• Polyester fusible interlinings

• Cotton fusible and tricot interlinings

• Hot melt adhesive interlinings

• Water jet interlinings

With a professional team and a global presence, Shine Fashions has established a reputation
for delivering premium quality interlinings used across the apparel manufacturing industry.
In FY 2024-25, the company enhanced its production capabilities, optimized procurement
processes, and expanded its client base across Asia and Europe.

New Manufacturing Project - Backward Integration Initiative:

In FY 2024-25, the Board of Directors approved the establishment of the Companys first
manufacturing unit for interlining (technical textile) products—an initiative marking a
strategic move towards backward integration. This project is expected to enhance
operational efficiencies and unlock substantial growth opportunities for the Company. It is
noteworthy that, to the best of our knowledge, this initiative represents a first-of-its-kind
manufacturing project in India. The finished product will serve as a significant import
substitute, supporting the nations vision for self-reliance in technical textiles. However,
due to initial teething troubles, the progress of the project is bit slow.

5. OPPORTUNITIES

• Export Expansion: Indias textile exports have gained momentum, with increased
orders from the US, EU, and Middle East. Shine Fashions is leveraging this trend by
enhancing logistics and offering custom design solutions.

• Digital Transformation: Investments in Enterprise Resource Planning (ERP)
systems and AI-based production planning are underway to improve efficiency and
reduce turnaround times.

• Technical Textiles: The company plans to explore opportunities in technical
textiles and non-apparel applications, aligning with global market trends.

• Inclusive Employment: Shine Fashions supports inclusive hiring practices and has
increased the representation of women across its units.

6. CHALLENGES

• Raw Material Volatility: Fluctuations in cotton and synthetic yarn prices,
influenced by climate impacts and trade dependencies, pose challenges to cost
management.

• Skill Shortages: Despite ongoing internal training programs, the industry faces a
shortage of skilled manpower, affecting productivity.

• Environmental Concerns: Managing wastewater, emissions, and fabric waste
requires continuous investment in sustainable production practices.

7. RISK MANAGEMENT

Shine Fashions has implemented an effective risk management framework to assess and
mitigate operational, financial, compliance, and environmental risks. Key measures include:

• Regular policy reviews

• Vendor and supplier evaluations

• Product quality audits

• Comprehensive insurance coverage for asset protection

8. INTERNAL CONTROL SYSTEM & ADEQUACY

The company employs a structured internal control mechanism across operations and
finance. An independent internal audit, reporting to the Audit Committee, ensures timely
compliance, operational efficiency, and risk oversight.

9. HUMAN RESOURCES

As on March 31, 2025, Shine Fashions employed over 170 personnel. Employee-centric
programs included:

• Safety and statutory compliance training

• Skill development workshops

• Wellness initiatives

• Hybrid work models for corporate staff

The company regards its workforce as central to customer satisfaction and sustained
growth.

10. OUTLOOK

Prospects for FY 2025-26 remain optimistic. Key focus areas:

• Expanding interlining product portfolio

• Entering new export markets

• Enhancing automation and digital transformation

• Cost reduction through lean manufacturing and inventory management

Their approach is one of cautious optimism—driven growth calibrated for resilience amid
macroeconomic uncertainties.

11. CAUTIONARY STATEMENT

Forward-looking statements are aspirational, based on current expectations. Actual
performance may vary due to changes in economic conditions, regulatory frameworks,
market dynamics, or unforeseen events.