Singer India Ltd Management Discussions

Economic Overview

Global Economy¹

Current Year (CY) 2024 highlighted the strength and adaptability of the global economy. The global economy achieved an estimated growth of 3.3% despite economic hurdles, such as supply chain disruptions, shifting trade policies, geopolitical uncertainties and inflationary pressures. Emerging Markets and Developing Economies (EMDEs), including India, outperformed advanced economies, recording a growth rate of 4.3% compared to the 1.8% of advanced economies. A major driver of this growth was strong consumer demand, supported by a decline in inflation from 6.7% in CY 2023² to 5.7% in CY 2024, alongside proactive monetary policies and liquidity measures. The outlook for the global economy reflects cautious optimism. Global GDP is projected to grow by 2.8% in CY 2025 and 3.0% in CY 2026. The global inflation is expected to decline to 4.3% in CY 2025 and to 3.6% by CY 2026. This will facilitate sustained growth in consumer-driven sectors. However, the implementation of new tariffs by the US administration will continue to pose threats to the stability of global trade. Emerging markets, driven by rising income and an expanding middle class, are expected to sustain their resilience and clock in a 3.7% growth rate, while advanced economies are projected to grow at 1.4% in CY 2025.

Indian Economy³

India recorded an estimated 6.5% GDP growth rate in FY 2024-25. Growth was driven by rising consumption, government infrastructure initiatives, structural reforms and a flourishing digital economy. Key sectors such as manufacturing, agriculture and services witnessed significant advancements, encouraging both rural and urban spending. Inflation eased from 5.4% in FY 2023-24⁴ to 3.6% in FY 2024-25, rural demand remained strong, backed by a resilient agricultural sector and supportive welfare programmes, while urban consumption surged, driven by higher disposable incomes and evolving lifestyle aspirations. With global tariff uncertainties impacting the trade environment, India presents itself as an attractive destination for investment, owing to a stable policy framework and favourable business environment. India?s economy is expected to sustain its growth trajectory, with a GDP growth projection of 6.5% in FY 2025-26. One of the key drivers of this growth is anticipated to be the Government of India?s income tax reforms, which have exempted individuals earning up to Rs. 12.75 Lakh from income tax.⁵ This initiative significantly enhances disposable income, especially for middle-class households. With inflation stabilising and GDP on track, the government?s focus will be on increasing infrastructure, rolling out ambitious welfare schemes like Pradhan Mantri Vishwakarma Yojna to benefit artisans and providing free toolkits in various categories, including sewing machine and efforts to promote industrial and digital expansion. In addition, the government has done FTA with UK and deal with other EU, US. As the nation moves through what many are calling ‘India?s Decade,? this consumption-driven growth, combined with innovation and strategic global integration, positions the country for sustained economic prominence. E-commerce and quick commerce have made shopping much easier for customers by allowing them to buy products from the comfort of their homes. These platforms have helped reach more people, especially in areas where offline presence is restricted. With just a few clicks, customers can quickly compare products, read reviews and get faster delivery. This convenience has encouraged consumers to understand and engage with sewing machines and other home appliances, which is allowing them to make better and informed choices. Government of India is focussing on improving quality of products through Bureau of Indian Standards (BIS) and Quality Control Orders (QCO) implementation, thus pushing cheap and low-quality products out of market and giving growth opportunity to good quality product manufacturers. ‘Make in India? is being encouraged, leading to growth opportunities for Indian manufacturers.

Indian Growth Trend (GDP growth, in %)

1https://www.imf.org/en/Publications/WEO/Issues/2025/04/22/world-economic-outlook-april-2025

2https://www.imf.org/en/Publications/WEO/Issues/2025/01/17/world-economic-outlook-update-january-2025 ³https://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/0BULL22042025F03F83AE118C4B3B84E662D980C8DE33.PDF

4https://www.pib.gov.in/PressReleasePage.aspx?PRID=2097919#:~:text=Indias%20real%20GDP%20growth%20is,by%206.4%20per%20cent%20FY25. ⁵https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2098353 ⁶https://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/0BULL22042025F03F83AE118C4B3B84E662D980C8DE33.PDF

The Sewing Machine Market

The Sewing Machine market in India remains strong, driven by the widespread use of traditional black machines in households, small tailoring shops and textile workshops. These machines are popular because they are simple, reliable and budget friendly, making them ideal for basic garment making and everyday sewing tasks. They are especially favoured in rural areas and among those who prefer manual or mechanical machines due to their low cost and minimal maintenance. Despite advancements in sewing technology, black machines still hold a significant market share in the Indian sewing machine market.

In India, there is a unique mix of traditional sewing habits and modern preferences. While rural areas still favour mechanical machines, urban regions are gradually moving towards electric, electronic and embroidery machines. The governments support for self-employment and welfare schemes also boosts demand. The emerging trends of DIY and personalisation are leading to higher adoption of sewing as a craft and hobby. As people become more aware of new options and aspire for better tools, the Indian market is poised to shift in favour of modern high value sewing machines, in line with the global trend, thus driving growth in revenue.

The Zig-Zag and Embroidery Sewing Machine category is at a seeding stage in India with high potential to grow. The rise of DIY fashion and craft projects has also contributed to the growing popularity of Zig-Zag Machines. The new age household sewing and embroidery machines make sewing and personalising of garments very interesting, thus driving more people towards adopting sewing as a hobby. While many users use these machines to set up small businesses, multi-needle embroidery machines are the new favourites of small boutiques. The ability to manufacture these machines is limited to a few well-known global brands, including Singer being technically superior among all.

Indias industrial sewing machine market is vast and diverse, driven by the country?s robust textile and garment manufacturing sector. This market encompasses both standard industrial sewing machines and a wide range of special purpose machines designed for specific garment manufacturing needs. Industrial machines such as high-speed single needle lockstitch machines, overlock (serger) machines and other specialised equipment play a critical role in large-scale garment factories. These machines ensure speed, precision and durability required for mass production. In addition to factory use, a significant portion of these machines is sold through retail channels to tailors, fashion boutiques and small apparel businesses. Special purpose machines like buttonhole makers, bartack machines and embroidery units are also gaining popularity in these segments, further expanding the market potential. Given the wide application across both industrial and small-scale users, the market for industrial sewing and garment-specific machinery in India is substantial and continues to grow with the rise of domestic fashion brands and export demand. Given the large Indian market to be served and India being the 6th largest exporter of textile and apparel globally with 4% share of global trade in this sector, there is a vast growth potential for these machines in India.⁷

Consumer Durable Industry⁸

The consumer durables market in India has seen steady growth in recent years, even overcoming challenges like the pandemic. This growth is being driven by rising incomes, rural consumers buying appliances and a visible shift towards purchasing lifestyle products, which make lives easier and efficient. Consumers are now more open and willing to replace old products, with contemporary products that combine efficiency, diverse functionality and aesthetics. India today is one of the fastest-growing markets in the world and is expected to become one of the top four consumer durables markets by 2027. New technologies like Artificial Intelligence (AI) and the Internet of Things (IoT) are also helping the industry grow further, despite some ongoing challenges with regulations and supply chains.

Preference towards Energy Efficient and Sustainable Products

With the growing awareness of climate change, more consumers are choosing eco-friendly appliances. The increasing sales of 4- and 5-star BEE-rated products highlight a strong shift towards energy-efficient and sustainable solutions in households.

Growing Demand of Aesthetics beyond Functionality

Today?s consumers are looking for more than just performance, they want products that look good too. There is a rising preference for modern, stylish designs that match home d?cor while offering innovative features.

Market Landscape

Demand is rising quickly in tier II and tier III cities, as well as in rural markets. These areas present major growth opportunities due to better connectivity, increasing awareness and expanding purchasing power.

6https://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/0BULL22042025F03F83AE118C4B3B84E662D980C8DE33.PDF ⁷https://straitsresearch.com/report/industrial-sewing-machine-market/india

8https://www.ey.com/en_in/industries/consumer-products/how-indias-consumer-durables-industry-can-foster-global-leadership-by-2030

SVP Worldwide: A Legacy of Innovation

SVP Worldwide, a US based multinational headquartered in Nashville is the world?s largest consumer sewing machine Company, commanding nearly one-third of the global market. SVP Worldwide and its three iconic brands—SINGER?, HUSQVARNA? VIKING? and PFAFF? have set industry benchmarks through continuous innovation and craftsmanship. Trusted by millions, SVP remains the preferred choice for both professionals and hobbyists, redefining sewing excellence across generations.

Singer India: Expanding Beyond Sewing

With a legacy of over 174 years, Singer has established itself as a trusted leader in the sewing machine market. Since its inception, Singer India has set new standards for quality, innovation and reliability in sewing products. The Company made its debut in India in 1870 with its first branch in Mumbai. In 1977, it was incorporated as Indian Sewing Machine Company Limited to acquire the Indian branchs operations. Expanding its commitment to the Indian market, Singer India introduced home appliances in 1984, enhancing its product portfolio with both small and large appliances. This commitment to innovation and trust culminated in the name change to Singer India Limited in 1993, reflecting its dedication to providing solution-driven products that meet the evolving needs of the Indian market.

Technology-Driven Growth and Strengthening the Portfolio

Over the past couple of years, Singer India has sharpened its focus on technology, shifting towards home solutions that meet evolving consumer demands. With an emphasis on modern design and advanced functionality, the Company continues to expand its home appliance portfolio. Recent launches in the sewing machine include the M3330, a versatile sewing machine designed for convenience and the SE9185, an advanced model offering precision and ease. Additionally, Singer India has introduced renowned Swedish and German brands: Husqvarna Viking and PFAFF from the SVP portfolio, reinforcing its commitment to innovation.

Last year, Singer India launched its first flagship ‘Experience and Retail Centre? in Delhi?s Nehru Place. This one of its kind store has an extensive range of modern Household Sewing and Embroidery Machines, Zig-Zag Machines and Industrial Sewing Machines on display and it boasts of an infrastructure to host online and offline sewing courses. The store design encourages young and contemporary to visit the store and experience the new age machines, which come with impressive digital formats. The store has created a rich history wall which gives an interesting insight into Singer India?s rich legacy.

Business Overview

In the Financial Year 2024-25, Singer India made significant steps in its journey of growth and transformation despite facing some challenges. The Company continued to improve its Gross Margins, removed loss making SKU?s, strengthened product portfolio, enhanced E-Commerce presence and after sales service, improved Branding and visibility across platforms, adopted stringent quality checks across the product portfolio and technology across operations. It also established a strong partnership with the dealer network. The Company?s 174-year-old legacy helped it to navigate through difficulties and emerge stronger.

One of the major challenges this year was maintaining revenue growth in a competitive market. Although revenue growth remained modest at around 1%, profitability significantly improved by over 64%. This positive outcome was driven by better price realisation, cost optimisation and a shift in the product mix towards higher-margin items.

Singer India continued to evolve from its traditional image of a low-cost sewing machine brand to a modern, premium, high-tech and aspirational brand. New product launches, such as the innovative CloudX Fan and diversified sewing machine models, have showcased the Company?s commitment to modernisation. Additionally, expansion into embroidery and fashion personalisation machines, has opened new avenues for growth. The Company has focused on digital adoption by increasing the use of virtual assistance for customer service, leading to more efficient issue resolution. Additionally, Singer made significant strides in e-commerce, especially with products like the ZigZag machine and CloudX Fan, which were launched with an e-commerce-first strategy.

Sustainability remains a priority, as demonstrated by the introduction of energy-efficient products like BLDC motor fans and initiatives encouraging garment reuse. Singer ?s efforts to promote sustainable fashion through consumer contests have not only aligned with environmental goals but also engaged a wider audience.

Looking ahead, Singer India is focused on accelerating revenue growth while maintaining profitability. By strengthening its leadership in the sewing machine category, enhancing digital customer engagement and continuously innovating products, the Company aims to reinforce its market position and continue delivering value to customers.

Operational and Financial Discipline

Singer India maintains strong financial discipline by maintaining a net debt free status. The Company has improved key operational metrics such as inventory and receivables turnover and has showcased robust profit growth.

Sewing Machine Business

Singer India?s Sewing Machine Business recorded revenue of around Rs. 319 Crore in FY 2024-25, slightly up from Rs. 308.2 Crore of the previous year. The growth was mainly driven by increased sales of Industrial and Zig-Zag Machines, though this was partially offset by a decline in conventional black cast iron machines. Decline in segment profit from Rs. 37 Crore to Rs. 34 Crore despite earning higher gross margin is mainly driven by allocation of higher costs due to investments in R&D and advertisement. In FY 2024-25, the Company introduced its innovative Double Sealed Ball Bearing (DSBB) technology in Straight Stitch class 15 and Artisan Sewing Machine categories, significantly enhancing durability and performance. Singer is also expanding its portfolio by introducing premium global brands like Husqvarna Viking and PFAFF to meet the evolving needs of modern users with smarter designs and advanced features.

Going forward, Singer India will continue focusing on improved price positioning and cost optimisation to improve margins and expand market share. The Industrial sewing machine segment remains a key area for growth, with new efficient models being launched at competitive prices. The household Zig-Zag segment also offers strong potential due to low penetration in India and the Company plans to introduce new models with added embroidery functions. Alongside product development, Singer India is investing in digital training and is increasing the number of promoters nationwide to support users in adopting modern AZZ machines and encourage the growing trend of craft and personalisation.

Home Appliances Business

Singer India?s Home Appliances Business reported revenue of around Rs. 112.4 Crore in FY 2024-25, marking a 4.1% decline from Rs. 117.2 Crore recorded in the previous year. This drop was due to Company?s continued efforts to streamline its portfolio by discontinuing unprofitable products and cutting related operational costs, focusing instead on high-margin products and efficient sales channels. These efforts led to a further reduction in segment operating loss to Rs. 1.64 Crore, down from previous year?s loss of Rs. 9.78 Crore. In line with its commitment to innovation and premiumisation, Singer India is enhancing its product offerings to appeal to quality-conscious customers. A standout example is the launch of the CloudX Fan, which uses unique technology to convert water into fine cloud-like particles for natural and efficient cooling. This product exemplifies Singer India?s strategy of delivering stylish, user-friendly and advanced appliances. The Company continues to collaborate with reputed suppliers to boost product quality and is investing in after-sales service to improve customer satisfaction and loyalty. Looking ahead, Singer India remains focused on expanding its home appliances range with modern, cost-effective solutions that enhance customer experience and support long-term business growth.

Growth Drivers

Over the past year, Singer India has focused on growth through innovation, technology and customer-centric strategies. The

Company launched advanced 3 in 1 machine like the SE 9185 an embroidery, sewing and quilting machine, supported by the emotional ‘Revive Traditions? digital campaign and introduced the CloudX Fan to meet evolving consumer needs. Singer India also upgraded its straight stich Sewing Machines with Double Sealed Ball Bearing (DSBB) and Self-Lubricating Brass Bush (SLBB) technologies, enhancing durability and performance after 174 years of minimal change. Global brands like Husqvarna Viking and PFAFF were added to the portfolio, catering to hobbyists and professionals and providing them with precision and ease-of-use. Distribution was strengthened through dealer engagement programmes and giving support in branding and sales margins, while the product mix was refined to focus on high-margin, innovative appliances and sewing machines.

Today, SINGER has a robust network of over 10,000 retail points, 1800+ Dealers and Distributors and 21 Stores.

The Company has strengthened its after sales service and today offers service in over 12,000 pin codes from its 430 service centres and boast over 80 dedicated walk-in locations. A new initiative has been launched, called the ‘SINGER Champs? under which technicians are being trained to service the newly launched DSBB and SLBB machines. These Champs are earning a certificate post completion of training. Visibility improved across 700+ locations, with strategic advertising in major newspapers and active social media engagement. In e-commerce, Singer plans to expand its SKU count from 5 to 20 this year, with a 15% growth target in the AZZ (Fashion Maker) category, where it already leads in a 60,000-unit market. The B2B business is also expanding and a new manufacturing facility in India is being explored to meet domestic and global demand. The Company is targeting margin expansion through product and cost optimisation and sees huge growth potential in India?s low-penetration market, supported by government initiatives for women, skills and rural employment.

Financial Overview

Business Outlook and Opportunities

Singer India is poised for growth, focusing on expanding revenue while maintaining profitability. The Company aims to strengthen its leadership in the sewing machine category and build on its global reputation. To achieve this, Singer plans to invest significantly in innovation, customer service digitisation and channel expansion. The goal is to transform the brand from being perceived as a traditional ‘black machine, low-cost brand? to a modern, premium, technologically advanced and aspirational choice. For this transformation to happen, the Company has integrated Husqvarna Viking and PFAFF?s advance sewing machine in its product portfolio. Singer India has also introduced single head multi needle embroidery machine. One of the key opportunities lies in product innovation and diversification. Singer India has already introduced new innovative CloudX Fan and other advanced Sewing Machines, targeting e-commerce-first audiences. Moving forward, the Company intends to continue developing products that align with current consumer trends, such as DIY projects and sustainable fashion. This approach not only enhances brand appeal but also opens doors to new customer segments. Singer India also sees potential in enhancing the customer experience through digital transformation. By expanding virtual assistance and offering immersive in-store experiences, the Company aims to meet the evolving needs of tech-savvy customers. Additionally, e-commerce remains a vital growth area, with online channels accounting for a significant portion of sales. Singer plans to further leverage digital platforms by creating exclusive online product ranges and tapping into quick commerce opportunities. This approach is expected to boost sales, particularly for innovative products like the CloudX Fan and other modern appliances.

Furthermore, sustainability initiatives continue to be a core focus. Singer India aims to promote eco-friendly products, such as BLDC motor fans and encourage garment reuse through creative campaigns. By integrating sustainability into its product line-up and marketing strategies, the Company is not only contributing positively to the environment but also appealing to increasingly eco-conscious consumers.

The Company is actively exploring the establishment of a manufacturing facility in India, which will serve both domestic and international markets. This strategic move is aimed at strengthening its supply chain, improving production efficiency and reducing dependency on imports. By manufacturing locally, the Company will be better positioned to respond quickly to market demands, offer cost-effective products and enhance product customisation for different regions. Additionally, this facility is expected to create new employment opportunities and contribute to the local economy. Overall, setting up a manufacturing base in India presents a significant growth opportunity for the Company, supporting its long-term vision of expanding its footprint and becoming more competitive in the global market.

With its focus on innovation, customer engagement and digital integration, Singer India is well-positioned to capitalise on new opportunities and solidify its market presence. The Company?s commitment to evolving with consumer preferences will be key to sustaining long-term success. The Company continues to explore manufacturing modern sewing machines in India which will cater to domestic and global demand and open an impressive avenue for the Company?s growth.

Risk Management

Human Resource

Singer India Limited is resolute on achieving a positive, fair and growth-focused workplace through its HR efforts. The Company recruits talent aligned with its vision and values. Singer India ensures a smooth on-boarding experience and provides routine learning and development opportunities to all employees. The company encourages high performance, quality work and customer satisfaction while offering competitive salaries and employee benefits to support overall well-being. It values open communication, encourages team-building activities and promotes a diverse workplace and encourages women representation across various departments.

Training programmes are designed to keep employees engaged and up to date with the latest skills. A strong performance management system that sets clear goals and provides regular feedback help the Company?s workforce to grow and feel appreciated. As a result of these efforts, Singer India has been recognised as a ‘Great Place to Work?, reflecting its commitment to employee growth, satisfaction and a supportive work environment.

Internal Control System

Singer India Limited has a strong internal control system in place to protect its assets and ensure they are used properly. This system also makes sure that all financial transactions are approved, recorded and reported correctly. One of the main goals is to provide accurate financial reporting and reduce the chance of fraud.

A firm of Chartered Accountants carries out internal audits every quarter and has clear procedures and approval processes. These include checks from the start of each task and at every step along the way, helping to track any important changes. They also check if all key processes have enough built-in controls to work effectively.

The Company?s statutory auditors also examine the financial statements and test internal controls related to financial reporting, in line with Section 143 of the Companies Act, 2013. Their findings are shared in the audit report attached to the financial statements.

Cautionary Statement

In accordance with relevant securities laws and regulations, comments in the Management Discussion and Analysis that describe the Companys goals, plans, estimates, or expectations may be deemed to be ‘forward-looking statements. Actual outcomes could significantly vary from those that were stated or indicated.

Economic conditions affecting supply and demand, price conditions in domestic and international markets where the Company operates, competitive pressures in these markets, changes in governmental regulations, tax laws and other statutes, as well as incidental factors, are significant variables that could have an impact on results.