Siyaram Silk Mills Ltd Management Discussions

ECONOMIC OVERVIEW Global Economy

The global economy is at a critical juncture. While signs of stabilisation emerging during the year, major policy shifts and tariff wars and geopolitical tensions reset the global trade system to test its resilience. The International Monetary Fund (IMF) estimated the world to have grown by 3.3% in 2024, maintaining the same pace as in 2023. Resilience, services trade, and critical minerals are some of the factors that contributed to this growth. Advanced economies witnessed a slight uptick, with growth expected to increase from 1.6% in 2023 to 1.8% in 2024, while the emerging and developing economies grew by 4.3% in 2024.

Future Outlook

Looking ahead, intensifying downside risks dominate future outlook, amid escalating trade tensions. Shifting policies could lead to abrupt tightening of global financial conditions and capital outflows, particularly impacting emerging markets.

Production and shipping disruptions in emerging markets and developing economies - due to factors like conflicts, civil unrest, and weather-related events - slowed growth prospects in regions such as the Middle East, Central Asia, and Sub-Saharan Africa. Stronger growth in emerging Asia will be fuelled by increasing demand for semiconductors and electronics, largely driven by investments in artificial intelligence.

Lower inflation and monetary easing in several economies may provide a modest boost to global economic activity, with world GDP projected to grow by 2.8% in 2025 and 3.0% in 2026. Advanced economies are forecast to maintain steady growth of 1.4% in 2025, with a slight uptick to 1.5% in 2026, while the emerging and developing economies are seen growing by 3.7% in 2025 and 3.9% in 2026, marking a slight slowdown from 2023. To foster a positive external environment, strengthen macroeconomic stability, address structural barriers, tackle the impacts of climate change, and accelerate growth and development, coordinated policy action at both global and national levels will be crucial.

(Source: Indian Economic Survey, IMF & World Bank)

Indian Economy

Indias economy grew by 6.5% in FY 2024-25, compared with 9.2% growth in its GDP in FY 2023-24. Despite potential challenges from global uncertainties, India continued to experience consistent growth, with key domestic growth drivers being increased government spending, a recovering job market, robust service sector growth, a healthy agricultural sector, rising capital expenditure in infrastructure development, public infrastructure investments, and an uptick in household spending on real estate. The manufacturing sector and resilient services have seen growth, and helped offset losses in the agriculture sector. These trends contributed to an improvement in urban unemployment rates in the year under review.

According to the World Banks India Development Update: Indias Trade Opportunities in a Changing Global Context, Indias economy has been one of the fastest growing in the world, driven by stable consumption demand and steadily improving investment demand. The nation is set to dominate the global economic landscape, maintaining its status as the fastest-growing large economy for the next two fiscal years.

Looking ahead, India is expected to maintain positive momentum, with a forecasted growth rate of 6.7% in FY 2025-26. The countrys debt-to-GDP ratio is expected to decline from 83.9% in FY 2023-24 to 82% by FY 2026-27. Amid challenging external conditions, Indias medium-term outlook remains positive as it continues to benefit from continued economic expansion - particularly in services like agriculture, services and construction, increased employment opportunities and improved standard of living. At a time when global growth is expected to remain 2.7% in 2025-26, Indias remarkable performance underscores its resilience and growing significance in shaping the worlds economic trajectory.

(Source: World Bank, Deloitte)

https://documents.worldbank.org/en/publication/documents reports/documentdetail/099513209032434771/ idu113d06cd810fec1465e1a7e318a711ea131b8

https://www.worldbank.org/en/news/press-release/2024/09/03/india-s- economy-to-remain-strong-despite-subdued-global-growth

INDUSTRY OVERVIEW

Indian Textile and Apparel Industry

Indias textiles sector is one of the oldest industries in the country, with a rich history that spans centuries, with a core strength lies in robust production of a diverse range of fibres and yarns, primarily sourced from natural materials. Its deep connection to agriculture, and the countrys ancient cultural traditions, set the industry apart and position it strategically vis-a-vis other manufacturing sectors in India.

Indias textile and apparel industry contributes 2.3% to GDP 13% to industrial production, and 12% to exports. The textile industry in India is predicted to double its contribution to the GDP rising from 2.3% to approximately 5% by the end of this decade. The industry is the second-largest employer in India, providing jobs to 45 Million people, and is the source of livelihood for over 100 Million people, including a large number of women and rural population.

India has emerged as the worlds second-largest producer of textiles and garments. Moreover, it is the worlds 3^rd largest exporter of Textiles and Apparel, and ranks among the Top Five global exporters in several textile categories, with exports expected to reach US$ 100 Billion.

(Source: https://www.ibef.org/industry/textiles)

From its current size of US$ 160 Billion, Indias textile industry is projected to more than double by 2030 at US$ 350 Billion. Growth in Indias textile sector is driven by factors such as rising discretionary income and urbanisation. Indias home textile industry is projected to expand by a CAGR of 8.9% to reach US$ 23.32 Billion by 2032, from US$ 10.78 Billion in 2023. India is the worlds largest producer of cotton and jute, and the second- largest producer of silk. It produces 95% of the global hand-woven fabric and holds 4% share in global trade of textiles and apparel. Driven by favourable economic conditions, shifting consumer trends, and strategic government policies, Indias textile and apparels sector is poised for significant growth and positioned to capture a larger share of the global market.

Manmade Fibres

Within the textile sector, Indias man-made fibre market is vibrant and steadily growing, with the country producing almost all types of synthetic fibres, including polyester, viscose, nylon and acrylic, putting India at a clear advantage vis-a-vis other nations and making it self-reliant across the value chain - right from raw material to garmenting. With rise in demand for technical and medical textiles, India has witnessed a surge in demand for manmade fibres. The main types of synthetic fibres include polyester, nylon, acrylic, and spandex, which are extensively utilised in various sectors, including apparel, home textiles, and industrial products, due to their versatility and superior performance compared to natural fibres. The growing demand for manmade fibres will be catalysed by reasons like limitations of cotton to meet the growing demand for fibre, increasing environmental concerns, and limitations in product and cultivation innovation with cotton.

According to the ministry of textiles, the share of manmade fibres in the domestic textile and apparel (T&A) industry is ~30% compared with 60% in cotton. As the 2^nd largest producer of polyester and viscose globally, India is set to take centre-stage in the global arena, given the increased investments in world-class manufacturing plants, continuous innovation, new product mix and strategic market expansion. Man-made fibres textiles account for 17% of Indias total textile exports, positioning it as the 6^th largest exporter worldwide. Indias synthetic fibre market reported total volume of 4.52 Million Metric Tonnes (MMT) in CY 2024, and this is projected to increase by 5.64% CAGR to reach 6.21 MMT by 2030.

https://www.induqin.com/post/man-made-fibre-industry-is-thriving-in- india-but-whv-isn-t-it-readv-to-challenge-china

Key growth drivers:

• Growing demand for textiles: With a large and expanding population, the demand for clothing and textile products is on the rise. As urban areas develop, there is an increasing need for diverse clothing options, which bolsters the synthetic fibre market.

• Government initiatives: Government initiatives play a crucial role in the growth and development of the synthetic fibre market in India. The Production-Linked Incentive (PLI) Scheme for Textiles is a notable measure aimed at strengthening the man-made fibre industry.

• I ncreasing demand for sustainable fabrics: The trend toward sustainable fabrics is becoming increasingly significant in the Indian synthetic fibre market, driven by various factors that influence consumer behaviour, manufacturing practices, and industry strategies. As awareness of environmental issues rises, consumers seek sustainable options that reduce harm to the planet.

https://www.techsciresearch.com/report/india-synthetic-fiber-market/11755.html

https://www.induqin.com/post/man-made-fibre-industry-is-thriving-in-

india-but-why-isn-t-it-ready-to-challenge-chin

Free Trade Agreements: Key Benefits

Free Trade Agreements (FTAs) offer numerous benefits to India such as enhanced market access, reduced tariffs, increased foreign investment, and boosted competitiveness. These agreements can also diversify trade partners, leading to greater economic stability. FTAs are significantly benefiting the Indian textile sector by eliminating tariffs on exports, enhancing competitiveness, and potentially boosting revenue and employment, leading to increased exports, particularly to countries with whom FTAs are established. FTAs in the textile sector have enhanced market access, reduced tariffs, boosted competitiveness, tech transfer, support for key sectors, foreign investment, market diversification, access to cheaper imports, and government incentives exports.

Industry Outlook

While the domestic market is expected to grow by 5-6%, textile exports are projected to grow by a CAGR of 1-2%, driven by online retail, the shift from cotton to man-made fibres, and the rise of technical textiles. FY 2024-25 was a challenging year for textile exports, as the industry grappled with increasing raw material costs, fluctuations in cotton prices, increasing imports from China and Bangladesh, demand slowdown in major garment-importing countries, stiff international competition, infrastructure limitations, and an increasing need for technology advancements.

Exports were impacted owing to a tough macroeconomic environment and geopolitical tensions, growth slowdown in western markets, and growing inflationary trends, recessionary trends and reduced export value. Going forward, Indias textile exports are set to reach US$ 65 Billion by FY26, growing at a 10% CAGR. Major textile and apparel export destinations for India are US and EU and with around 47% share in total textile and apparel exports. India is a major textile and apparel exporting country and enjoys trade surplus. Bulk of import takes place for re-export or for industry requirement of raw material.

(https://pib.gov. in/PressReleasePage.aspx?PRID = 2089508#:~: text=India%20is%20the%206^th%20largest,trade%20in%20textiles%20 and%20apparel.)

The domestic textile industry is on a gradual uptrend, with growth estimated to revive owing to growing demand in the domestic market, stability in cotton prices and recovery in exports. The outlook for Indian textiles remains positive, supported by strong domestic consumption and export demand. Orders from major US retailers are projected to increase with inventory backlog diminishing and improvement in supply chain challenges.

The organised retail apparel sector is expected to grow by 8-10% in FY 2024-25, fuelled by increased demand from a normal monsoon, easing inflation, and the festive and wedding seasons. The growing popularity of affordable, trendy fashion that mirrors high-fashion designs is anticipated to be a key driver of increasing revenues.

Support from the Government

The government has introduced several initiatives to support the industrys growth and attract increased private investments. The Amended Technology Upgradation Fund Scheme (ATUFS), Scheme for Capacity Building in the Textile Sector (SAMARTH), National Technical Textile Mission, Production Linked Incentive (PLI) Scheme, PM-MITRA, Scheme for Integrated Textile Parks (SITP), and Integrated Skill Development Scheme (ISDS) are aimed towards boosting industry expansion and employment.

The textile sector is also well aligned with initiatives like Make in India, Skill India, Women Empowerment and Rural Youth Employment. Several key initiatives under Make in India (such as NSWS, PDC, PMG, IILB, ODOP IIG) were covered under the Scheme for Investment Promotion, a central sector scheme during FY 2022-26, with a projected outlay of 970 Crore.

Further, Union Budget 2025-26 announced an outlay of 5,272 Crore for the Ministry of Textiles for the year 2025-26. This was 19% higher than an outlay of 4,417 Crore provided during Budget 2024-25. Further, duty rationalisation on imported textile machinery and increase in the duty for imported knitted fabrics augurs well for Indias textile industry as it promotes domestic manufacturing and curbs cheaper imports.

Key Opportunities and Challenges

Opportunities:

• Rise in disposable income: The growth of Indias middle class, with its rising purchasing power, is driving higher demand for quality textiles and apparel.

• E-commerce and retail expansion: The rapid rise of online shopping platforms and organised retail stores is significantly fuelling the industrys growth.

• Sustainability emphasis: As consumers increasingly seek eco-friendly and sustainable textile options, new market opportunities are emerging.

• Trade agreements and sourcing diversification: Indias strategic position offers an advantage for global companies looking to move sourcing away from China, supported by trade agreements like CEPAs and FTAs.

• PM MITRA Parks: Government initiatives such as PM MITRA Parks are attracting substantial investment and creating an integrated textile value chain, which is helping generate employment.

• Digital influence on consumer preferences: The widespread use of social media and digital technology is shaping consumer demand for fashionable and branded apparel.

Challenges:

Below are some of the key challenges faced by the Indian textile industry:

1. Capital intensity: The textile sector in India requires significant capital investment, which affects its ability to compete on a global scale.

2. Production chain issues: Poor coordination and communication within the textile production chain causes delays, increases costs, and leads to missed opportunities.

3. Resource management: Improper management of resources like energy, water, dyes, and other materials drive up costs and harm the environment. Inefficient energy use, in particular, leads to increase in production expenses and deplete natural resources.

4. Disconnected systems: A lack of integrated systems and processes hinders operational efficiency, and leads to lower productivity.

5. Increased competition: The textile industry faces fierce competition from international players, which threatens Indias textile and apparel exports. Domestic companies need to contend with global fashion brands and retailers.

6. Consumer demand: Shifting consumer preferences and fluctuating demand for textiles and apparel affects the business. Slow market demand and rapidly changing trends leads to excess inventory, low production, and declining exports.

7. Volatile costs: Rising labour costs due to a shortage of skilled workers, combined with reliance on labour-intensive technologies, as well as fluctuations in raw material and transportation prices, have the capability to disrupt business operations.

8. Regulations and compliance: Strict environmental regulations and changing government policies can affect operational efficiency and profitability, adding further pressure on textile companies.

COMPANY OVERVIEW

Siyaram Silk Mills Limited (Siyarams) is a leading name in Indias textile and fashion industry. With 47+ years of rich history, the Company has built a strong reputation for its diverse, renowned and well-recognised brands and range of fabrics, ready-made garments, and other textile products.

The Companys brand philosophy is centred on fostering comprehensive business growth, social responsibility, and environmental sustainability. An optimum mix of inhouse and outsourcing makes its business model scalable and asset light for manufacturing and distribution. The Companys franchise model supports its partners with a lucrative and sustainable business model and unmatched growth opportunities.

Reputed for its commitment to product excellence, the Company has become a pioneer in the ever-changing textile and fashion landscape. Its innovative fabrics, brands and sub-brands have carved a distinct niche and are serving different customer needs.

The Company has a well-balanced range of products catering to affordable and luxury segments.

The Company specialises in high-quality fabrics and apparel made from blends of poly viscose, cotton, wool, linen, bamboo, and stretch. It offers products under several well-known and reputed brands with high recall value, and are the preferred choice in Indias fast-growing market.

Key Brands:

Fabrics

• Siyarams

• J.Hampstead

• Cadini

Garments

• Oxemberg

• J.Hampstead

Retail

• ZECODE

• DEVO

Key Market Differentiators

• Brand ethos: From its modest origins to becoming a household name, Siyarams has built a legacy of excellence. With a commitment to innovation, perseverance and craftsmanship, the Company has achieved remarkable growth, and established a strong brand presence both in India and globally, and resonates with millions of its customers.

• Visionary leadership and management: The Company is led by a team of experienced members on board with a perfect blend of wisdom, innovation and a proven track record in strategic and operational management. Their leadership drives growth, profitability, and a culture of discipline, ensuring continued success.

• Proven track record: With its portfolio of influential brands catering to the full spectrum of menswear, the Company is uniquely positioned to provide versatile, timeless styles suitable for every occasion. Despite fierce competition in the industry, it strives through judicious fiscal management, unwavering commitment to crafting superior-quality products and delivering sustainable value to its diverse stakeholders.

• Leadership in branded poly viscose: Siyarams has emerged as the leading player in Indias poly-viscose fabric segment, with a strategic advantage in utilising poly-viscose as a cost-effective and durable alternative to cotton, the primary raw material used for most competitors. This not only enhances affordability and longevity, but also shields the Company from the price fluctuations of cotton.

• Low debt profile: The Company maintains a prudent approach to financial management with a low debt profile and a strong history of dividend payouts. By focussing on organic and sustainable growth, it has been consistently outperforming competitors with its robust profitability.

• Asset-light business model: An asset-light approach for manufacturing and distribution has helped the Company maximise its capital efficiency, enhance return on capital employed (ROCE), and strengthen the balance sheet, promoting long-term sustainable growth.

• Omni-channel retail presence: The Company has a strong omni-channel retail presence through brick-and-mortar stores, online platforms, and e-commerce marketplaces, providing consumers with convenient and easy access to the products.

• Versatile range: The Company stands out with a diverse portfolio of fabrics, ready-made garments, and textile products that cater to every occasion. From formal, casual, occasion wear, fast fashion to athletic apparel, its collection is available in both retail and online stores, serving the evolved preferences of all customers and the changing demographic.

• Quality products: Renowned for its commitment to excellence, the Company strives to maintain superior quality standards in its premium, high-fashion products celebrated both in India and internationally.

• Robust distribution: With an expansive network of franchises and retail outlets across India, along with a robust e-Commerce platform, the Company ensures accessibility to millions, further solidifying its brand reach and digital presence.

• Preferred partner: The Company is a preferred partner for textile and design industry stakeholders, offering high- quality fabrics, design-driven innovation, and exceptional value that consistently delights its customers.

• Market expansion: By leveraging market penetration strategies, the Company has been expanding into the rapidly growing Tier II and III cities, seizing growth opportunities from the unorganised segment. Targeted marketing campaigns tailored to specific markets have cultivated a loyal global customer base. The Company has a strong foothold and is well-revered for its fabrics in UK, Europe, North America, Latin America, Gulf countries and South-Eat Asia.

New Launches and Key Developments, FY 2024-25 Launch of ZECODE and DEVO:

To enhance direct customer engagement and provide customers with a seamless shopping experience, Siyarams opened 19 new retail outlets during the year, under the brands ZECODE and DEVO.

• ZECODE is the next-gen value retail brand, targeting urban shoppers with trendy, affordable fast fashion wear.

• DEVO stores are ethnic clothing outlets displaying an extensive range of occasion and festive wear, catering to the nations rich cultural heritage and style preferences.

Through ZECODE, Siyarams is targeting a highly-modern Gen-Z consumer which Indias demographic landscape is currently tilting towards. ZECODE stores will be offering a fast-fashion value retail format.

Through DEVO brand, the Company is set to tap into the burgeoning wedding and occasion wear market. With its indomitable knowledge of fabric and designs, the Company is uniquely positioned to ride on this growing trend, leveraging on the increasing disposable incomes, high-budget weddings and with the social media influencing buying decisions of todays youth.

Launch of Cadini Italy Perfumes:

During the year, the Company also launched Cadini Italy Perfumes in India, marking a new chapter in its legacy of Italian sophistication and exceptional craftsmanship, and highlighting its commitment to exquisite, world-class craftsmanship in delivering Italian luxury to Indian consumers.

Growth Strategies

• Strategic expansion: Siyarams is steadily expanding, focussing on increasing its presence in the fast-growing Tier II and III cities. It is on a constant expansion drive with new retail outlets to boost customer engagement, offer a seamless shopping experience, and cater to the rising demand for fast fashion stores. The Company has plans to open ~35 new fast fashion (ZECODE) and ethnic retail outlets (DEVO) during FY 2025-26.

• Robust distribution network: The Company is working on enhancing its distribution and manufacturing capabilities by partnering with outsourcing partners. With a strong distribution network and solid market penetration across India, it remains on track to meet its ambitious growth objectives.

• Leveraging the brand: The Company remains committed to strengthening its brand presence, with an aim to build a loyal, global customer base by tapping into its brand equity and expanding its reach worldwide.

• Building a franchise model: The Company is working towards widening its footprint by growing its franchise network, opening new retail stores, and enhancing its online presence to maximise reach and engage with a broader customer base.

• I nnovation at the core: The Company continues to blend tradition with modernity, focussing on quality improvement and expanding its product portfolio. With a strong focus on innovation, the Company is committed to staying ahead of market trends.

• Fostering tailoring in the community: The Company continues to play an active role in supporting Indias tailoring community by providing them with free upskilling workshops and training, and by advocating sustainable livelihoods for tailors.

Areas of Focus

Enhancing the consumer experience: The Company conducts regular customer surveys to align product offerings with consumer behaviour and preferences. Through constant innovation, it aims to stay at the forefront of customer choices in a highly competitive fashion industry.

Focussed product strategy: The Company is continuously streamlining its product range by consolidating SKUs, focussing on fast-moving products and popular designs to streamline inventory management, leading to improvement in profitability and working capital management.

Targeted marketing approaches: With its traditional marketing strategies, the Company has expanded its presence in Tier I, II and III cities.

Accelerating digital transformation: By embracing digitalisation across its business operations, the Company endeavours to further improve its efficiency, and continuously trains the employees to help them adapt to new digital tools and initiatives.

Financial Performance

Key Financial Highlights, 2024-25

Profit & Loss Summary	FY 2024-25	FY 2023-24	YoY (%)
Revenue	2,220.32	2,087.17	6.37
EBIDTA	352.66	322.40	9.38
% of Revenue (bps)	15.88%	15.45%	0.43
Profit After Tax	198.73	184.67	7.61
% of Revenue (bps)	8.95%	8.85%	0.10

 

Debt Summary	FY 2024-25	FY 2023-24
Long-Term Debt	32.55	1.19
Current Maturities of	7.52	8.02
Long-Term Debt
Short-Term Debt	194.73	163.09

 

Key Ratios	FY 2024-25	FY 2023-24
Debt Equity Ratio	0.21	0.18
ROCE	18.44%	19.64%
ROE	15.42%	16.19%

Future Outlook

Looking ahead, the Company remains optimistic about its next phase of growth, emerging from its traditional businesses and new ventures. The next fiscal year will continue to be driven by a favourable market environment and prudent capital management to ensure continued growth.

Risk Management

The Company has an efficient risk management framework for the timely identification, assessment and mitigation of key business and operational risks. Its key risks, impacts and their corresponding mitigation measures are depicted below:

Risk	Impact	Mitigation
Macroeconomic and geopolitical risk	The Companys operations in multiple markets exposes it to risks related to macroeconomic conditions and country-specific regulatory and political changes. Geopolitical tensions, disruptions in the supply chain, higher inflation, monetary tightening, and global economic slowdowns may impact global trade, demand in key markets, consumer spending, as well as the Companys profitability and growth.	The Company remains vigilant, utilising insights from its treasury and Strategy teams to monitor macroeconomic trends and regulatory changes. Furthermore, it prioritises expanding its geographical reach and manufacturing innovative products. The Company also explores ways to optimise its supply chain for enhanced efficiency and resilience.
Subdued demand risk	Persistent inflation may contribute to a weak demand environment in both domestic and international markets. This ongoing demand compression poses a risk of declining sales and profitability. Moreover, operating across multiple segments adds complexity, as the Company must navigate changing market dynamics and meet evolving customer needs. Additionally, intense pricing pressure exacerbates the situation.	The Company actively invests in research and development to innovate its product range and stay aligned with emerging trends. Through regular interactions with customers and dealers, coupled with surveys, the Company gains valuable insights into shifting preferences and market dynamics, enabling it to optimise its product offerings accordingly. Additionally, the Companys focus on offering high quality products at competitive prices has resonated well with the Indian middle class, positioning it as a brand accessible to a wider audience.
Raw material risk	Volatility in raw material prices, can directly impact the overall input costs of the Company. Moreover, the inability to pass on higher prices due to stiff competitive intensity can have a significant impact on the profitability of the Company.	The Company consistently evaluates alternative materials and production processes to reduce reliance on volatile raw materials. While most competitors use cotton as a primary raw material, Siyaram utilises Poly-viscose as a substitute raw material, which is both economical and more durable than cotton. Furthermore, the Company passes the increase in input price to the end customers with lag effect. It also strives to optimise its production, planning, and distribution processes to ensure price-sensitive consumers have access to its products.
Shifting trends risk	The textile and apparel industry constantly evolves to meet rapidly changing consumer preferences, presenting a risk for companies unable to adapt quickly. Staying abreast of these shifting trends, including sustainability trends, is crucial for industry players to remain competitive and effectively meet customer demands	The Company has embraced innovation and agility to stay relevant, adapting to evolving consumer preferences and market dynamics. It offers a diverse range of products, focussing on affordability, variety, and contemporary fashion trends to meet the diverse needs and aspirations of Gen Z and Millennial customers. Further, the Company also closely monitors emerging fashion trends and takes pro-active decision to stay ahead of the curve with contemporary product offerings. Additionally, Siyarams online retail platforms are geared towards enhancing the overall customer experience.
Foreign exchange rate risk	The Company is exposed to fluctuations in foreign exchange rate as it exports products to various international markets. The volatility in currency rate has the potential to negatively impact the Companys profitability	The Company adheres to an efficient hedging policy to mitigate the impact of unfavourable currency fluctuations. It actively monitors changes in exchange rates and adjusts its position accordingly. Additionally, cultivating long- lasting relationships with suppliers allows the Company to adeptly navigate volatile markets.
Reputational risk	The textile industry faces significant challenges from the proliferation of counterfeit products, a major concern for the Company. This issue results in substantial losses for both the purchasers and the legitimate sellers of the original products. Counterfeits not only undermine the brands value but also adversely affect the sentiments of authentic product buyers, who pay premium prices for genuine products.	The Company is renowned for its brand reputation and is committed to preserving it. Siyarams brands enjoy high recall value and boast a robust customer base. To mitigate reputation risk, the Company educates dealers, distributors, and customers on the authenticity of its products, providing guidance on distinguishing between genuine products and duplicates. Additionally, the Company addresses the risk of counterfeits through trademark registrations, legal actions against intellectual property rights (IPR) infringers, and the implementation of technology solutions.

Human Resources

Siyarams understands the invaluable contribution of its Human Resources, acknowledging that its employees are the primary drivers of the organisations growth. The Company adopts a people-centric approach, investing significantly in employee training and wellness initiatives. It remains committed to strengthening its workforce, paralleling the robustness of its financial performance. It prioritises employee engagement and skill enhancement by regularly conducting in-house training and development programmes designed to boost competencies and the overall productivity.

The Companys HR policy fosters a culture of inclusion and diversity, promotes trust and transparency, and inculcates a sense of teamwork among the employees to build a future- ready organisation. It also promotes equal opportunity and competitiveness to unleash the full potential of its employees and to enhance its long-term value.

The Company is committed to maintaining a workplace free from harassment by ensuring that all its employees are treated with dignity and respect. In the fiscal year 2024-25, no cases were filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013. Industrial relations with employees remained cordial and cooperative. As of March 31, 2025, the Companys total employee strength stood at 2,152.

Information Technology

As part of its digital and IT transformation journey, the Company maintains its robust infrastructure to stay competitive, mitigate disruptions, and ensure compliance with internal mandates aimed at boosting enterprise efficiency. It leverages advanced IT systems, cutting-edge technology, and digital transformation initiatives to streamline business operations. Its integrated software system supports key functions such as Purchasing, Production, Inventory Management, Sales, and Accounting and caters to all Strategic Business Units (SBUs).

With a forward-thinking IT budget and roadmap, the Company focusses on cloud software, data aggregation, and emerging technologies like AI, Machine Learning, IoT, Blockchain, and Autonomous Databases. It also invests in cloud-based ERF? EPM, Procurement, and Treasury applications.

The Company continues to make significant investments in software solutions and systems, including Business Intelligence and Point of Sales to further strengthen its infrastructure capabilities. Some of these platforms are Microsoft Azure for Application Hosting and Computing Services, Microsoft 365 for collaboration, and Criteos Commerce Media Platform for digital advertising and IT decision-making. Further, it introduces mechanisms to implement necessary checks and controls to disseminate valuable insights and ensure accuracy of captured data.

Corporate Social Responsibility

The Siyaram Group well understands its responsibility as a corporate citizen to positively impact the society and the environment in which it operates. Through responsible investment and sustainable business practices, it is not only committed to conducting business in an ethical and sustainable manner, but also contributes towards the development of communities around through impactful initiatives and create a more sustainable future for all. The key areas it has identified for CSR projects are education, healthcare, disease prevention and treatment, safety, and the environment.

CSR initiatives undertaken in 2024-25:

• The Siyaram Poddar Group has been proudly managing Shri Ramrikhdas Poddar Balika Vidya Mandir, an exclusive school for girls in Fatehpur Shekhawati, Rajasthan for over 50 years. The school is affiliated with the Rajasthan Board of Secondary Education

• It actively organises blood donation camps. Recently, a voluntary blood donation camp was held in collaboration with the Rotary Club

• On International Yoga Day, the Company organised yoga sessions for the well-being of its employees

• Siyarams proudly celebrates the National Safety Week, promoting awareness of health & safety in all aspects of life

• World Environment Day holds a special place at Siyarams, and is well-celebrated with great enthusiasm every year. On this day, its employees actively participate in tree plantation drive across all its manufacturing locations

• Understanding the importance of self-discovery, the Company encourages individuals to harness their inner potential, fostering a profound impact on personal and professional lives

• It is also constructing a Neurology department within the hospital premises of Shree Lallubhai Sheth Arogya Mandir (Shree Vidhyaguru Foundation) at Savarkundla, Gujarat.

Internal Control Systems

The Company employs a robust method for managing its internal control systems, tailored to the size and scope of its operations. This approach helps the Company protect its assets, identify and mitigate business risks, and ensures the preparation of accurate financial records while evaluating the reliability of financial controls and compliance with relevant laws and regulations.

The statutory and internal auditors of the Company conduct comprehensive audits across all departments, focussing on areas such as financial reporting, taxation, corporate finance, business recovery, and insolvency. The Audit Committee regularly reviews and assesses financial systems, management procedures, and internal controls to ensure smooth operations, minimise risks, and safeguard against fraud and misrepresentation. Both internal and statutory audits are carried out to ensure adherence to regulatory standards, and the management takes corrective actions as needed.

Cautionary Statement

The Management Discussion and Analysis may include statements about the Companys goals, projections, estimates, and expectations, which qualify as "forward-looking statements" under applicable laws and regulations. Actual outcomes may differ significantly from these statements due to various risks and uncertainties, such as raw material availability and costs, market demand fluctuations, competitive dynamics, regulatory and tax changes, economic conditions in India and global markets, exchange rate variations, and other external factors influencing the Companys business and financial performance. The Company disclaims any obligation to update, revise, or modify these forward-looking statements in light of future developments, new information, or unforeseen events.