Stove Kraft Ltd Management Discussions

ECONOMIC OVERVIEW Global Economy

As we step into 2025, the global economy is moving towards finding a new equilibrium marked by the emergent US economy and the tempered growth in Asia and Europe. According to the International Monetary Funds (IMF) report issued in January 2025, projections indicate a consistent global economic growth rate of 2.8% and 3.0% for 2025 and 2026 respectively, while GDP is 3.3% in 2024. While the US is expected to see an uptick in growth, the emerging markets face uncertainty on the trade policy and supply chain front amidst an expected rise in consumption. On the inflation front, while the predicted disinflation is taking hold, elevated inflation in certain countries is persisting. Global inflation is expected to be at 4.3% in 2025 and decline to 3.6% in 2026.

Real GDP Growth	2024	2025(P)	2026(P)
World Output	3.3	2.8	3.0
Advanced Economies	1.8	1.4	1.5
Emerging Market and Developing Economies	4.3	3.7	3.9

(P) = Projected

Developed economies, conversely, are anticipated to experience a differing trend in their growth outlook. Growth in the US is predicted at 2.8%, which is 0.5% higher than the earlier forecast. The Euro area is facing a small downward revision of growth, which is now pegged at 0.8% in 2025 and 1.2% in 2026. Emerging markets and developing economies are expected to see stable growth with projections of 3.7% for 2025. World trade volumes are expected to decline owing to trade policy uncertainty, although that uncertainty is expected to be transitory. In the face of heightened possibilities of protectionist trade measures, the global economy shows resilience with a consistent growth forecast. Despite policy uncertainties and potential continuation of geopolitical tensions, multilateral cooperation is expected to better trade partnerships and assist in overall stability to growth. Developments in Artificial Intelligence (AI) and automation, combined with structural reforms and shifts in policy, will remain significant forces influencing the dynamics of markets throughout the global economy.

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Indian Economy

The IMFs January 2025 report indicates that Indias economic expansion is projected to remain strong at 6.5% in 2025. Bolstered by significant domestic demand, increasing levels of private consumption, and a decrease in core inflation, India is well-positioned for continued growth. The year 2024 saw unprecedented electoral activities covering most parts of the world. This brought about a period of uncertainty and concerns on trade policies but Indian economy has remained relatively stable. The inflation has seen downward movement with retail inflation easing at 4.9% in FY2024-25 (April-December) compared to 5.9% in FY2023-24. It is expected to continue the downward trend in FY2025-26.

FY	FY	FY	FY 2024-25	FY 2025-26
2021-22	2022-23	2023-24	(E)	(P)
9.7%	7.6%	9.2%	6.5%	6.3-6.8%

(P) = Projected; (E) = Estimated

Nevertheless, the overall prospects for the Indian economy face potential risks arising from geopolitical instability and increasing disruptions to trade. Additionally, industrial growth, particularly in the manufacturing sector, has been moderated by weakening global demand and persistent supply chain constraints. Nevertheless, Indias GDP growth is projected to be driven by rising employment and disposable incomes, growing private consumption, increasing rural demand and improved consumer confidence. The fundamentals of the domestic economy remain robust, with fiscal consolidation, consumption stimulus from the Union Budget 2025-26, and revival in private investment.

The Indian economys progress continues to be significantly supported by the manufacturing sector, which plays a vital role in the countrys economic growth. While the overall industrial sector has found its footing above the pre-pandemic level, manufacturing is expanding with a phase of steady recovery. Propelled by strong demand, skilled and low-cost workforce, technology adoption, government policy incentives and increasing investment, Indian manufacturing is fast gaining a competitive edge

Management Discussion and Analysis

globally. The governments Make-in-India initiative and PLI schemes have given the necessary boost to the manufacturing sector. As reported by the Indian Brand Equity Foundation in January 2025, the Indian manufacturing sector is expected to be one of the fastest-growing sectors. By 2025, 25% of Indias economys output is expected to come from manufacturing. Identifying India as the third most desirable manufacturing base internationally, the report also points to the nations potential to reach USD 1 trillion in export value for goods by 2030.

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INDUSTRY OVERVIEW & DEVELOPMENTS

The kitchen appliances market refers to the industry that manufactures and sells a range of mechanical and electrical devices that assist in food preparation and storage. It covers manufacturing and selling a wide range of appliances used in the Kitchen including refrigerators, cookers, cooktops, cookware, ovens, stoves, blenders, dishwashers, food processors, coffee makers, and more. Kitchen appliances find application in both homes and commercial establishments. Operation of these appliances relies on various energy sources, including electricity, cooking fuel, renewable energy, and solar power, thus providing consumers with options to align with their individual needs. The routes for distributing kitchen appliances encompass multi-brand retailers, dedicated stores, exclusive brand outlets, and online channels.

The Kitchen Appliances Market size is estimated at USD 259.02 billions in 2025, and is expected to reach USD 339.01 billions by 2030, at a CAGR of 5.53% during the forecast period 2025-2030 as per Mordor Intelligence.

Indian consumers are adapting convenience-driven lifestyle and are embracing technology-driven kitchen solutions. Smart kitchen appliances are making kitchen more convenient and comfortable to use and are growing in popularity driven by rising disposable

income. Indias consumer durables market is expected to grow at ~11% CAGR.

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PRODUCT SEGMENTATION

From a product perspective, the market is segmented into large, small, and other appliance types. The large appliance category comprises items such as refrigerators, dishwashers, microwaves, cooking hobs, ovens, and kitchen extraction units, amongst others. Conversely, the small appliance segment includes food processors, mixer-grinders, blenders and juicers, coffee machines, kettles, grills, and fryers.

Large Cooking Appliances

Large cooking appliances make preparation and storage of food efficient. Transitioning from a luxury to a necessity they are now vital to the Indian kitchen appliances market. The demand for large cooking appliances is rising driven by the spurt in the middle class, increasing urbanization and shifting lifestyle. This is creating opportunities for the development of the entire ecosystem catering to the increasing demand. The Government of India has introduced various reforms, such as "Make in India" initiative, to encourage domestic production of large kitchen appliances, which will consequently create employment, strengthen local industries and reduce dependence on imported products. Indias large Kitchen Appliances market is expected to touch USD 3.5 billions by 2027.

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Small Cooking Appliances

Small kitchen appliances serve a wide array of households, offering manual, semi-automatic, and fully automated models. Their compact size,

cost-effectiveness, and ability to streamline kitchen chores have made them essential in modern households. The small kitchen appliances market is expected to reach USD 137.36 billions in 2025 and USD 167.12 billions by 2030, growing at a CAGR of 4%, as per Mordor Intelligence. North America currently leads the market, holding a market share of USD 11.02 billions, and is projected to grow at a CAGR of 3.7% from 2024 to 2030. The U.S. small kitchen appliances market is projected to reach USD 30.44 billions by 2030, growing from USD 24.23 billions in 2025 at a CAGR of 4.67% during the forecast period. In 2025, the Small Kitchen Appliances market in India is projected to generate USD 16.48 billions in revenue. It is expected to grow at a CAGR of 5.02% from 2025 to 2030.

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Consumers are increasingly seeking solutions for making their daily lives easier. These appliances help streamline kitchen tasks, reduce activity time, cut down on food waste, and improve the overall cooking experience.

Key players in the industry are investing heavily in research and development/innovation to launch new products to keep pace with changing consumer preferences. Continuous product innovation, supply chain efficiency and e-commerce expansion are driving the industrys growth.

The smart kitchen appliances market which was valued at USD 23.88 billions, is expected to reach USD 51.98 billions by 2030, with North America leading the way, as reported by Mordor . The growing trend of smart homes, eco-friendly practices, focus on food waste reduction, growing health-conscious

trends, and the rising utility and demand in the hospitality sector, are key factors driving the smart kitchen appliances market. With the rise in disposable incomes, smart kitchen appliances such as smart ovens, smart dishwashers, smart refrigerators, smart cookware, cooktops, thermometers, and, voice faucets are becoming more accessible to consumers. Growing AI and IoT capabilities, and voice assistants is set to revolutionize the smart kitchen appliance industry, increasing automation and personalization.

The kitchen appliance sector is rapidly growing in North America due to an increase in the adoption of advanced technologies and a growing trend of customized kitchen designs among consumers. Similarly, Asia-Pacific is the largest market for kitchen appliances. There is a growing trend on modular kitchens in these regions, which stimulates the demand for standalone cooktops and ovens. Furthermore, the demand for eco-friendly home appliances in the region is increasing due to rising energy prices, government initiatives, and a focus on energy conservation. urbanization, economic development, and infrastructure improvements are further influencing market growth both locally and globally.

Indias kitchen appliances market is seeing rapid growth and is expected to grow at a CAGR of 15.2% for the period 2025-2030 as per Mordor Intelligence. This growth is led by expanding middle class, growing urbanization, increased earnings, advancements in technology, and the improvement in internet penetration. The Indian market size for kitchen appliances is expected to reach USD 12.4 billions by 2033, as per IMARC group research, while the home appliance market has reached USD 64.61 billions in 2024, and is expected to reach USD 117 billions by 2033

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Other appliances

Rising health awareness and an increasing emphasis on better eating is leading to the demand for the cookware that supports oil-free cooking.

A rising inclination towards home-prepared meals among younger urban populations, increased consumption of low-calorie and immunity-enhancing foods, alongside a growing number of dining establishments, constitute the principal factors

driving demand for non-stick cookware, including items such as pans, pots, and whisks. Additionally, growth in healthy food focused eateries and influence of food trends are leading to a higher demand for non-stick cookware that assist in quicker turnaround time without compromising on food quality and presentation.

GROWTH DRIVERS AND OUTLOOK OF INDIAN KITCHEN APPLIANCES MARKET

?€? Rising Disposable Income: The global increase in disposable income has encouraged individuals to pursue enhancements in their living standards through the acquisition of convenient, time- efficient solutions. This shift from conventional cooking practices towards contemporary kitchen appliances supports the smart kitchen appliance market, as these devices are considered a highly effective means of simplifying daily life and providing greater ease in the kitchen environment.

?€? Evolving Lifestyle: Contemporary living patterns have seen a growth in the popularity of modular kitchen designs, which emphasize visual appeal, functionality, and ease of use. This development has, in turn, spurred the creation of sophisticated and inventive kitchen appliances, alongside a greater need for appliances in commercial kitchens.

?€? Increasing participation of women in workforce: Women are increasingly choosing to balance career with home. Innovative smart devices save time and provide necessary assistance in maintaining this balance with easy and fast home meal options.

?€? Urbanization: Urbanization is a key factor shaping lifestyle and buying choices. Busier schedule and nuclear families increase demand for time saving appliances. This has created a greater need for compact and efficient kitchen appliances, such as microwave ovens, induction cooktops, and compact dishwashers, coffee makers, food processors, and multi cookers.

?€? Smart Kitchen Appliances shift: High electricity bills and fuel costs have led the consumers to shift towards smart kitchen appliances. Consumers are keen to invest in smart and durable appliances as these appliances offer remote control via smartphones or voice assistants, making cooking convenient and saving time.

?€? Surge in Smart homes: Smart homes and Internet of Things (IoT) are revolutionizing kitchens and making them center of technology-driven convenience and efficiency. IoT and AI are making things connected, automated and intelligent and kitchen appliances are leading the way.

?€? Surge in demand for Home-cooked Meals: Heightened health awareness among consumers, particularly post the pandemic, has resulted in a significant increase in the demand for home-cooked meals resulting in increase in demand for appliances that support healthier cooking practices. Air fryers, steamers, and blenders are becoming increasingly popular due to their capacity to enable oil-free and nutrient-preserving cooking methods.

?€? Demand for Eco-Friendly Appliances: Sustainability is a key factor influencing purchase decisions among the consumers. Energy-efficient appliances are in demand, as consumers become more conscious of their ecological footprint. Connected appliances that can be controlled remotely allow for better energy management. Growing preferences for ecofriendly materials used in the kitchen appliances, along with Government efforts to encourage manufacturers to use renewable energy sources and spread awareness about energy consumption, collectively contributing to the demand for ecofriendly and sustainable appliances.

?€? Rise of modular kitchen: Better space design and utilization need is giving rise to increasing adoption of modular kitchen concepts. Modular designs are also well designed and aesthetic adding to their appeal. These kitchen model integrate smart kitchen appliances as a concept increasing the demand for compact and multi-function kitchen appliances.

?€? Health and Wellness Focus: Following the pandemic, shifts in consumer dietary habits have become prominent. Individuals are increasingly seeking appliances that assist with portion management, calorie tracking, and provide dietary information, thereby driving greater demand for items such as air fryers, juicers, and blenders that support healthier cooking and streamline the process of preparing meals.

?€? Rise of E-commerce and digital influence: Online retail channels have become a significant force in the Indian kitchen appliance market, allowing consumers to explore a wide selection of appliances, compare prices, review feedback, and complete purchases conveniently from their homes or while traveling. Growing awareness generated through digital content is influencing consumer purchasing decisions.

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COMPANY OVERVIEW

Stove Kraft ("the Company") holds a significant position in India as a prominent provider of kitchen solutions. With over two decades of market presence, the Company is a key player in the Indian home and kitchen appliance sector, particularly recognized for its pressure cookers and holding a leading market share in free-standing hobs, cooktops, and non-stick cookware. Headquartered in Bengaluru, Karnataka, the Company has established a strong nationwide presence across 28 states and 6 Union territories. It exports its products to 14 countries globally, with 11.4% of its sales originating from these exports. Beyond its strong domestic footing, the Company has successfully expanded internationally, with its products being sold in the US, Mexico, Southeast Asian nations, and Gulf countries. Furthermore, it has formed Original Equipment Manufacturer (OEM) partnerships in the USA and Mexico.

The Company manufactures and sells kitchen and home solutions under three primary brands: Pigeon, Gilma, and BLACK+DECKER. These brands offer a comprehensive range of kitchen and home products, targeting the value, semi-premium, and premium market segments.

Pigeon: This award-winning brand is well-known for its high-quality cookware. Pigeons extensive reach is partly attributable to nearly a decade of co-branding initiatives with LPG companies such as Indian Oil Corporation Limited and Hindustan Petroleum Corporation Limited, effectively utilizing their sales and distribution networks.

Gilma: This brand offers a distinctive modular kitchen experience, including chimneys, hobs, and cooktops across various price points and designs within the semi-premium segment. These products are sold through exclusive branded outlets, operated by franchisees. The Company has also launched a dedicated Gilma mobile application for customers to facilitate post-sales service requests.

BLACK+DECKER: To establish a presence in the premium market segment, the Company entered into an exclusive Brand Licensing Agreement with Stanley Black & Decker, Inc., and The Black and Decker Corporation for the BLACK+DECKER brand. This agreement granted the Company the exclusive rights to retail and provide after-sales services for a wide array of products, including blenders and juicers, breakfast appliances, small cooking appliances, and small domestic appliances. The Company maintains a separate distribution network across 17 states for BLACK+DECKER products.

The Company has reach to over 66,560 outlets, supported by its distribution network comprising 8 C&F (Clearing and Forwarding) agents and more than 600 distributors. It also has 12 distributors specifically for export products. The Company has a dedicated in-house service team with comprehensive capabilities and provides end-to-end services through its own technicians. Separate distribution networks have been established for Pigeon, Gilma and BLACK+DECKER.

The Company has implemented BIZOM for real-time tracking and monitoring the movement of its field sales executives and service engineers. For tracking

its secondary and tertiary sales, the Company uses a DMS (Distributor Management System), which also aids in maintaining inventory levels at distributor centers. Centralized CRM (Customer Relationship Management) software enables the tracking of customer requests, pre-installation support, and after-sales service. Additionally, the Company operates a centralized call center and allocates service requests to branches based on geographical mapping.

In FY2021-22, the Company through a business transfer agreement had acquired the business of SKAVA Electric Private Limited on slump sale basis. It was envisaged that the acquisition would enable the Company to expand its footprint in the low voltage switchgear solutions market like electrical switches, sockets, distribution boards, switchboards, MCB, bulb holders, and more. However, the desired object was not achieved despite significant efforts put in by the team due to market and business dynamics. Therefore, SKAVAs trademarks, patents, and other intellectual property rights were reassigned to Onelectrix & Yasa Labs.

Retail Stores

During the financial year 2024-25, the Company expanded its retail presence by opening 92 new stores, bringing the total number of operational outlets to 262 across 95 cities and 19 states in India. This growth included the launch of 14 new stores in the Western states of Gujarat, Madhya Pradesh, and Maharashtra, as well as a strengthened presence in Northern India. Additionally, there are now 74 stores operating under the Franchisee model. Over the next 12 to 18 months, the Company plans to establish more than 120 additional retail stores nationwide, including expansions into new states. These stores will offer a complete range of products marketed under the Pigeon brand, including cookware, cooktops, small appliances, and LED lighting solutions.

Manufacturing Units

The Company operates two manufacturing units located in Bengaluru, Karnataka, and Baddi, Himachal Pradesh. These facilities utilize advanced technology to ensure adherence to stringent quality standards. Both manufacturing sites hold ISO 9001:2015 certification for their implementation of quality management systems. The Company has entered into supply partnership with IKEA for developing and supplying cookware globally from 2026 and is setting up dedicated 1,80,000 sq ft manufacturing facility at Harohalli in Karnataka. The Company will develop and sell a range of cookware through IKEAs global

stores network from 2026 in line with its objective of expanding its global footprint.

The Bengaluru facility represents an integrated manufacturing operation, incorporating multiple production units across a 46-acre site. Within this estate, around 2-acre land is available for future expansion. This facility produces a varied portfolio of goods, including pressure cookers, non-stick cookware, hard anodised cookware, mixer grinders, induction cooktops, LPG stoves, glass cooktops, handy vegetable choppers, OTG, Microwave Oven, Cast Iron Cookwares, Ceramic Cookware and LED products. The Company has initiated the local manufacture of arrays of small appliances, a process that previously involved imports from China. This move towards domestic production has aided in greater market reach for our products within India.

The Company also has Warehouse on its 2.75 acres of Land (1.20 Lakhs sq ft) adjacent to its Registered Office and Factory having capacity of around 25,500 pallet position, taking care of our Warehouse requirement for next two-to-three years.

At Baddi facility, the Company manufactures Inner Lid Cookers. At the Bengaluru facility, the Company has established supplementary plants as part of its strategy for backward integration. These additional units are involved in the production of glass lids, weight valves, vent tubes, and gaskets.

During FY2024-25, the Company commissioned the newly constructed Cast Iron Foundry at Harohalli factory. The said foundry is built at a cost of 40 Crores and is an automated production line capable of producing a wide range of Cast Iron Cookwares and high-quality cast iron components. The Foundrys current installed capacity is 2.2 million pieces per annum and has been designed to reach 4.4 million pieces per annum in future.

The Company operates a dedicated in-house Research and Development (R&D) facility and continuously working for technology enhancement. The manufacturing facilities benefit from a significant level of backward integration, allowing the production process to operate independently of external suppliers and Original Equipment Manufacturers (OEMs). These facilities are equipped to manufacture essential components such as Bakelite handles, sheet metal parts, moulded components, die-cast parts, moulds, dies and fixtures required for the production of the Companys own products. A consistent

emphasis is placed on quality, with close supervision and thorough review at every stage, encompassing the sourcing of raw materials, product development, and manufacturing processes. To uphold the highest production standards, the Company maintains a dedicated sourcing team and a quality assurance team based in China.

COMPETITIVE STRENGTHS

?€? The Company provides a comprehensive array of kitchen solutions from a single source, thereby serving a broad spectrum of consumers. This strategy captures the entire value chain and positions them favorably in the market.

?€? Strong brand presence through effective marketing campaigns and influencer engagement. These branding and marketing efforts raise awareness of the company, its products, and its values among target audiences.

?€? New product launches and innovation capabilities are catering to evolving tastes and keeping the company ahead of market competition.

?€? The Companys manufacturing capabilities are robust, with efficient backward integration and strong quality certifications and assurance process.

?€? The Company benefits from a widespread and effectively connected distribution network, encompassing various retail channels, alongside a dedicated after-sales support system.

?€? Furthermore, the Company maintains a robust presence in the e-commerce sector and is experiencing continued growth in this area.

?€? The Company is led by a professional management team having extensive industry experience and experienced board members.

OPERATIONAL AND FINANCIAL PERFORMANCE

The Companys revenue from operations reached 14,498 millions for FY2024-25 compared to 13,643 millions in FY2023-24, representing a growth of 6.27% driven by strong demand for kitchen appliances. EBITDA has increased to 1,5010.62 millions in FY2024-25 compared to 1,188.67 millions in FY2023-24 registering a growth of 27%. Profit After Tax has increased to 385 millions in FY2024-25 compared to 341 millions in FY2023-24 registering a growth of 12.80%. The Company is progressing with its operational expansion beyond Southern India into the Northern region, establishing stores in Punjab and the NCR. During the period under review, the e-commerce channel experienced a growth of 18%, Retail by 102%

and OEM exports increased by 1%, Modern Trade by 6% and while offline sales decreased by 3%.

Keeping in line with its strength of bringing in innovative products, the Company launched creative and convenience-enhancing products during the year. The Company introduced electric pressure cooker Electra, brought in a new line of glass top cookware, revolutionary air fryer, blenders, juicers, air turbo vacuum cleaner and better-designed chimneys. New line of MIO non-stick cookware with Italian technology was launched ensuring high durability.

The Company entered a new product line with the expansion into personal care products by adding hair dryers and trimmers to its product portfolio from January 2025.

Notwithstanding challenges such as increased operational, employee, and marketing expenses, inconsistent rainfall patterns, and elevated input costs leading to inflation, the Companys operations continued to expand across diverse trade channels. These included general trade, e-commerce, retail outlets, and modern retail formats, all of which registered growth. In line with its strategic objectives, the Company has progressively lessened its dependence on imports, resulting in enhanced profit margins and a quicker circulation of working capital.

The gross margin for the fiscal year stood at 38.1% (PY 36.9%) while EBITDA margin stood at 10.4% (PY 8.7%). The PAT margin stood at 2.7% compared to 2.5% in FY2023-24. The ROCE stood at 9.58% compared to 9.24% in previous year. The Companys net debt as on March 31, 2025 stood at 1,7<8 millions (excluding lease liabilities and suppliers credit) with working capital of 64 days compared to 59 days in FY2023-24. Please also refer Note 45 of Notes to Financial Statements for more information on other ratios.

RISK MANAGEMENT

The Company has a strong risk management framework which forms an integral part of the strategy and planning process. The Company proactively identifies potential risks and devises action plans to mitigate any such risks which may impact business operations. The risks are broadly classified as transactional, strategic and external. This classification also helps in adopting the appropriate mitigation approach. To manage transactional risks, the Company has established clearly defined procedures and internal controls. Internal and statutory auditors conduct

regular assessments of these procedures to ensure their effectiveness. To lessen strategic and external risks, the Company implements improvements through its business strategy, operations, financial management, and human resource programs.

Specific individuals are assigned responsibility for their respective risk mitigation plans.

These individuals monitor and review the progress of the implemented mitigation actions. In accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, the Company has formed a Risk Management Committee. This Committee is responsible for identifying and implementing suitable mitigation measures for various external and strategic risks, as detailed below:

Risks	Impact & Mitigation
Competition Risk	The kitchen appliances industry presents favorable growth opportunities; however, this also means the Company operates in a highly competitive environment, facing pressure from both existing market leaders and emerging businesses. To preserve profitability and market share, a strategic approach, a strong distribution infrastructure, and ongoing innovation are essential. To distribute its wide array of products across India, the Company utilizes multiple channels. It provides high-quality products across a spectrum of price points, from affordable to premium, while maintaining competitive pricing. A significant focus on innovation, driven by extensive Research and Development (R&D) and the regular introduction of new products, variations, and categories, is key to both attracting new customers and retaining the interest of existing ones. Furthermore, the Company actively seeks to strengthen its brand value through effective marketing, advertizing, and promotional initiatives.
Commodity Price Risk	Fluctuations in the prices of essential commodities such as aluminum, aluminum derivatives, copper, plastics, and steel have the potential to elevate input costs, thereby affecting profitability. The Company employs a cost-plus pricing model, which helps to protect it from the impact of commodity price volatility. The majority of price increases are transferred to consumers, either partially or fully, with a typical delay of one quarter. Efficient procurement and supply chain management play a crucial role in mitigating these risks through close monitoring of key commodity price movements, enabling informed sourcing decisions based on demand and forecast planning. To further reduce exposure to commodity price risks, the Company maintains an ongoing focus on indigenization and backward integration of its facilities to secure access to critical inputs. This strategy not only aids in managing supply chain challenges but also enhances cost competitiveness and ensures superior product quality.
Interest Rate Risk	The Companys borrowings are subject to floating interest rates and marginal cost of fund-based lending rates applied by banks. Consequently, any changes in interest rates directly affect interest expenses and overall profitability. The Company consistently works to maintain a sound debt-to-equity ratio. To lessen the risks associated with interest rate fluctuations, the Company aims to uphold a strong credit rating, which can facilitate more favorable borrowing rates or reduced spreads on lending rates.
Foreign Exchange Risk and Hedging	Regarding foreign exchange risk and hedging, the Company benefits from a natural hedge due to both its import and export activities. With increasing export volumes, foreign currency payables are largely offset by foreign exchange earnings. For any remaining foreign currency exposure, the Company closely tracks exchange rate movements and, based on risk evaluation, implements hedging strategies to mitigate potential forex-related risks.
Credit Risk	To address credit risk, the Company employs a robust credit monitoring policy that assesses customers eligibility for credit based on specific criteria. This helps to reduce the risk of default. Furthermore, the Company adheres to a prudent provisioning policy for older outstanding receivables. The Company is also in the process of monetizing its receivables through without recourse channel funding programmes, currently covering e-commerce, exports, and a significant portion of general trade.

HUMAN RESOURCES

The Company recognizes the importance of its employees and adopts a strong, human resources-focused approach aligned with contemporary workplace principles. A supportive work environment is promoted through clear and transparent HR procedures and performance evaluations. The fact that 70% of the workforce are female underscores the Companys dedication to equality and inclusion in the workplace. Creating a safe and healthy workplace is a priority, as it is understood to be crucial for employee engagement and productivity. A skilled and motivated workforce has the potential to significantly accelerate the Companys growth. Its strong HR practices has a major contribution in promoting the Companys growth and innovation through all its operations. The work culture ensures cordial relations among all stakeholders.

As on March 31, 2025, the Company had a total of 5,403 permanent employees.

INTERNAL CONTROLS

The internal financial controls of the Company provide adequate assurance on recording and providing reliable financial information, complying with applicable laws and regulations, safeguarding assets from unauthorized use, and ensuring that transactions are carried out with proper authorization and approved workflows.

The effectiveness of the internal control framework is demonstrated through a strong emphasis on the routine monitoring of process controls and the risk management framework. This enables the Company to maintain close oversight of revenue losses, fraud, or other irregularities. The Companys internal control systems and internal audit functions are suitable and relevant to the nature and scale of its operations. The Audit Committee of the Board of Directors approves the audit plan and reviews internal audit reports on a quarterly basis. To maintain accurate accounting records with integrated transactional controls, the Company utilizes an effective Enterprise Resource Planning (ERP) system, SAP S4 HANA, as a key business tool. Robust IT systems are in place to ensure the adequate protection of sensitive data.

Management maintains close oversight of the internal control system through regular reviews. The Company continuously aims to strengthen its internal control framework through regular audit and review processes conducted by internal auditors, management, and the Audit Committee at regular intervals. An independent internal audit firm carries out company-wide internal audits. Applicable Accounting Standards are strictly adhered to when recording transactions. To ensure the timely reporting of key financial metrics, the Company employs robust Management Information Systems (MIS).

The internal control framework is aligned with the Companys objectives and periodically reviewed to enhance its effectiveness, and the company remains committed to maintaining high standards of control and governance.

OUTLOOK

The Company holds a positive long-term view regarding the growth of the home and kitchen appliance sector. This optimistic outlook is underpinned by the Companys strong fundamentals, including its significant market standing, emphasis on consumer feedback and preferences, strategic expansion of its retail network, and continuous innovation. We encourage our employees to fully understand our commitments to clients, which involves managing expectations and addressing any issues promptly. Our focus is on cultivating strong client relationships, placing them at the center of our delivery approach - actively listening to and understanding their fundamental needs to provide valuable solutions and personalized experiences that enhance customer satisfaction. We are responsible for making sound commitments to our clients, building lasting relationships, and consistently striving to fulfill our promises.

The Companys future appears promising. With its well-established brands, robust distribution channels, and efficient, integrated manufacturing facilities, the Company is well-positioned for further growth and expansion. A clearly defined quality policy is embedded in the Companys daily operations. The Company is committed to continuous improvement, and its Quality Management System provides a structured framework for enhancing and measuring product performance. Moreover, the Companys dedicated Research and Development (R&D) center, coupled with ongoing R&D investments, enables the creation of innovative products that align with evolving consumer preferences and demand.

Furthermore, the Government of India has introduced several initiatives, such as Make in India, Digital India, and Startup India, alongside various schemes like the Pradhan Mantri Ujjwala Yojana, all aimed at transforming the manufacturing segment of the kitchen appliance market. The Indian Government has also permitted 100% Foreign Direct Investment through the automatic route in the electronic hardware manufacturing sector, fostering growth, expansion, and innovation within the industry. We believe our Company is strategically positioned to capitalize on these opportunities with the goal of creating value for all stakeholders.

CAUTIONARY STATEMENT

Statements in the management discussion and analysis report describing the Companys objectives, projections, estimates and expectations may be "forward-looking statements" within the meaning of applicable laws and regulations and futuristic in nature. Actual performance may differ materially from those either expressed or implied. Such statements represent intentions of the management and the efforts put into releasing certain goals. The success in realizing these depends on various factors both internal and external. Investors, therefore, are requested to make their own independent judgments before taking any investment decisions.