Swadeshi Industries & Leasing Ltd Management Discussions

Annexure 3

INDUSTRY STRUCTURE AND DEVELOPMENTS:

Copper is a chemical element with the symbol Cu and atomic number 29. Its a soft, malleable, and ductile metal with a reddish-orange color. Copper is an excellent conductor of electricity and heat, making it widely used in various industries, such as:

1. Electrical wiring and circuits

2. Plumbing and architecture

3. Electronics and circuit boards

4. Coins and currency (many countries use copper in their coins)

5. Jewelry and decorative items

Copper also has antimicrobial properties, making it useful in medical applications.

Textile Industry is one of the leading industries in the world. It is one of the key and main sectors of Indias manufacturing segment as it contributes significantly to the economy in terms of employment generation and revenue.

The food industry is a complex, global network of diverse businesses that supplies most of the food consumed by the worlds population.

The global demand for copper continues to grow. World refined usage has more than tripled in the last 50 years, thanks to expanding sectors such as electrical and electronic products, building construction, industrial machinery and equipment, transportation equipment, and consumer and general products. The threats to the industries are majorly - volatility in LME Copper price affecting turnover/ profitability, Increasing cost of inputs, attrition of skilled manpower, Limited availability of competent underground Metal mining contractor / outsourcing agency in India.

The future for the Indian textile industry looks promising, buoyed by both strong domestic consumption as well as export demand. With consumerism and disposable income on the rise, the retail sector has experienced a rapid growth in the past decade. The employment generation looms to better quality technology looms and improved quality of processing industry. However, there are several challenges ahead for the textile industry for enhancing its competitive strength and global positioning in terms of inflexible Labour laws and poor infrastructure etc which will have to be addressed to sustain the growth momentum of the Country.

The outlook is strong, with waterless dyeing projected to play a pivotal role in transforming the textile industry towards a more sustainable future. A hybrid approach, combining traditional methods with waterless alternatives, is expected to be the norm in the mid-term, with waterless technologies gradually becoming the standard as technology matures and costs decline.

Company has started its Retail Chain under the Swadshi Banner as Swadeshi grocery store in Rural or Tier two and Three Cities with aim of delivering healthy products connecting villages to districts and Country. Global inflation eased to 5.7% in CY24 from 6.7% in CY23, supported by the stabilization of supply chains post-COVID and a moderation in commodity prices. This enabled major central banks to ease monetary policy, lowering benchmark rates by 50 to 100 bps in CY24. However, geopolitical tension and policy uncertainties, including trade tariffs, led to volatility in global markets but with in right mindset of large population to use Swadeshi Products it will not impact retail Chain adversely impacting energy demand, resulting in softer prices and narrower margins.

Despite global headwinds, the Indian economy was remarkably resilient. While growth moderated to 6.5% in FY 2024-25 from 9.2% in FY 2023-24, India retained its position as the fastest growing major economy in the world. Domestic consumption witnessed mixed trends with rural demand strengthening, and urban consumption moderating. Macro-prudential regulatory tightening of credit in FY 2023-24 led to moderation in personal credit growth to 16% in FY 2024-25, from 27% in FY 2023-24.

Consumption demand remained relatively soft during the first half with general elections and peak monsoon. The festive season and Mahakumbh revived domestic markets in the second half. However, pockets of urban and rural demand are yet to fully recover. External balances in India saw continued strength in current account with resilient services surplus (current account deficit

As an organization known for creating healthier and innovative products, our journey has always been one of evolution, Innovation and belief of socioeconomic Development with balanced growth Over the years, our strong foothold in the edible oils segment has yielded incredible results. Recognizing the need for sustainability, we have taken steps to secure our future by diversifying the age profile of our oil plantations,focusing on nurturing young plantations that will ensure the longevity of our business connecting same with food Park and Child Industries in every Town or Grarm Panchayat.

These initiatives not only reflect our commitment to sustainable growth but also position us as a forward-thinking leader in multiple industries, always striving to create a better, healthier tomorrow Our brands, known for embodying trust, have become synonymous with reliability across our business segments. ‘Agrovia and Seadeshi Aahar are of our brands that resonates deeply with our customers. This trust is not just a product of our offerings but also of our expansive Direct sales Network, which spans India and the globe, ensuring our consumers get the products they desire. We are continuously enhancing the synergy between our Direct Distribution Model and retail networks to deliver a seamless and exceptional experience for our customers. As part of our ongoing efforts, we are also digitising our distribution network, further strengthening our digital landscape to keep pace with evolving market demands.

Shareholders and Investors Exemplifying prudent planning, we have fortified our financial standing and generated remarkable returns for our valued shareholders and investors. Our commitment to enhancing financial performance has played a pivotal role in cultivating the trust of our stakeholders.

Employees and Workers: We strive to create a highly conducive environment for our employees. Employee wellbeing is paramount to us and deeply embedded in our culture. We provide equal opportunities for all Company members, creating an environment where everyone can thrive.

Consumers Our approach to value creation has the customer at its Centre. We continuously strive to comprehend these goals sensitively and carefully to provide them with goods that satisfy their unfulfilled wants and improve their experiences. Our objective is to deliver outstanding product experiences at competitive prices

Direct Distribution Network: We diligently enhance our Direct Distribution Network to adapt to the continuously evolving landscape. With a keen focus on expanding our market reach, we are investing in e-commerce channels and capitalizing on modern trade routes to ensure broader product accessibility. Our Direct distribution Channel Partner inclusive digital transformation is a pivotal strategy for thriving in the swiftly changing distribution landscape. We are cultivating a connected and future-ready ecosystem, ensuring a competitive edge in the market.

Research and Development Our approach to delivering exceptional consumer value at affordable prices is continuously innovating and crafting distinct product offerings specially Non preservative Natural Foods. We provide unique and differentiated products that resonate with our customers by addressing evolving consumer needs. Our R&D team focuses on delivering products that best fulfil our consumers interests. Our state-of-the-art research and development facilities ensure that every product we create adheres to the highest quality standards.

Partnerships and Collaborations: We leverage partnerships as a cornerstone of unlocking the full potential of our innovative capabilities. Collaborating with research institutions, universities, technology providers, and industry experts is more than just a strategy for us. We have ingrained it in our culture. By uniting with external entities, we transcend our expertise boundaries, accessing specialized skills and cutting-edge technologies. This innovative fusion sparks creativity throughout our entire value chain

Packaging: We are enhancing our focus on packaging to ensure our consumers are well-informed about the natural ingredients in our products. Our commitment extends to sustainable packaging, as we aim to increase the use of recyclable and biodegradable materials, significantly reducing packaging waste. We are actively exploring ecofriendly and innovative packaging solutions that align with our goal of minimising our environmental impact, including adopting biodegradable and recyclable options.

As we are MSME has challenges in Financial and Technological Capacity which we are absorbing from various Professional Experts and Investors and We have undertaken strategic investments in modern and efficient infrastructure to support our operations and meet the increasing demand for our products. Our state of-the-art manufacturing facilities, warehouses, and distribution centres have advanced machinery and technology. These investments enable Quality We are enhancing the quality of our products as it lies at the heart of our operations. Our ongoing efforts to upgrade our manufacturing facilities have enabled us to obtain crucial certifications that validate the excellence of our products.

We prioritize the improving the quality of our products to ensure that our consumers lead a nutritious life. Our Certifications Packaging We are enhancing our focus on packaging to ensure our consumers are well-informed about the natural ingredients in our products. Our commitment extends to sustainable packaging, as we aim to increase the use of recyclable and biodegradable materials, significantly reducing packaging waste. We are actively exploring eco-friendly and innovative packaging solutions that align with our goal of minimising our environmental impact, including adopting biodegradable and recyclable options.

Consumers us to maintain high product quality, improve operational efficiency, and ensure timely delivery.

Moreover, our facilities comply with international safety, hygiene, and quality standards, embracing sustainable design and construction practices by integrating energy-efficient systems and environmentally friendly materials. Furthermore, we have implemented comprehensive maintenance programmes to ensure the optimal functioning and safety of our machinery, equipment, and facilities.

This approach includes regular inspections, preventive maintenance measures, and timely repairs to minimise downtime and maximise asset performance.Strengthening Our Relations Value Chain Partners Establishing a sustainable and resilient supply chain in the dynamic business landscape necessitates collaborative efforts from all stakeholders. We have gone above and beyond to integrate sustainability across our value chain processes. We recognise the necessity for systemic transformation to innovate processes and leverage emerging technologies within the supply chain

The Company has laid down risk management framework keeping the Companys objectives, growth strategy and process complexities arising out of its business operations. Risk management in the Company is a continuous process of identifying, assessing and managing all the opportunities, threats and risks faced by the Company to achieve its goals. Indian copper and textile industry face many risks which were in the short term, will moderate growth Inflation, high interest rates, depreciating rupees, delays in policy initiatives to boost investments and capital flows

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations.

Our people are our most important asset and we value their talent, integrity and dedication. Our responsibilities towards our people, who are instrumental to our success with their devotion and relentless support covers a quantum part of the company strategy. We believe that training is essential to build skill sets in growing organization. The focus has been to create an environment where performance is rewarded, individuals are respected and associates get opportunities to realize their potential.

As in the past, industrial relations continued to remain cordial in the Company. There was no strike or labour unrest during the period under review