Teamo Productions HQ Ltd Management Discussions

Your Board of Directors is pleased to share the Management Discussion and Analysis Report based on the business of the company for the financial year ended March 31, 2025. The Company is currently engaged in a diversified range of business activities, including film production, distribution, and related media services; Information Technology-based engineering services; and the trading of engineering goods to support infrastructure development and promote industrial and commercial growth and trading of commodities.

GOLBAL ECONOMY OUTLOOK

The global economy is currently in a challenging position, with growth projected to remain steady at 3.2 percent in 2024 and 3.3 percent in 2025, according to the latest World Economic Outlook (WEO) report (July 2024). Despite this stable outlook, economic activity is showing varied momentum across different regions. Some countries, particularly in Asia, are experiencing stronger-than-expected growth, while others, like Japan and the United States, face unexpected slowdowns. The narrowing output divergence across economies indicates that cyclical factors are diminishing, and economic activity is becoming more aligned with its potential.

Global disinflation is encountering obstacles, particularly due to persistent inflation in the services sector. While goods prices are experiencing stronger disinflation, services inflation remains stubbornly high, complicating monetary policy normalization. This scenario has increased the risks of inflation persisting longer than anticipated, potentially leading to higher interest rates for an extended period. Central banks in advanced economies are cautious about cutting rates too soon, while those in emerging markets face external risks related to currency depreciation.

Financial conditions globally remain accommodative, supported by buoyant corporate valuations despite rising longer- term yields. However, these higher yields could pressure fiscal discipline, especially in countries struggling to control spending or increase taxes. Commodity prices are also impacting the economic outlook, with energy prices expected to decline but still influenced by geopolitical factors like OPEC+ production cuts and Middle East conflicts. As a result, the pace of monetary policy normalization varies across regions, reflecting the diverse inflationary pressures.

The growth outlook for various regions is mixed. In advanced economies, growth is expected to converge, with the United States facing a slight downward revision in its growth forecast due to a slower start to the year. In contrast, the euro area shows signs of recovery, driven by stronger services activity and exports. Japans growth forecast has been revised downward due to temporary supply disruptions. However, growth prospects in Latin America, the Middle East, and SubSaharan Africa are more subdued due to regional challenges.

World trade is projected to recover, aligning with global GDP growth, despite ongoing cross-border trade restrictions. Inflation, while expected to decline, will do so at a slower pace in advanced economies due to persistent services inflation and higher commodity prices. Emerging markets will see a slower reduction in inflation, though it is expected to approach pre-pandemic levels. Overall, the risks to the economic outlook remain balanced, with concerns about inflation persistence, trade tensions, and geopolitical uncertainties.

Policymakers face the dual challenge of restoring price stability while addressing the legacies of recent crises. This will require careful coordination of monetary and fiscal policies, with a focus on achieving sustainable growth and replenishing lost economic buffers. In emerging markets, managing currency volatility and capital flows will be crucial. Additionally, addressing medium- term growth prospects through productivity enhancement, labour market integration, and multilateral cooperation will be vital for future economic resilience. The global economic landscape remains uncertain, and careful policy management will be essential to navigate the challenges ahead.

As the above chart shows, India, China, Russia and the United States are forecast to see slower growth between 2024 and 2025. In Russia, this change is expected to be most pronounced, dropping 2.3 percentage points. Meanwhile, 2025 is forecast to be an improved year for growth in the United Kingdom, Japan and Germany.

There have been several notable revisions since the July 2024 World Economic Outlook. For example, the U.S. has had an upwards revision to a forecasted growth of 2.8 percent in 2024, from the previously estimated 2.6 percent. In 2025, growth is expected to slow to 2.2 percent in the U.S. as fiscal policy is gradually tightened and a cooling labor market slows consumption. This is still an improvement from the July forecast, which had estimated growth at 1.9 percent.

The upgrades to the U.S. forecast are offset by downgrades to other advanced economies. This is the case with the euro area, where 0.8 percent growth is now estimated for 2024 and 1.2 percent growth for 2025. This growth is slightly weaker than the July projections of 0.9 percent and 1.5 percent, respectively. According to a revised forecast, Germanys economy is expected to stagnate in 2024, where previously it had been expected to see growth of 0.2 percent.

In India, GDP growth is expected to moderate from 8.2 percent in 2023 to 7 percent in 2024 and 6.5 percent in 2025. In the case of China, the slowdown is projected to be more gradual with the IMF citing how despite persistent weakness in the real estate sector and low consumer confidence, there have been "better-than-expected net exports".

In terms of risks ahead, the IMF warns of new potential spikes in commodity prices amid ongoing geopolitical conflicts as well as knock on effects if China sees a deeper- or longer-than-expected contraction in the property sector.

Source: https://www.statista.com/chart/30484/forecast-for-real-adp-arowth-in-the-worlds-laraest-economies/

Emerging markets outlook

The forecast for growth in emerging market and developing economies is revised upward; the projected increase is powered by stronger activity in Asia, particularly China and India. For China, the growth forecast is revised upward to 5 percent in 2024, primarily on account of a rebound in private consumption and strong exports in the first quarter. In 2025, GDP is projected to slow to 4.5 percent, and to continue to decelerate over the medium term to 3.3 percent by 2029, because of headwinds from aging and slowing productivity growth. The forecast for growth in India has also been revised upward, to 7.0 percent, this year, with the change reflecting carryover from upward revisions to growth in 2023 and improved prospects for private consumption, particularly in rural areas.

WORLD ECONOMIC OUTLOOK GROWTH PROJECTIONS Projections

Real GDP, annual % change	2023	2024	2025
World Output	3.2	3.2	3.2
Advanced Economies	1.6	1.7	1.8
United States	2.5	23	1.9
Euro Area	0.4	0.8	1.5
Germany	-03	0.2	13
France	0.9	03	L4
Italy	0.9	03	03
Spain	2.5	1.9	2.1
Japan	1.9	0.9	1
United Kingdom	0.1	0.5	1.5
Canada	1.1	1.2	2.3
Other Advanced Economies	1.8	2	2.4
Emerging Markets and Developing Economies	4.3	4.2	4.2
Emerging and developing Asia	5.6	5.2	4.9
China	5.2	4.6	4.1
India	7.8	6.8	6.5
Emerging and developing Europe	3.2	3.1	2.8
Russia	3.6	3.2	1.8
Latin America and the Caribbean	2.3	2.0	2.5
Brazil	2.9	2.2	2.1
Mexico	3.2	2.4	1.4
Middle East and Central Asia	2.0	2.8	4.2
Saudi Arabia	-0.8	2.6	6.0
Sub Saharan Africa	3.4	3.8	4.0
Memorandum
Emerging market and middle-income economies	4.4	4.1	4.1
Low income developing countries	4.0	4.7	5.2

Global per capita GDP

Global GDP per capita logged 3.4% compound annual growth rate (CAGR) between 2017 and 2023, as per IMF data while Indias GDP expanded at ~4.1% CAGR between 2017 and 2023.

Per capita GDP at current prices for key economies- $ per capita

Regions	2017	2018	2019	2020	2021	2022	2023	2024P	CAGR 2017- 2023
US	60 293	63 165	65 561	64 462	71 258	77 980	82 715	86 601	5.4%
Euro area	37,208	40,138	39,261	38,167	42,939	41,493	44,851	46,635	3.2%
UK	40,618	43,275	42,713	40,231	46,731	46,103	49,648	52,423	3.4%
China	8 760	9 849	10 170	10 525	12 572	12 643	12 597	12 969	6.2%
Japan	38,903	39,850	40,548	40,160	40,161	34,158	33,899	32,859	-2.3%
India	1,958	1,974	2,050	1,916	2,250	2,366	2,497	2,698	4.1%
World	10 934	11 484	11 530	11 126	12 566	12 976	13 400	13 898	3.4%

India among the worlds fastest-growing key economies

Following the recovery from the COVID-19 pandemic, India exhibited a faster growth rate of 7.0% in FY2023, surpassing both advanced economies at 2.9% and emerging and developing economies at 4.0%.

Real GDP growth by geographies (%)

Regions	2018	2019	2020	2021	2022	2023	2024P	2025P
US	3.0	2.6	-2.2	6.1	2.5	2.9	2.8	2.2
Euro area	1.8	1.6	-6.1	6.2	3.3	0.4	0.8	1.2
Canada	2.7	1.9	-5.0	5.3	3.8	1.2	1.3	2.4
UK	1.4	1.6	-10.3	8.6	4.8	0.3	1.1	1.5
China	6.7	6.0	2.2	8.4	3.0	5.2	4.8	4.5
Japan	0.6	-0.4	-4.2	2.7	1.2	1.7	0.3	1.1
India*	6.5	3.9	-5.8	9.8	7.0	8.2	6.8	6.9
Regions	2018	2019	2020	2021	2022	2023	2024P	2025P
World	3.6	2.9	-2.7	6.6	3.6	3.3	3.2	3.2

Note: P: Projected.

* Numbers for India are for financial year (2020 is FY2021 and so on) and as per the MOSPI. 2025 (FY2026) is as per CRISIL MI&A estimates

P: Projection as per IMF update except for India

Source: IMF economic database, CRISIL Market Intelligence and Analytics (MI&A)

INDIAN ECONOMY OUTLOOK

Indias Economic Landscape and Growth Trajectory

In FY23, India surpassed the UK to become the worlds fifth-largest economy, driven by strong economic growth in the first quarter and a resilient recovery from the COVID-19 pandemic. The countrys nominal GDP for 2023- 24 is projected at Rs. 295.36 lakh crores (US$ 3.54 trillion), reflecting a 9.6% growth rate, albeit slower than the 14.2% seen in 2022-23. This growth is fuelled by strong domestic consumption, increased investment, and the governments focus on capital expenditure, particularly in the latter half of FY24.

Indias exports during April-June 2025 reached US$ 109.11 billion, led by Engineering Goods (25.35%), Petroleum Products (18.33%), and Electronic Goods (7.73%). Rising employment and private consumption, bolstered by improved consumer sentiment, are expected to sustain GDP growth in the coming months. Future government capital spending is anticipated to be supported by factors like tax buoyancy, streamlined tax systems, rationalized tariff structures, and digitization efforts. In the medium term, increased infrastructure spending is set to amplify growth multipliers, with the services sector playing a crucial role in driving this growth.

India is currently the fastest-growing major economy globally and is poised to be one of the top three economic powers in the next 10-15 years, underpinned by its robust democracy and strong partnerships. The countrys attractiveness as an investment destination has been strengthened by global economic volatility, as evidenced by record funds raised by India- focused ventures in 2022.

Market Size and Future Prospects

Real GDP for 2023-24 is estimated at Rs. 173.82 lakh crores (US$ 2.08 trillion), showing an 8.2% growth rate, up from 7.0% in the previous year. India hosts 113 unicorn startups valued at over US$ 350 billion, with the fintech sector expected to generate the largest number of future unicorns. The government is also committed to achieving 40% of its energy from non-fossil sources by 2030, with a broader goal of Net Zero Emissions by 2070, supported by the Panchamrit strategy.

According to the McKinsey Global Institute, India needs to create 90 million non-farm jobs by 2030 to boost productivity and sustain economic growth. The current account deficit (CAD) narrowed to 0.7% of GDP in FY24, thanks to a reduction in the merchandise trade deficit.

Exports played a critical role in economic recovery post-pandemic but may face challenges as global economic conditions tighten. However, Indian exports are still expected to reach US$ 1 trillion by 2030, as stated by Minister of Commerce and Industry.

Real GDP growth in India (new series)

RE - revised estimates, PE - Provision estimates, P - projection Notes: The values are reported by the government under various stages of estimates Actuals, estimates and projected data of GDP are provided in the bar graph Source: Ministry of Statistics and Programme Implementation (MoSPI), CRISIL MI&A

CRISIL forecasts Indias real GDP to grow 6.8% in FY25

After a strong GDP print in the past three fiscals, CRISIL expects GDP growth to moderate in FY25 as fiscal consolidation will reduce the fiscal impulse to growth, rising borrowing costs and increased regulatory measures could weigh on demand, net tax impact on GDP is expected to normalize, and exports could be impacted due to uneven growth in key trade partners and any escalation of the Red Sea crisis. On the other hand, another spell of normal monsoon and easing inflation could revive rural demand.

At an overall level, Indias real GDP is expected to be 6.8% in FY25. This slower growth rate vs. FY24 will be because of slowing global growth, impact of rising interest rates, waning of pent-up demand for services and increasing geopolitical uncertainty. Still, the manufacturing sector, investments and domestic demand will remain resilient.

PFCE to maintain dominant share in Indias GDP

Private final consumption expenditure (PFCE) at constant prices clocked 6% CAGR between FY12-23, maintaining its dominant share of ~58.0% in FY23 (~Rs 93,238 billion in absolute terms, up 6.8% yearon- year). Growth was led by healthy monsoon, wage revisions due to the implementation of the Seventh Central Pay Commissions (CPC) recommendations, benign interest rates, growing middle age population and low inflation. As of FY24PE, PFCE is estimated to have further increased to Rs 96,992 billion, registering a y-o-y growth of ~4% and forming 56% of Indias GDP. The share of PFCE declined in FY24 indicating slower growth for PFCE at 4% compared to overall GDP growth of 8.2%

PFCE at constant prices

GFCE maintains ~10-11% share in Indias GDP

Government final consumption expenditure (GFCE) at constant prices clocked 4.6% CAGR between fiscal 2012 and 2024, maintaining ~10% share in the GDP pie, or ~Rs 16,533 billion. It grew 2.5 % on year in fiscal 2024.

GFCE (at constant prices)\

Note: PE: provisional estimates; RE: revised estimates Source: MoSPI, CRISIL MI&

Robust growth in per capita income over FY12-24

Indias per capita income, a broad indicator of living standards, rose from Rs 63,462 in FY12 to Rs 99,404 in FY23, logging 4.2% CAGR. Growth was led by better job opportunities, propped up by overall GDP growth. Moreover, population growth remained stable at ~1% CAGR. Furthermore, according toFY24PE, per capita net national income (constant prices) is estimated to have increased to Rs 106,774; thereby registering a year-on-year growth of ~7.4%.

Per capita net national income at constant prices

	FY12	FY13	FY14	FY15	FY16	FY17	FY18	FY19	FY20	FY21RE	FY22RE	FY23RE	FY24PE
Pe capita NNI (Rs)	63,462	65,538	68,572	72,805	77,659	83,003	87,586	92,133	94,270	86,054	94,054	99,404	106,744
Y-o-Y, growth (%)		3.3	4.6	6.2	6.7	6.9	5.5	5.2	2.3	-8.7	9.3	5.7	7.4

Note: RE: revised estimates, PE: provisional estimates

Source: Provisional Estimates of Annual National Income, 2022-23, CSO, MoSPI, CRISIL MI&A

Indias per capita GDP grows faster than global average

Global GDP per capita clocked 2.0% CAGR between 2012 and 2023, as per World Bank data. Meanwhile, Indias corresponding figure registered 5.2% CAGR.

Per capita GDP at current prices

	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	CAGR 20122023
India per capita GDP at current prices ($)	1,434	1,438	1,560	1,590	1,714	1,958	1,974	2,050	1,916	2,250	2,366	2,497	5.2%
World per capita GDP at current prices ($)	10,767	10,947	11,103	10,356	10,401	10,934	11,484	11,530	11,126	12,566	12,976	13,400	2.0%

World Bank, CRISIL MI&A

"The outlook is for GDP growth to moderate from 8.2 percent in 2023 to 7 percent in 2024 and 6.5 percent in 2025, because pent-up demand accumulated during the pandemic has been exhausted, as the economy reconnects with its potential," IMF said in its annual publication of World Economic Outlook.

ENGINEERING SERVICES

Global Industry Overview:

The engineering services market is segmented by engineering disciplines (civil, mechanical, electrical, piping & structural), delivery mode (offshore, onsite), services (product engineering, process engineering, automation related services, asset management related services), industries (aerospace and defense, automotive, chemical and petrochemical, electric power generation, municipal utility projects, mining, oil and gas, pharmaceuticals, transportation, telecommunications, nuclear projects etc.) The engineering services market size has grown steadily in recent years. As per Engineering Services Global Market report, the engineering services market was valued at USD 1188.41 billion in the previous year. It is expected to reach USD 1366.8 billion by the year 2033, registering a CAGR of 3.6% during the forecast period.

The forecast include regions where engineering services can excel i.e. Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa.

The increasing popularity and adoption of the Internet of Things (IOT) across the globe is the latest trend in engineering services market. Engineering services providers are increasingly using industrial IOT to improve and optimize their production processes with better energy usage, resource allocation, and asset management.

The growth in the forecast period can be attributed to increasing digitalization, rising demand for IOT solutions for smart manufacturing , rising prominence of robots in the construction industry, government investments in aviation industry, continuous development of smart cities, focus on environment friendly buildings services etc.

Source: https://www.thebusinessresearchcompany.com/report/engineering-services-global-market-report

Indian Industry Overview:

The engineering services market is projected to witness considerable growth in the upcoming years. The electrical equipment market share in India is expected to increase from US$ 52.98 billion in 2022 to US$ 125 billion by 2027, implying a robust CAGR of 11.68%. Market size for the Indian Construction Equipment Market stood at US$ 7.2 billion in FY23 and is forecasted to grow at a CAGR of 15% for next 5 years, as per the estimates of CII.

The development of the engineering sector of the economy is also significantly aided by the policies and initiatives of the Indian government. The engineering industry has been de-licensed and allows 100% foreign direct investment (FDI). Additionally, it has grown to be the biggest contributor to the nations overall merchandise exports.

In Interim Budget 2024-25, Government has committed an outlay of Rs. 11.11 lakh crore (US$ 133.6 billion) during 2024-25 towards infrastructure capital expenditure compared to Rs. 10 lakh crore (US$ 120 billion) (BE) during 2023-24. In FY24, exports of engineering goods stood at US$ 109.32 billion, reflecting a marginal growth of 2.1% of YoY growth. In April 2024, exports of engineering goods reached at US$ 8.67 billion. India exports engineering goods mostly to the US and Europe An Urban Infrastructure Development Fund (UIDF) will be managed by National Housing Bank, which will enable creation of infrastructure in Tier 2 and 3 cities by supporting viability gap funding, enabling creation of more bankable projects, enhancing access to external funding, among others.

Source: https://www.ibef.org/industry/engineering-india

Government Initiatives

In 2024, the Indian government has continued to focus on strengthening and advancing the engineering services sector through various policy reforms, financial incentives, and initiatives aimed at fostering innovation, skill development, and technological advancements. Below are the key government initiatives for the engineering services sector in India in 2024:

Atmanirbhar Bharat Abhiyan (Self-Reliant India)

• Objective: Boost domestic manufacturing and reduce dependence on imports in critical sectors, including engineering services.

• Impact: Encourages domestic engineering companies to innovate, manufacture, and provide engineering services across various industries like defense, infrastructure, and aerospace.

• Support: Financial incentives, tax rebates, and support for research & development (R&D) to develop indigenous engineering solutions.

Production-Linked Incentive (PLI) Scheme

• Objective: To boost domestic manufacturing and attract investments in key sectors, including electronics, automotive, and machinery, all of which are closely linked with engineering services.

• Impact: Provides financial incentives to domestic and foreign companies involved in high-tech engineering, especially in the electronics and automotive industries.

• Support: Tax incentives and subsidies to encourage manufacturers of critical engineering components.

National Infrastructure Pipeline (NIP) 2024

• Objective: Invest Rs. 100 lakh crore in infrastructure projects by 2025, including roads, railways, airports, and utilities, to drive demand for engineering services.

• Impact: Increased infrastructure development creates significant opportunities for civil, electrical, mechanical, and structural engineering services.

• Support: Funding and project facilitation for companies offering engineering services related to construction, design, and project management.

Skill India and Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

• Objective: To train the workforce with technical and engineering skills to meet the growing demands of the sector.

• Impact: Develops a skilled workforce in areas like civil, mechanical, electrical, and software engineering services, ensuring that India remains a competitive player in the global market.

• Support: Financial assistance for skill development programs and certification for workers in the engineering services sector.

Smart Cities Mission

• Objective: To build 100 Smart Cities across India with advanced infrastructure, smart technologies, and sustainable solutions.

• Impact: Engineering services in the fields of urban planning, electrical systems, water management, and civil infrastructure are key to implementing smart city projects.

• Support: Funding and partnerships for engineering firms that offer design, consultancy, and project management services for Smart City projects.

National Policy on Electronics (NPE) 2019 & PLI Scheme for Electronics

• Objective: To promote the growth of the electronics manufacturing industry, which is closely tied with the engineering services sector, including design, R&D, and production of electronic components and systems.

• Impact: Boosts the demand for electronics-related engineering services, from product design to manufacturing, by encouraging local production and reducing reliance on imports.

• Support: Financial incentives, tax exemptions, and funding for research in electronics engineering services.

Make in India

• Objective: To make India a global manufacturing hub and promote domestic engineering services.

• Impact: Encourages engineering companies to innovate and manufacture high-quality products for both domestic and international markets, thereby creating opportunities in design, testing, and product development.

• Support: Policy reforms, infrastructure improvements, and fiscal incentives for engineering firms involved in manufacturing and product development.

National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS)

• Objective: To promote research and development in cutting-edge technologies such as Artificial Intelligence (AI), Robotics, Internet of Things (IoT), and Cyber-Physical Systems (CPS).

• Impact: Encourages innovation in the field of engineering services, particularly in automation, robotics, and smart systems, fostering advancements in industrial engineering, design, and automation services.

• Support: Grants, research funding, and collaboration opportunities between industry and academia to develop new technologies and engineering solutions.

Startup India Initiative

• Objective: To promote entrepreneurship in the engineering sector, particularly in innovative and tech-driven solutions such as engineering design, automation, and software services.

• Impact: Encourages the growth of startups in the engineering services sector, particularly in software engineering, digital transformation, and IoT-based solutions.

• Support: Funding, tax incentives, and easier compliance norms to help engineering startups scale up their operations.

Technology Development Board (TDB)

• Objective: To promote the development of indigenous technologies and provide financial assistance for the commercialization of these technologies.

• Impact: Supports engineering firms involved in technology innovation, especially in areas like aerospace, defense, renewable energy, and automation.

• Support: Funding for R&D projects, technology commercialization, and bridging the gap between research and market application in engineering services.

National Aerospace and Defence Policy

• Objective: To make India a global leader in aerospace and defense engineering by boosting indigenous manufacturing and developing advanced engineering services in this sector.

• Impact: Engineering services in aerospace and defense, including system design, testing, and maintenance, receive a significant boost. The policy encourages the development of domestic supply chains for critical aerospace components.

• Support: Financial support for R&D, tax breaks for defense manufacturing, and incentives for indigenous engineering services related to defense and aerospace.

Public Procurement (Preference to Make in India) Order

• Objective: To encourage domestic engineering firms to participate in government procurement by giving preference to "Make in India" products and services.

• Impact: Indian engineering firms receive a competitive edge in public sector tenders, especially in infrastructure, construction, and manufacturing-related services.

• Support: Policy frameworks that ensure preferential treatment for domestic engineering services in government contracts.

Green Energy and Renewable Energy Initiatives

• Objective: To promote sustainable and green energy solutions in India, creating opportunities for engineering services in the renewable energy sector, including solar, wind, and bioenergy.

• Impact: Engineering firms specializing in clean energy solutions, energy efficiency, and sustainable design practices are seeing increased demand.

• Support: Financial incentives, subsidies, and grants for renewable energy projects, with a focus on engineering solutions that contribute to Indias sustainability goals.

Digital India Programme

• Objective: To transform India into a digitally empowered society, which creates opportunities for engineering services in fields like software engineering, automation, digital infrastructure, and cyber security.

• Impact: Boosts demand for engineering services related to IT infrastructure, cloud computing, smart technologies, and cybersecurity.

• Support: Investments in digital infrastructure, grants for tech-based engineering solutions, and policy reforms that promote digital engineering services.

Export Promotion & Engineering Services

• Objective: To boost the export of Indian engineering services globally through platforms such as the Engineering Export Promotion Council (EEPC) and various trade agreements.

• Impact: Indian engineering firms gain easier access to global markets, enhancing their competitiveness in sectors like software engineering, construction design, and automation.

• Support: Financial support for participation in international trade fairs, support for trade negotiations, and improved export facilitation.

TRADING OF ENGINEERING GOODS (SUCH AS STEEL PRODUCTS COMPRISING OF TMT BARS, GIRDERS, AND HOLLOW

SECTIONS; PIPES & TUBES ARE MADE OF STEEL; ETC. -INFRASTRUCTURE PROJECTS)

Global Industry Overview:

The global steel pipes & tubes market, valued at USD 133.20 Billion in CY 2023, is expected to clock in a CAGR of 6.1% in revenue from CY 2024 to 2030. This growth trajectory is primarily fuelled by the increasing construction of new petrochemical plants worldwide, leading to increased demand for steel pipes & tubes across a spectrum of applications. These products find extensive use in piping systems, pressure tubes, and heat exchangers within the chemicals & petrochemicals industry. Additionally, the construction industry represents another vital end-user segment for the market, utilising pipes & tubes in various structural elements like building structures, foundations, balconies, and railings, among others. The rapid pace of urbanisation and industrialisation, particularly in developing economies, is poised to further drive growth over the forecast period

In the steel pipe market, seamless pipes currently hold the majority of global revenue, surpassing 67%, while Electric Resistance Welded (ERW) pipes are rapidly gaining traction. This growth is attributed to their cost-effectiveness, which is particularly appealing in sectors such as oil & gas, where demand for transportation pipelines is increasing. Moreover, the ERW segments rising popularity signifies a shift in the market dynamics towards more economical pipe solutions. In CY 2023, the Asia-Pacific region emerged as the dominant force in the steel pipes & tubes market, capturing over 60.0% of global revenue. This significant market share is primarily driven by countries such as China, South Korea, India, and Japan, which are renowned for their robust manufacturing and petrochemical sectors. These nations stand as key consumers of steel pipes & tubes, highlighting the regions pivotal influence on shaping global market dynamics.

(Source: Grandview Research Report)

Indian Industry Overview:

India stands as a prominent global manufacturer of steel pipes, a critical sub-sector within the Indian steel industry. Key consumers of steel tubes and pipes include construction, railways, oil & gas, agriculture, and real estate. In construction, steel tubes and pipes are integral for structural elements such as columns, beams, and trusses, providing essential strength and support for buildings. They also play a vital role in water infrastructure, including drinking water supply, plumbing, drainage, and sewerage systems. Additionally, these materials are utilized across various sectors, including oil & gas pipelines, agricultural equipment, automobile components, and electrical cable conduits. Over the past five years, from FY2019-20 to FY2023-24, the production of steel tubes and pipes has grown at a CAGR of approximately 9.7%. Despite a decline in FY2020-21 due to the COVID-19 pandemic, the industry saw a rebound with production increasing by 7.1% year-over-year (y-o-y) in FY2021-22 and 27.3% y-o-y in FY2022-23. In fiscal year 2023-24, production further surged, rising by 20.3% y-o-y. OutLook: The growth momentum for steel pipes and tubes is anticipated to continue in the medium term, driven by increasing demand from key sectors. In the oil and gas industry, the expansion of natural gas pipelines and initiatives like One Nation, One Gas Grid are expected to boost production. Housing development, spurred by urban migration and government schemes like Pradhan Mantri Awas Yojana (PMAY), will further drive demand. Additionally, the focus on water and irrigation infrastructure, supported by programs such as AMRUT, Atal Jal, and Jal Jeevan Mission, will sustain the need for steel pipes and tubes. These factors collectively indicate a positive growth trajectory for the industry.

(Source: CARE EDGE Report)

Government Initiatives

In 2024, the Indian government has continued to support the trading of engineering goods, particularly steel products (like TMT bars, girders, hollow sections, pipes & tubes) used in infrastructure projects. These initiatives aim to promote domestic manufacturing, enhance exports, improve the competitiveness of Indian steel, and address challenges in the infrastructure sector. Below are key government initiatives that have a direct or indirect impact on the trading and manufacturing of engineering goods such as steel and associated products for infrastructure projects:

National Steel Policy 2017 (Reinforced in 2024)

• Objective: To make India the worlds second-largest steel producer and to meet the rising demand for steel in infrastructure development, while ensuring sustainability and energy efficiency.

• Impact: The policy has set targets to achieve a production capacity of 300 million tonnes by 2030. In 2024, the government is reinforcing these targets, encouraging domestic production of steel products, including TMT bars, pipes, tubes, and girders, for infrastructure projects.

• Support: The policy emphasizes domestic manufacturing, promoting steel exports, and improving the competitiveness of Indian steel in global markets. It also includes support for R&D in steel technologies and improving efficiency.

• Key Areas: Steel manufacturing, export incentives, technology upgrades in steel mills.

Production-Linked Incentive (PLI) Scheme for Specialty Steel

• Objective: The PLI scheme for specialty steel aims to boost the domestic manufacturing of advanced steel products, including TMT bars, pipes, tubes, and hollow sections, to meet the growing demand for infrastructure projects like roads, bridges, and buildings.

• Impact: This initiative promotes the production of high-quality steel products, reducing reliance on imports and ensuring better availability for infrastructure projects. It enhances Indias competitiveness in the global steel market, especially in specialty steel products.

• Support: Financial incentives for steel producers, especially those manufacturing value-added steel products for sectors such as infrastructure, construction, and automotive.

Key Areas: TMT bars, specialty steel for infrastructure, export of steel products.

Infrastructure Development and National Infrastructure Pipeline (NIP)

• Objective: The National Infrastructure Pipeline (NIP) 2024 aims to boost investment in infrastructure, focusing on highways, railways, airports, and ports, which will drive demand for engineering goods like steel pipes, girders, TMT bars, and other structural components.

• Impact: The NIP allocates Rs. 111 lakh crore for infrastructure projects across India, creating significant demand for materials such as steel products, especially for construction and energy infrastructure.

• Support: Financial and policy support to infrastructure developers, including faster approvals for steel imports and exports, as well as incentives for utilizing domestic steel.

• Key Areas: Demand for TMT bars, pipes, tubes, girders, and other steel products in large-scale infrastructure projects.

Make in India

• Objective: Make in India continues to focus on the manufacturing sector, aiming to turn India into a global manufacturing hub. The policy supports the local production of engineering goods, including steel products used in infrastructure.

• Impact: By promoting manufacturing within India, this initiative ensures that the domestic steel industry grows, with local producers better equipped to meet demand for steel used in infrastructure development, reducing dependency on imports.

• Support: FDI incentives, tax breaks, and easier regulations for companies producing steel and other engineering goods used in infrastructure.

• Key Areas: Steel production, steel product exports, infrastructure material manufacturing.

National Steel Grid & Infrastructure Projects

• Objective: The Indian government is working on creating a National Steel Grid, a comprehensive network that will connect various steel-producing regions across the country to optimize the distribution of steel and reduce transportation costs for infrastructure projects.

• Impact: This will improve the logistics and supply chain for steel products like TMT bars, girders, and pipes required for large infrastructure projects, ensuring timely delivery and reducing costs.

• Support: Investments in infrastructure like transport corridors, ports, and distribution hubs for steel products.

• Key Areas: Distribution of steel, infrastructure logistics, supply chain management.

Steel Import Substitution & Anti-Dumping Measures

• Objective: To protect domestic steel manufacturers from unfair competition from cheap imports, especially from countries with lower production costs. The government is taking steps to impose anti-dumping duties on certain steel products.

• Impact: These measures aim to prevent dumping of low-cost steel products into the Indian market, protecting domestic steel producers of products such as pipes, tubes, TMT bars, and structural steel used in infrastructure.

• Support: The government has introduced anti-dumping duties and safeguard measures to prevent unfair pricing and support the domestic manufacturing of steel.

• Key Areas: Protection for steel manufacturers, particularly in the high-demand infrastructure sector.

Logistics and Transportation Infrastructure Investment

• Objective: The Bharatmala Pariyojana and Sagarmala Programme are designed to improve road and port infrastructure, which will, in turn, support the steel trade by easing the movement of steel products like pipes and structural components.

• Impact: Improved logistics and transportation infrastructure will reduce costs and enhance the competitiveness of Indian-made steel products in both domestic and international markets.

• Support: Investments in road and port infrastructure, rail connectivity, and the construction of dedicated transport corridors for heavy goods like steel.

Key Areas: Logistics for steel supply, transportation infrastructure.

Export Promotion Schemes (including STEEL Export Incentives)

• Objective: The Indian government has introduced various export promotion schemes to incentivize the export of engineering goods, including steel products used in infrastructure. The Merchandise Exports from India Scheme (MEIS) and Rebate of State and Central Taxes and Levies (RoSCTL) have been extended to the steel sector.

• Impact: These schemes provide a rebate on taxes and incentives for exporters, boosting the global competitiveness of Indian steel products used in infrastructure projects.

• Support: Export incentives, including subsidies and rebates on taxes for steel exporters.

• Key Areas: Steel exports, infrastructure-related steel products, global trade.

Clean Energy and Carbon Reduction in Steel Manufacturing

• Objective: To promote sustainable steel production and reduce the carbon footprint of steel manufacturing, the government is encouraging the adoption of cleaner technologies and green steel manufacturing processes.

• Impact: With increasing focus on sustainability, engineering goods like steel products used in infrastructure must meet international environmental standards, making Indian steel products more globally competitive.

• Support: Financial support for research in green steel technologies, carbon credits for companies adopting low- carbon production methods, and subsidies for clean technology adoption.

• Key Areas: Green steel production, carbon capture and storage technologies, sustainable infrastructure development.

Affordable Housing and Urban Development Programs

• Objective: The Indian government continues to promote affordable housing and urban infrastructure development under schemes like the Pradhan Mantri Awas Yojana (PMAY), creating a large demand for steel products used in construction.

• Impact: The focus on affordable housing and urban development is driving demand for materials like TMT bars, pipes, girders, and structural steel, which are essential for the construction of homes, commercial buildings, and urban infrastructure.

• Support: Subsidies and financial support for builders and developers in the housing sector, ensuring that high- quality steel products are available at competitive prices.

• Key Areas: Steel for affordable housing, construction and infrastructure development.

Rural Infrastructure and Pradhan Mantri Gram Sadak Yojana (PMGSY)

• Objective: Under the PMGSY, the Indian government continues to focus on rural infrastructure, including roads, bridges, and connectivity, which creates a strong demand for steel products like pipes, bars, and girders.

• Impact: As rural infrastructure development accelerates, demand for steel products for roads, bridges, and rural utilities will rise.

• Support: Financial support for rural infrastructure projects, including the development of steel-related materials for these projects.

• Key Areas: Steel products for rural roads, bridges, and rural infrastructure projects.

Make in India for MSMEs

• Objective: Supporting Micro, Small, and Medium Enterprises (MSMEs) in the steel manufacturing and trading sectors, especially in the production of steel products used in infrastructure projects.

• Impact: By enhancing the competitiveness of MSMEs in the steel sector, the government is helping small and medium manufacturers scale up production of TMT bars, pipes, tubes, and girders used in infrastructure.

• Support: Easier access to credit, financial incentives for technology upgrades, and improved access to raw materials for MSMEs.

• Key Areas: MSME steel manufacturers, product quality enhancement, financial assistance.

Global Industry Overview:

The Media & Entertainment Market size is estimated at USD 29.88 billion in 2024, and is expected to reach USD 43.5 billion by 2029, growing at a CAGR of 7.80% during the forecast period (2024-2029).

Rapid technological developments have transformed the media and entertainment industry and its integration of new disruptors, leading to profitable growth in all sectors.

Source: https://www.mordorintelligence.com/industry-reports/media-and-entertainment-market-landscape India, like China and Indonesia, is a growth hotspot offering a desirable combination of existing size and scale, and rapid expected growth for digital media. The launch of commercial 5G services in India in 2022 is an important factor shaping E&M industry capex in 2024. A sizeable section of consumers can now enjoy seamless streaming of higher quality content, thus unlocking new opportunities for the sector. Increasingly cheaper data packages are making the internet accessible to a large population. Data consumption in India is projected to increase to 979.1K petabytes (Pb) in 2027 as against 9.7 million Pb globally, and internet access in the country is expected to generate a revenue of USD 29.1 billion around the same time. Powered by over-the-top (OTT) platforms, the gaming sector, traditional TV, internet and out-of-home (OOH) advertising and the use of the metaverse, Indias E&M industry is expected to grow exponentially. With multi-disciplinary cultural spaces being set up in different metros, a rise in in-person events will also provide considerable room for growth as advertisers are keen to access Indias diverse demography and large live audiences. There is huge long-term potential for the OTT and connected TV (CTV) market in India, courtesy the size and diversity of the countrys population. OTT video will continue to get its boost from regional play. 5G and broadband infrastructure, if improved further in the country, will open an even bigger market for OTT players. Efforts made to digitalise the Indian economy will only hasten this segments growth. While the global growth rate for the OTT segment is 8.4%, India is way ahead with a CAGR of 14.32%.

However, according to the predictions made by the report, India will see an increase in total newspaper revenue at a 2.7 per cent CAGR from Rs 26,378 crore in 2021 to Rs 29,945 crore within the next four years. In terms of the print industry, India is set to become the fifth-biggest newspaper market by 2026, surpassing both France and UK. Additionally, India is also expected to surpass China as the largest worldwide market for print edition readership in 2025 thanks to the growth at a 1.3 per cent CAGR, which will reach an average of 139 million daily average print newspaper sales in 2026, accounting for one-third of the global daily total.

Source:https://www.businesstoday.in/trending/entertainment/story/indias-entertainment-media-industry-can-be-worth-over-rs-4-lakh-cr-by-2026-pwc-338847-2022-06-23

India, like China and Indonesia, is a growth hotspot offering a desirable combination of existing size and scale, and rapid expected growth for digital media. The launch of commercial 5G services in India in 2022 is an important factor shaping E&M industry capex in 2023. A sizeable section of consumers can now enjoy seamless streaming of higher quality content, thus unlocking new opportunities for the sector. Increasingly cheaper data packages are making the internet accessible to a large population. Data consumption in India is projected to increase to 979.1K petabytes (Pb) in 2027 as against 9.7 million Pb globally, and internet access in the country is expected to generate a revenue of USD 29.1 billion around the same time. Powered by over-the-top (OTT) platforms, the gaming sector, traditional TV, internet and out-of-home (OOH) advertising and the use of the metaverse, Indias E&M industry is expected to grow exponentially. With multi-disciplinary cultural spaces being set up in different metros, a rise in in-person events will also provide considerable room for growth as advertisers are keen to access Indias diverse demography and large live audiences. There is huge long-term potential for the OTT and connected TV (CTV) market in India, courtesy the size and diversity of the countrys population. OTT video will continue to get its boost from regional play. 5G and broadband infrastructure, if improved further in the country, will open an even bigger market for OTT players. Efforts made to digitalise the Indian economy will only hasten this segments growth. While the global growth rate for the OTT segment is 8.4%, India is way ahead with a CAGR of 14.32%.

Theadoption of digital technologies has revolutionized movie production, streamlining workflows, enhancing visual effects, and expanding creative possibilities. These advancements not only improve efficiency and cost-effectiveness but also enable filmmakers to push the boundaries of storytelling and visual spectacle. As the entertainment industry embraces digital transformation, the synergy between animation innovation and technological integration continues to drive box office success worldwide, catering to evolving audience preferences and expanding global market opportunities in cinema.

The global movie production market size is estimated to grow by USD 56.11 billion, at a CAGR of 10.76% between 2023 and 2028.

The global movies and entertainment market size was estimated at USD 100.38 billion in 2023 and is projected to grow at a CAGR of 8.1% from 2024 to 2030. Favourable demographics, changing consumption patterns, rise in disposable incomes, and the propensity to spend on leisure and entertainment drive the market growth. The increasing demand for 3D movies, offering viewers an immersive virtual reality experience, is anticipated to drive market growth.

Source: https://www.technavio.com/report/movie-production-market-industry-analysis

Indian Industry Overview:

Indian media industry has tremendous scope for growth in all the segments due to rising income and evolving lifestyle.

The growth rate in the Media and Entertainment (M&E) sectors outperformed that of Indias GDP growth rate. What makes this interesting is that the consumer spending in this sector is discretionary. With the per capita outlook for the Indian economy looking to increase several notches in the coming years, the consequent overall consumer spend outlook in the sector remains positive. In addition, favorable FDI policy in telecom and digital channels would impact investments trends positively across all segments. FICCI-EY Media & Entertainment (M&E) Report 2024, the Indian M&E sector will grow by INR 763 billion over 3 years to reach INR 3.1 trillion in 2026 registering a growth rate of 10% p.a. All Segments are expected to grow as long as GDP registers a growth of over 5%. Digital Media and Gaming are expected to contribute to 61% of this growth followed by VFX (9%) and Television (9%). As per the EYs M&E sector report of March 2024, #Reinvent, the film segment will continue to grow, driven by theatrical revenues as Hindi movies go mass market in their storytelling, incorporate more VFX to enhance the movie-going experience and expand more aggressively into tier-II and III cities. The report expects high-end cinemas to evolve into "experience zones" to cater to top-end multiplex audiences who watch movies for their spectacular experience and to enjoy an evening out with friends and family - a market they estimate at around over 100 million customers / 50 million households today. Additionally, the report expects a set of lower-priced "cinema products" will emerge for the next 100 to 150 million audiences across the top 50 to 75 cities of India, which will also require a change to the type of content being produced for these audiences, and which could even see regional OTT products releasing in a windowed manner. India has less than 10,000 screens, and the highest deficit is in Hindi speaking markets and less than 100 million Indians visited a cinema hall in 2023. This points to the size of the opportunity that lies ahead of us.

The Indian Media & Entertainment (M&E) sector is set for substantial growth, with a projected 10.2% increase, reaching Rs. 2.55 lakh crore (US$ 30.8 billion) by 2024 and a 10% CAGR, hitting Rs. 3.08 lakh crore (US$ 37.2 billion) by 2026. In 2024, the projected revenue in the Digital Media market in India is expected to reach US$ 10.07 billion. The countrys entertainment and media industry is expected to see a growth of 9.7% annually in revenues to reach US$ 73.6 billion by 2027.

The Government of India has supported this sectors growth by taking various initiatives such as digitizing the cable distribution sector to attract greater institutional funding, increasing Foreign Direct Investment (FDI) limit from 74% to 100% in cable and direct-to-home (DTH) satellite platforms and granting industry status to the film industry for easy access to institutional finance. FDI inflows in the information and broadcasting sector (including print media) stood at US$ 10.91 billion between April 2000-December 2023.

Indias media and entertainment industry is the fifth largest market globally and is growing at the rate of 20% annually, according to Union Information and Broadcasting Minister Mr. Anurag Thakur.

Source: https://www.ibef.org/industry/entertainment-presentation

Government Initiatives

The Indian government has launched several initiatives and policies aimed at promoting and growing the film industry. These initiatives focus on encouraging production, enhancing global visibility, and fostering a conducive environment for film-related businesses. Here are some of the key government initiatives:

Film Facilitation Office (FFO)

The Film Facilitation Office (FFO) is a one-stop platform to assist filmmakers in obtaining clearances and permits for shooting across India. It helps streamline the process of film production and provides support for foreign filmmakers wishing to shoot in India.

National Film Development Corporation (NFDC)

The NFDC is a government initiative that promotes the production and distribution of quality films, with a focus on independent, documentary, and regional cinema. The NFDC also organizes the National Film Awards and the International Film Festival of India (IFFI) to recognize and celebrate Indian cinema.

Pradhan Mantri Mudra Yojana (PMMY)

Under PMMY, the government offers financing to micro, small, and medium enterprises (MSMEs), which includes funding for film production. This initiative helps aspiring filmmakers with access to easy financing for their projects, particularly for low-budget and independent films.

Film Promotion Fund

The Ministry of Information and Broadcasting (I&B) has established a Film Promotion Fund to promote the Indian film industry both domestically and internationally. The fund is used to support international film festivals, collaborations, and projects aimed at increasing Indias cultural footprint globally.

Incentives for International Film Productions

India offers several incentives for international film productions, including tax exemptions, rebates, and other financial incentives for foreign filmmakers who choose India as a shooting destination. This initiative is designed to boost tourism and promote India as a global filmmaking hub.

Promotion of Regional Cinema

The government has introduced measures to support regional cinema by offering grants and subsidies for films in various Indian languages. The National Film Heritage Mission aims to preserve and promote Indian cinema, focusing on regional and non-commercial films that contribute to the diversity of Indian storytelling.

Digital Platforms and OTT Regulations

With the rise of OTT platforms like Netflix, Amazon Prime, and Disney+ Hotstar, the Indian government has introduced regulatory frameworks to encourage the growth of digital content. The governments support for digital streaming has provided new avenues for filmmakers to distribute their work globally and reach wider audiences.

State-Specific Film Policies

Several state governments in India, such as Uttarakhand, Uttar Pradesh, Madhya Pradesh, Telangana, and West Bengal, have developed state-specific film policies that offer incentives like tax rebates, subsidies, and grants to filmmakers. These policies are designed to encourage film production and make shooting in these states more cost-effective and accessible.

International Collaboration and Co-Productions

The Indian government promotes international collaboration through co-production treaties with countries like the UK, Canada, France, and others. These treaties allow filmmakers to co-produce films with foreign partners, sharing resources and expertise while also benefiting from subsidies and grants offered by foreign governments.

India International Film Tourism Conclave

The government organizes the India International Film Tourism Conclave, aimed at promoting India as a global filming destination. The event brings together international filmmakers and tourism departments to explore opportunities for film tourism and production collaborations.

Skill Development and Training Programs

The government promotes various skill development initiatives, such as the National Institute of Design (NID) and the Film and Television Institute of India (FTII), which offer training in film production, direction, cinematography, and screenwriting. These institutions are crucial in producing highly skilled professionals for the film industry.

The National Film Archive of India (NFAI)

The NFAI plays a key role in preserving and archiving Indian films, helping to safeguard the countrys cinematic heritage. This initiative is vital for the growth of the industry, as it maintains a repository of Indias rich film history, which can be accessed by filmmakers, researchers, and students.

Promotion of Animation and Visual Effects (VFX)

The government supports the animation and VFX industry by offering incentives and creating a favorable environment for these sectors. India is one of the largest hubs for animation and VFX outsourcing, and the governments efforts aim to make it a global leader in this domain.

Film Festivals and Cultural Events

The Indian government supports numerous film festivals, such as the International Film Festival of India (IFFI) and Mumbai Film Festival (MAMI), providing a platform for filmmakers to showcase their work on the global stage. These events are crucial for networking, distribution, and international recognition.

Policy Support for Film Exports

The government encourages the export of Indian films to international markets through subsidies, international film markets, and participation in global film festivals. The Film Export Policy facilitates this by easing the export process, ensuring Indian films receive global exposure.

These initiatives, combined with Indias growing infrastructure for film production and distribution, have helped position the country as a key player in the global film industry.

The Indian M&E industry is on an impressive growth path. The industry is expected to grow at a much faster rate than the global average rate. This can be majorly credited to rising incomes, increasing internet penetration and a growing push toward digital adoption.

In the long run, growth is the M&E industry is expected in retail advertisement on the back of several players entering the food and beverages segment, E-commerce gaining more popularity in the country, and domestic companies testing out the waters. Indias rural regions are expected to be the next regions for growth. India has also gotten on board with 5G and is already planning for 6G well ahead of the future. This push towards digital adoption especially in the rural regions will provide advertisers and publishers with an immense opportunity to capture untapped markets and help grow Indias media and entertainment industry forward.

OPPORTUNITIES AND THREATS:

ENGINEERING SERVICES

The Engineering Services Market size is estimated at USD 1.74 trillion in 2025, and is expected to reach USD 2.14 trillion by 2030, at a CAGR of 4.2% during the forecast period (2025-2030).

Engineering service providers are rapidly expanding their IoT capabilities through strategic acquisitions and partnerships to meet this growing demand. For instance, in January 2023, Cognizant acquired Mobica, an IoT software engineering service provider, to expand its IoT-embedded software engineering capabilities across the technology and automotive industries. Japanese manufacturers have demonstrated a strong commitment to digital transformation, investing approximately USD 890 million in digital infrastructure initiatives, with projections indicating total investments of USD 4.1 billion in digital infrastructure improvements by 2030. The oil and gas sector has also embraced IoT for monitoring plant processes, drilling operations, container tracking, and pipe pressure and flow speed monitoring at refineries, creating additional opportunities for industrial engineering services specializing in IoT solutions. Source: https://www.mordorintelligence.com/industry-reports/engineering-services-market Threats:

Managing the labor mismatch: The construction sector continues to grapple with a significant talent shortage. Between August 2023 and July 2024, the industry had an average of 382,000 job openings each month—a third consecutive year with an increased average close to 400,000.!? The growing average job openings may be linked to increased spending in areas like manufacturing and nonresidential construction. This challenge is expected to intensify as the industry anticipates growth in the coming years, raising concerns about how to bridge the persistent—and now growing—labor gap.

Increasing technological integration: Digital tools and technologies are being explored across the value chain to enhance productivity, streamline operations, bolster safety, and improve the customer experience. Some industry firms are already using technologies such as cloud computing, IoT devices, 5G and private cellular networks, and AI in their operations. Now, theyre placing a new emphasis on scaling technology opportunities that range from the back office to project delivery and connected construction, digital twin, and elevating building information modeling systems.

Financial considerations: Against the backdrop of cost overruns due to elevated inflation and interest rates, E&C companies are expected to focus on creating value and sustaining growth through strategic divestitures, refined capital allocation, cash flow optimization, and increased private equity (PE) investments in 2025.

Industrial policies: Industry players are likely to continue to closely follow the macroeconomic situation and any policy shifts that could have an impact on the E&C sector, including federal investments. In 2023, there were 1,326 new unique recipients with US$2.15 billion of IIJA obligations, compared with only 542 new unique recipients with US$325 million of IIJA obligations from January 2024 to August 2024. Actual spending has been increasing at a more moderate rate than the subsidies offered under these pieces of legislation.

Source: https://www.deloitte.com/us/en/insights/industry/engineering-and-construction/engineering-and-construction-industry-outlook.html

Leveraging opportunities:

The engineering services market encompasses a broad range of professional services designed to support the design, development, operation and maintenance of infrastructure, industrial facilities and technological systems. These services include consulting, design, analysis, project management and engineering solutions that help businesses optimize performance, ensure regulatory compliance and enhance operational efficiency.

The global engineering services market was valued at $930,464.94 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 3.00%.

Rising Infrastructure Development Projects: During the historic period, the rising infrastructure development projects supported the growth of the engineering services market. As governments and private sectors invest in large-scale infrastructure projects, including roads, bridges, airports, railways and smart cities, the demand for specialized engineering services such as spanning structural, civil, electrical and mechanical engineering is rising. Rapid urbanization further drives the need for efficient planning, design and execution of construction developments. For instance, in February 2023, the Indian government allocated a record $33 billion to fund road construction and highways in the country. Further, in November 2021, the Asian Development Bank (ADB), in the Philippines, approved a $250 million loan to support the development of the National Industrial Corridor Development Program (NICDP). This is a part of the $500-million loan to build 11 industrial corridors bridging 17 states. Therefore, the rising infrastructure development projects drove the growth of the engineering services market.

Generative AI Revolutionizing Engineering Services: Major companies operating in the engineering services market are adopting generative artificial intelligence (GenAI) technologies to enhance design, automation and problemsolving capabilities. This technology accelerates innovation, optimizes workflows and improves efficiency across various engineering disciplines. For instance, in October 2024, Capgemini, a French multinational information technology services and consulting company, is extending its Gen AI (artificial intelligence) portfolio of services with the launch of engineering and R&D (research and development)-specific Generative AI (Gen AI) infused solutions for clients to accelerate innovation, streamline engineering and R&D processes with high-level automation and the ability to unlock new discoveries. The adoption of a hybrid AI approach, combining Gen AI and AI with other kinds of engineering and scientific models, enables the delivery of outcomes with the precision, quality, regulatory compliance and correctness required in engineering and science across industries.

The global engineering services market is highly fragmented, with large number of small players operating in the market. The top 10 competitors in the market made up to 3.56% of the total market in 2023.

Engineering Services Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global engineering services market as it emerges from the COVID-19 shut down.

Source:https://www.giiresearch.com/report/tbrc1742132-engineering-services-global-market-opportunities.html

TRADING OF ENGINEERING GOODS (SUCH AS STEEL PRODUCTS COMPRISING OF TMT BARS, GIRDERS, AND HOLLOW SECTIONS; PIPES & TUBES ARE MADE OF STEEL; ETC. -INFRASTRUCTURE PROJECTS

The global trading of engineering goods, particularly steel-based products, plays a critical role in supporting infrastructure development worldwide. Key items such as TMT bars, structural girders, hollow sections, and steel pipes and tubes are foundational materials used across sectors including transportation, energy, construction, and industrial development. These products are essential in the execution of large-scale infrastructure projects such as highways, metro systems, bridges, and industrial facilities. With increasing investments in urbanization, smart cities, and sustainable infrastructure, demand for quality steel products continues to grow globally. Traders and suppliers who can ensure compliance with international standards, efficient logistics, and competitive pricing are well-positioned to meet the needs of rapidly developing and mature markets alike in FY 2024-25.

Threats :

The global trading of engineering goods, especially steel products such as TMT bars, girders, hollow sections, and steel pipes and tubes, faces several significant threats in 2024-25. One of the primary concerns is volatility in raw material prices, driven by global economic uncertainty, geopolitical tensions, and fluctuating energy costs. These price swings impact profit margins and make it difficult for traders to maintain stable pricing strategies. Additionally, supply chain disruptions—caused by port congestion, container shortages, or geopolitical events—can delay deliveries, disrupt project timelines, and erode client confidence. Protectionist trade policies, tariffs, and regulatory barriers in key markets further add to the complexity, making cross-border trading more cumbersome and costlier.

Moreover, the industry must contend with growing environmental and sustainability regulations, as governments and contractors demand eco-friendly materials and carbon-neutral supply chains. Non-compliance can lead to exclusion from major public infrastructure projects or legal penalties. There is also intensifying competition from local manufacturers and low-cost suppliers, particularly in regions like Southeast Asia and the Middle East, which may undercut pricing and capture market share. Technological gaps, outdated logistics systems, and labor shortages in some trading hubs further compound operational risks. As infrastructure demands grow globally, only companies that proactively manage these threats and invest in efficiency, compliance, and resilience will maintain a competitive edge.

Opportunities :

The trading of engineering goods, especially steel-based products like TMT bars, girders, hollow sections, and steel pipes and tubes, is poised to benefit from substantial global opportunities in 2024-25. With governments across the world ramping up infrastructure investments—particularly in transportation, urban development, energy, and water systems—demand for high-quality structural steel components is on the rise. Major infrastructure initiatives, such as Indias Gati Shakti, the EU Green Deal, and the U.S. Infrastructure Investment and Jobs Act, are creating long-term supply opportunities for traders and manufacturers. Additionally, developing markets in Africa, Southeast Asia, and Latin America are experiencing rapid urbanization, presenting new frontiers for the supply of engineered steel products.

Technological advancements and digitalization in logistics, procurement, and inventory management are also opening doors for more efficient and scalable trading operations. The shift towards green and sustainable construction creates an opportunity for traders offering certified, eco-friendly steel products to secure preferred supplier status for international projects. Furthermore, forming strategic alliances with EPC contractors, public sector agencies, and global logistics partners can help expand market presence and reduce operational risk. With proper quality assurance, adherence to global standards (such as ASTM, ISO, and EN), and competitive pricing strategies, companies in this space can tap into the multi- billion-dollar global infrastructure development pipeline.

FILM PRODUCTION , DISTRIBUTION, MARKETING AND ALLIED BUSINESSES

The global film industry encompasses a dynamic ecosystem of production, distribution, marketing, and a wide range of allied services that drive the creation and commercialization of cinematic content. From big-budget studio films to independent and regional cinema, production houses are leveraging advanced technologies, diverse storytelling, and international collaborations to reach global audiences. Distribution has evolved through both traditional theatrical releases and rapidly expanding digital platforms, enabling content to transcend geographic and linguistic barriers. Marketing strategies have become increasingly data-driven and platform-specific, blending traditional media with influencer engagement and viral digital campaigns. Allied businesses—including post-production, VFX, dubbing, and merchandising—play a crucial role in the value chain. As global demand for diverse and high-quality content grows, the industry continues to expand across both emerging and established markets, making it a key pillar of the broader entertainment and media sector.

Global film industry revenue: projected at ? $89 billion in 2024 and expected to grow at a 7.5% CAGR to 2032, reaching ~ $159 billion

Box office vs. digital revenue: Around 75% of movie revenue still comes from theatrical releases, while streaming, DVDs, and TV account for the remaining 25%

For major studio releases: marketing budgets average between 50-100% of the production cost, with blockbusters sometimes spiking higher. Digital marketing grew by ~15% in 2021, constituting around 65% of total marketing expenditures Threats: The global film industry faces several critical threats in 2024-25 that could disrupt growth and profitability across production, distribution, and marketing channels. One of the most pressing concerns is the overreliance on streaming platforms, which, while expanding reach, is contributing to declining theatrical revenues and shortening box office windows. Escalating production and marketing costs further strain budgets, making the success of each release more financially crucial. Piracy and illegal streaming continue to siphon off legitimate earnings, especially in regions with weak enforcement. Additionally, the industry is challenged by shifting consumer preferences, as younger audiences gravitate toward short-form and on-demand content over traditional cinema.

lobal distribution is also vulnerable to geopolitical tensions, censorship, and regulatory changes that can delay or block releases in key markets. The rise of AI-generated content and digital automation introduces legal and ethical uncertainties, threatening traditional creative roles. Moreover, labor unrest, such as strikes by writers or actors, and growing demands for environmentally sustainable production practices add layers of complexity and risk. Collectively, these threats highlight the need for adaptability, innovation, and strong risk management across the industry.

OPPORTUNITIES

Despite facing various challenges, the global film industry in 2024-25 is also presented with numerous strategic opportunities for growth and innovation. The continued expansion of digital platforms and global streaming services opens up vast new audiences across previously underrepresented regions, enabling producers to distribute content directly to viewers worldwide. Technological advancements—such as virtual production, AI-assisted editing, and real-time rendering- are enhancing efficiency and reducing post-production timelines.

Demand for diverse, multicultural storytelling is rising, creating opportunities for collaboration between industries in different countries and for regional content to gain international traction. The increasing popularity of niche genres and independent cinema on OTT platforms allows for creative experimentation and lower-budget projects to thrive. Additionally, immersive technologies like VR and AR are paving the way for new forms of cinematic experiences. Global coproductions, tax incentives, and government support in various markets also make it more feasible to fund and distribute large-scale projects internationally. With a growing emphasis on sustainability and innovation, film companies that embrace digital transformation and audience-driven strategies are well-positioned to capture new market segments and redefine the entertainment experience.

CURRENT BUSINESS SEGMENTS

The company deals in following business segments: Engineering Services, Trading of Commodities, trading of engineering goods for Infrastructure Sector, new business of film production, distribution and allied businesses Engineering Services: Your Company deals in business of consultancy, advisors, technicians, manufacturers and agents in any part of India and outside India for development of software, software programmes for development or manufacture of remote monitoring programmes, software and programmes for engineering services, innovative software, computers, computer spares and parts or similar related products, to set up data processing centres and provide engineering services of all kind and render all management and professional services in these fields.

Infrastructure Business Division: Your Company is engaged in the business of trading of engineering goods for infrastructure development such as steel products comprising of TMT bars, girders, and hollow sections; construction materials comprising of cement, bricks, tiles, mortar, bitumen; pipes & plumbing systems; electrical conduits, switches, circuit breakers etc; irrigation pipes and sprinkler systems, drip irrigation systems and hybrid irrigation systems, borewell pumps etc; and rainwater harvesting systems.

Film Production , distribution, marketing and allied businesses: Your company has also ventured into new business of film production, distribution and allied businesses inter-alia developing, producing, distribution, marketing and financing of all kinds of commercial feature films, content Production, animation, graphics, CGI movies, AI powered features films, making of OTT films, cine films, talkie films, telefilms, advertising films, documentaries, animation, TV Serials, motion pictures, studio building with sound stages, music production, music composition, recording studio, music programs, television programmes, conducting events, films festivals, concerts and organization of live shows, event management, television channels, film production equipment, channel operators, publishers, advertisers and other allied & related activities in India and abroad Risks and Concerns:

The Company operates in a dynamic and competitive industry environment and is exposed to a range of risks and challenges that are broadly consistent with those faced by peers in the sector. These include:

1. Economic Risk: Macroeconomic conditions such as inflation, interest rate fluctuations, GDP growth, and global economic instability can adversely impact business operations, demand patterns, and overall profitability.

2. Liquidity Risk: Timely access to capital and efficient cash flow management are critical. Any disruption in liquidity, whether due to delays in receivables, cost overruns, or market volatility, can affect the Companys ability to meet its financial obligations.

3. Execution Risk: Delays in project execution due to unforeseen technical, financial, or regulatory hurdles can lead to cost escalations, reputational impact, and reduced returns.

4. Technological Advancements: Rapid changes in technology require continuous innovation and adaptation. Failing to keep pace with evolving technologies may result in obsolescence, loss of competitiveness, or missed market opportunities.

5. High Cost of Resources: Escalation in the cost of key inputs such as raw materials, manpower, and energy can significantly impact the Companys cost structure and profitability.

6. Talent Acquisition and Retention: Attracting and retaining skilled and experienced professionals remains a challenge, particularly in a competitive market where specialized talent is in high demand.

7. Project Management: Effective coordination and timely execution of complex projects require robust systems and skilled personnel. Poor project management may lead to delays, budget overruns, and reduced client satisfaction.

8. Regulatory and Policy Environment: Frequent changes in government policies, tax laws, or regulatory frameworks can create uncertainty and impact the planning and execution of business strategies.

9. Competition and Customer Acquisition: Intense competition from established players and new entrants can affect market share and margins. Additionally, acquiring and retaining customers in a cost-effective manner is a continuous challenge, especially in a price-sensitive market.

Internal Control System and its adequacy:

The internal control systems are adequate for the scale and type of the Companys operations. Well-documented policies, guidelines, and procedures are put in place for monitoring business and operational performance and ensuring safeguarding of assets and proper reporting of financial transactions. Periodic audits are conducted by an independent internal audit firm hired by the Company to ensure the adequacy of internal control systems and compliance with laws and regulations. The Companys robust MIS system assists in rigorous monitoring of data to confirm that all major expenses are within the budgeted limits.

Discussion on Financial Performance

The financials of the Company as on 31st March, 2025 in comparison with the previous year figures along with the key financial indicators are discussed as under:

Net worth

The Companys net worth stood at Rs. 135.96 Crore as against the previous year where it stood at Rs. 106.16 Crore. Borrowings

The Company didnt borrow any monies during the year.

Trade Receivables & Trade Payables

Trade receivables at the end of financial year was Rs. 56.50 Crore and Trade payables aggregated to Rs.11.43 Crore as against the previous year where Trade receivables and Trade payables stood at Rs. 49.91 Crore and Rs. 15.37 Crore respectively.

Current Assets & Current Liabilities

The Current Assets of the Company stood at Rs. 81.19 Crore whereas the current liabilities aggregated to Rs.14.44 Crore as against the previous year where the Current Assets and Current Liabilities were 66.90 Crore and 18.85 Crore respectively.

Earnings per Share

The basic and diluted Earnings per Share (EPS) as at the end of financial year was 0.03.

Financial Ratios along with detailed explanations thereof for change:

Ratios	FY 2024-25	FY 2023-24	Reason for change
Debtors Turnover Ratio	1.22	1.96	The ratio dropped from 1.96 to 1.22, indicating slower collection from customers. Although revenue increased, the trade receivables increased at a faster rate, leading to a decline in the ratio. This could raise concerns about credit policies, customer quality, or collection efficiency.
Inventory Turnover Ratio	-	-	NA
Interest Coverage Ratio	-	-	NA
Current Ratio	5.62	3.55	There is a significant improvement in the Current Ratio, increasing from 3.55 to 5.62. This improvement is primarily due to an increase in current assets and repayment of current liabilities. It reflects a stronger short-term liquidity position, meaning the company is better positioned to meet its immediate obligations. This could be the result of better working capital management or reclassification of long-term advances to current.
Debt Equity Ratio	-	-	NA
Operating Margin Ratio	5.21%	7.78%	This drop from 7.78% to 5.21% implies that the company is earning lower profit on each rupee of sales. It may be due to increased operating costs, reduced pricing power, or other margin pressures. This suggests a decline in operational efficiency and profitability.
Net Profit Margin	5.21%	7.78%	This drop from 7.78% to 5.21% implies that the company is earning lower profit on each rupee of sales. It may be due to increased operating costs, reduced pricing power, or other margin pressures. This suggests a decline in operational efficiency and profitability.
Return on Net Worth (RONW)	3.55%	6.13%	The decrease in ROCE from 6.13% to 3.55% indicates weaker returns on the total capital invested in the business. Contributing factors include reduced EBIT and increased capital employed (through infusion of share capital and reduced debt). This reflects underutilization of capital and lower earnings before interest and taxes.

HUMAN RESOURCES

In our organization, the Human Resources (HR) department takes on a pivotal role, molding the triumph of our projects and the overall creative ambiance. This department maintains a vigilant watch over all ongoing operations, including our meticulous recruitment procedures. We have implemented a stringent and all-encompassing recruitment protocol to securing the industrys most exceptional talents. Our dedication to inclusivity and diversity echoes through our hiring practices, as we ardently endeavor to cultivate an inclusive and hospitable work environment for all our valued employees. We invest substantively in regular training and developmental initiatives designed to furnish our employees with the indispensable skills and knowledge needed to excel in their roles. These multifaceted programs span a spectrum from hands-on learning experiences and mentorship to personalized coaching and robust leadership development programs. Grasping the significance of acknowledging and rewarding our employees, we have instituted an all-encompassing rewards and benefits program. This comprehensive package encompasses competitive salaries, performance-based bonuses, health insurance, and a wealth of additional employee benefits. Our HR department meticulously manages payroll and schedules, ensuring that equitable compensation is bestowed upon each employee for their invaluable contributions. Upholding transparency, our performance appraisal process guides promotions and salary enhancements based solely on merit. In summation, within our organization, HR transcends conventional administrative functions; it is the driving force behind our industrys dynamism, dedicated to nurturing talent, facilitating growth, and guaranteeing that each employee receives fair recognition and rewards for their invaluable contributions. The Companys human resource headcount stands at 22 as on 31st March, 2025

CAUTIONARY STATEMENT

The Management Discussion and Analysis contains statements for describing the Companys objectives, projections, estimates, expectation or predictions. These statements are forward-looking in nature and are within the meaning of applicable securities laws and regulations. The Company has undertaken various assessments and analysis to make assumptions on future expectations on business development. However, various risks and unknown factors could cause differences in the actual developments from our expectations. Important factors that could make a difference to the Companys operations include macro-economic developments in the country and improvement in the state of capital markets, changes in the Governmental regulations, taxes, laws and other statutes and other incidental factors. The Company undertakes no obligation to publicly revise any forward-looking statements to reflect future/likely events or circumstances.