Trident Ltd Management Discussions

40Steady growth in demand for writing, printing and speciality papers has contributed to this surge in demand.⁴¹ The industry remained fragmented, with manufacturers leveraging diverse raw materials such as wood, bamboo and wheat straw. Writing and printing (P&W) and copier grades maintained stable volumes, supported by a consistent demand in education and corporate sectors despite overall volume growth moderating to 2–5% in FY 2023-24.⁴² Packaging grades continued to dominate (>60% of demand), driven by e-commerce expansion and bans on single-use plastic use, though realisations in packaging paper softened in FY 2023-24 amid competitive pressure. ⁴³However, realisations in packaging paper softened slightly in FY 2024-25 amid competitive pressure from imports, with domestic producers revenues projected to decline by 3–4%.⁴⁴ Import volumes surged to 1.76 million tonnes (during April to December 2024), valued at INR 11,196 Crore (USD 1.3 Billion), reflecting acute domestic supply tightness, especially in wood-based segments.⁴⁵ Domestic cotton-based and recycled-fibre grades have gained traction, helping mills maintain eco-credentials amid rising Infometrics

ESG scrutiny. However, available pulpable wood remained at 9 MTPA versus a demand of 11 MTPA, estimated to have reached 15 MTPA by FY 2024-25, owing to raw-material constraints.⁴⁶ Government support through incentives for capacity expansion and the promotion of recycled fibre and sustainable practices has contributed to long-term growth. Rising literacy rates, bolstered by the National Education Policy, have expanded the student base, driving demand for notebooks, textbooks and supplementary materials.⁴⁷ Additionally, growing utilisation of corrugated and household paper products, fuelled by e-commerce expansion and disposable-plastic restrictions, continued to support the sectors growth.⁴⁸ Consequently, India is now the fastest-growing paper market globally, with consumption expected to rise by 6-7% annually and reach 30 MTPA by FY 2026-27.⁴⁹ This expansion will be fuelled by sustained economic growth, a sharper emphasis on education and literacy and the rise of organised retail, which will collectively boost end-use demand.

The industrys market value is projected to reach USD 19.1 Billion by 2033, growing at a 7.5% CAGR between 2024 and 2033.⁵⁰ The expected uptick in global demand, the lifting of pandemic-related restrictions and the ban on single-use plastics are the major contributors towards the robust industry performance, while the paper sector provides direct employment to around 0.5 million people and indirect employment to approximately 1.5 million.⁵¹

Trident Limited (Trident), the flagship Company of the Trident Group, operates as a vertically integrated manufacturer in the home textile and paper sectors. The Companys operations encompass four major business segments: Yarn, Home Textiles (including Bath and Bed linen), Paper and Chemicals. Its manufacturing facilities are located in the states of Punjab and Madhya Pradesh, with its office based in Ludhiana, Punjab.

Trident has earned global recognition across its yarn, bath linen, bed linen, paper and chemical business segments. The Company is particularly renowned as the worlds largest producer of wheat straw-based paper.

Distinguished for its commitment to superior product quality, social responsibility and environmental stewardship, Trident has built a reputation for seamlessly integrating sustainability and advanced technologies throughout its operations. This dedication has brought the Company significant recognition globally.

To drive future growth, Trident has formulated a comprehensive strategy that focuses on driving continued product development, world-class manufacturing excellence and robust brand building.

The Company produces premium cotton yarn for the domestic textile industry, employing cutting-edge technology across its manufacturing facilities. Its product portfolio features a wide range of high-quality yarns.

• 100% cotton combed yarn

• Open-end yarn

• Air jet yarn

• Carded yarn

• Organic cotton yarn

• Core spun yarn

• Blended yarn

• Eli-twist yarn

• Slub yarn

• Compact yarn

• Air-rich yarn

• Certified cotton yarn

• M?lange yarn

• Packed dye yarn

• Zero twist yarn

• Bamboo/ cotton yarn

• Modal/ cotton yarn

• BCI cotton yarn

• BMP cotton yarn

• 100% dyed yarn

Trident is the largest vertically integrated company in the home textile industry in India, with bath and bed linen being its primary segments. The Company places a strong emphasis on innovation throughout its business.

At Trident, we offer a comprehensive range of bath linen products through our vertically integrated manufacturing facility. With an annual capacity of 90,000 MT, we are one of the largest terry towel manufacturers in the world.

The Company operates two production facilities for bath linen, located in Dhaula (Punjab) and Budhni (Madhya Pradesh). We focus primarily on sustainability and innovation, consistently launching quality products that meet global standards, supported by our strong R&D and Product Development team.

We have a strong presence in the US, EU, UK, ANZ, JFE, and GCC markets. Looking ahead, we plan to penetrate non-US regions by keeping up with fast-moving fashion trends and designs through continuous feedback on customer perceptions.

In the upcoming financial year, we are planning to expand Tridents towel manufacturing capacity focussed on expanding fashion towel production capabilities.

• Luxury

• Sustainable

• Spa and hotel

• Beach

• Jacquard

• Dobby texture

• Bathmats

• Checkered

• Waffle

• Sheared

• Bathrobe

• Infants and kids

• Bath rugs

Trident offers a comprehensive range of bed linen products through its integrated manufacturing facility at Budhni, Madhya Pradesh. The Company continues to prioritise innovation, sustainability and quality, which has strengthened its position in the global home textile market. In FY 2024-25, the division delivered a strong performance, clocking a revenue of INR 1335.32 Crore (up 5% from last year), with continued demand from key markets. The Company further enhanced its product mix and operational efficiencies. Some of its key achievements include deeper retail partnerships, expansion in fashion and digital print collections and wider application of proprietary technologies in product development.

Looking ahead, the division will focus on diversifying beyond the US market and tapping into growth opportunities in Europe, the Middle East and Australia. Strategic expansion into fashion bedding, trend-oriented designs (TOB) and greater penetration within existing retail assortments will also be undertaken to drive organic growth.

• Luxury

• Performance

• Sustainable

• BCI/ Organic/ Regenerative/ Kasturi

• Egyptian/ Supima/ Pima

• Spa and hotel

• Printed

• Dobby / Damask

• Waffle

• Infants and kids

• Duvet/ comforter/ sheets/

pillow cover

Trident is the worlds largest manufacturer of paper based on wheat straw, operating with an installed capacity of 175,000 TPA. The division offers a diverse portfolio including multi-colour publishing paper, branded copier paper and quick-turnaround printing grades. Known for its sustainable manufacturing practices, Trident Paper continues to strengthen its position in the domestic market with a reputation for quality and eco-friendly products.

• Trident Spectra

• Trident My Choice

• Trident Royal Touch

• Trident Digi Print

• Trident Spectra Bond

• Trident Enviro

• Super Line

• Cartridge Paper

• Stiffener Paper

• Diamond Line

• Drawing Paper

• Platinum Line

• Silver Line

• Trident Royale

• Cup Stock

• Nature Line

• NL Coating (Sublimation Grade)

• Pearl Line

• Maplitho Watermark Paper

• Offset Printing Paper

• Cream Wove Paper

The Company also manufactures and markets My choice notebook made from Trident 60 GSM Paper.

Trident manufactures high-purity LR/AR-grade sulphuric acid, catering to diverse industrial applications including battery production, zinc sulphate, alum, dyes and detergents. The Company is a leading producer of industrial and battery-grade sulphuric acid in Northern India, renowned for its consistent quality and reliable supply.

India continues to be the worlds largest cotton producer⁵⁵, which enables Trident to source quality raw materials domestically, ensuring cost-efficiency and supply stability.

Indias GDP grew at 6.5% in FY 2024-25⁵⁶; this economic expansion supports rising domestic consumption and infrastructure-driven demand across core segments.

Initiatives such as the PLI scheme (which saw its allocation increase by 89% to INR 16,092 Crore for FY 2024-25 according to the Union Budget 2025-26) and the National Manufacturing Mission are creating a conducive environment for growth in textiles, paper and chemicals.

Indias trade agreements and enhanced competitiveness have opened access to new markets, allowing Trident to diversify geographically, particularly in home textiles and paper.

Increasing global demand for eco-friendly products aligns with Tridents strengths in wheat straw-based paper, energy-efficient manufacturing and OEKO-TEX^?-certified textiles.

Growth in e-commerce and organised retail is driving higher demand for branded home textiles, a key focus area for the Company.

In FY 2024-25, Tridents total income amounted to

INR_70,253 million, up from INR 67,903 million in the prior year, reflecting a 3.5% increase driven by higher volumes and improved realisations. EBITDA for the year stood at INR 9,611 million (with a margin of 13.7%) when compared to INR 9,949 million (14.6% margin) in FY 2023-24, as cost efficiency measures partly offset raw-material inflation. Finance costs declined by 16% to INR 1,294 million, leading to a modest PBT reduction to INR 4,697 million from INR_4,802 million. Consequently, PAT stood at INR 3,668 million (EPS INR 0.73) compared to INR 3,896 million (EPS INR 0.78) last year. Cash profit was INR 7,288 million, slightly below INR 7,498 million in FY 2023-24. The balance sheet strengthened, with net debt/EBITDA improving to 0.95? as of March 2025 from 1.54? a year earlier, underscoring robust cash-flow generation and disciplined capital_management.

In FY 2024-25, the Company declared an interim dividend of 36% on the face value of each equity share, consistent with the previous years payout.

The revenue from Yarn and Home Textiles rose to INR_59,579 million in FY 2024-25 from INR 55,846 million in_FY 2023-24.

The revenue from Paper and chemicals stood at INR 10,079 million, down from INR 11,459 million in FY 2023-24.

The total equity share capital remained unchanged at INR_5,096 million as of March 31, 2025 (the same as March_31, 2024).

The net worth of the Company increased to INR 46,103 million (as of March 31, 2025), compared to INR 43,091 million (as of March 31, 2024).

Note: Reason for major change (if variation is 25% or more):

1. Decrease in Finance cost

2. Reduction in trade payables and decrease in current borrowings resulted in improved current ratio.

3. Gross Debt reduced by INR 4,850 million, resulted in improved Ratio

4. PAT reduced by INR 227.50 million, Net worth rose by INR 3,012 million

Other key financial ratios and related information are provided in detail in Note 54 to the standalone financial statements.

• Diversified Business Portfolio: Presence across textiles (bath & bed linen), paper, chemicals, and energy reduce dependence on a single sector and enhances revenue stability

• Integrated Manufacturing Facilities: Vertically integrated operations in Punjab and Madhya Pradesh improve cost efficiency, quality control, and lead time

• Strong Export Market Presence: Recognised global player in home textiles, serving leading international retailers

• Sustainability Leadership: Significant investments in green energy and eco-friendly production enhance environmental credibility

• Established Brand Reputation: Trident is a trusted brand, especially in textiles, with a loyal customer base and recognition in both domestic and global markets

• Robust Infrastructure: State-of-the-art facilities and digitalisation initiatives ensure operational excellence and innovation

• Geographical Advantages: Factories located in Punjab and Madhya Pradesh, having leverage regional strengths in raw material availability, skilled workforce, and infrastructure S

• High Capital Intensity: Ongoing need for investments in technology upgrades, compliance, and capacity expansion impacts free cash flow

• Product Category dependency in Textiles: High exposure to cotton-based home textiles can be vulnerable to global demand and raw material volatility

• Energy and Resource-Intensive Operations: High water, energy, and raw material consumption can lead to rising operational costs

• High dependency on Export Markets: A significant share of revenue comes from exports, making the Company vulnerable to international trade policies and global economic conditions

• Global Shift towards Sustainable Textiles: Increasing demand for eco-friendly and ethically produced products aligns with Tridents sustainability agenda

• Expansion into New Geographies: Growing opportunities in emerging markets for home textiles

• Government Incentives: Benefitting from Production Linked Incentive (PLI) schemes and textile parks under Make in India

• Innovation in Functional Textiles and Speciality Paper: Scope to develop antimicrobial, organic, and smart fabrics, and expand value-added paper offerings

• Green Energy Integration: Strengthening energy division with renewable projects enhances long-term cost savings and ESG positioning

• Global Market Volatility: Economic slowdowns, geopolitical tensions, and trade barriers can impact exports and input costs

• Intense Industry Competition: Price and quality pressures from global players, especially in textiles and paper

• Raw Material Price Fluctuations: Cotton, pulp, and chemicals are subject to price volatility, affecting margins

• Regulatory and Environmental Compliance Risks: Stricter norms, particularly in water-intensive sectors, can lead to cost and operational pressures

• Currency Fluctuations: Affects export competitiveness and profitability

Trident has implemented a robust and structured Risk Management System designed to safeguard the organisation against potential threats while enabling informed decision-making. An effective risk management approach begins with comprehensive planning, early identification and analysis of risks, timely implementation of corrective measures, and continuous monitoring and reassessment. This is supported by clear communication, thorough documentation, and coordinated efforts across the organisation.

Risks at Trident are managed at two broad levels: Enterprise Risks and Operating Risks. These are further categorised into specific domains such as Sectoral Risks, Operational Risks, Financial Risks, Sustainability Risks, IT Risks, among others.

To enhance transparency and control, a digitised Risk Register is maintained, enabling systematic identification, assessment, periodic review, and tracking of mitigation plans. Each risk is assigned a Risk Score, calculated as the product of its likelihood and impact, and is classified using a Risk Rating Matrix to prioritise mitigation efforts effectively.

Every risk is assigned to a Risk Owner who is responsible for timely mitigation. These efforts are regularly reviewed by the Chief Risk Officer (CRO) to ensure ongoing relevance and responsiveness.

Our Enterprise Risk Management (ERM) processes are automated, enabling improved visibility, tracking, and governance. Risk management is embedded into the organisational culture, with responsibilities shared across functions, daily monitoring, periodic reviews, and reporting to the Risk Management Committee. This comprehensive approach fosters a proactive risk culture aligned with our strategic objectives.

As of March 31, 2025, the Companys workforce comprised approximately 2,414 employees (up from 2,297 in the preceding year) and 13,495 workers (as compared to 13,350 last year) across its manufacturing and administrative facilities. Our people fuel Tridents growth and innovation. We cultivate an empowering, inclusive culture by nurturing talent, strengthening leadership pipelines, and rewarding high performance. Holistic well-being initiatives covering health, housing, and financial security ensure a motivated workforce. Continuous learning and development, through internal programmes and external partnerships, bridge skill gaps and drive internal mobility. Together, these efforts build a resilient, future ready organisation rooted in care, accountability, and growth.

The Company has implemented financial reporting controls that are commensurate with its scale and the nature of its industry. These controls and protocols are designed to safeguard assets, enhance operational efficiency and ensure accuracy in both operational processes and financial disclosures. A dedicated internal team, in coordination with the Audit Committee, continuously monitors business activities and promptly notifies the Management Board of any discrepancies. Insights from these reviews inform the Companys risk-assessment strategies, which identify, evaluate and mitigate potential threats. These internal controls support regulatory compliance, deter fraud and maintain transparency factors that help attract investment, bolster stakeholder confidence and drive sustainable growth. During the year under review, Deloitte Touche Tohmatsu India LLP and M/s Mahajan & Aibara Associates were engaged as Internal Auditors of the Company. They carried out the internal audit of the Companys operations and reported its findings to the Audit Committee. Internal auditors also evaluated the functioning and quality of internal controls and provided assurance of its adequacy and effectiveness through periodic reporting. Internal audit was carried out as per risk-based internal audit plan, which was reviewed by the Audit Committee of the Company. The Audit Committee periodically reviewed the findings and suggestions for improvement and was apprised of the implementation status in respect of the actionable items.

This Management Discussion and Analysis Report may contain forward-looking statements, such as goals, estimates, projections and expectations of the Company, as defined under applicable laws and regulations. Actual results may differ materially from those expressed or implied in such statements due to various factors, including but not limited to changes in governmental regulations, tax laws, foreign exchange fluctuations, raw-material availability and pricing, cyclical demand and pricing in key markets and broader economic conditions in India and other jurisdictions where the Company operates. These factors should be carefully considered, and readers are cautioned not to place undue reliance on forward-looking statements. The Company assumes no obligation to update any forward-looking statements, except as required by law.