Yuvraaj Hygiene Products Ltd Management Discussions

The information, opinions and views expressed in this section of the Annual Report contain certain forward looking statements which involve risks and uncertainties. The Management has made its best efforts to present this discussion/analysis and believes these to be true to the best of its knowledge at the time of its preparation. The Management is not responsible to publicly update or revise any of these forward looking statements whether on the basis of new information, future events or otherwise. The Management shall not be liable for any loss which may arise as a result of any action taken on the basis of information, opinion or views contained herein. The reproduction, disclosure or use of the information contained herein without express prior written permission of the company is strictly prohibited.

A. INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Company is engaged in the business of manufacturing and supplying of Hygiene and Cleaning Products as well as Insecticide products with a nationwide presence. Further, in response to the evolving market dynamics and customer demands, the company initiated steps to diversify into warehousing and storage solutions, aiming to capitalize on emerging market opportunities, address evolving customer needs, and drive sustainable growth.

Additionally, as a part of this initiative new product lines relating to warehouse and storage line solutions have been launched. However, on account of such new product lines the financial position of the Company is expected to improve and strengthen.

These products are manufactured using premium quality raw material and components that are coupled with modern methodologies and technology.

The Indian Economy continues to grow at a healthy rate with the hope that this growth rate will increase further in the future. The hygiene and warehousing sectors, in particular, are witnessing significant growth potential, driven by rising awareness, improved living standards, and expanding middle-class and rural markets. The Company is well-positioned to benefit from these developments and contribute meaningfully to the sectors progress.

B. OPPORTUNITIES AND THREATS:

The growing Health awareness about personal hygiene, sanitation and health, especially post Covid-19 is driving demand for hygiene products amongst expanding middle class Indian population as well as rural sector, presents a huge potential for this sector. Rapid urbanization is increasing demand for institutional and commercial cleaning solutions as well as storage solutions. Retailing and digital marketing provide new avenues for reaching customers, especially in Tier 2 and Tier 3 cities.

The market is highly competitive with the presence of both domestic and multinational brands, often leading to price wars and margin pressure. Presence of substandard or counterfeit hygiene products can erode consumer trust and brand reputation. Over the last few years, there has been a conscious shift of preference of the consumers, retailers and distributors towards branded & quality cleaning products. Though the household cleaning industry is scattered and highly unorganized, the shift of demand from the unorganized towards the organized sector is quite apparent and is likely to gain pace in the next few years.

C. SEGMENT WISE OR PRODUCT WISE PERFORMANCE:

The Company is engaged in the manufacturing and selling of scrub pads, scrubber & other household cleaning related items. In addition, the Company manufactures insecticide products and warehousing related items such as storage containers and dividers.

Hygiene and Cleaning Products Segment:

This segment continues to be the primary revenue contributor for the Company. However, during the year under review, the Company witnessed a decline in demand for hygiene and cleaning products. The drop is attributed to market normalization post-pandemic, despite sustained awareness of hygiene and continued institutional demand from hospitals, corporate offices, and public infrastructure.

• Key Products: Surface disinfectants, scrub pads, floor cleaners, toilet cleaners, kitchen hygiene solutions.

• Performance Highlights:

o Strong performance in urban and semi-urban markets. o Growth in institutional sales through bulk supply contracts. o E-commerce platforms.

Insecticide Products Segment:

The Company entered the insecticide segment during the year under review. Despite being a new entrant, the segment demonstrated encouraging growth. Strategic pricing and targeted marketing allowed the Company to generate strong revenues, even amidst high competition.

• Key Products: Mosquito repellents (liquid, coils), insect sprays, pest control solutions.

• Performance Highlights:

o Seasonal spikes and high-density residential areas drove increased product demand. o Rural market presence expanded through a distributor-led sales network.

o Continued investments were made in the development of safer, low-odor formulations to improve product differentiation. Warehousing and Storage Solutions Segment:

As part of its diversification strategy, the Company entered the warehousing and storage solutions segment. Though still at an early staGe, the segment has shown promising potential, with initial interest and orders from industrial and logistics sector clients.

• Key Products: Warehouse cleaning solutions, storage racks, dividers, and accessories.

• Performance Highlights:

o Strategic collaborations initiated with warehouse operators and logistics companies. o Pilot implementations were carried out in select metropolitan locations.

o Revenue contribution from this segment remains modest but is expected to grow significantly in the coming years.

D. OUTLOOK:

Your Company has taken its best efforts to increase its presence across the country and is currently geared up to increase its market share by expanding the product range and its retail presence.

E. RISKS AND CONCERNS:

As the company operates in the hygiene, insecticides and warehousing products which is associated with the high consumable products which directly leads to increase in cost of productions and cost of inventory it is always a matter of concern to the Company, but through the effective inventory management system, the risk has been reduced to the minimal. Rapid changes in consumer preferences?such as a move toward organic, herbal, or eco-friendly products?may reduce demand for traditional offerings if the Company does not innovate and adapt in time. The warehousing and storage solutions segment is still in its early stages. Any delay in execution, lack of market acceptance, or unforeseen operational challenges may affect the scalability and profitability of this segment.

F. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company believes that Internal Control is necessary for good corporate governance. The Company is having adequate Internal Control Systems commensurate to the nature and level of operations of the Company. The Company takes adequate measures to undertake internal audits at regular intervals to review the Compliance of various policies and guidelines and to ensure reliability and credentials of all records and financial statements of the Company.

G. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The financial statements are prepared in accordance with Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting principles generally accepted in India. The results of the operations are discussed in the Boards Report, which forms part of this Annual Report.

H. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES:

The Company strives to remain as a responsive and market-driven organization, which requires a very good quality of manpower resources. Retaining young and talented human resources continues to be a challenge in the present business environment. The Company regards its human resources as one of its most valuable assets. It reviews its policies proactively. It ensures that they create a work environment that encourages initiative, provides challenges and opportunities and appreciates the potential of the employees. Satisfaction of employees is the ongoing concern of the management. The Company continues to focus on human resource development. As on March 31,2025, the Company had 60 permanent employees on its payroll.

I. DETAILS OF SIGNIFICANT CHANGES:

J. RETURN ON NETWORTH:

Since the Average net worth is negative as on 31st March 2025 and 31st March 2024, return on net worth cannot be derived.

K. CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be “forward - looking statement” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/ supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and other incidental factors. This Report basically seeks to furnish information, as laid down within the different headings to meet the requirements of Securities and Exchange Board of India

(Listing Obligations and Disclosure Requirements) Regulations, 2015.