Maral Overseas Ltd

IS HE ADVANCE. HE SHALL REMAIN RESOLUTE IN IMPLEMENTING OUR STRATEGIC BLUEPRINT HITH R KEEN EMPHASIS ON GROHTH. HE ARE DEDICATED TO REINFORCING OUR CORE BUSINESSES. RCCELERRTING INNOVATION. AND UNLOCKING EFFICIENCIES HHILE EXPLORING NEH OPPORTUNITIES RND NAVIGATING CHALLENGES TO EMBRACE GROHTH."

It is an honour to address you as the Chairman of Maral Overseas. Our journey over several decades has been characterised by resilience, innovation, and an unwavering commitment to providing high-quality textile products that clothe millions of individuals worldwide. As we navigate the complexities of our global landscape, marked by the perils of geopolitical stress, heightened human conflict, protectionist trade policies, environmental degradation, and climate change, our dedication to our core values remains steadfast.

PERFORMANCE

FY25 was unrelenting in its challenges. The economic slowdown in key global textile markets significantly impacted the offtake of textiles and apparel. Reduced demand, intensified competition, and unviable prices impacted the textile trade. These headwinds impacted our performance, too. All our business verticals had to contend with reduced order flow, resulting in suboptimal operations.

Our Revenue from Operations increased by 9.06% over the previous year. However, our Net Loss widened from Rs.9.77 Crore in FY24 to Rs.24.20 Crore in FY25 due to increased operational costs.

Through strategic initiatives, operational efficiency, and market responsiveness, we navigated the complexities of an otherwise sluggish business ecosystem with resilience and adaptability. This commitment underscores our dedication to responsible operations.

PROSPECTS

The ominous clouds that previously overshadowed the growth drivers of the textile sector seem to be dissipating, permitting the emergence of more favourable prospects.

With inflation management being effectively controlled on a global scale due to the prudent strategies implemented by Central Banks, discretionary spending is gradually reviving, particularly in the United States and Europe, which are two significant textile-consuming markets.

Furthermore, India is resolutely committed to establishing itself as a global trade hub and is diligently negotiating trade agreements with its business partners that yield mutually beneficial outcomes.

India and the United Kingdom concluded a landmark Free Trade Agreement (FTA) on 6th May 2025. Under this FTA, 99% of Indian exports to UK, including textiles, will become duty-free. The removal of the 12% import duty on Indiantextiles positions India to better compete with Asian countries like Bangladesh and Sri Lanka. This agreement is expected to significantly boost India's textile and apparel exports to the UK, potentially reclaiming the market share lost over the past decade.

India and the European Union (EU) are currently contemplating the negotiation of a free trade agreement (FTA). This agreement is anticipated to be "the largest deal of its kind anywhere in the world," with negotiations progressing in phases amid a fluctuating global trading environment resulting from the significant imposition of tariffs by the United States. Both national leaders have expressed a strong desire to finalise this highly anticipated free trade agreement by 2025.

Additionally, the ongoing political instability in Bangladesh has disrupted garment factory operations and supply chains, prompting several global buyers to reconsider their sourcing strategies. This shift presents a strategic opportunity for the domestic players to capture increased demand and realign supply networks.

Moreover, India stands poised to be the first nation to secure a bilateral trade agreement to circumvent the reciprocal tariffs imposed by the United States. This economic document aims to increase trade from over US$190 billion to US$500 billion by 2030.

Furthermore, having established a reputation as a dependable business partner that honours its commitments despite challenges, Indian companies are increasingly favoured as sourcing hubs by European brands.

The domestic market continues to exhibit significant resilience. The growth of the economy has augmented discretionary spending power, and the rising proportion of youth within India's workforce, along with controlled inflation, has considerably mitigated consumer concerns. This trend is anticipated to stimulate increased demand in the future.

Flagship initiatives such as 'Make in India' and 'Atmanirbhar Bharat' are generating vital momentum for the long-term growth trajectory of the textile sector. The government's emphasis on localising critical elements of textile production, in conjunction with incentive schemes such as the Production Linked Incentive (PLI), is expected to foster substantial and sustained demand for textile products in the foreseeable future.

PRIORITIES

In the aftermath of recent challenges, we have engaged in discussions, deliberations, and decision-making regarding essential strategies to restore Maral to its winning trajectory. Two predominant themes will underpin our strategic framework for the future: Consolidation and Value-Addition. The former will concentrate on optimising operating costs, while the latter will strive to enhance realisation. This judicious combination is expected to bolster our business profitability and generate value for all our stakeholders.

PROMISE

As we advance, we shall remain resolute in implementing our strategic blueprint with a keen emphasis on growth. We are dedicated to reinforcing our core businesses, accelerating innovation, and increasing efficiencies while exploring new opportunities and navigating challenges to embrace growth.

IN CLOSING

In closing, I would like to express my sincere appreciation to all our stakeholders for their confidence and continued support. I am confident that we will embark on an exciting growth journey ahead. Looking forward to our prosperous future.