Nandani Creation Ltd

DEAR SHAREHOLDERS,

I am pleased to connect with you and share an overview of our Company's performance and strategic initiatives over the past year. Despite a challenging market environment, we have shown resilience, agility, and a strong commitment to our vision. Our focus on delivering high-quality products at competitive prices has enabled us to maintain a strong market position and continue our growth journey.

With great enthusiasm, I address you all once again in this Annual Shareholder letter. At the outset, I warmly welcome the shareholders to our Company and convey my sincere thanks for the trust you have bestowed in our business. Your confidence has infused new energy within the Company - to evolve further and grow the operations while always staying relevant to customers. I look forward to sharing the future success of the Company with you.

I am pleased to communicate that during the year under review, the company gained strength holistically. This provides our Company with the optimism that the company's fundamentals have strengthened and that will promote sustainable growth.

A Forerunner in the ethnic fashion domain, Nandani Creation Limited with brands “Jaipur Kurti”, “Amaiva- By Jaipur Kurti” & “Desi Fusion" has curated trendy styles for the modern woman since its inception, fusing heritage with contemporary inspirations. In the apparel space, today we are a rapidly growing fashion house that specializes in traditional designs, culturally rich styles and fashionable ethnic wear for women.

Our brand's expertise in apparel shows through the exclusive range, which comprises a wide array of Ethnic Indian Wear such as Kurtis, Kurtas, Dresses, Pants, Suit Sets, Palazzos, Co-ord Sets, Dupattas, Unstitched Dress Materials, Sarees, etc.

In the past year, our same-store sales growth (SSSG) remained stable, highlighting the enduring loyalty of our customers and the strength of our brand. Full-price sales contribution is excellent, showcasing the appeal of our brand and the effectiveness of our pricing strategy.

Throughout the year, we undertook several strategic initiatives to enhance our market position & operational efficiency. We added a net total of 6 stores, bringing the total store count to 15. Although this expansion was below our initial targets, it was a strategic decision to close underperforming stores that did not recover post-pandemic. This rationalization enables us to maintain a strong and profitable store portfolio. Looking ahead, we plan to expand our store footprint further by adding between 20 to 30 stores on a net basis in FY 2024-25.

The Previous Financial year has been an exciting journey for us. On the back of our robust business capabilities, we were able to crossover the growth barriers & deliver strong results. We believe we are in our consistent growth phase as we continue to expand our reach & set up our distribution channel to reinforce our Women's Indian Wear offerings across sales channels. Further, the growing acceptance of our brand demonstrates the tremendous potential to address opportunities that lie ahead.

Alongside business growth, our focus was also on technology upgradation, organization building and process improvement to develop a resilient business model.

To evolve with the changing dynamics of all E-commerce platforms we have increased our focus on new-aged fast-growing platforms for the following advantages:

Faster adaptation of new-aged trends Better realization

Hedging against third-party dependency risk

Every day is a new learning opportunity! Our company is in a growing phase & will continue to invest in brand-building initiatives that will help us gain visibility. It will also help us focus & grow our online sales channels to benefit from evolving consumer trends in our market and help us address the tremendous opportunities that lie ahead.

Fashion has no bar on age or criterion, when it comes to flaunting Indian ethnic styles, we want our brand loyalists to go by their personal choices. Jaipur Kurti caters to women of all age groups?its wares are available in all sizes?& focuses on finding every woman's personal style filled with trends and traditions.

A favourite with customers, Jaipur Kurti today ranks among the top brands at online marketplaces. Talking about the phenomenal success of the brand and getting a strong foothold in the Indian market, we give digital marketing and e-commerce a lot of credit.

From maintaining immaculate quality standards to ensuring quick deliveries, every aspect, however minuscule or significant, has contributed to Jaipur Kurti's journey.

Apart from a successful digital presence, Jaipur Kurti also has a very strong offline footprint. Currently, we have 15 retail stores in India (at Vaishali Nagar, Jaipur; Triton Mall, Jhotwara, Jaipur; MGF Mall, 22 Codam, Jaipur, Sri Canganganagar, Kota, Ajmer, Curugram, Delhi, Bengaluru, Ahmedabad, Ambikapur etc.) and intends to open 25-30 retail stores by the end of FY 2025. The broad plan is to first have a strong presence in all major cities of Rajasthan and then expand to other major cities of India.

During the year, the company entered the SIS Distribution Model & currently present in top outlets such as Bindals, Dressland, Kambhal Char, Lai sons, Amarasons etc in Punjab, Uttar Pradesh, Chandigarh, Uttarakhand, Shimla etc.

In the process of building our retail empire, our brand "Amaiva - By Jaipur Kurti", a premium segregation has a dedicated wall in each store. We have achieved a sales run rate of Rs. 8 Lakhs + per day from our Retail Stores and are set to grow further. At the current run rate, our retail stores have an EBITDA of more than 20%.

With over a decade of experience in this industry and keeping in mind varied factors like demands, prices and delivery, the team at Jaipur Kurti moulds its collection & services every season. This practice of keeping in touch with the realities while remaining rooted in tradition and heritage makes the brand unique.

During the year under review, the Company has taken multiple initiatives towards the premiumization of its products. This has increased our Average Selling Price as compared to the previous financial year.

Online platforms have made shopping convenient & user-friendly. On social media platforms, our users look forward to the latest styling inspirations. Flence, our digital team is planning to gain immense traction through fashion influencers. We thus want to use technology further to tune in new retail innovations like digital changing rooms, virtual store views & Quick and fast Delivery into the basic framework of the brand.

Being in the fashion industry for more than 14 years, Nandani Creation Ltd. has left no stone unturned to assure that our customers & clients get the most desirable outfits as per their preferences. To make shopping convenient, we are also available on 3rd party platforms. We are witnessing a high acceptance of our brand “Jaipur kurti” on our proprietary sales channels as well both online & offline.

The Previous Year was a soft year for us on account of the sales channel rejig undertaken during the year. As a part of our future growth plan, which will enable us to improve the pace of business growth. Secondly, we also faced challenges in the business environment due to the early offset of the summer season which is our core season. A slowdown in the retail & consumption space due to which we had to do heavy channel inventory destocking on discounted prices which impacted our overall margins.

We have started a FY25 on good note and have seen good traction at the start of Spring & Summer Season 24 & are very excited with the type of response we are getting across our product offerings.

Over the past year, our efforts have been completely dedicated towards brand-building initiatives, which has helped us to gain visibility & increase the Loyal (Repeated) Customer base along with the brand liking among our customers. Going forward, we believe this transformational journey coupled with our Omni channel offering will set us on the path of accelerated growth.

In conclusion, I would like to thank all our employees for their dedication & hard work over the past year. Our Company is grateful to its customers for their loyalty & for remaining committed to delivering them the best experience. I would also like to thank the various stakeholders, for their continued support. All these things have helped the Company overcome various challenges. This, I believe, our Company & management team have successfully demonstrated. I commend them for their leadership. Finally, I want to thank our shareholders for their trust in our business. Exciting opportunities beckon your Company; by staying agile & customer-focused, it is determined to capture these opportunities to create better value for all stakeholders.