Creative Newtech Ltd

Dear Shareholders,

I am delighted to address you as we embark on a new financial year filled with promise. Despite the macroeconimic volatility and geopolitical tensions that characterized the past fiscal year, I want to emphasize that resilience is at the core of Creative's identity. Our performance over the past year speaks volumes about our ability to adapt and thrive. The ongoing surge in digital technologies continues to drive demand across various product lines. To remain at the forefront of evolving consumer and market preferences, we uphold a light and adaptable business model, while strategically curating our extensive portfolio.

The company has continued on its growth trajectory and found new opportunities, In the financial year ended 31st March 2023, we reported a 47.95% year-on-year growth in total income at Rs. 1,402.25 cr, while EBITDA and PAT stood at Rs. 45.12 cr and Rs. 27.25 cr, a year-on-year growth of 38.31% and 41.56%, respectively. With our extensive network, value-added business model, and niche product portfolio, we were able to effectively navigate our growth journey.

Creative Newtech is the largest retail and e-commerce market entry specialist company representing top global brands across four categories that are, Fast Moving Social Media Gadgets (FMSG) consists of products that appeal to the younger market. Social media usage and penetration drives brands under this category. This is one of the segments with the highest margins and fastest growth. On the other hand, Fast Moving Consumer Technology (FMCT) comprises well-known consumer brands that meet both individual and corporate demand, including Samsung, iBall, and ViewSonic.

Our Enterprise Business (EB) covers products that are traded in huge volumes to enterprises, from brands like AOC, Philips, Invue and other Opportunity businesses. Lastly, Fast Moving Electronic Goods (FMEG) covers household appliances from companies like BPL and Polycab. We are focusing on expanding at a faster rate with better margin products and short working capital cycles. We have significant advantage to reach a large market due to our presence across multiple channels.

Business synergies from Honeywell are also increasing rapidly and we envisage this business to grow. During the year, our agreement with Honeywell expanded to cover a total of 38 countries across the APAC, GCC and African regions. This year we have been laying foundation areas of getting product certifications compliances and most importantly as we spread our wings to Middle East and APAC region wherein resources have been appointed at Dubai and Singapore to cater to these regions. One of the key highlights of this year was the successful launch of several new products, which received overwhelming positive feedback from our customers. These innovative offerings not only cater to the evolving needs of our target audience but also showcase our dedication to staying ahead of the curve. In addition to product innovation, we have also made significant strides in expanding our global presence. Allowing us to reach a wider customer base and increase our brand visibility. Our brand's agility and determination will serve as our compass as we navigate through these changes. Looking ahead, we remain focused on expanding our market presence, enhancing our product offerings, and delivering exceptional value to our shareholders. We are confident that with our strong brand reputation and talented team, we are well-positioned to capitalize on future opportunities and overcome any challenges that may arise.

We hope to attract the interest of several other major international brands that see the advantages of brand licensing.

Business is an idea, not an opportunity; and business with Creative is a great idea

Top (Left to Right) - Mr. Upendra Singh, Mr. Amol Patil, Mr. Abhijit Kanvinde, Mr. Tejas Doshi, Mr. Mitesh Shah Bottom (Left to Right) - Mr. Vijay Advani, Mr. Ketan Patel, Mrs. Purvi Patel

Lastly, our online digital B2B e-commerce platform, Ckart, is helping us expand our business with minimal additional costs, serving both current and potential clients. The platform has helped us expand our partner base and transaction volumes. As more and more players turn to the internet as a means of doing business, e-commerce is thriving. Ckart will continue to be our one-stop solution for customers and improving the working capital cycle and profitability.

We see the demand for niche products to be on the rise, driven by social media and millennial population boosting avenues for content creation and sharing. Simultaneously, the growth in brand licensing presents new avenues for us to capitalize on brand equity and extend our market reach. By leveraging these opportunities, we can diversify our offerings, enter new markets, and benefit from consumer trust and loyalty.

We, at Creative, have a vibrant team of both young and experienced employees, and an agile model which enables us to adapt well in advance to changing trends, making us well positioned to seize new opportunities in India and overseas.

I want to express my gratitude to the entire Creative family and to all of the stakeholders whose support enables us to scale new heights.

(Chairman and Managing Director)