V-Guard Industries Ltd

Dear Shareholders,

In a year of emerging opportunities and shifting market trends, V-Guard remained driven by the future, setting new benchmarks of performance, advancing our strategic priorities, and strengthening our commitment to sustainable and inclusive growth. Each milestone achieved reaffirms our belief in long-term value creation and purposeful progress.

Financial Year 2024–25 stands as a testament to our steadfast commitment to long-term strategic goals, underpinned by disciplined execution and an agile response to a dynamic and evolving market landscape. The unwavering trust and continued support of our stakeholders have been pivotal in enabling our sustained progress. As we reflect on a year marked by purposeful achievements, we remain focused on identifying new opportunities that will further strengthen our growth trajectory and create enduring value for all stakeholders.

The global economy in FY 2024–25 exhibited notable resilience, with growth estimated at 3.3%. While emerging markets experienced moderated expansion, they contended with rising trade barriers, geopolitical uncertainties, and policy-related challenges. Nevertheless, the broader global outlook remained stable, buoyed by easing inflationary pressures and a shift towards more accommodative monetary policies.

India's economy demonstrated strong momentum during the year, with GDP projected to grow by 6.5% during the year, supported by robust consumption, increased public expenditure, and a renewed pickup in private investment. This dynamic macroeconomic backdrop created a favourable environment for V-Guard's operations, enabling us to capitalise on rising consumer demand and benefit from supportive government policies.

The Indian Consumer durables market maintained its upward trajectory, reaching an estimated value of USD 86 billion in 2024 and projected to grow at a compound annual growth rate (CAGR) of 12.83% through 2030. This growth was fueled by rising disposable income, rapid urbanisation, and increasing digital penetration. Various Government initiatives are contributing towards strengthening domestic manufacturing and positioning India as a key hub in the global electronics value chain.

V-Guard operates across a diverse range of product categories including stabilizers, inverters, wires, pumps, fans, water heaters, and kitchen appliances. The industry is witnessing a shift in consumer preference towards premium, feature-rich, energy-efficient and technologically advanced solutions. At the same time, the sector faced headwinds like volatile raw material prices, particularly copper, and seasonal fluctuations in demand for a few products. Navigating these challenges requires resilient and robust business models to sustain competitiveness and drive growth.

In FY 2024-25, V-Guard Industries Ltd. delivered strong financial performance, achieving consolidated revenue of 5,578 crores, a 14.8% increase from the previous year. Our profit after tax rose by 21.8% to 314 crores, reflecting strong operational efficiency and market demand.

Our Electronics segment registered a significant year-on-year growth of 29.6%, propelled by strong demand for stabilizers, UPS systems, and inverters. The solar rooftop category saw heightened traction, supported by favourable government incentives. The Electricals segment grew by 10.0%, with consistent performance across wires, pumps, switchgears, and modular switches, reflecting stable market demand. Our Consumer Durables business recorded a 13.8% increase, driven by robust sales of fans, water heaters, kitchen appliances, and air coolers, especially during the peak summer months.

To support our future growth ambitions, we are expanding our battery manufacturing facility and are setting up a new TPW fan factory in Hyderabad. These strategic initiatives reinforce our commitment to strengthening our manufacturing capabilities and deepening our presence in the fast-evolving energy storage and air movement segments. In parallel, we launched a range of innovative products, including mid-market BLDC fans and premium water heaters, aimed at addressing untapped pricing segments and enhancing our competitiveness across key product categories.

In FY25, we accelerated the execution of our ESG strategy, moving from intent to impact. Anchored in the seven ESG pillars introduced earlier, our efforts focused on critical areas such as decarbonization, water stewardship, and circularity. We enhanced renewable energy integration across key facilities, expanded water conservation through rainwater harvesting and smart resource management, and reinforced our commitment to responsible waste practices. These initiatives are helping us build a more sustainable, low-carbon operating model aligned with our long-term vision.

Sustainability is now deeply embedded in our culture and operations. We have integrated environmental and social considerations into product design, strengthened supplier engagement through structured ESG assessments, and formalized ethical practices across the ecosystem. Internally, we have continued to foster a culture of inclusivity, safety, and continuous learning. Guided by strong governance mechanisms and cross-functional leadership oversight, we remain committed to building a responsible enterprise that creates lasting value for all stakeholders.

At V-Guard, our Corporate Social Responsibility (CSR) efforts are rooted in our commitment to creating meaningful impact across communities. We mainly focus on three impact pillars: Edu Care & Skill Development, Health & Hygiene Programs and Build India & Relief. In 2024-25, we expanded our outreach to 18 states, providing educational support to underprivileged children, promoting health and nutrition programs in rural areas, and promoting skill development initiatives to enhance employability.

These efforts, anchored in our ethos of social responsibility, strengthen our brand and build enduring relationships with the communities we serve. Through focused investments in education and skill development, we aim to empower individuals and contribute meaningfully to the socio-economic development of the nation.

Looking ahead, we remain optimistic about the opportunities emerging from India's expanding economy and the thriving consumer electronics and appliances sector. V-Guard is well-positioned to capitalise on these trends through strategic initiatives focused on innovation, manufacturing excellence, and market expansion.

We will continue to invest in research and development to introduce cutting-edge, energy-efficient products that meet evolving consumer needs, including smart appliance solutions. Our expansion into non-South markets will remain a strategic priority, helping us balance our geographic footprint and enhance our pan-India presence. At the same time, we will leverage digital transformation to improve operational efficiency and customer engagement, ensuring we remain agile in a competitive market.

I would like to conclude by expressing my sincere gratitude to all our stakeholders—our consumers, partners, suppliers, shareholders, and investors—for their continued trust and support. I also extend my heartfelt appreciation to my colleagues on the Board of Directors, whose insight and guidance have been invaluable as we achieve new milestones. Together, we remain committed to exploring new frontiers of growth and delivering lasting value.