inventory levels or levels of production, any sudden change in their strategic direction, or whether future inventory
levels will be consistent with historical levels. Any increases or decreases in the levels of inventory and activity
by our customers, in turn, are likely to have a positive or negative effect on our revenues and our results of
operations.

Expansion in Product Portfolio and Markets

With continuous focus on quality and expansion of our technical capabilities, we have transitioned into a
vertically-integrated manufacturer and provider of products and services in automotive and industrial engineering
segments.

To provide comprehensive solutions across our business segments, we have undertaken forward and backward
integration enhancing our in-house manufacturing capabilities. These capabilities have evolved over a period to
become standalone business segments catering to clients, in addition to meeting our internal requirements.

Our core competence in machining and assembly of industrial and engineering products has helped us to establish
ourselves as a significant player in the Automotive - Powertrain and Others segment. We have leveraged our long
presence in developing aluminium products for precision components to establish and grow the Automotive —
Aluminium Products segment. Within the Industrial and Engineering segment, we have utilized our in-house
engineering and design capabilities and developed a diverse product portfolio under the high end precision
products sub segment with a variety of products including material handling equipment such as hoists, crane kits,
industrial gears/ gear boxes, marine engines and accessories, tool room, mould base products and SPMs which
includes metal cutting and non-metal applications such as washing and leak testing solutions.

According to the CRISIL Report, the market sizing of storage solutions industry, comprising pallets, racking and
shelving, is estimated at % 22 billion as of Fiscal 2020. The industry grew at a CAGR of 15 to 16% over Fiscal
2016 to Fiscal 2020 and is expected to 2 36 billion in Fiscal 2024 from 2 21 billion in Fiscal 2021. We intend to
leverage our strong product development, designing, engineering and manufacturing capabilities in storage
solutions and to create opportunities in increasing our market share in the storage solutions business. We continue
to provide storage solutions to a diverse customer base, including customers in the FMCG, E-commerce, food and
beverages, third party logistics, pharmaceutical and electronics sectors We have commissioned a new unit in Pune
in 2019 for manufacturing storage solutions which enables us to service the storage solutions market, primarily
catering to customers in the western and central markets in India.

We intend to deepen our customer relationships and grow our share of the customer wallet, by offering one stop
solutions including design, engineering, manufacturing and assembly, by anticipating the emerging trends and
offering innovative and superior products to our OEM and industrial and engineering segment customers. Going
forward, we intend to continue to explore other suitable opportunities to serve our customers with innovative and
proactive products and design solutions, swift response and delivery, to partner and support them in their planned
growth and expansion as well.

Through our overseas subsidiary, Craftsman Europe B.V. (formerly known as Craftsman Marine B.V.), we are
already engaged in marketing, sales and servicing of marine engines and engineering products in Europe under
the name “Craftsman Marine” with the aim to expand our footprint in Europe and grow our export sales by gaining
access to new customers, business segments and geographies. We have a joint venture in India, Carl Stahl
Craftsman Enterprises Private Limited, engaged in marketing, installation, commissioning and rendering after-
sales services of material handling equipment, such as chain hoists, rope hoists and cranes kits, manufactured by
us under the name “Carl Stahl Craftsman”. We also have a strategic investment in MC Craftsman Machinery
Private Limited, which is majority held by the Mitsubishi group, strengthening our two decades of business
relationship with the Mitsubishi group and allowing us recognition and access to customers based in or
headquartered out of Japan and the East Asia region.

The success of these businesses and products depends on our management’s ability to identify high growth
potential opportunities and utilise our resources to develop these opportunities, which could have a significant
impact on our results of operations.

Availability of Funds for Capital Expenditure and Working Capital Requirements
Given the sector in which we operate, we have substantial capital expenditure and working capital requirements.

We have significantly invested in in our machining and manufacturing capacities to meet the growing demand
from our customers and to expand our product portfolio. For the nine months ended December 31, 2020 and

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