According to CRISIL Report, the market size of the organized storage solutions industry, comprising pallets,
racking and shelving, is estimated at % 21 billion as of Fiscal 2021 and the industry is expected to grow at 19-21%
CAGR over the next three years to reach 2 38 billion in Fiscal 2024. This would be driven by warehouse
consolidation due to GST implementation and the growth across end-user industries such as e-commerce,
organized retailing, consumer durables, auto components and pharmaceuticals as well as cold storage industries.

‘We commenced the storage solutions business in 2012 and have rolled out storage solutions for our customers in
the FMCG, E-commerce, food and beverages, third party logistics, pharmaceutical and electronics sectors. Our
storage solutions business has grown at a CAGR of 204.22% from Fiscal 2018 to Fiscal 2020 and has contributed
5.61%, 4.91%, 1.45% and 0.52% of our revenues from operations in the nine months ended December 31, 2020
and Fiscals 2020, 2019 and 2018, respectively. We expect the storage solutions business to continue its growth
trajectory and become an independent business segment over the next few years.

In order to backward integrate and enhance capabilities in this space, we have recently set up a new unit in Pune
in 2019, with high end fully automated equipment from Italian and Swiss manufacturers. This facility enables us
to service the storage solutions market, catering to customers across India. Our facility in Pune is strategically
located on a major national highway which connects Mumbai Metropolitan Region and will benefit from
initiatives undertaken by the Government of India such as the road and highways project ‘Bharatmala Pariyojna’.
We will benefit from being in close proximity from emerging distribution and warehousing hubs such as
Bhiwandi, which is a major warehousing location and our proximity to steel reprocessing centres which reduces
our inward freight and other transportation costs This will allow us to provide our storage solutions in a timely
and cost effective manner.

Using our design and engineering capabilities, we have developed a vertical storage system with tray extractor
arrangements operated by a console, marketed under the brand name “V-Store”. With increasing space constraints
in urban areas, V-Store, which improves the storage ratio and has substantial applications across various
industries, holds potential in the near future. We intend to focus on building brand visibility for V-Store through
various marketing and brand building initiatives through the print and digital media. We are also proposing to
enter into the automated storage systems, which is currently provided by only a few players in India. Automated
storage systems require high precision racking, which we are capable of providing from our facility in Pune. We
plan to leverage our special purpose mission building expertise and our automation expertise to expand our
presence in the automated storage system solutions.

Continue to reduce operating costs and improve operational efficiencies.

Offering quality products at attractive prices is a key aspect of maintaining and expanding our relationships with
our customers. We intend to continue enhancing our operational efficiencies, to increase economies of scale, better
absorb our fixed costs, reduce our other operating costs and strengthen our competitive position. We would focus
on improving capacity utilization at our production facilities, through increase in our overall production volumes.

We have, in the past and intend to in the future, continue using a variety of other manufacturing strategies and
cost reduction strategies to continue to improve our operational efficiencies. For example, to meet the growing
demand from our customers, we have invested in our manufacturing facilities, infrastructure, machines, equipment
and technology to allow us to offer a diverse product suite, reduce operating costs and drive productivity and scale
of our business without incurring significant incremental costs in the future. Our capital expenditure was = 507.29
million, = 1,206.01 million, = 4,559.86 million and 2 1,811.24 million for the nine months ended December 31,
2020 and Fiscals 2020, 2019 and 2018, respectively.

We intend to leverage our large size and scale to produce greater volumes of products from each of our plants and
spread our fixed costs, which relate primarily to the machinery and equipment required to produce components.
and to fixed labour costs, more widely to reduce our production costs on a per unit basis, allowing us to reduce
our unit sales price and increase our competitiveness.

We avail of a majority of our fund-based and non-fund based facilities in the ordinary course of business from
various banks and financial institutions. As part of our strategy, we intend to prepay/ repay, in full or part, of
certain our outstanding indebtedness. This will help reduce our outstanding indebtedness and debt servicing costs,
assist us in maintaining a favourable debt to equity ratio and enable utilisation of our internal accruals for further
investment in business growth and expansion. For further details, see “Objects of the Offer - Details of the Objects
of the Fresh Issue - Repayment/pre-payment, in full or part, of certain borrowings availed of by our Company”
on page 81.

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