Kusumgar Limited

About Kusumgar Limited

To obtain a complete understanding of our business, prospective investors should read this section in conjunction with “Risk Factors”, “Industry Overview”, “Restated Financial Information” and “Management’s Discussions and Analysis of Financial Condition and Results of Operations” on pages 23, 135, 265 and 333, respectively. This section contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in such forward-looking statements. For details, see “Forward-Looking Statements” on page 21. All references in this section to a fiscal year, Fiscal Year, FY or Fiscal are to the 12-month period ended on March 31 of that calendar year. We have included certain non-GAAP financial measures and other performance indicators relating to our financial performance and business in this section. Such measures and indicators are not standardized terms and hence a direct comparison of these measures and indicators between companies may not be possible. For further details, see “Certain Conventions, Use of Financial Information and Market Data and Currency of Presentation ‒ Non-Generally Accepted Accounting Principles” on page 19. Unless otherwise indicated, industry and market data used in this section have been derived from the industry report titled “Engineered Fabrics Industry Report” dated June 21, 2026 (the “1Lattice Report”) prepared and issued by Lattice Technologies Private Limited (“Lattice”). Our Company commissioned Lattice to prepare the 1Lattice Report specifically for the purpose of the Offer for an agreed fee pursuant to the engagement letter dated February 3, 2025. The data included herein includes excerpts from the 1Lattice Report and may have been re- ordered by us for the purpose of presentation. There are no portions of or data or information in the 1Lattice Report that may be relevant for the proposed Offer that has been omitted or changed in any manner. For more details on the 1Lattice Report, see “Certain Conventions, Use of Financial Information and Market Data and Currency of Presentation – Industry and market data” on page 19. A copy of the 1Lattice Report is available on our Company’s website at https://www.kusumgar.com/investor-relations/home/ from the date of this Red Herring Prospectus until the Bid / Offer Closing Date. Overview We are a manufacturer of woven, coated and laminated synthetic fabrics, referred to as engineered fabrics. We offer engineered fabrics and solutions focusing on polyamides and polyester filaments and polyurethane chemistry that cater to the high-performance requirements of our customers. Our expertise is manufacturing fabrics where critical performance parameters include tensile strength, tear strength, abrasion resistance, comfort, air- permeability, and water proofing, among others. We have leveraged our process knowledge and product development expertise to manufacture over 1,000 unique fabric configurations (referred to as stock keeping units, or “SKUs”) as at March 31, 2026, to build a niche around synthetic functional and performance fabrics, addressing growing demand in the aerospace and defence, industrial and automotive, and outdoor and lifestyle segments. In recent years, we have built on our expertise and industry knowledge to expand into manufacturing finished products for aerospace and military applications, such as parachute systems, stealth solutions, and rapid deployment systems. The engineered fabrics industry is an industry that requires precision and a high level of technical know-how (source: 1Lattice Report). We leverage our technical strengths and partnerships to focus on high-technology applications. Our business model drives profitable growth, and we believe we are poised for continued growth, driven by exports, global supply chain shifts, modernisation and indigenisation of military equipment, expanded product lines and technological innovations. The global engineered fabrics industry has grown from US$41.6 billion in 2019 to US$67.8 billion in 2025 with a CAGR of 8.5% from 2019-2025, and is projected to reach US$112.2 billion in 2030, representing a CAGR of 10.6% from 2025-2030 (source: 1Lattice Report). The industrial and automobile segment accounted for 47.1% of the global engineered fabrics industry value in 2024, while the outdoor and lifestyle segment held 31.7%. The defence and aerospace segment made up 8.0%. By 2029, the share of outdoor and lifestyle is expected to increase to 34.5%, while the share of defence and aerospace is expected to remain about the same at 7.7%, and the share of the industrial and automobile segment is projected to decrease to 43.6% (source: 1Lattice Report). We manufacture products primarily for four market segments: (i) Aerospace and Defence Fabrics; (ii) Aerospace and 183 Defence Solutions; (iii) Industrial and Automotive Fabrics; and (iv) Outdoor and Lifestyle Fabrics, each of which has high entry barriers (source: 1Lattice Report). Aerospace and Defence Fabrics: Fabrics used in aerospace and defence applications must meet exact specifications, which require a high level of technical manufacturing expertise (source: 1Lattice Report). We work closely with end-users to understand their needs and to create fabrics optimized for their strength-to-weight ratio, durability, comfort, and other performance parameters. We develop bespoke products for our customers as per their unique requirements. We are development and manufacturing partners of aerospace and defence fabrics for an Indian government customer, and we export our aerospace and defence fabrics to countries all over the world. We supply fabrics for the following aerospace and defence applications: (i) parachutes and other aerial systems; (ii) tactical clothing and specialty gear; and (iii) stealth systems and rapid deployment systems. Aerospace and Defence Solutions: Using the expertise gained from fabric manufacturing, we have selectively expanded into manufacturing end-user solutions for domestic and export customers in the aerospace and defence markets. We divide these end-user solutions into three business lines: (i) aerial systems, such as parachute systems; (ii) stealth systems, such as camouflage nets; and (iii) rapid deployment systems, such as decoys and shelters. In addition, we also enter into maintenance and repair service agreements with certain clients. Industr