About Safe Enterprises Retail Fixtures Limited
BUSINESS OVERVIEW
Safe Enterprises is engaged in designing, manufacturing, supplying, and installing customized shop fittings and retail fixtures for diverse segments such as fashion & apparel, electronics, and departmental stores. The company offers end-to-end merchandising solutions—from conceptual design and prototyping to manufacturing and installation—addressing challenges in product display, placement, storage, and safety.
Key offerings include modular and electrified shop fittings integrated with digital technologies such as LED lighting, digital screens, and interactive display stands, enabling retailers to deliver immersive in-store experiences.
Operations are supported through corporate clients, experience centers, franchisees, and distributors, including:
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Experience Centre in Cochin, Kerala – showcasing technology-enabled retail fixture solutions for store formats like single-brand outlets, multi-brand outlets, and shop-in-shops.
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Franchisees in Navi Mumbai and Hyderabad
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Distributors in Dubai and Kansas City
The Experience Centre serves architects, interior designers, and retailers, providing hands-on demonstrations of fixture specifications not feasible at factory sites. These centers also cater to small-scale retailers through personalized design support.
Product offerings are enhanced with IoT-based applications like Lift and Learn, where lifting a product triggers detailed information display on LED screens—powered by electrified fittings.
The company have developed in-house resources with competencies to deliver their product as per customer specifications which include their qualified project & designing team of 15 employees as on March 31, 2025. The Banker to the Company is Axis Bank Limited.
INDUSTRY ANALYSIS
Indian Manufacturing Industry Overview
India's manufacturing sector has emerged as a critical pillar of economic growth, driven by segments such as automotive, engineering, chemicals, pharmaceuticals, and consumer durables. Prior to the pandemic, it contributed around 16–17% to the national GDP, and is poised to become one of the fastest-growing sectors globally.
With the adoption of Industry 4.0, Indian manufacturing is evolving toward automation, digitisation, and process-driven operations, leading to improved efficiency and productivity. As of March, the HSBC Manufacturing PMI touched a 16-year high of 59.1, reflecting robust growth in output, new orders, and employment. The government aims to raise manufacturing’s share of GDP to 25% by 2025, supported by initiatives like the National Manufacturing Policy, PLI schemes, and the recently announced National Manufacturing Mission (Union Budget 2025–26).
India is also positioning itself as a global manufacturing hub, particularly in wind energy components and electronics. FDI inflows into the sector have surged to ₹14.34 lakh crore (US$165.1 billion), a 69% increase over the past decade. The digital economy is expected to grow twice as fast as the overall economy, contributing 20% of national income by 2029–30.
By FY26, India's manufacturing output is projected to reach ₹87.57 lakh crore (US$1 trillion). The country’s integration into global supply chains, supported by a strong digital and physical infrastructure, is expected to accelerate economic growth and employment generation.
Indian Retail Industry Overview
India's retail industry is one of the most dynamic and rapidly growing sectors, contributing over 10% to the GDP and employing around 8% of the workforce. With a burgeoning middle class and increasing urbanisation, India is a key target for global retailers, ranking as the fifth-largest retail destination globally.
The sector is projected to reach US$2 trillion in value by 2032, driven by rising disposable income, lifestyle changes, and deeper market penetration across Tier II and III cities. E-commerce has become a major growth driver, with online shoppers expected to grow from 150 million in 2020 to nearly 500 million by 2030. E-commerce GMV is expected to reach US$350 billion by 2030.
The pandemic accelerated digital adoption, pushing retailers to develop omnichannel strategies and experiment with new business models. Government reforms to ease FDI norms and enhance the business climate are further encouraging global brands to set up operations in India.
Indian Textiles and Apparel Industry Overview
India is the second-largest textile and garment producer globally and a significant exporter, accounting for 4.6% of global trade. The sector contributes 2.3% to GDP, 13% to industrial production, and 12% to total exports.
The Indian textile market is projected to reach US$350 billion by 2030, growing at a CAGR of 10%. Export targets are ambitious, with the government aiming for US$100 billion in textile exports by FY30, up from US$34.43 billion in FY24.
The PLI scheme for textiles, with an outlay of ₹10,683 crore (US$1.44 billion), focuses on incentivising MMF apparel, MMF fabrics, and technical textiles, expected to boost competitiveness and scale.
In the organised retail apparel sector, 8–10% revenue growth is projected for the current fiscal year, backed by strong seasonal demand, easing inflation, and a shift toward affordable fashion trends. The government’s roadmap includes scaling up production to US$250 billion and promoting sustainable and innovative textile technologies.
BUSINESS STRENGTHS
1. Robust In-House Manufacturing Capabilities
Operates from three fully equipped manufacturing units in Maharashtra with in-house capabilities in metal fabrication, woodwork, carpentry, painting, and powder coating. Capable of producing multi-material products (wood and metal) while maintaining strict quality controls and low rejection rates.
2. Wide Geographic Reach and Strong Customer Relationships
Established strong ties with major customers across 25+ Indian states and international markets including USA, UAE, and Oman. Top 10 customers contributed over 95% of revenue in recent fiscal years. The largest customer alone accounted for 76%–85% of operational revenue, spread across various sub-brands.
3. Consistent Focus on Quality
End-to-end quality control from raw material sourcing to final installation, supported by a dedicated QA team. Holds ISO 9001:2015 and ISO 10001:2018 certifications for Quality Management and Customer Satisfaction, ensuring product durability and performance.
4. Experienced Leadership with Strong Design Capabilities
Led by industry veterans with 48, 14, and 13 years of experience, the senior management drives strategic growth across manufacturing, finance, and business development. Backed by a skilled design and development team capable of introducing innovative products aligned with industry trends.
BUSINESS STRATEGIES
1. Expansion Through New Integrated Manufacturing Facility
A new manufacturing unit is being established at Village Nahren, Ambernath (Thane, Maharashtra), covering 16,290 sq. mtr., with a total project cost of ₹8,385.65 Lakhs. Approximately ₹6,588.59 Lakhs will be funded through IPO proceeds. This facility aims to enhance manufacturing capacity, operational efficiency, and cost-effectiveness.
2. Strengthening Brand Image Through Quality Standards
Focus remains on delivering products that meet customer specifications while maintaining cost efficiency without compromising on quality. Certified with ISO 9001:2015 and ISO 10001:2018, continuous process improvement and quality reviews are key to enhancing customer satisfaction and brand value.
3. Geographic Expansion and Market Penetration
Currently active in 25+ states and UTs, with major revenues from Maharashtra, Karnataka, and Telangana. Strategic expansion planned in states like Punjab, Rajasthan, Uttar Pradesh, Gujarat, Uttarakhand, and Delhi to capture new markets and expand customer base through cost-effective, quality-driven, and timely solutions.
4. Strong Stakeholder Relationships
Maintains long-standing and mutually beneficial relationships with suppliers, customers, and employees. Emphasis on efficient deliveries, customer retention, and fostering a productive work environment to boost internal performance and support sustained growth.
BUSINESS RISK FACTORS & CONCERNS
1. High Customer Concentration:
A significant portion of revenue is dependent on a single large customer, contributing over 75% to 85% of total operational revenue in recent fiscal years. This reliance poses a substantial revenue concentration risk.
2. Dependency on Project & Design Team:
The business model is highly dependent on a qualified in-house design and project team (15 employees as of March 31, 2025) to deliver fully customized retail fixture solutions. Any lapse in design accuracy or execution may lead to project delays and adverse financial impact.
3. Estimation & Execution Risk:
Accurate engineering and cost estimation studies are critical to project success. Deviations during execution compared to estimates could result in cost overruns, affecting cash flows and profitability.
4. Limited Export Exposure:
Despite operations across India and limited international exposure (UAE, USA, Oman), exports contributed only about 1% of total revenue in recent fiscal years, indicating limited global diversification.
5. Concentration of Revenue in Top Clients:
The top 10 customers accounted for over 94% to 96% of revenue from operations in FY23–FY25, increasing vulnerability to changes in client demand or business terms.
6. Design Dependency and IP Risk:
Product innovation relies on 15 registered designs and continued success of the Design & Development team. Any inability to maintain this capability may affect product uniqueness and competitive edge.
7. Operational Risk in Execution:
Inaccuracy in engineering studies or poor coordination between design and execution teams could materially affect order fulfillment, leading to client dissatisfaction and reputational risk.
Safe Enterprises faces key business risks related to customer concentration, accuracy of project estimations, and dependence on specialized teams. These factors could impact operational stability, cash flow, and future scalability, especially if client expectations or project execution vary.
