Singer India Limited , a renowned name in the sewing machine and home appliances industry, reported a revenue decline in Q1, facing challenges in both its sewing machine and appliances segments. Despite the setback, the company secured a significant government order and remains optimistic about future growth prospects.

Sewing Machine Segment Performance

The company's sewing machine revenue dropped by 4% in Q1, primarily due to weakness in the cast iron segment. However, Singer India demonstrated strong performance in specific areas:

• The zigzag segment experienced robust growth of 38%.
• The company launched new products, including Husqvarna Viking sewing-cum-embroidery machines.
• Colored machine variants were introduced, garnering over 10% of sales.

Appliances Segment Challenges

The appliances segment faced more significant headwinds:

• Revenue in the appliances category fell by 14%, mainly due to weakness in cooling products.
• A shorter summer season and intermittent rains negatively impacted cooling product sales.

Major Government Order

In a significant development, Singer India secured a large order under the Pradhan Mantri Vishwakarma Rozgar Yojana (PMY):

• The order is for 2.8 lakh machines, valued at over 200 crore rupees.
• This represents 70% of the total requirement under the scheme.
• The company has already commenced deliveries as per the buyer's schedule.

Future Outlook and Strategies

Despite the challenges, Singer India's management remains optimistic about future growth:

• The company is targeting strong double-digit growth over the next two years.
• Singer aims to increase the revenue contribution from appliances to 30%.
• Plans are underway to launch 68 new fan SKUs to strengthen its position in the appliance market.
• The company is expanding its distribution network to 1800 direct billing points.

Market Position and Competition

Singer India operates in a competitive market:

• The sewing machine market in India is estimated at 3,000 crore rupees.
• The company faces competition from both organized and unorganized players.
• In the industrial sewing machine segment, Singer is working to increase its market share against imported products.

Management Commentary

Mr. Rakesh Khanna, Vice-Chairman and Managing Director, commented on the results: "We believe this quarter's revenue drop is transitory and not indicative of our underlying growth momentum. Our underlying growth drivers remain strong, and we are confident of delivering on our plans for the rest of the year."

Singer India continues to focus on innovation and market expansion, balancing its traditional sewing machine business with growth opportunities in the home appliances sector. The company's ability to navigate market challenges while securing significant orders positions it for potential growth in the coming quarters.

Singer India Limited has announced a significant business development for its partnership operations. The company's business partner, Central Government Employees Consumer Cooperative Society Limited, commonly known as "Kendriya Bhandar," has secured a major contract to supply tool kits under the PM Vishwakarma Scheme.

Contract Details

• Total Units: 2,81,128 tool kits
• Contract Value: ₹202.70 crore (inclusive of applicable GST)
• Awarded By: DC MSME (PMV Division) through NSIC
• Completion Deadline: June 2027

Singer's Role and Order Specifics

Singer India has received two separate purchase orders from two aggregators of Kendriya Bhandar:

• Each order is for 1,40,564 Singer Sewing Machines
• Total machines to be supplied: 2,81,128
• Supply deadline: September 30, 2026

The company will supply complete Singer Sewing Machine sets, including stand, table, and motor. Some sets will also include a Singer Iron.

Key Points to Note

1. Contract Conditions: The orders are subject to:

   • Quantity variation of up to ±25%
   • Government clearance
   • Receipt of monthly Purchase Order allocation under the PM Vishwakarma Scheme

2. Legal Challenge: The contract has been challenged in the Delhi High Court, and the matter is currently sub judice. However, there is no specific order to stop the supplies.

3. Tool Kit Components: While Singer India will supply the sewing machines, Kendriya Bhandar will arrange various other items included in the tool kits.

4. Machine Models: The tool kits will include variants of Singer Brand Sewing Machines, specifically the Tailor and Universal models.

This contract represents a substantial opportunity for Singer India, potentially boosting its revenue and market presence in the coming years. However, investors should note the legal challenge and the conditional nature of the orders, which may impact the final execution of the contract.

Singer India Limited continues to play a crucial role in supporting government initiatives aimed at skill development and empowerment, particularly in the tailoring trade under the PM Vishwakarma Scheme.