The company operates multiple brands in the Home & Living and Gourmet Food & Beverages segments, each positioned with distinct product features. It claims to develop innovations such as fabric variants like Ultra Satin under its Stoa Paris brand and small-batch recipes under its Small Batch label. These differentiated offerings contribute to product-level recall within their categories.
Under its Quirkloom brand, the company claims to track niche cultural themes, such as reading, travel, and music, to produce designs aligned with youth interests. This approach supports quicker design cycles and frequent product refreshes compared to standard textile businesses.
The company manages in-house processes such as design, cutting, and stitching for its Home & Living products. For gourmet foods, it develops recipes internally and partners with cloud kitchens and specialist producers for small-batch manufacturing. This model allows the company to scale output up or down based on seasonal or category-specific demand.
Encompass Design India claims to operate centralised warehousing and logistics systems that support both of its major business segments. According to the prospectus, this structure enables integrated inventory management, reduced lead times, and faster fulfilment across its brands.
The company claims to use digital tools, including warehouse management systems (WMS), D2C analytics platforms like Metorik, and SKU-level tracking software such as Unicommerce. It also states that AI-based tools are applied in product development, forecasting, and marketing, enabling real-time adjustments in pricing, campaigns, and production planning.
The company follows a FIFO-based inventory approach integrated with real-time order systems. It claims that this structure supports inventory accuracy, helps avoid product ageing (especially in food categories), and allows data-driven decisions for stocking and demand planning.
The company’s top 10 customers contributed Rs 20.13 crore (71.50%), Rs 36.36 crore (66.53%), Rs 31.20 crore (77.92%), and Rs 17.71 crore (81.88%) for the periods ended September 30, 2025, FY25, FY24, and FY23, respectively. Any failure to retain these key customers, expand the customer base, or a loss of business from these clients can adversely affect the company’s business and financial standing.
The top five states contributed Rs 22.78 crore (80.90%), Rs 45.63 crore (83.49%), Rs 31.81 crore (79.44%), and Rs 17.64 crore (81.60%) for the periods ended September 30, 2025, FY25, FY24, and FY23, respectively. Any adverse economic or regulatory developments in these regions may materially impact the company’s revenue.
The company’s top 10 suppliers accounted for Rs 10.98 crore (61.12%), Rs 15.56 crore (50.15%), Rs 4.73 crore (47.54%), and Rs 5.27 crore (31.81%) for the periods ended September 30, 2025, FY25, FY24, and FY23, respectively. Any disruption in supplies or unfavourable changes in pricing may affect production and profitability.
As of September 30, 2025, the company had total trade receivables amounting to Rs 9.89 crore. Any failure to collect these receivables on time or at all can negatively impact the business, its cash flows, and its overall financial condition.
A significant portion of sales is generated through third-party e-commerce platforms such as Amazon and Myntra. The company does not control the operational frameworks of these platforms. Any adverse changes in commissions, search algorithms, or seller policies may reduce product visibility and sales.
The company recorded negative cash flows from investing activities amounting to Rs 6.70 crore, Rs 9.91 crore, Rs 6.56 crore, and Rs 0.72 crore in the period ended September 30, 2025, FY25, FY24, and FY23, respectively. Additionally, it recorded negative cash flows from financing activities amounting to Rs 2.84 crore in FY23. If cash outflows continue to exceed inflows, the company may face liquidity challenges in the future.
The company operates its sole manufacturing facility in Bhiwandi, Thane. Any disruption, like labour disruptions, infrastructural issues, political developments, or environmental events in this region, may affect production and fulfilment.
The company, its subsidiaries, promoters, and directors are involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
Raw material costs represented 48.54%, 46.60%, and 58.55% of revenue for the periods ended FY25, FY24, and FY23, respectively. Any volatility in fabric, dyes, ingredients, or packaging material prices may impact margins.
As of November 24, 2025, the company had outstanding financial indebtedness of Rs 15.71 crore. Any failure to service or repay these loans can harm the company’s operations and financial position.