Date: August 13, 2026

Company Overview

Faze Three Limited, incorporated in 1985, is a manufacturer of home and technical textile products accounting for 90% of turnover (NIC Code: 1392). The company has 8 plants and 3 offices nationally, plus 1 international office. Paid-up capital stands at ₹24,31,90,000.

Operations & Market Presence

The company operates on a B2B model with 90.95% of revenue from exports to 23 countries. Major customers include global retail giants, vendors, and wholesalers in USA/EU/UK. Products include bathmats, luxury bath rugs, washable area rugs, outdoor/indoor rugs, bed products, blankets, curtains, patio mats, and cushions.

Workforce Details

Total Workforce Composition (FY 2025-26)

  • Employees: 899 total (828 male, 71 female)
  • Permanent: 899 (100%)
  • Workers: 3,961 total (3,055 male, 906 female)
  • Permanent: 2,060 (1,535 male, 525 female)
  • Other than Permanent: 1,901 (1,520 male, 381 female)

Differently Abled Workforce

  • Employees: 0
  • Workers: 2 (both male, both permanent)

Gender Representation

  • Board of Directors: 12.5% women (1 out of 8)
  • Key Management Personnel: 0% women (0 out of 2)

Turnover Rates (FY 2025-26)

  • Permanent Employees & Workers: 20.65% overall (20.78% male, 20.13% female)

Subsidiary Information

| Company Name | Type | % Shares Held | Participates in Business Responsibility |

| Faze Three US LLC | Wholly Owned Foreign Subsidiary | 100.00% | No |

| Mats and More Private Limited | Wholly Owned Foreign Subsidiary | 100.00% | Yes |

CSR Applicability

CSR is applicable under Section 135 of Companies Act, 2013 with:

  • Turnover (Standalone): ₹6,58,90,93,140.17
  • Net Worth (Standalone): ₹3,59,35,20,029.77

Material Issues Identified

1. Natural Resource Availability (Opportunity)

  • Rationale: Natural capital guides business objectives toward sustainable products
  • Approach: 3.5 MW rooftop solar investment, clean energy (PNG) processing
  • Financial Implication: Positive - increased reliability on renewable energy

2. Geopolitics (Risk & Opportunity)

  • Rationale: Global trade dynamics, US-China tariffs (35-44% vs India's 18%), China Plus One strategy
  • Approach: 95% FOB exports, 95% domestic raw material sourcing, capacity expansion, PLI scheme application filed
  • Financial Implication: Positive

3. Climate Change (Risk)

  • Rationale: Climate variability affects cotton yields and synthetic fiber prices linked to crude oil
  • Approach: Diversified fiber base, domestic sourcing, sustainable/recycled inputs, product portfolio including Supima cotton, recycled fibers, rPET
  • Financial Implication: Negative - yarn scarcity increases production costs; Positive - move toward sustainable materials

4. Water Management (Risk)

  • Rationale: Water required for textile processing
  • Approach: Borewells, groundwater, ETPs, water reuse, rainwater harvesting, tanker supply, zero liquid discharge at multiple sites
  • Financial Implication: Negative - scarcity impacts manufacturing

5. Regulatory Changes (Risk & Opportunity)

  • Rationale: Regulatory shifts affect raw material sourcing, emissions, waste disposal, quality standards
  • Approach: Active monitoring, employee training, structured data mapping
  • Financial Implication: Positive - product innovation opportunities; Negative - transition costs

6. Health and Safety Risk (Risk)

  • Rationale: Manufacturing operations carry workplace injury risks
  • Approach: Training programs, regulatory compliance, continuous protocol improvement
  • Financial Implication: Negative - impact on worker health and well-being

7. Employee/Worker Engagement (Risk and Opportunities)

  • Rationale: Workforce fundamental to operations, industrial actions can disrupt productivity
  • Approach: Training programs, employee recognition (ESOP), knowledge dissemination, health wellness, grievance redressal, POSH policy
  • Financial Implication: Positive - better efficiency; Negative - labor unavailability impacts manufacturing

8. Customer Satisfaction (Opportunity)

  • Rationale: Cornerstone of sustained success and growth driver
  • Approach: Dedicated customer representatives, formal Customer Policy
  • Financial Implication: Positive - drives growth and brand value

9. Employment (Opportunity)

  • Rationale: Strategic opportunity to attract, develop, and retain skilled talent
  • Financial Implication: Positive - skilled employees ensure sustainable growth

Policy Framework

The company has policies covering 8 of 9 NGRBC principles (excluding Principle 7). Policies include:

  • Code of Conduct for Directors and Senior Management
  • Insider Trading Policy
  • Related Party Transactions Policy
  • Vigil Mechanism/Whistle Blower Policy
  • Environment, Health and Safety Policy
  • HR Policy, POSH Policy
  • Corporate Social Responsibility Policy
  • Customer Policy

All policies are approved by the Board and available at https://www.fazethree.com/investors/policies

Certifications & Standards

The company maintains multiple international certifications including:

  • Fair Trade USA, GOTS, Oeko-Tex Standard 100
  • STeP (Sustainable Textile Production)
  • MIG label (Made in Green)
  • ISO9001:2015, SA8000:2014
  • SMETA; SCAN; Global Recycled Standard (GRS)
  • amfori BSCI; Walmart SCS; Intertek WCA; FCCA (Walmart)

Training & Awareness

FY 2025-26 Training Coverage

  • Board of Directors: 87.50% coverage (4 programs on Corporate Governance/Companies Act/SEBI Regulations)
  • Key Managerial Personnel: 100% coverage
  • Employees: 100% coverage (249 programs)
  • Workers: 100% coverage (265 programs)

Topics covered technical, safety, environmental, social, and ethical themes including fire training, PPE use, grievance handling, health & safety, chemical handling, disaster management, SA8000 awareness, and POSH.

Compliance Record

  • No fines/penalties paid in proceedings with regulators/law enforcement/judicial institutions
  • No disciplinary actions against Directors/KMPs/employees/workers for bribery/corruption
  • No complaints regarding conflict of interest
  • No complaints under POSH Act, 2013

Financial Metrics

  • Accounts payable days: 24 days (FY 2025-26) vs 23 days (FY 2024-25)
  • Purchases from related parties: 4.74% of total purchases
  • Sales to related parties: 6.66% of total sales
  • Gross wages to females: 16.85% of total wages

Environmental Performance

Energy Consumption (FY 2025-26)

  • Renewable sources: 83,68,066.80 MJ (mainly electricity)
  • Non-renewable sources: 3,58,59,05,751.00 MJ (electricity + fuels)
  • Energy intensity: 0.401 MJ per rupee of turnover

Water Management (FY 2025-26)

  • Total withdrawal: 5,71,774 kiloliters
  • Surface water: 2,99,018 kL
  • Groundwater: 2,65,980 kL
  • Third-party water: 6,776 kL
  • Water intensity: 0.00006379 kL per rupee of turnover
  • Water discharged: 10,87,299 kL (all with ETP treatment)

Emissions (FY 2025-26)

  • NOx: 179.54 mg/Nm3
  • SOx: 125.80 mg/Nm3
  • Particulate matter: 276.55 mg/Nm3
  • Scope 1 GHG: Data not provided
  • Scope 2 GHG: 10,209.00 MT CO2 equivalent

Waste Management (FY 2025-26)

  • Total waste generated: 72.334 metric tonnes
  • E-waste: 0.444 MT
  • Construction waste: 57.625 MT
  • Hazardous waste: 14.265 MT
  • Waste recovered: 10.22 MT (recycled)
  • Waste disposed: 21.84 MT (landfilling)

Not Specified Sections

  • KMP / Board / Auditor Changes: No changes reported
  • Dividend Declaration: Not addressed in this report
  • Board Meeting Outcomes: Not specifically covered
  • Financial Results: Not included in this BRSR report
  • Auditor's Report: Not included
  • Disinvestment / Strategic Actions: Not reported
  • Media Release / Investor Communication: Not included