I'm posting the kind and comprehensive reply I got from the manager of the Royal Northumberland Fusiliers Museum
"Thank you for sending the image of the embroidery - the colours are certainly vibrant. I am afraid I don't think I can help much in regard to why it was produced. It does resemble embroideries that were produced in India, for example in 1911 for the Delhi Durbar which were distributed to members of the 1st Battalion who took part in the ceremony. I have not been able to do a lot of research but from what I can see the 2nd Battalion sailed for India in 1880. It doesn't look like they left India until 1895 when they sailed from Bombay to Singapore, on to Gibraltar and then home. No mention is made in the Digest of Service or the regimental history of any 'special' occasions taking place in 1882 to warrant the production of an embroidery/banner.
The 2nd Battalion were raised 5 Aug 1799, was disbanded in 1802 (re-raised in 1804 and disbanded again in 1816), and was re-raised on 26 October 1857 at Newcastle upon Tyne. Therefore, in 1882 the latest version of the 2nd Battalion would have been 25 years old - so perhaps a Silver Jubilee commemoration? However I cannot find any mention of such a celebration in any resources available here in the archives. I even looked ahead to October 1907 (St George's Gazette, Regimental newsletter) to see if anything was mentioned about the 2nd Battalion's 50th Anniversary which may have made a reference to anything produced for the previous 25th Anniversary - to no avail.
I also searched our collections catalogue for references to the names you kindly supplied below but unfortunately there were none which were relevant.
Sorry, I don't think I will be able to locate any further information within our archive. "
The family names from the 19th century I had mentioned are Annison, Donnison, Ratcliffe and Cowley. The search goes on!!
Thanks for the help.