Message from the Non-Executive, Non-Independent Chairperson
Accelerating Growth Potential
Dear Shareholders,
I am delighted to present our annual report for FY 2023-24, a year in which we reached
new milestones and positioned ourselves for accelerated growth in the future.
Performance excellence
Despite a challenging macroeconomic environment characterised by a demand slowdown and
suboptimal price realisation, we achieved significant volume growth.
Our export revenue increased, from 30% to 34%, even amidst fluctuating demand in key
markets. Concurrently, our domestic distribution sales grew, contributing to an overall
increase in revenue.
In our manufacturing sector, enhanced capacity utilisation resulted in the highest-ever
production of acrylamide liquid, with exports comprising nearly 50% of total sales.
The combined performance of both the business segments has bolstered our overall
profitability and led to substantial gains in our market share across most product lines.
Focus on exports
The reduction in freight rates and logistics costs has enabled us to strategically
intensify our focus on exports.
I am pleased to report that we have expanded our market presence into high-potential
regions, including Europe, South America, and the Middle East. Despite overall sluggish
demand in Europe, we achieved notable traction as European companies diversified their
procurement sources. Additionally, our EU REACH registrations and pre-registrations for
Turkey REACH have facilitated the acquisition of new customers and supported sustained
profit growth.
Looking ahead, we are also planning to focus on exports to Asian markets, particularly
Southeast Asia, Japan, and the Far East, due to the re-emergence of challenging freight
conditions in European and American markets.
I am confident that this strategic move will enhance our position and drive future
growth, delivering increased value for the Company and its stakeholders.
Key growth enablers
Our solid foundation, expanding market presence, focussed R&D initiatives, and
strong partnerships with key stakeholders, coupled with our exceptional talent, were
pivotal to our outstanding performance this year. We remain committed to reinforcing these
core drivers and have strategically embarked on a transformative path, characterised by
significant organisational changes.
We are dedicated to cultivating a robust talent pipeline that aligns with our vision
and supports our long-term objectives. To this end, we have intensified our research and
development efforts to enhance our product portfolio in response to the evolving needs of
our growing customer base. We have also recruited additional R&D advisors, including a
Japanese expert based in India, to further strengthen our R&D capabilities.
Future opportunities
As a forward-thinking organisation poised to capitalise on emerging opportunities, we
have undertaken strategic initiatives to drive growth across our business divisions.
Key to our future goals is the development of polyacrylamide solids technology, along
with the establishment of a new R&D facility in Navi Mumbai. Additionally, we are
working on a specialty chemicals project in collaboration with a Japanese partner at our
Jhagadia site, for which we have already sought environmental clearance.
We are also exploring toll-manufacturing opportunities with international companies to
further propel our business growth. Strengthening our relationships with our key partners,
who are essential to our expansion plans, remains a priority. Furthermore, we recognise
the importance of infrastructural development in preparing for future growth, and are
planning to acquire land to enhance our future operational space.
Way forward
Looking ahead, our strategic focus will be on further expanding our market reach with
the continued support of our growing sales team. We are also planning to introduce new
products into our distribution portfolio, which is expected to benefit us in the coming
year. The addition of new markets, both in manufacturing and distribution, will further
drive our growth.
After a prolonged period of subdued demand, the domestic market is showing signs of
recovery, which we anticipate will enhance our sales performance. With the stabilisation
of the US Oil & Gas sector, we expect to maintain steady volumes in our export
business. Concurrently, we will persist in our efforts to minimise our environmental
impact and enhance safety measures, guided by our validated 4R approach — Renewable,
Recycle, Replace, and Reduce.
Vote of thanks
I would like to take this opportunity to express my sincere gratitude to our esteemed
Board members and stakeholders for their unwavering support and contributions, which have
been crucial to our success over the past year. I extend my heartfelt thanks to our
customers for their continued loyalty, and to our suppliers and principals for their vital
roles in our operations.
I am also deeply appreciative of our employees for their hard work, dedication, and
innovative spirit. We look forward to achieving new milestones and greater success with
your continued cooperation.
Warm regards,
Anup Jatia
Non-Executive, Non-Independent Chairperson