Vision Driven by Thoughtful Leadership
Strategic Growth: Staying Focused on the Long Game
Amid external headwinds, our strategy remained clear and consistent
focussed on innovation, integration, and incremental growth:
Dear Stakeholders,
It is my honour to share with you our reflections on a year defined by
uncertainty and our determination to convert that uncertainty into direction.
The global business environment in 2024-25 was anything but stable.
Against a backdrop of global uncertainties, including slowing demand across major
economies, rising input costs, escalating geopolitical tensions, and new tariffs imposed
by USA followed by countermeasures from other nations, businesses faced a challenging
environment marked by disrupted trade flows and heightened volatility in prices and supply
chains. Amidst this turbulence, India stood out as a beacon of relative stability, driven
by strong infrastructure spending, manufacturing-supportive policies, and consistent rural
and urban consumption.
At Chemplast Sanmar, we did more than respond. We stayed true to our
values, acted decisively in the present, and continued to build with foresight. The year
tested our systems, and in doing so, reaffirmed the strength of our strategy and the
calibre of our people.
The Paste PVC speciality plant at Cuddalore, commissioned in late
2023-24, reached 90% utilisation by March 2025.
We advanced the expansion of the CMCD platform by completing
Multi-purpose Block 3 (Phases 1 and 2) and commencing work on Phase 3 and MPB 4.
We have commenced investments in the manufacture of R-32 gas at our
Karaikal facility, marking a strategic milestone in our transition towards low- GWP
molecules. This initiative leverages our deep expertise in the R-22 chemistry platform and
aligns with global climate imperatives.
In total, our investment is over Rs. 1,600 Crores across these
strategic initiatives, underscoring our confidence in the long-term potential of our
speciality platforms.
Sharpening Our Portfolio
This year, we sharpened our capital allocation strategy, placing
greater emphasis on long-term growth opportunities in the speciality chemicals space.
While our operations continue to be anchored in two distinct platforms: speciality and
commodity, our investments are increasingly skewed towards high- value, differentiated
offerings within the speciality segment. This focused approach is not only aligned with
our long-term aspirations but also leverages the macro tailwinds of the China +1 strategy,
which continues to drive global interest in India as a reliable alternative manufacturing
hub.
We maintained our leadership position in the speciality chemicals
segment, underpinned by our dominant presence in the Paste PVC space. In Suspension PVC,
we maintained our leadership position in South India by leveraging strong customer
relationships, operational scale, and integrated processes.
We remain committed to fostering a fair and competitive domestic
market.
The industry continues to grapple with challenges arising from the
dumping of products at predatory prices by certain countries, which has placed
considerable strain on domestic manufacturers.
Investigations into these practices are currently in progress. Although
the process has taken longer than anticipated, we are encouraged by the momentum and
remain hopeful that a resolution will soon pave the way for a more equitable and
sustainable operating environment.
We strategise wisely, plan meticulously and execute faithfully to be
successful.
Safety isn't expensive.
It is priceless.
Safety: Embedded in Our Culture
Amid uncertainty, one value remained non-negotiable: Safety. At
Chemplast Sanmar, it is not just a protocol but a deeply embedded mindset, reflected in
everyday actions across all levels. We continued to strengthen our behavioural safety
culture through greater awareness, ownership, and proactive intervention. Our leadership
team reinforces this culture daily through audits, open forums, and by example. This year,
we enhanced site audits, introduced predictive risk tools, and expanded crossfunctional
safety dialogues and awareness programmes across the organisation.
No growth or success will be worth its salt, if it is acquired under
anything other than completely ethical behavioural standards.
In the long run, only a completely ethical company can win this
marathon race.
- N Sankar
The Sanmar Group
CSR & ESG: Responsibility in Action
We continue to deliver on our broader responsibilities - to the
environment, and to the communities that surround us.
Highlights from 2024-25 include:
A major initiative to replace grid power with renewable energy across
key facilities - set for commissioning in 2025-26.
Ongoing community engagement through school infrastructure development,
women's livelihood training, and healthcare programmes in Tamil Nadu and Puducherry.
Greater ESG transparency and accountability, with clearer KPIs and
board-level oversight.
Closing Thoughts
The world may remain unpredictable, but our foundation is firm. Our
culture, rooted in ethics, driven by safety, and powered by resilience, is enabling us to
build a future of purposeful growth. This year has been better than the last, and we
believe the year ahead holds even greater promise.
As we navigate today's volatility, we remain steadfast in our
commitment to making Chemplast Sanmar agile, inclusive, and future-ready.
To every employee, partner, investor, and community we serve, thank you
for your belief in us. We look forward to continuing this journey with courage, clarity,
and purpose.
With a strong pipeline of opportunities, a focus on innovation, and a
passionate team, we remain optimistic for the future.
Sincerely,
Vijay Sankar
Chairman