Summary of the primary business of the Company
Aether Industries Limited specializes in researching, developing, manufacturing, and marketing specialty chemicals and advanced intermediates, leveraging complex and innovative chemistry and technology. Established in India in 2013 with a vision to carve out a global niche, the company focused on research & development, team building and infrastructure during its initial phase through FY 2017. Revenue generation began in FY 2018, and the company has consistently grown since, achieving a CAGR of 28.74% from FY 2018 to FY 2024.
Market Concentration & Characteristics
The specialty chemicals market is experiencing robust growth, with an accelerating pace. This sector is characterized by substantial investment in research and development, leading to a high level of innovation as companies continuously develop new products. Specialty chemicals, being function-specific, demand ongoing innovation.
The industry is heavily regulated by various governmental bodies, with environmental and safety concerns driving the shift towards more eco-friendly and user-safe products. As a result, traditional chemical manufacturers are increasingly focusing on developing products with reduced environmental impact.
The threat of substitutes remains minimal, as specialty chemicals are tailored to specific performance and application needs, making them difficult to replace with conventional chemicals or alternative products.
Market concentration among end-users is significant, spanning diverse sectors such as automotive, electrical and electronics, oil and gas, and others. Product prices are closely linked to raw material costs, making them susceptible to market volatility. Consequently, customers have limited to moderate bargaining power.
Market Dynamics
Specialty chemicals are integral to nearly every industrial sector. Of the global production, over half is utilized in four primary end-use industries: food and beverages; soap, cleaning products, and cosmetics; construction; and electrical and electronics. Emerging markets are anticipated to experience significant growth in this sector due to ongoing industrialization and expanding consumer-driven economies. Certain categories of specialty chemicals—such as specialty coatings, electronic chemicals, nutraceuticals, flavours and fragrances, and organic personal care products—are expected to see rapid expansion, driven by favourable conditions in their respective end-use markets.
In the oil and gas industry, technological advancements are marked by intensive research and development from major multinationals like Royal Dutch Shell, British Petroleum, and Total SA. These companies are focused on providing high-performance chemicals for applications such as oil field operations and chemical processing, aimed at improving oil recovery and maximizing reserves. However, fluctuations in global crude oil prices and availability present ongoing challenges for formulators worldwide.
| Market | CY 2020 | CY 2025 | CAGR (2020-25) |
| Global Chemical Market | $5,027 billion | $6,780 billion | 6.2% |
| Global Speciality chemical Market | $847 billion | $1,090 billion | 5.2% |
| India Speciality Chemical Market | $87 billion | $148 billion | 11.2% |
India Specialty Chemicals Market
India stands as the second-largest market for specialty and fine chemicals in the Asia Pacific region. This growth is driven by substantial domestic manufacturing capabilities and the mature end-use industries within the country. For example, Indias status as a leading automotive manufacturing hub significantly boosts demand for specialty chemicals like fibers, sealants, paints, and adhesives, propelling the markets expansion in the coming years (Source: Specialty Chemicals Market Size & Share Report, 2030 - Grand View Research).
The Indian chemical industry is a vital contributor to the national economy, representing approximately 7% of GDP, with expectations to reach USD 304 billion by 2025, up from USD 178 billion in 2021 (Source: Chemical Sector in India Grows by Leaps and Bounds, Livemint, June 2022). The sector remains a lucrative opportunity for both domestic and international manufacturers. The specialty chemicals segment is a significant component of this industry, driven by increasing demand for value-added products across various sectors including food, automotive, real estate, apparel, and cosmetics. The Indian specialty chemicals industry is poised to surpass China, Japan, and other global markets in growth.
In recent years, the Indian specialty chemicals sector has expanded rapidly, now constituting 22% of the nations total chemicals and petrochemicals market, valued at $32 billion. Projections indicate it will reach USD 64 billion by 2025, with a CAGR of 12.4% (Source: Indian Specialty Chemicals, Yes Securities, January 2022).
This growth is fuelled by Indias robust process engineering expertise, cost-effective manufacturing, and abundant labor force. Government initiatives, such as the Petroleum, Chemicals, and Petrochemicals Investment Region (PCPIR) policy and Production-Linked Incentive (PLI) schemes, have bolstered investor confidence and encouraged domestic and international investments.
As global pollution control regulations tighten and labor costs rise elsewhere, manufacturers are seeking alternatives. Indias favourable business environment positions it as a promising option for substantial and swift market growth.
The evolving market will be influenced by investor confidence, corporate expenditure, strategic portfolio decisions, and budget allocations. Key factors such as research and development, capital investments, acquisitions, economies of scale, and domestic market expansion will be crucial in driving sustainable growth in Indias specialty chemicals industry.
| India Speciality Chemical Segments (IN US $ BILLIONS) | CY 2020 | CY 2025 (forecast) |
| Agrochemicals & Fertilisers | 32.90 | 53.30 |
| Pharmaceuticals (API) | 16.60 | 28.50 |
| DGVCL | 8.70 | 14.90 |
| Paints & Coatings Additives | 6.40 | 10.70 |
| Home Care Ingredients | 3.80 | 6.50 |
| Personal Care Ingredients | 1.30 | 2.20 |
| Textile Chemicals | 2.20 | 3.50 |
| Water Treatment Chemicals | 2.10 | 3.10 |
| Flavours & Fragrances Ingredients | 2.00 | 3.70 |
| Construction/Infratech Chemicals | 1.20 | 1.90 |
| Others | 9.90 | 19.50 |
| Total | 87.00 | 148.00 |
Overview of Aether Industries
We are a leading specialty chemical manufacturer in India, specializing in advanced intermediates and specialty chemicals through sophisticated and differentiated chemistry and technology. Founded in 2013, our vision was to carve out a unique position in the global chemical industry by integrating innovative approaches in chemistry, technology, and systems to foster sustainable growth.
During our initial phase, through Fiscal Year 2017, we concentrated on building our team and infrastructure, alongside developing our R&D capabilities to establish our core competencies. Our revenue generation began in Fiscal Year 2018, marking the start of our second phase. Since then, the company has achieved consistent growth, with a CAGR of 28.74% in revenues from Fiscal Year 2018 to Fiscal Year 2024.
Our approach is centered on leveraging a comprehensive model of chemistry and technology competencies. Unlike many chemical companies that rely on one or a few chemistry competencies, we utilize eight distinct competencies across our diverse product range. This strategic advantage allows us to meet the specialized and advanced intermediate needs of various end-products and applications. These competencies, all developed in-house, are a testament to the strength and innovation of our R&D team.
We operate under three distinct business models: (i) Large Scale Manufacturing (LSM) of our own intermediates and specialty chemicals; (ii) Contract Research and Manufacturing Services (CRAMS); and (iii) Contract/Exclusive Manufacturing (C/EM). We are among the few Indian specialty chemical companies to have successfully established these three separate business models within just five years of commencing commercial manufacturing. Our product selection is guided by criteria such as chemical complexity, niche applications, limited competition, scalability, and commercial viability.
Applying these criteria, we develop and continue to create advanced intermediates and specialty chemicals with applications across various sectors, including pharmaceuticals, agrochemicals, materials science, coatings, high-performance photography, additives, and oil and gas.
As of March 31, 2024, our portfolio includes over 29 products, all of which are being manufactured for the first time in India by Aether Industries Limited.
We specialize in products that integrate complex chemistries with advanced technology core competencies. Our chemistry competencies encompass Grignards, organolithium and other organometallic chemistry, ethylene oxide and isobutylene chemistry, hydrogenation, catalysis (both homogeneous and heterogeneous), cross-coupling chemistry, and metathesis/polymerization chemistry. Our technology competencies include continuous reaction technology, high-pressure reaction technology, fixed bed reaction technology, distributed control system (DCS) process automation, and high vacuum distillation technology (wiped film/short path). By focusing on core competencies, we have adopted a chemistry and technology-oriented sales vision, distinct from a traditional product and industry-oriented approach.
Our portfolio comprises advanced intermediates and specialty chemicals that bridge the gap between commodity chemicals and final actives and formulations. Our products are positioned closer to the higher value range, situated further from commodities and nearer to the final active components in the chemical industry value chain. In Fiscal Year 2024, the average selling price of our products was 1,306.89 per kg. We emphasize the development of high-value products that serve a range of therapeutic areas within the pharmaceutical industry, including hypertension, anti-platelet, anti-psychotic, anti-histamine, NSAIDs, antiretrovirals for HIV/AIDS, anti-epileptics, and anti-convulsants, among others.
Beyond pharmaceuticals, our products are utilized in various sectors such as agrochemicals, material science, coatings, high-performance photography, additives, and oil and gas. Most of our advanced intermediates and specialty chemicals were introduced for the first time in India and serve as 100% import substitutes, supporting the Government of Indias "Make in India" and "Atma-Nirbharta" initiatives. For instance, products like 4MEP, T2E, MMBC, NODG, BFA, OTBN, and DVL, which were previously imported from China, are now produced and exported by us, even reaching Chinese customers.
Our sales model primarily involves business-to-business transactions both domestically and internationally. We export a significant portion of our products to 19 countries, including Italy, Spain, Germany, the United States, India, the Netherlands, and other regions worldwide.
The cornerstone of our company is our robust in-house research and development capabilities. Our chemistry and technology core competencies, along with all our products, are developed by our dedicated R&D team, scaled up in our Pilot Plant, and brought to market using our own design and engineering expertise. We operate advanced R&D facilities and a Pilot Plant at our Manufacturing Facility 1 in Sachin, Surat, Gujarat. These facilities focus on developing our product pipeline, next-generation solutions, and catering to our CRAMS customers.
As of March 31, 2024, our specialized R&D team comprises 276 scientists and engineers (up from 233 on March 31, 2023), including 148 scientists with PhDs or Masters degrees (up from 111) and 128 chemical engineers (up from 122). Our R&D Facilities are equipped with laboratories dedicated to process development, innovation, and technology advancement, enabling us to optimize efficiencies from initial conceptualization through to product commercialization. Our strategic investments in R&D have been pivotal to our success, distinguishing us in the market and securing leading positions for several products. In Fiscal Year 2023, we tripled the size of our R&D facilities, increasing our fume hoods from 17 to 55, thereby boosting our capacity to conduct over 110 experiments and reactions per day.
Our state-of-the-art Pilot Plant serves as a critical link between R&D and large-scale production. It is one of the largest pilot plants globally, featuring over 100 reactors for both batch and continuous reaction technologies. The Pilot Plant plays dual roles: generating essential scale-up data for the transition from R&D to full production, and serving as a stand-alone facility for low-volume, high-value products for our CRAMS clients. It includes a wide array of reactor and downstream equipment for both continuous and batch processes, across diverse scale-up volumes and process parameters, all automated via DCS process automation. Notably, our Pilot Plant also houses a dedicated section for continuous reaction and flow technology, featuring pilot-scale equipment for continuous reactors and downstream processes. Like our R&D expansion, we had also tripled the capacity of our Pilot Plant in Fiscal Year 2023.
We operate three facilities in Sachin, Surat, Gujarat, India: Manufacturing Facility 1 covers approximately 3,500 square meters and includes our R&D labs, analytical sciences laboratories, Pilot Plant, CRAMS facility, and hydrogenation unit.
Manufacturing Facility 2 spans around 10,500 square meters and serves as a large-scale manufacturing hub with an installed capacity of 6,096 MT per annum. It includes a solvent recovery plant (SRP Plant) with a capacity of 13,140 MT, distributed across three buildings hosting 16 production streams and one SRP
Plant stream. In Fiscal Year 2024, our capacity utilization was 72% (compared to 70.98% on March 31, 2023), with the SRP Plant at 48% (compared to 69.44% on March 31, 2023). The capacity utilisation would have been more but the same was derailed due to the fire accident in November 2023, wherein the site was closed for few months in the Fiscal Year 2024.
Manufacturing Facility 3, commissioned in January 2023 and funded by our IPO (June 2022), covers approximately 5,250 square meters. It has an installed capacity of 2,400 MT per annum and achieved a capacity utilization of 62% in Fiscal Year 2024.
All three facilities are equipped with DCS process automation and adhere to high standards of technology, engineering, and automation. They are strategically located near Hazira Port and JNPT Port, optimizing freight costs for exports.
Both Manufacturing Facility 2 and Facility 3 hold ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISMS 27001:2013, and Indian GMP certifications.
For future expansion, we have acquired lands for Manufacturing Facility 4 and Manufacturing Facility 5. Facility 4, developed and commissioned in our wholly owned subsidiary, Aether Speciality Chemicals Limited (established September 2022), spans 18,000 square meters. It houses a new plant dedicated to manufacturing six products for Baker Hughes (oil & gas drilling industry), with a letter of intent signed in March 2023 and a recent SSA execution. Facility 4 is situated close to Manufacturing Facility 2.
Additionally, in Fiscal Year 2022, we acquired a 125,000 square meter plot at Panoli GIDC, Bharuch District, Gujarat, for future expansion. Regulatory approvals for this sites expansion have been obtained, and initial phase work has commenced. We have also secured additional land near Manufacturing Facility 3, referred to as 3+/3++, for future expansion. The funding for Manufacturing Facility 3+/3++ and Manufacturing Facility 5 is sourced from a QIP of 7,500 MM, completed in June 2023.
Manufacturing Facility 3+/3++ is anticipated to be operational by the end of Fiscal Year 2025, while the first phase of Manufacturing Facility 5 is projected to commence operations by the end of Fiscal Year 2026.
In addition to our core R&D and manufacturing operations (our first business model), we also engage in Contract Research and Manufacturing Services (CRAMS), which represents our second business model. This involves providing outsourced research and technology services, including contract research, pilot scale-up, contract manufacturing, FTE services, technology development, and process optimization. Our CRAMS clients collaborate closely with our scientists and engineers, utilizing our R&D Facilities, analytical laboratories, and Pilot Plant. Molecules developed through CRAMS for our clients have the potential to transition into regular commercial supplies and become products for large-scale manufacturing within our company. This model also fosters engagement with top technical teams and leadership—such as CTOs, technical directors, and VPs—of our clients, paving the way for future contract manufacturing opportunities.
Summary of Contingent Liabilities and Related Party Transactions
| Nature of Transactions (in MM) | 2024 | 2023 |
| Rent Paid | 6.60 | 6.00 |
| Loans Accepted | 0.00 | (149.20) |
| Managerial Remuneration | 67.25 | 67.25 |
| Purchase of Consumables | 27.93 | 0.06 |
| Purchase of Material for Building & | 0.00 | 14.81 |
| Structure | ||
| ETP Expenses | 87.06 | 47.23 |
| Salary | 1.27 | 5.41 |
| CSR Activities | 6.64 | 2.10 |
| Sitting Fees | 2.54 | 3.04 |
| Unsecured Loan | 1,045.55 | 0.50 |
| Charitable Trust | 0.00 | 0.60 |
| Total | 1,244.84 | - 2.21 |
Note:
For details of the related party transactions and as reported in the Financial Statements, please see the section entitled "Financial Reports".
| In MM | As of March 31, 2024 | As of March 31, 2023 |
| Bank Guarantees Issued for: | ||
| Customs | 8.89 | 8.89 |
| Gujarat Gas Ltd. | 20.71 | 20.71 |
| DGVCL | 54.55 | 47.40 |
| NHI | 0.25 | 0.00 |
| GPCB | 0.75 | 0.00 |
| Total Margin for above items | 11.83 | 14.37 |
| Raw Material FLC (in US $ MM) | $ 0.06 | $ 1.10 |
| Total Margin for above items | 0.62 | 8.94 |
| Income Tax Demands: | ||
| AY 2017-18 (PY 2016-17) | 0.15 | 0.15 |
| AY 2018-19 (PY 2017-18) | 0.94 | 0.94 |
| AY 2020-21 (PY 2019-20) | 1.00 | 1.00 |
Note
All the Contingent Liabilities, except Income Tax Demands, listed above, which are outstanding as on current Balance Sheet date are not 100% secured through cash margins placed with the banks. Company is enjoying Bank Guarantee and LC Limit facilities from the banks, which require 15% Margin Money on Bank Guarantees and 15% Margin Money on LC Facilities. Margin reduced to maximum 2.5% in FY 2023-24 on BG and LC.
The Income Tax Demands are under CIT appeal by the Company and the outcome of the same is not known and hence the demand amount has been considered as contingent liability.
Issue of Equity Shares for consideration other than cash
Except for the bonus allotment made on November 17, 2021, our Company has not issued any Equity Shares, for consideration other than cash.
Split / Consolidation of Equity Shares
Our Company has not undertaken a split or consolidation of the Equity Shares.
Exemption from complying with any provisions of securities laws, if any, granted by SEBI
Our Company has not made any application under Regulation 300(1)(c) of the SEBI ICDR Regulations for seeking exemption from complying with any provisions of securities laws.
Our Market Opportunity
Growth in Speciality Chemical Market
The specialty chemicals market, valued at $285.40 billion in 2023, is projected to grow to approximately $364.80 billion by 2028, reflecting a compound annual growth rate (CAGR) of 5% over this period.
Indias chemicals market, currently valued at $220 billion in 2023, is expected to surge to $383 billion by 2030, driven by a robust CAGR of 8.1% from 2021 to 2030.
Aether Industries is well-positioned to capitalize on the expanding specialty chemicals market both in India and globally, thanks to our core competencies in chemistry and technology. Our enhanced R&D efforts will further leverage our existing assets and support our expansion initiatives across various manufacturing sites.
Factors driving the growth in the Indian Speciality Chemicals market
The following factors are driving growth in the India Speciality Chemicals market
Growth in End Use Segments
The speciality chemicals industry in India is driven by both domestic consumption and exports.
Supply chain de-risking driven by China downturn Chinas chemicals market has seen a downturn in recent years due to various factors:
Stringent environmental norms
The tightening of environmental protection norms in China since January 2015 resulting in increase in operating costs, closure and relocation of India. manufacturing facilities. (Source: F&S Report, May 2022, Prospectus of Aether Industries Limited).
Rising cost of labour
Until 2007, labor costs in China were lower than in India. However, from 2005 to 2015, China experienced an average labor cost increase of nearly 19-20% CAGR, compared to a more modest 4-5% CAGR in India.
In Fiscal Year 2024, following Chinas reopening post-COVID-19, there has been a surge in material dumping in export markets, including India. China has benefited from various government export incentives and a significant depreciation of its currency by approximately 8.50%, which has considerably boosted its growth during this period.
Additional factors influencing and driving the Indian specialty chemicals market include the following:
Accelerated R&D and capital expenditure
Indias R&D capabilities and the enduring relationships that domestic chemical companies have established with their customers are pivotal to the growth of the Indian chemical sector. The industry is experiencing heightened capital expenditure and investment in R&D to enhance product development capabilities. The expansion of the specialty chemicals segment is driven by robust domestic demand and increased interest from international markets, further bolstered by the adoption of the China +1 policy by major global economies. While many companies are experiencing significant growth, margin pressures have led to disappointing results, causing stock values to decline (Source: Smallcase Technologies Private Limited, March 23, 2023).
GoI support and "Make in India" campaign The Government of India is offering substantial support through the Production Linked Incentive (PLI) scheme and other initiatives, alongside competitive tax rates. Additionally, the "Make in India" campaign is anticipated to further accelerate Indias rise as a prominent manufacturing hub for the chemicals industry in the medium term. By providing incentives, subsidies, and grants, this campaign aims to bolster Indian companies, as businesses seek to minimize their reliance on China following the COVID-19 pandemic and reconfigure their supply chains.
Availability of feedstock
The GoI has encouraged companies to set up capacities in petroleum, chemicals, and petroleum investment regions (PCPIR) by demarcating special zones to aggregate feedstock demand.
Improved safety, health and environment compliance and "Green chemistry" Like China, India also contends with environmental concerns and increasingly stringent regulations. Over time, Indian chemical companies have made substantial investments in safety, health, and environmental (SH&E) measures to promote plant sustainability. Additionally, the field of Green Chemistry is progressively developing in India. Growing pollution and the detrimental impact of harmful chemical effluents on water bodies are heightening concerns about sustainability. The pharmaceutical industry was an early adopter of Green Chemistry, recognizing its considerable potential to lower costs and mitigate risks.
Our (Aether Industries Limiteds) strengths
We believe that we possess a number of competitive strengths, which enable us to successfully execute our business strategies, including the following:
Focus on R&D to leverage our core competencies of chemistry and technology Our Company is fundamentally anchored in our robust in-house research and development capabilities. Strategic investments in R&D have been pivotal to our success, setting us apart and enabling us to secure leading market positions for various products. Leveraging the technical expertise weve cultivated over the years, we execute innovative processes on a global scale that are challenging to replicate, thus establishing significant barriers for new entrants.
Our core competencies in chemistry and technology, as well as all our products, have been developed exclusively by our in-house R&D team. These innovations are scaled up in our Pilot Plant and launched into production through in-house design and engineering. This independent development, unassisted by client R&D, underscores our strength in innovation and research. Our expertise spans a wide array of chemistries and technologies, supporting numerous end-use industries. Notable examples of our chemistry core competencies include Grignards, organolithium and other organometallic chemistries, ethylene oxide and isobutylene chemistry, hydrogenation, catalysis (both homogeneous and heterogeneous), cross-coupling chemistry, and metathesis/polymerization chemistry. We are a pioneer in the Indian specialty chemicals market for tandem Grignard and ethylene oxide chemistry, with only a few competitors in these areas.
In Fiscal Year 2023, we tripled the size of our R&D Facility, increasing the number of fume hoods to 55, which allows us to conduct over 110 reactions and experiments daily. Additionally, our R&D personnel increased from 233 as of March 31, 2023, to 276 as of March 31, 2024, reflecting significant growth in our research capabilities.
We are committed to the continual enhancement and expansion of our R&D and Pilot Plant facilities, recognizing them as essential drivers for product development. In Fiscal Year 2024, our total capital expenditure, including investment in the Pilot Plant, was approximately 300 MM. Long standing relationships with a diversified customer base Our customer base includes over 290 multinational, regional, and local companies. As of March 31, 2024, our products are supplied to more than 50 global customers across 18 countries and over 240 domestic clients.
We are committed to delivering high-quality products consistently, which builds long-term relationships and reduces customer inclination to seek alternative suppliers. This creates a competitive advantage for us, as new entrants face significant investment and lengthy approval processes.
In Fiscal Year 2024, our facilities were audited 29 times by various customers or their external auditors. Our CRAMS model facilitates valuable interactions with top technical leaders, leading to further project opportunities.
We provide a comprehensive supply chain solution—from initial research and development through to commercial-scale manufacturing—while maintaining transparent communication and straightforward payment terms.
Aetherians
We possess a highly skilled team in essential scientific and engineering fields. Our dynamic, ambitious "startup" culture is reflected in our average staff age of 29 years as of March 31, 2024. Our core and senior management team consists of technical experts specializing in organic chemistry and chemical engineering.
QEHS
We emphasize safe processes and inherently safe manufacturing, and sound QEHS principles.
Synergistic Business Models focused on Large Scale Manufacturing, CRAMS and Contract Manufacturing We operate under three distinct business models: (i) large-scale manufacturing of our own intermediates and specialty chemicals; (ii) Contract Research and Manufacturing Services (CRAMS); and (iii) contract/ exclusive manufacturing. According to F&S, we are among the few Indian specialty chemical companies to have successfully launched all three models into commercial production within just five years.
These business models are mutually reinforcing. For instance, customers for our own intermediates and specialty chemicals are often the same targets for our CRAMS and contract manufacturing services. Our CRAMS business enables collaboration with innovative firms on new products, enhancing our R&D capabilities and supporting the development of our own offerings. Additionally, increasing production through contract manufacturing allows us to achieve economies of scale and negotiate better pricing with suppliers.
Automated manufacturing facilities utilizing advanced technologies and systems Our manufacturing infrastructure, cutting-edge technologies, and automation are crucial to our growth in intermediates and specialty chemicals. We have pioneered innovative manufacturing processes and product recipes, establishing leadership in many of our product categories.
We operate two sites in Sachin, Surat. Manufacturing Facility 1, spanning approximately 3,500 square meters, houses our R&D, analytical labs, Pilot Plant, CRAMS, and hydrogenation facilities. Manufacturing Facility 2, covering about 10,500 square meters, serves as a large-scale manufacturing hub with a capacity of 6,096 MT per annum (and 13,140 MT for the SRP Plant) across 16 production streams and one SRP Plant Stream as of March 31, 2024. Manufacturing Facility 3, covering 5,250 square meters, has a capacity of 2,400 MT per annum as of March 31, 2024. Each facility operates independently, with dedicated quality departments, effluent treatment plants, and warehouses. Their proximity to Hazira and JNPT Ports helps reduce export freight costs.
In March 2024, Manufacturing Facility 4 was commissioned and production commenced at our wholly-owned subsidiary, Aether Speciality Chemicals Limited. This facility, designed for six products under the Contract/Exclusive Manufacturing model for Baker Hughes, will also provide a 7% income tax benefit.
We acquired a 125,000 square meter plot at Panoli GIDC, Bharuch District, Gujarat, in Fiscal Year 2022 for future expansion. In Fiscal Year 2024, we received regulatory approvals and began the first phase of development. Additionally, we acquired land near Manufacturing Facility 3 for further expansion, termed 3+/3++, funded by a 7,500 MM QIP in June 2023. Manufacturing Facility 3+/3++ is projected to be operational by the end of Fiscal Year 2025, with the first phase of Manufacturing Facility 5 expected to come online by the end of Fiscal Year 2026.
Our facilities employ advanced technologies and systems such as:
• Continuous Reaction Technology
• Advanced Batch Reaction Technology
• High Pressure Reaction Technology
• Fixed Bed Reaction Technology (Liquid / Gas Phase)
• Cryogenic Reaction Technology
• Distillation Technology (wiped film and short path)
• Distillation Technology (high vacuum and fractional) We employ Distributed Control Systems (DCS) for process automation: Siemens PCS7 DCS in our Pilot Plant and CRAMS operations, and Yokogawa Centum VP DCS in our manufacturing facilities. These systems enhance reliability, ensure consistent product quality, reduce overhead costs, and improve safety by minimizing human error and industrial accidents. Our operations are certified under ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISMS 27001:2013, and
Indian GMP.
Contract Research and Manufacturing Services (CRAMS) Our CRAMS business are the services that our customers outsource to us and include:
• Contract research;
• Pilot scale-up services;
• Contract manufacturing;
• Full time equivalent (FTE) services;
• Technology development; and
• Process development and optimisation
Our state-of-the-art Pilot Plant provides a significant competitive edge in attracting CRAMS customers. It serves a dual purpose: generating crucial scale-up data to address potential issues before full-scale production and operating as a standalone facility for low-volume, high-value products for CRAMS clients. The Pilot Plant features a diverse array of reactors and downstream equipment, accommodating both continuous and batch processes across various scales, metallurgies, and parameters, all managed through DCS automation.
CRAMS customers collaborate closely with our scientists and engineers, leveraging our R&D Facilities, analytical labs, and Pilot Plant. Molecules developed through CRAMS can transition into large-scale commercial production for our company. The CRAMS model also fosters high-level discussions with technical leaders (CTOs, technical directors, VPs), paving the way for future contract manufacturing opportunities.
In Fiscal Year 2023, we had tripled the capacity of our R&D and Pilot Plant from March 31, 2022, expanding the number of fume hoods from 17 to 55 for increased experimentation and adding more reactors to the Pilot Plant.
Contract Manufacturing / Exclusive Manufacturing We also manufacture our customers products under a contractual supply agreement based model. These customer contracts are both short-term and long-term and involve both exclusive and non-exclusive arrangements.
Focus on Quality, Environment, Health and Safety (QEHS)
Our business is dedicated to sustainability, prioritizing quality, environment, health, and safety.
We recognize that upholding superior product quality is crucial to our brand and growth. To ensure consistent quality, efficacy, and safety, we have implemented rigorous quality systems across all our manufacturing processes, from production to delivery. Our products meet global quality standards and undergo thorough quality checks, including random sampling and internal inspections. Numerous key customers have audited and approved our facilities, validating the continued excellence of our operations. In Fiscal Year 2024, we underwent 29 audits by customers or their external auditors. Additionally, we hold ISO 14001 (Environment), ISO 45001 (Occupational Safety), and ISO 27000 certifications. As of March 31, 2024, our environmental and safety teams consist of 50 (March 31, 2023: 46) and 45 (March 31, 2023: 38) employees, respectively, which is 5.22% and 4.70% (March 31, 2024: 5.20% and 4.30%) respectively of our total work force, reflecting our commitment to maintaining a safe and sustainable operation.
We are committed to minimizing our environmental impact by adhering to stringent standards that not only meet but often surpass regulatory requirements. Our manufacturing practices embody the principles of green chemistry, focusing on energy efficiency, atom economy, and the 4R strategy (reduce, recover, recycle, reuse). We utilize cleaner chemistries, advanced reaction technologies, and automation to optimize the use of non-toxic materials and reduce effluent generation.
Our sustainability efforts include a 100 KLPD in-house zero liquid discharge (ZLD) plant, featuring comprehensive treatment technologies such as chemical neutralization, multiple effect evaporators, mechanical vapour recompression, reverse osmosis, and a soil biotechnology platform with ozonation. Additionally, in July 2022, we commissioned a 16 MW solar power plant at Sarod Village, Gujarat, funded by internal accruals, to power our current facilities and Greenfield project. We are further investing in a 15 MW solar plant with auto-tracker modules, scheduled for phased commissioning in Fiscal Year 2025, to reduce operational electricity costs.
We also prioritize employee health and safety, ensuring a safe and supportive work environment. This includes hazard and operability studies for new products, an in-house mobile app for resource coordination, and comprehensive safety equipment including firefighting and safety systems including 700 m3 fire hydrant water storage, 271 m3 main electrical pump and diesel pump, automated foam monitors and water sprinklers, and Pulse Position Modulation (PPM) detection for gas and solvent leakage. Our plant wide DCS automation system allows us to control our safety systems and processes..Our safety infrastructure includes advanced firefighting systems and a collaborative fire hydrant water reserve (over 2,000 m3 capacity) with neighbouring chemical companies, enhancing overall safety and response capabilities.
Strong and consistent financial performance
In just 11 years of operation and 7 years of commercial manufacturing, we achieved revenues exceeding 6,399 MM in Fiscal Year 2024, despite a significant fire at Manufacturing Facility 2 in November 2023, which severely damaged Plant 2 and the Tank Farm, and moderately affected Plant 1. Our growth has been organic, marked by consistent revenue and profitability increases.
Between Fiscal Year 2018 and Fiscal Year 2024, we experienced a CAGR of approximately 28.74%. Revenue from operations grew at a CAGR of 27.54%, rising from 1,085 MM in Fiscal Year 2018 to 5,957 MM in Fiscal Year 2024. Our export revenue, including deemed exports, surged at a CAGR of 30.91%, from 391 MM in Fiscal Year 2018 to 2,575 MM in Fiscal Year 2024.
In Fiscal Year 2024, our EBITDA was 1,619 MM (down from 2,028 MM in Fiscal Year 2023), with EBITDA margins decreasing to 25.31% from 30.38% the previous year. Profit after tax was 881 MM (compared to 1,304 MM in Fiscal Year 2023), resulting in a PAT margin of 13.77% (down from 19.53%). These declines are largely due to the fire incident at Manufacturing Facility 2, which caused a temporary halt in operations and exceptional expenses of 277 MM, including 139 MM in stock damage.
For the year ended March 31, 2024, our ROCE was 4.77% (down from 14.28% the previous year), and ROE was 4.26% (compared to 10.48% in Fiscal Year 2023). The fires impact on these ratios is significant, with Manufacturing Facility 2 being out of operation for at least three months. Partial recovery began in January 2024, but full operational capacity is expected to be restored by Q2 of Fiscal Year 2025.
Experienced Promoters and Senior Management with extensive domain knowledge Our leadership comprises our Promoters: Managing Director Ashwin Jayantilal Desai, and Executive Directors Purnima Ashwin Desai, Rohan Ashwin Desai, and Dr. Aman Ashwin Desai, who collectively bring over 125 years of expertise in the chemical industry. Each Promoter is actively engaged in key areas such as R&D, process and plant engineering, finance, and marketing, and they oversee daily operations.
Additionally benefit from the industry experience of Kamalvijay Ramchandra Tulsian, Non-Executive Director, Chairman of our Board, bringing experience in the chemicals business; Jeevan Lal Nagori, Non-Executive Independent Director, bringing experience in the pharmaceutical business; Arun Brijmohan Kanodiya (qualified Chartered Accountant), Non-Executive Independent Director; Leja Satish Hattiangadi, Non-Executive Independent Director, bringing experience in project implementation; Ishita Surendra Manjrekar, Non-Executive Director bringing extensive knowledge about construction and related chemical industries; Dr. Amol Arvindrao Kulkarni, Non-Executive Independent Director, bringing extensive knowledge about continuous reaction technologies; Rajkumar Mangilal Borana, Non-Executive Independent Director; and Jitendra Popatlal Vakharia, Non-Executive Independent Director, bringing their experience in textile industry and chemical industry, respectively.
In February 2024, Dr. James (Jim) W. Ringer was appointed Chief Technology Officer, effective March 1, 2024. Dr. Ringer, who has been with Aether for three years as Business Development/Technology Leader (Americas), previously had a distinguished 30-year career at Dow Chemical Company and Corteva AgriScience, and holds 22 USA patents. Dr. James (Jim) W. Ringer is a dynamic leader recognized for creating innovation and personnel strategies. Demonstrated ability to generate significant value through building exceptional teamwork and organizational culture with strong personnel development, technical excellence, and project portfolio.
Our senior management team is also experienced in the chemicals industry. The majority of our management team have spent more than 5 years each with our Company. Our senior management personnel include career-technocrats such as Raymond Paul Roach and Dr. Norbert Fl?ggen.
Additionally, in June 2024, Dr. Ron Valente was appointed Business Development Leader (Speciality Polyols). Dr. Valente, with a PhD in Organic Chemistry from the University of Rochester, has over 20 years of experience with Eastman Kodak, Novomer, Inc., and Saudi Aramco.
The depth and breadth of our directors, management team, and Promoters equip us to be a leading specialty chemical manufacturer in India. Their combined experience helps us navigate market trends, manage operations, and enhance customer relationships.
Our (Aether Industries Limiteds) strategies
Our key business strategies are set forth below:
Leverage our strong position in the speciality chemicals industry to capitalize on industry opportunities From CY 2020 to CY 2025, the global chemicals market is anticipated to grow at a CAGR of 6.2%, while the Indian specialty chemicals market is projected to expand at a CAGR of 11.2%, according to Frost & Sullivan. This growth is driven by robust demand in key end-use segments for our intermediate and specialty chemicals, which are experiencing strong consumption growth in India and other major global markets. For instance, the agrochemicals and fertilizers segment in India is expected to increase from $32.9 billion in CY 2020 to $53.3 billion by CY 2025, and the pharmaceuticals specialty chemicals segment is forecasted to grow from $16.6 billion to $28.5 billion during the same period.
In contrast, Chinas specialty chemicals sector has faced challenges due to recent stringent environmental regulations, leading to plant closures and increased operating costs. This situation has resulted in higher production costs and may offer Indian manufacturers a significant opportunity to strengthen their position in the global supply chain. This downturn in China presented a chance for Indian firms to gain a competitive edge by offering a cost-effective alternative.
Leveraging our leadership in various specialty chemical segments, we are well-positioned to seize these market opportunities. Our revenue growth for key products has outpaced industry averages, reflecting our success in capturing market share from competitors, particularly in China. We plan to introduce new products, enhance our R&D capabilities, explore strategic acquisitions, and expand our manufacturing capacities and sales networks. Our strategy includes increasing our global presence through advisors, international events, and local representatives, while focusing on high-growth sectors and emerging trends. Despite the recent competitive pressures from Chinese manufacturers benefiting from government incentives and currency depreciation, we are confident in our ability to capitalize on the evolving market landscape.
Expand Manufacturing, R&D and Pilot Plant Capacities To address the growing demand from existing and new customers, we are expanding our manufacturing capacities across various sectors, including Pharma, Agro, Oil & Gas, Material Sciences, Renewables & Sustainability, and Electric Vehicles. We are also scaling up facilities for our new product lines currently under development and commercialization.
In January 2023, we began operations at a new facility at our third site near Sachin, which is dedicated to producing specialty chemicals and intermediates for pharmaceuticals, agrochemicals, and material sciences. This facility was utilized at approximately 40% capacity in Fiscal Year 2024.
In March 2024, we launched Manufacturing Facility 4 through our wholly owned subsidiary, Aether Speciality Chemicals Limited, which will provide a 7% income tax benefit. This facility is tailored to manufacture six products under the Contract/Exclusive Manufacturing (C/E M) model for Baker Hughes.
Additionally, in Fiscal Year 2022, we acquired over 125,000 square meters of land at Panoli GIDC, Bharuch District, Gujarat for future expansion. We received regulatory approvals in Fiscal Year 2024 and have begun the first phase of development. We have also acquired additional land near Manufacturing Facility 3 for further expansion. Funding for Manufacturing Facility 3+/3++ and Manufacturing Facility 5 is sourced from a 7,500 MM Qualified Institutional Placement (QIP) completed in June 2023. Manufacturing Facility 3+/3++ is expected to be operational by the end of Fiscal Year 2025, with the first phase of Manufacturing Facility 5 scheduled to come online by the end of Fiscal Year 2026.
We are also forming strategic alliances with innovator companies across various end-user industries. These partnerships are anticipated to evolve from CRAMS projects into strategic commercial manufacturing ventures, potentially necessitating additional manufacturing capacity.
In Fiscal Year 2024, we expanded our R&D laboratories by increasing the number of fume hoods to 55, with new facilities dedicated to organic synthesis. Our R&D center has undergone a significant upgrade, including new laboratory furniture, HVAC systems, and a complete architectural redesign. It now features a library, scientist lounges, cafeteria, coffee house, modern offices, conference rooms, gymnasium, and outdoor meeting areas.
Furthermore, we have tripled the capacity of our Pilot Plant by installing additional pilot-scale equipment. The expanded plant includes state-of-the-art reaction technology, advanced instrumentation, engineering, and safety systems, all automated via a DCS platform. The facility now boasts 26 reactors ranging from 250 L to 4000 L, supported by 16 best-in-class utility equipment. A Siemens PCS7 DCS platform operates in a hot redundant configuration, with comprehensive fire safety measures including fire curtains, water sprinklers, foam monitors, and a robust pump and water reservoir system.
Continue to strengthen our presence in India and expand our sales and distribution network in international markets As of March 31, 2024, our diverse product portfolio serves over 50 global clients across 18 countries and more than 240 domestic customers. We maintain enduring relationships with eight of our top ten clients for over five years, reflecting our status as a preferred supplier, particularly compared to our competitors primarily based in China. This longstanding client loyalty, evidenced by repeat and increased orders, underscores our competitive edge.
Our dedicated international sales and marketing team is pivotal in managing new orders, rate quotations, and understanding client needs. This team comprises seasoned industry professionals: Raymond Paul Roach (Business Development Leader – Americas), Dr. James Ringer (Chief Technology Officer), Dr. Norbert Fl?ggen (Business Development Leader – Europe), and Dr. Ron Valente (Business Development Leader – Speciality Polyols). Our business development and marketing efforts are strategically conducted across three continents—Asia/India, Europe/Germany, and North America/USA—ensuring robust market presence.
We are committed to enhancing our share of business with existing customers through strategic initiatives aimed at cross-selling our diverse product range. Additionally, we plan to leverage our established sales and marketing network and industry reputation to forge new relationships with multinational, regional, and local clients.
Our global expansion strategy focuses on serving current end-use clients and attracting new ones, thereby broadening our market reach. We are reinforcing our global presence by strengthening sales and marketing teams, particularly in North America, South America, and Europe. This includes increasing our stock points worldwide to ensure prompt product delivery and responsiveness to market demands.
Continue to focus on contract manufacturing / exclusive manufacturing by developing innovative processes and value engineering
We aim to transform R&D (CRAMS) opportunities into large-scale contract manufacturing projects by leveraging our expertise in value engineering, innovative process development, and core competency chemistries. By offering unique value propositions, we seek to secure long-term contracts with customers that ensure consistent product off-take and improved margins, thereby enhancing our profitability. Our strategy involves differentiating our operations from other CRAMS providers by developing proprietary, innovative processes, which affords us better pricing leverage with clients.
We are committed to advancing in-house innovations for complex chemistries, including glove box chemistries, Nobel Prize-winning metathesis chemistry, and organo-silicon chemistry. Additionally, we continuously assess which of our existing products or processes can be further innovated to add value.
We also aim to deepen our existing customer relationships by undertaking CRAMS projects for new molecules. Our focus on value engineering allows us to extend our process and chemistry expertise into new value chains, replacing lower-value products with higher-value alternatives. By leveraging our established relationships and repeat orders, we intend to capitalize on significant cross-selling opportunities for high-value products. Our strategy includes emphasizing early-stage process innovation and development to capture the complete lifecycle of these products, positioning ourselves as initial suppliers of specialized chemicals and strengthening our partnerships with multinational corporations.
Growth through strategic acquisitions and alliances We will look for strategic acquisition targets in the United States and the EU for R&D and manufacturing assets that are in line with our existing or desired competencies. We also will look for opportunities to acquire businesses to add additional chemistry or technology competencies (for example, photochemistry) or to add business segments where we are currently not present (for example, cytotoxic compounds, advanced silicone products or active pharmaceutical ingredients and formulations). We are focused on identifying acquisition targets that will benefit from our management expertise, our core competencies and the scale of our operations.
Our Products and Services
Our business is structured around three distinct models: (i) Large-Scale Manufacturing (LSM) of our proprietary specialty chemicals and intermediates, (ii) Contract Research and Manufacturing Services (CRAMS), and (iii) Contract and Exclusive
Manufacturing (C/E M).
Speciality Chemicals and Intermediates
We specialize in specialty chemicals and advanced intermediates through a sophisticated integration of complex chemistry and technological core competencies. Our chemistry expertise encompasses areas such as Grignard reactions, organolithium and other organometallic chemistry, ethylene oxide and isobutylene chemistry, hydrogenation, catalysis (both homogeneous and heterogeneous), cross-coupling chemistry, and metathesis/polymerization chemistry. Our technological proficiencies include continuous reaction technology, high-pressure reaction technology, fixed-bed reaction technology, DCS process automation, and high-vacuum distillation technology (wiped film/short path).
By concentrating on these core competencies, we have crafted a sales vision oriented around chemistry and technology rather than specific products or industries. This approach not only differentiates us but also mitigates risks, as our strategy and R&D efforts are not confined to any particular product, customer, region, or industry.
Our product selection process is both simple and rigorous. We focus on products that align with our core competencies and meet several criteria: (i) the product should be infrastructure-oriented and belong to a specialty chemical field with a minimum of four synthetic steps; (ii) it should not be actively produced by any company in India; (iii) it should offer substantial revenue potential upon maturity; and (iv) we should be able to achieve a market-leading position at its maturity. Products that meet these criteria undergo R&D, are scaled up in our Pilot Plant, validated, and then commercialized.
As of March 31, 2024, our portfolio includes over 29 products, all developed and brought to market using these stringent criteria over the 11 years since our inception. Our advanced intermediates and specialty chemicals bridge the gap between commodity chemicals and final actives and formulations. They are utilized across various therapeutic areas in the pharmaceutical industry, including hypertension, anti-platelet, anti-psychotic, anti-histamine, and non-steroidal anti-inflammatory drugs (NSAIDs).
Additionally, our products serve multiple industries such as agrochemicals, material science, coatings, high-performance photography, additives, and oil & gas.
Customer Segments
The table set forth below provides customer segment split of revenue from operations and as a percentage of revenue from operations in Fiscal Year 2024 and Fiscal Year 2023:
| Fiscal Year 2024 | Fiscal Year 2023 | |||
| Country | MM | % of revenue | MM | % of revenue |
| Pharmaceuticals | 3,038.54 | 51.01% | 2,744.05 | 42.15% |
| Agrochemicals | 1,629.51 | 27.36% | 2,261.72 | 34.74% |
| High Performance | 222.94 | 3.74% | 371.85 | 5.71% |
| Photo | ||||
| Material Science | 473.00 | 7.94% | 319.33 | 4.90% |
| Coatings | 288.19 | 4.84% | 218.35 | 3.35% |
| Oil & Gas | 68.03 | 1.14% | 24.26 | 0.37% |
| Food Additives | 28.33 | 0.48% | 3.55 | 0.05% |
| Textiles | 53.23 | 0.89% | 0.00 | 0.00% |
| Other / Multiple Use | 154.91 | 2.60% | 567.62 | 8.72% |
| Total | 5,956.69 | 100.00% | 6,510.74 | 100.00% |
Contract Research and Manufacturing Services (CRAMS) Our facilities employ advanced technologies and systems such as:
Contract research;
Pilot scale-up services;
Contract manufacturing;
Full time equivalent (FTE) services, where one or more of our employees work full time on the project;
Technology development; and
Process development and optimisation
Our CRAMS customers work jointly with our scientists and engineers, and we execute their projects in our R&D Facilities, analytical sciences laboratories, and our Pilot Plant. Molecules developed in our CRAMS business for our customers have the potential to convert into regular commercial supplies and become large scale manufacturing products for our Company.
Contract Manufacturing / Exclusive Manufacturing We also manufacture our customers products under a contractual supply agreement based model. These customer contracts are both short-term and long-term and involve both exclusive and non-exclusive arrangements. In the Fiscal Year 2024 and Fiscal Year 2023, revenues from our contract manufacturing business constituted 25.76% and 34.317%, respectively, of our revenues from operations.
Our Customers
Our customer base comprises over 290 multinational, global, regional, and local companies. As of March 31, 2024, our products are supplied to more than 50 global customers across 18 countries and over 240 domestic customers. This diverse clientele includes a distinguished array of leading domestic and international multinational firms.
We maintain several supply contracts with durations ranging from three to five years, structured around formula-based pricing mechanisms. These contracts may be terminated either upon their expiration or through notice provided by the customer. Such terminations are typically negotiated mutually between us and our customers. Nevertheless, the termination of supply contracts could have potential adverse effects on our business, financial health, and operational outcomes.
For other customers, we rely on purchase orders to manage the volume and terms of our product sales. These purchase orders often outline unit prices and delivery schedules. However, amendments or cancellations of these orders before finalization could disrupt our production schedules and impact inventory levels.
Exports
We export our products to 18 countries, with notable markets including Italy, Spain, Germany, the United States, and the Netherlands, among others. In Fiscal Year 2024 and Fiscal Year 2023, export sales (excluding deemed exports) accounted for 33.81% and 40.52% of our revenue from operations, respectively. Our export revenues are predominantly in foreign currencies, primarily U.S. Dollars. Consequently, fluctuations in exchange rates can influence the reported value of our sales in Indian Rupees on our financial statements. Although we hedge a minimal portion of our net foreign exchange position, we remain susceptible to variations in exchange rates between the U.S. Dollar and the Indian Rupee.
Geographic Split of Revenue from Operations
The table set forth below provides geographic split of revenue from operations and as a percentage of revenue from operations in the Fiscal Year 2024 and Fiscal Year 2023:
| Fiscal Year 2024 | Fiscal Year 2023 | |||
| Country | MM | % of revenue | MM | % of revenue |
| India (including | 3,458.59 | 58.06% | 3,590.36 | 55.15% |
| Deemed Exports) | ||||
| India (SEZ) | 347.59 | 5.84% | 281.07 | 4.32% |
| Italy | 644.75 | 10.82% | 976.57 | 15.00% |
| Germany | 432.86 | 7.27% | 266.57 | 4.09% |
| USA | 342.98 | 5.76% | 519.38 | 7.98% |
| Spain | 232.41 | 3.90% | 120.00 | 1.84% |
| Japan | 210.49 | 3.53% | 67.70 | 1.04% |
| Israel | 58.45 | 0.98% | 59.33 | 0.91% |
| Mexico | 57.53 | 0.97% | 51.42 | 0.79% |
| Netherlands | 55.76 | 0.94% | 358.20 | 5.50% |
| China | 44.91 | 0.75% | 105.16 | 1.62% |
| Hungary | 21.83 | 0.37% | 0.00 | 0.00% |
| Romania | 14.94 | 0.25% | 5.24 | 0.08% |
| Sweden | 12.76 | 0.21% | 13.45 | 0.21% |
| United Kingdom | 9.11 | 0.15% | 16.70 | 0.26% |
| Switzerland | 6.56 | 0.11% | 41.50 | 0.64% |
| Others - Asia | 4.00 | 0.07% | 13.55 | 0.21% |
| Others - Europe | 1.17 | 0.02% | 24.52 | 0.38% |
| Total | 5,956.69 | 100.00% | 6,510.74 | 100.00% |
Note
"Deemed Exports" refer to those transactions in which the goods supplied do not leave the country, and the payment for such supplies is received either in Indian rupees or in free foreign exchange. We have started business in one new country in Fiscal Year 2024, Hungary, which depicts the growth of Companys business geographically.
Automation
Our manufacturing facilities utilize DCS that use geographically distributed control loops throughout our facilities to control our systems and processes to increase their safety, cost-effectiveness and reliability. Our Pilot Plant and CRAMS operations use a Siemens PCS7 DCS and our manufacturing facilities use a Yokogawa Centum VP DCS.
Manufacturing Process
Our facilities have been meticulously designed and developed around a chemistry and technology-centric model, where each product is strategically allocated to a specific production stream. This approach grants us the agility to switch from one product to another seamlessly, without any gestation period and with minimal costs. The flexible design of our plants allows us to operate multiple streams within our intermediate product buildings, thereby mitigating contagion risks and ensuring consistent fulfilment of product demand.
All our manufacturing units are multipurpose plants with the capability to handle multiple streams, accommodating the broad range of products in our portfolio. We do not have dedicated plants or streams; instead, each stream is versatile enough to be utilized for various products, providing the flexibility to swiftly adapt the production mix in response to shifting demand. Every product is the outcome of a combination of specialized chemistries and processes tailored to achieve the desired results.
Our products can be broadly classified under eight different chemistry bifurcations:
Grignards and Organolithiations
• Ethylene Oxide Chemistry / Tandem Grignard /
• Ethylene Oxide Isobutylene Chemistry
• Hydrogenation / catalysis chemistry
• Heterogeneous Catalysis
• Exothermic Chemistry
• Cross Coupling Chemistry
• Olefin Metathesis / Polymerisation
The raw materials are charged continuously / batch-wise in reactors of suitable capacity and design based on the type of reaction. Other technical parameters such as temperature, pressure and reaction time are maintained based on the type of reaction to be carried out.
When the reaction is complete, the product is analyzed and subjected to further processing, which includes filtration, continuous/ batch distillations, purification processes to get the required quality product. The product is ultimately tested to ensure it meets the applicable specifications before it is supplied to the customer.
Research & Development (R&D)
The cornerstone of our company lies in our in-house research and development, a key driver of our success and a significant differentiator in achieving leading market positions for select products.
Over the years, our deep technical expertise has enabled us to execute innovative processes on a global scale, creating substantial barriers for potential competitors and making replication exceedingly difficult.
Our dedicated R&D facilities and Pilot Plant, located at Manufacturing Facility 1 in Sachin, are at the heart of our operations. Every one of our products has been meticulously developed by our in-house R&D team, scaled up in our Pilot Plant, and transitioned into production with in-house design and engineering. This independent innovation (without external R&D support) underscores our research capabilities. Our core competencies in chemistry include Grignards, organolithium and other organometallic chemistry, ethylene oxide and isobutylene chemistry, hydrogenation, catalysis (homogeneous/ heterogeneous), cross-coupling chemistry, and metathesis/polymerization chemistry. Our technology competencies encompass continuous reaction technology, high-pressure reaction technology, fixed-bed reaction technology, DCS process automation, and high vacuum distillation technology (wiped film/ short path).
Our R&D facilities are dedicated to both the development of our own pipeline and next-generation products, as well as serving our CRAMS clients. As of March 31, 2024, our specialized R&D team comprised 276 scientists and engineers, including 148 (March 31, 2023: 111) with PhDs or Masters degrees, and 128 (March 31, 2023: 122) chemical engineers. To further enhance our R&D capabilities, we continuously recruit and appoint scientists with diverse experience and expertise, aligning with our strategy of early identification of development and manufacturing opportunities.
Our R&D laboratories are outfitted with modern synthesis equipment, including fume hoods, lab-scale continuous and flow reactors, and advanced separation tools. These labs are supported by state-of-the-art analytical method development (ADL) and quality control (QC) laboratories, equipped with essential instruments for advanced organic chemistry research, such as Liquid Chromatography Mass Spectrometry, Gas Chromatography Mass Spectrometry, and High-Pressure Liquid Chromatography, among others.
Our R&D facilities focus on process development, innovation, new chemical screening, and engineering, enabling us to drive efficiencies from the initial conceptualization to the commercialization of a product. Our R&D team has successfully executed multi-step synthesis and scale-up for several new molecules in specialty chemicals and intermediates, significantly expanding our commercialized product portfolio. In Fiscal Year 2023, we had tripled our R&D capacity by increasing the number of fume hoods to 55.
We also maintain strong collaborations with numerous universities and research institutions across India, including the National Chemical Laboratory (NCL, Pune), the Institute of Chemical Technology (ICT, Mumbai), Uka Tarsadia University (UTU, Bardoli), and Sardar Vallabhbhai National Institute of Technology (SVNIT, Surat). Our sponsored PhD programs, conducted in partnership with these institutions, further strengthen our R&D capabilities.
Our R&D facilities are recognized by the Department of Scientific & Industrial Research (DSIR), New Delhi, for in-house R&D excellence.
In addition, we have expanded our R&D laboratories by adding more fume hoods, creating four new organic synthesis labs on a separate floor, fully equipped with modern amenities. The architectural and interior design of our R&D facilities has undergone a complete transformation, evolving into a world-class center featuring a library, scientist lounges, a cafeteria, a coffee house for scientists, modern offices, conference rooms, a gymnasium, and outdoor meeting areas. As part of this expansion, we have recruited additional R&D scientists and engineers, focusing on those with
PhDs or Masters degrees.
Furthermore, our Pilot Plant has been significantly expanded with the installation of additional pilot-scale equipment, tripling its current capacity. The upgraded plant features cutting-edge reaction technology in both batch and continuous regimes, world-class instrumentation, engineering and safety systems, all fully automated with DCS process automation.
Pilot Plant
We have a state-of-art Pilot Plant, which is a vital link between R&D and large scale production. Our Pilot Plant has a dual functionality; it functions to generate critical scale-up data in the transition from R&D to production to help eliminate issues at full production scale; and it also functions as a stand-alone manufacturing facility for low volume, high value products for our CRAMS customers Our Pilot Plant encompasses a wide range of reactor and downstream equipment, in both continuous and batch regimes, across the entire range of scale-up volumes, metallurgy, and process parameters and is automated through DCS process automation. We have tripled our Pilot Plant facility in the Fiscal Year 2023, by increasing the number of reactors.
Upcoming projects
In March 2024, the Manufacturing Facility 4 has been commissioned and production started in our 100% Wholly Owned Subsidiary - Aether Speciality Chemicals Limited, which will help us save Income Tax by 7% (basic rate). This facility is currently equipped specifically for 6 Products to be manufactured under Contract / Exclusive Manufacturing (C/E M) model for Baker Hughes.
We have also in Fiscal Year 2022, procured plot of land at Panoli GIDC, Bharuch District, Gujarat, which is approximately 1,25,000 plus Sq. Mtrs. and will be utilised for future expansion by the Company. During the Fiscal Year 2024, we have received the regulatory and other approvals for the expansion of this site and first phase work has started. We have also procured extra lands near the Manufacturing Facility 3, which we term as 3+/3++ and the same will be used for the expansion at Manufacturing Facility 3. The funding of the Manufacturing Facility 3+/3++ and Manufacturing
Facility 5 are being done from QIP of Rs. 7,500 MM, which was done in June 2023.
The Manufacturing Facility 3+/3++ is expected to be online and working by end of Fiscal Year 2025. And the first phase of Manufacturing Facility 5 is expected be online and working by end of Fiscal Year 2026.
Raw Materials
The raw materials utilized in our manufacturing processes are predominantly sourced from third-party suppliers both globally and within India.
In Fiscal Year 2024, our cost of goods sold (which includes the cost of materials consumed and changes in inventories of finished goods and work-in-progress) amounted to 3,193.45 MM (Fiscal Year 2023: 3,173.39 MM), with the cost of materials consumed representing 53.61% of our revenue from operations (Fiscal Year 2023: 48.74%). Our raw materials encompass crude oil derivatives such as phenol, as well as other essential commodities including hydrogen, ethylene oxide, and isobutylene gas. Key raw materials also include chlorobenzonitrile, methanol, toluene, methylene dichloride, tetrahydrofuran, dichlorotoluene, and thiophene, among others. The increase in cost of goods sold can be attributed to reduced sales and a decrease in finished goods inventory due to the fire incident at Manufacturing Facility 2 in November 2023.
The pricing of our raw materials is generally based on or linked to international market prices, and fluctuations are typically passed on to our customers. We do not typically engage in long-term supply contracts with our raw material suppliers; instead, we source these materials through shorter-term contracts or from the open market. The prices of our key raw materials have been volatile on a global scale, and increases in these prices directly impact our production costs.
During Fiscal Year 2024, we observed a decline in raw material prices, with some reaching historically low levels. However, we do not anticipate further reductions. Most prices have since stabilized and are within a manageable range.
Inventory Management
Our finished products are stored on-site at our manufacturing facilities, while raw materials are housed in nearby warehouses procured by the Company on leased premises. Ready-to-use raw materials for production are stored in on-site warehouses. To mitigate the risk of raw material price fluctuations, we typically maintain at least five months of inventory across raw materials, work-in-progress, and recoveries. Specifically, we hold 15 to 30 days of inventory in Work-in-Progress (semi-finished goods), and we maintain minimal inventory of finished goods due to the demand-driven nature of our production process. We usually manufacture finished goods based on orders received, ensuring that they are not held in inventory for more than a week.
We employ a lead-time material requirement planning system and utilize ERP software to manage our inventory levels in real-time. As of March 31, 2024, our inventory in work-in-progress had increased to over 210 days due to the fire accident at Manufacturing Facility 2, which led to its closure for several months. Partial operations resumed in January 2024, and production restarted in February 2024, leading to an increase in work-in-progress as we prioritized manufacturing key products.
Sales and Marketing
Our business primarily operates on a business-to-business model, with a strong emphasis on maintaining continuous engagement with customers and ensuring timely deliveries. Additionally, we have an exclusive distributor for the Telangana region of India. Our sales, marketing, and business development teams are dedicated to securing new orders, providing accurate pricing, and thoroughly understanding customer needs. These teams are led by industry veterans, including Raymond Paul Roach (Business Development Leader – Americas), Dr. James Ringer (Chief Technology Officer), and Dr. Norbert Fl?ggen (Business Development Leader – Europe).
We actively participate in prominent trade shows and exhibitions, such as CPHI in India, Europe, Japan, China, and the USA; Chemical Outsourcing in the USA; and Chemspec in India and Europe. Furthermore, our sales team members are frequently invited to speak at various industry forums, showcasing our expertise and thought leadership.
To better serve our existing direct end-use customers, acquire new ones, and extend our product reach into new markets, we are pursuing a global expansion strategy. This includes the establishment of dedicated teams focused on business development in key international markets, particularly in Europe and the Americas.
Our strategic priorities include increasing the number of global stock points and strengthening our sales teams in India, the Americas, and Europe to ensure timely product delivery and enhanced customer service.
Information Technology
Our IT systems are critical to the seamless operation of our business, and we have implemented comprehensive IT policies to support our operations effectively. Our IT teams primary responsibilities include establishing and maintaining enterprise information systems, delivering infrastructure services to meet our business needs, and ensuring the security of our enterprise operations.
We leverage SAP, an enterprise resource planning (ERP) solution, which supports a wide array of business functions, including sales distribution, materials management, warehouse management, production planning, quality management, plant maintenance, finance and controlling, environment, health and safety, and human resources across all our offices, R&D facilities, and manufacturing plants.
Our information security strategy is focused on protecting data and assuring our customers of the security of their intellectual property (IP). To this end, we have implemented a robust data management facility, access restriction systems, and other advanced security measures.
We are committed to maintaining confidentiality, ensuring the integrity and availability of all physical and electronic information assets across our facilities, and meeting legal, regulatory, and operational requirements.
We believe our disaster recovery, business continuity, and backup policies are strong and effective. We employ a VMware Virtualisation System in redundant mode, with centralized storage and thin client systems, alongside a redundant firewall. All users access our systems exclusively through VPN, and for data security, we utilize a Remote Desktop Protocol (RDP) system with thin clients.
In Fiscal Year 2024, we initiated the implementation of SAP S/4HANA, an advanced version of our current SAP-B1 system. We anticipate this new system will go live in the second half of FY25, enhancing our day-today operations and facilitating the integration of various departmental workflows.
Risk Management
We believe that risk management is an integral part of our operations. We believe that it is essential to identify and manage risks in order to reduce uncertainties and ensure continuity of business. We have a risk management framework and risk management team that implements the processes specified in the framework.
We aim to provide a high degree of safety to our employees, especially at our factories where chemical processes are executed. We undertake regular inspection of our machineries and also undertake periodic maintenance checks on other equipment in order to ensure they meet safety requirements.
Insurance
We maintain comprehensive insurance coverage that we deem essential for the protection of our business operations. Our insurance portfolio includes a policy that provides coverage against material damage to buildings, facilities, machinery, furniture, fixtures, fittings, stocks, and machinery breakdown. Additionally, we hold a cargo insurance policy that covers consignments of goods during transit by sea, air, and courier services, extending until delivery to the customers warehouse, as well as inland bulk cargo movement via road tanker.
Moreover, we maintain a commercial general liability insurance policy that safeguards against liabilities arising from bodily injury (including medical payments), property damage, and personal and advertising injury claims. To address specific IT and system-related risks, we have secured a cyber insurance policy. We also offer our employees COVID-19 insurance, covering pre- and post-hospitalization expenses and emergency road ambulance costs. For our Directors and Senior
Management, we have a Directors and Officers liability insurance policy, and for our employees, we provide Group Medical Insurance, Group Term Insurance, and Group Personal Accident coverage.
During Fiscal Year 2024, a fire incident occurred at our Manufacturing Facility 2, resulting in the complete destruction of Plant 2 and its Tank Farms, as well as minor damage to Plant 1 and other parts of the facility.
The damages sustained to plants, machinery, equipment, furniture, stocks, and the resulting loss of profit are comprehensively covered under our Industrial All Risk (IAR) Insurance Policy. We have submitted a total claim of approximately 1,000 MM, which has been accepted by our insurer, IFFCO Tokio General Insurance Company.
Competition
The speciality chemicals industry presents significant entry barriers, including customer validation and approvals, expectation from customers for process innovation and cost reduction, high quality standards and stringent specifications. Our competition varies by market, geographic areas and type of product. As a result, to remain competitive in our markets, we must continuously strive to reduce our costs of production, transportation and distribution and improve our operating efficiencies. We face competition primarily from international manufacturers especially Chinese companies. We compete primarily on the basis of product quality, technology, cost, delivery and service, as well as quality and depth of senior level relationships.
Human Resources
We place significant emphasis on the development of our human resources. As of March 31, 2024, our workforce comprised 954 employees (excluding trainees), compared to 889 as of March 31, 2023, along with 187 contract workers and trainees. The strategic blend of full-time employees and contract personnel allows us the flexibility to operate our business efficiently. During Fiscal Year 2024, our attrition rate was 4.08%, primarily influenced by the fire incident at
Manufacturing Facility 2, which led to the departure of several employees. In contrast, our attrition rate in Fiscal Year 2023 was 1.83%. The average age of our workforce as of March 31, 2024, was 29 years. As of the same date, we employed 148 scientists holding either a PhD or Master of Science degree (constituting 11.64% of our workforce), an increase from 111 scientists in the previous year. Additionally, we had 128 chemical engineers, representing 13.42% of our workforce, up from 122 engineers as of March 31, 2023.
Our employees are not affiliated with any unions, and we have not encountered any significant work stoppages due to labor disputes or cessation of work over the past three years.
Our workforce plays a pivotal role in maintaining our standards of quality, productivity, and safety, which in turn bolsters our competitive advantage. The following table provides details of our employee count as of March 31, 2024:
| Departments / Teams | No. of employees |
| Management and administration | 4 |
| Human Resource (HR) & Admin | 29 |
| Computer Information System (CIS) | 15 |
| Finance & Accounts | 12 |
| Logistics & EXIM | 5 |
| Procurement | 3 |
| Sales | 3 |
| Stores / Warehouse | 71 |
| Quality Control / Analytical Lab / Quality | 70 |
| Assurance (CQ/ADL/QA) | |
| Research & Development (R&D) | 107 |
| Control & Instrumentation (C&I) | 38 |
| Environment Health & Safety (EHS) | 45 |
| Effluent Treatment (ETP) | 50 |
| Maintenance | 137 |
| Electrical | 42 |
| Production | 308 |
| Process & Project | 12 |
| Creative Team | 3 |
| Total | 954 |
Our goal is to cultivate a culture grounded in fairness and respect, ensuring adherence to our Code of Conduct while safeguarding employees against discrimination, harassment, and retaliation. We are committed to regularly evaluating and enhancing our human resource initiatives to make them more inclusive, engaging, and focused on skill development. We place a strong emphasis on fostering and maintaining a superior organizational climate centered on human performance. Additionally, we provide our employees with a broad array of training opportunities and have established a comprehensive learning and development policy to support these training initiatives.
Intellectual Property
We have applied for various trademark registration for our corporate logo under various classes of the Trademark Act, 1999, and Trade Rules, 2002, before the Registrar of Trademarks. The application has been made in the name of the Company. The table below sets forth our trademarks applications which are either approved or accepted, as of March 31, 2024:
| Country | Name of IPR - TM / C | Class | Status |
| USA | Aether, with logo and elementally innovative | Int - 1 | ? Approved |
| India | Aether, with logo and elementally innovative | Logo | ? Approved |
| India | Wordmark "Aether Industries Limited" - TM | 35 | Accepted |
| India | Wordmark "elementally innovative" - TM | 35 | Accepted |
| India | Wordmark "elementally innovative" - TM | 1 | ? Approved |
| India | Wordmark "elementally innovative" - TM | 5 | ? Approved |
| India | Aether, with logo and elementally innovative | 35 | Accepted |
| India | Aether, with logo and elementally innovative | 1 | ? Approved |
| India | Aether, with logo and elementally innovative | 5 | ? Approved |
| India | Aether "Arrow" (symbol only) - Logo | 1 | ? Approved |
| India | Aether "Arrow" (symbol only) - Logo | 5 | ? Approved |
| India | Aether "Arrow" (symbol only) - Logo | 35 | Accepted |
| India | Device " !"#$ " - TM | 2 | Accepted |
| India | Device " !"#$ " - TM | 4 | Accepted |
| India | Device " !"#$ " - TM | 5 | Accepted |
| India | Device " !"#$ " - TM | 2 | Accepted |
| India | Device " !"#$ " - TM | 4 | Accepted |
| India | Device " !"#$ " - TM | 5 | Accepted ? |
| India | Wordmark "aether" - TM | 2 | Approved |
| India | Wordmark "aether" - TM | 4 | Accepted ? |
| India | Wordmark "aether" - TM | 5 | Approved ? |
| India | Wordmark "aether" - TM | 7 | Approved |
| India | Wordmark "aether" - TM | 8 | Accepted ? |
| India | Wordmark "aether" - TM | 13 | Approved ? |
| India | Wordmark "aether" - TM | 15 | Approved ? |
| India | Wordmark "aether" - TM | 17 | Approved ? |
| India | Wordmark "aether" - TM | 18 | Approved ? |
| India | Wordmark "aether" - TM | 19 | Approved ? |
| India | Wordmark "aether" - TM | 22 | Approved ? |
| India | Wordmark "aether" - TM | 23 | Approved ? |
| India | Wordmark "aether" - TM | 24 | Approved ? |
| India | Wordmark "aether" - TM | 26 | Approved ? |
| India | Wordmark "aether" - TM | 27 | Approved ? |
| India | Wordmark "aether" - TM | 28 | Approved ? |
| India | Wordmark "aether" - TM | 29 | Approved ? |
| India | Wordmark "aether" - TM | 31 | Approved ? |
| India | Wordmark "aether" - TM | 33 | Approved |
| India | Wordmark "aether" - TM | 36 | Accepted ? |
| India | Wordmark "aether" - TM | 37 | Approved |
| India | Wordmark "aether" - TM | 38 | Approved ? |
| India | Wordmark "aether" - TM | 39 | Approved ? |
| India | Wordmark "aether" - TM | 40 | Approved ? |
| India | Wordmark "aether" - TM | 43 | Approved ? |
| India | Wordmark "aether" - TM | 44 | Approved ? |
| India | Wordmark "aether" - TM | 45 | Approved |
We also have registered the domain names aether.co.in, which is renewable periodically.
We also rely on a combination of trade secret, and copyright law and contractual restrictions to protect our intellectual property. We do not own any patents. We have agreements with our employees and consultants which include confidentiality provisions and provisions on ownership of intellectual property developed during employment or specific assignments, as applicable.
Our Company has received the following key awards, accreditation and recognition:
| Year | Certifications / Accreditations / Awards |
| 2015 | Awarded with ISO 9001:2015 (Manufacturing Facility 1 – Hojiwala Unit) |
| 2017 | Awarded with ISO 9001:2015 |
| 2017 | Awarded with GMP – (ICH Q7 Revision 1) |
| 2018 | Awarded with ISO 14001:2015 |
| 2021 | Awarded with ISO 27001:2013 |
| 2021 | Awarded with ISO 45001:2018 |
| 2022 | Silver rating from EcoVadis (Sustainability Rating) |
| 2022 | Membership to UN Global Compact (Network India) |
| 2023 | Membership of Indian Chemical Council (ICC) Award from Dun & Bradstreet / SBI Business |
| 2024 | Enterprise of tomorrow for Champions of the Year under Atmanirbhar Abhiyan Award from Dun & Bradstreet / SBI Business |
| 2024 | Enterprise of tomorrow for Chemicals & Pharma (Mid-Corporate) |
| 2024 | Awarded with ISO 9001: 2015 - 8202 site |
| 2024 | Awarded with ISO 14001:2015 & ISO 45001 : 2018 - Hojiwala site |
Principal Factors affecting our Results of Operations
Our financial performance and results of operations are influenced by a variety of factors, including without limitation, global and domestic competition, conditions in the markets of our end-user products, general economic conditions, changes in costs of raw materials and government regulations and policies.
Raw materials price fluctuations and availability Our cost of goods sold, which encompasses the cost of materials consumed and changes in inventories of finished goods and work-in-progress, constitutes a significant portion of our operating expenses. In Fiscal Year 2024, our cost of goods sold amounted to 3,193.45 MM (Fiscal Year 2023: 3,173.39 MM), representing 53.61% of our revenue from operations (Fiscal Year 2023: 48.74%). We primarily procure raw materials from third-party suppliers, including imports. These materials include crude oil derivatives, such as phenol, and other key commodities like hydrogen, ethylene oxide, and isobutylene gas. Additional critical raw materials include chlorobenzonitrile, methanol, toluene, methylene dichloride, tetrahydrofuran, dichlorotoluene, and thiophene, among others.
Typically, we do not engage in long-term supply contracts with our raw material suppliers; instead, we source materials through shorter-term contracts or on the open market. The prices of our key raw materials are generally linked to international markets and have exhibited volatility, which can impact our production costs. While fluctuations in crude oil prices may influence our revenues, our profitability tends to be less affected as these price variations are usually passed on to our customers.
In Fiscal Year 2024, our cost of materials as a percentage of total revenue increased, primarily due to reduced production and sales resulting from lower pricing and the adverse effects of the fire accident at Manufacturing Facility 2. Looking ahead, we anticipate that prices will stabilize and eventually increase, which should help us lower our cost of goods sold in the future.
Foreign exchange rate risk
Our financial statements are prepared in Indian
Rupees. However, a significant portion of our revenue from exports and raw material expenditures are denominated in foreign currencies, predominantly the U.S. Dollar. As a result, we are exposed to currency fluctuations related to transactions in currencies other than Indian Rupees, especially the U.S. Dollar.
In Fiscal Year 2024, 33.81% of our revenue from operations was derived from exports (excluding Deemed Exports), compared to 44.85% in Fiscal Year 2023. Our net foreign currency-denominated sales (calculated as sales in foreign currency minus expenses related to these sales, excluding Deemed Exports) totalled 2,014 MM in Fiscal Year 2024, down from 2,920.37 MM in the previous fiscal year. Additionally, 24.57% of our raw materials were imported in Fiscal Year 2024, a decrease from 38.60% in Fiscal Year 2023. This reduction is largely due to a strategic buildup of inventory in response to falling international prices and increased availability of raw materials domestically.
Exchange rate fluctuations also impact our ability to meet debt obligations denominated in foreign currencies, such as our Packing Credit Loans in Foreign Currencies. We do not engage in hedging activities to mitigate our foreign currency exposure. Consequently, we are subject to fluctuations in exchange rates among the U.S. Dollar, Indian Rupee, and other currencies. In Fiscal Year 2024, we recorded a gain of 35.43 MM from these currency fluctuations, compared to 36.65 MM in Fiscal Year 2023.
Capital expenditure
We require substantial capital for the upkeep and expansion of our facilities. In Fiscal Year 2024, our capital expenditure was 3,185.77 MM, compared to 3,915.11 MM in Fiscal Year 2023. This expenditure focused on constructing and enhancing manufacturing facilities and diversifying our product range.
As of March 31, 2024, our operations span three sites in India: Manufacturing Facility 1 (3,500 sq. m) for R&D and other activities; Manufacturing Facility 2 (10,500 sq. m) with a production capacity of 6,096 MTPA and a solvent recovery plant; and Site 3 (5,250 sq. m) for new product launches. In March 2024, Manufacturing Facility 4 was commissioned for contract manufacturing with Baker Hughes, offering tax benefits. Additionally, we acquired over 125,000 sq. m in Panoli GIDC for future expansion and have begun the first phase of development. Expansion plans for Manufacturing Facility 3+/3++ and Manufacturing Facility 5 are funded by a 7,500 million QIP from June 2023. We anticipate Manufacturing Facility 3+/3++ will be operational by the end of Fiscal Year 2025, with Manufacturing Facility 5s first phase expected by the end of Fiscal Year 2026.
Dependence of demand from pharmaceutical and agrochemical industries As of March 31, 2024, we had over twenty-nine (29) commercial products including twenty (26) pharmaceutical, one (1) coating and two (2) agrochemical intermediates and specialty chemicals. Our products find applications across a number of therapeutic segments in the pharmaceuticals industry, including hypertension, anti-platelet, anti-psychotic, anti-histamine and non-steroidal anti-inflammatory drugs ("NSAIDs"). We also have products across other customer segments, such as agrochemicals, material science, coatings, multiple-use, high performance photography, food additives and oil and gas. In the Fiscal Year 2024, revenues from our pharmaceutical products were 3,038.54 MM (Fiscal Year 2023: 2,744.05 MM), which represented 51.01% (Fiscal Year 2023: 42.15%) of our operating revenue; and revenues from agrochemical products were 1,629.51 MM (Fiscal Year 2023: 2,261.72 MM), which represented 27.36% (Fiscal Year 2023: 34.74%), of our revenue from operations. Consequently, our revenues are dependent on the pharmaceutical and agrochemical industries that use our products as an input. We have other segments, which have shown an upward trend in Fiscal Year 2024, which include High Performance Photography, Material Science, Coatings and Multiple Applications.
Reliance on major customers and relatively few products
Our customer base includes numerous multinational and domestic companies. In Fiscal Year 2024, our largest customer contributed approximately 10.71% of revenue (down from 14.01% in Fiscal Year 2023). Our top 10 customers accounted for about 50.51% of revenue (compared to 54.94% in Fiscal Year 2023), while our top 20 customers contributed 64.63% (down from 69.92% in Fiscal Year 2023). This indicates a reduced dependence on major customers and an expanded client base.
For Fiscal Year 2024, our top five specialty chemical products (4MEP, MMBC, T2E, BFA, and NODG) represented 50.82% of gross revenue, showing a decline from 54.50% in the previous fiscal year, reflecting a broader product portfolio.
We maintain several supply contracts, ranging from one to five years, primarily with multinational clients for our CRAMS and contract manufacturing services.
Competition
Our products are used in end-user industries, such as pharmaceuticals, agrochemicals, amongst other industries. The broad-spectrum application of our products in the chemical industry is for advanced intermediates and significantly higher value specialty chemicals, which we believe is a unique position in the Indian chemical industry.
Moreover, whatever new products that we are developing in our R&D Facility are also such products which will be the first of its kind in India and we would be dominating the Indian market with the new products as well.
Costs of power and fuel
Power and fuel are essential for the uninterrupted operation of our manufacturing facilities. In Fiscal Year 2024, electricity charges represented 2.26% of our revenue from operations (down from 2.94% in Fiscal Year 2023). Overall power and fuel costs, including gas, steam, and diesel, accounted for 4.51% of revenue (a decrease from 5.59% in Fiscal Year 2023).
Between Fiscal Year 2023 and Fiscal Year 2024:
• Steam charges decreased from 230.23 MM to 202.03 MM, driven by lower coal and crude oil prices and reduced production activities following the fire at Manufacturing Facility 2.
• Electricity expenses fell from 191.45 MM to 134.47 MM, largely due to the commissioning of a 16 MW Solar Power Plant in July 2022, which has lowered our electricity costs.
The reduction in power and fuel costs as a percentage of revenue in Fiscal Year 2024 is attributed to decreased production activities and lower coal, oil, and gas prices.
Non-GAAP Financial Measures
Alongside our results prepared in accordance with Ind AS, we believe that the following non-GAAP measures provide valuable insights for assessing our performance and for investor evaluation: EBITDA, EBITDA Margin, PAT Margin, ROE, Capital Employed, ROCE, Debt, Net Debt, Debt-Equity Ratio, Net Debt-EBITDA Ratio, Net Worth, Return on Net Worth, Net Asset Value per Equity Share, Pre-Tax Operating Profit, Net Tangible Assets, Monetary Assets, and the percentage of Monetary Assets to Net Tangible Assets. These non-GAAP metrics are used internally for ongoing operational assessment, planning, and forecasting.
We believe that non-GAAP financial information, when considered alongside Ind AS-compliant measures, offers additional tools for investors to evaluate our operating results, trends, and for comparative analysis within our industry. They provide consistency and comparability with historical performance. However, our management does not view these non-GAAP measures in isolation or as substitutes for Ind AS financial measures.
It is important to note that non-GAAP financial information is supplementary and has limitations as an analytical tool. It should not be considered in isolation or as a replacement for financial information prepared under Ind AS. These measures are not recognized under Ind AS and lack standardized definitions, which may vary from those used by other companies. The main limitation of these non-GAAP measures is their exclusion of significant expenses and income required by Ind AS to be recorded in our financial statements. Moreover, they reflect managements judgment regarding which items are included or excluded. Reconciliations of non-GAAP measures to their closest Ind AS-compliant counterparts are provided below. Investors are encouraged to review these reconciliations and not rely solely on any single financial measure for evaluating our business.
| Particulars | As at, or for the year ended March 31, | |
| In MM | 2024 | 2023 |
| EBITDA (1) | 1,176.84 | 1,862.51 |
| EBITDA Margin (2) | 19.76% | 28.61% |
| PAT Margin (3) | 13.77% | 19.53% |
| ROE (4) | 4.26% | 10.48% |
| Capital Employed (5) | 16,425.17 | 11,414.69 |
| ROCE (6) | 4.77% | 14.28% |
| Debt (7) | 1,292.03 | 1.06 |
| Net Debt (8) | - 2,688.23 | 330.62 |
| Debt-Equity Ratio (9) | 0.06 | 0.00 |
| Net Debt-EBITDA Ratio (10) | -2.28 | 0.18 |
| Net Tangible Assets (11) | 19,306.93 | 11,317.69 |
| Monetary Assets (12) | 53.54 | 708.64 |
| % of Monetary Assets to Net | 0.28% | 6.26% |
| Tangible Assets (13) | ||
| Net Worth (14) | 20,689.33 | 12,446.09 |
| Return on Net Worth (15) | 4.26% | 10.48% |
| Pre-Tax Operating Profit (16) | 782.70 | 1,630.06 |
| Net Asset Value per Equity Share (17) | 156.09 | 99.96 |
Notes
(1) EBITDA is calculated as the sum of (i) profit before tax and prior period items for the period/year, (ii) depreciation and amortization expenses, and (iii) finance costs less (iv) other income.
(2) EBITDA Margin is calculated as EBITDA divided by revenue from operations.
(3) PAT Margin is calculated as profit for the period/ year divided by total income.
(4) ROE is calculated as profit for the period/year divided by total equity.
(5) Capital Employed is calculated as total equity, plus non-current borrowings, plus current borrowings, less current investments, less cash & cash equivalents, less bank balances other than cash & cash equivalents.
(6) ROCE is calculated as earnings before interest and taxes divided by Capital Employed.
(7) Debt is calculated as the sum of current borrowings and non-current borrowings.
(8) Net Debt is calculated as total liabilities less cash & cash equivalents and bank balances.
(9) Debt-Equity Ratio is calculated as Debt divided by total equity.
(10)Net Debt-EBITDA Ratio is calculated as Net Debt divided by EBITDA.
(11)Net Tangible Assets is calculated as the sum of all the assets of our Company excluding, right of use assets and other intangible assets as reduced by total liabilities of our Company.
(12)Monetary Assets is calculated as cash and cash equivalents and bank balances and excluding bank deposits with remaining maturity of more than twelve months and fixed deposits held as margin money.
(13)Percentage of Monetary Assets to Net Tangible Assets is calculated as Monetary Assets divided by Net Tangible Assets, expressed as a percentage.
(14)Net Worth is calculated as the aggregate value of the paid-up share capital and all reserves created out of the profits (inclusive of net gain consequent to fair valuation of certain assets on transition to Ind AS) and securities premium account and debit or credit balance of profit and loss account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the audited balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation.
(15)Return on Net Worth is calculated as profit for the period/year divided by Net Worth.
(16)Pre-Tax Operating Profit is calculated as profit before tax and prior period items for the period/ year, excluding other income, finance costs and other comprehensive income.
(17)Net Asset Value per Equity Share is calculated as Net Worth divided by the weighted average number of equity shares for the period/year as adjusted for bonus issue. Weighted average number of equity shares is the number of equity shares outstanding at the beginning of the year/period adjusted by the number of equity shares issued during the year/ period multiplied by the time weighting factor. The time weighting factor is the number of days for which the specific shares are outstanding as a proportion of total number of days during the year/ period.
EBITDA, EBITDA Margin, PAT Margin and ROE The following table sets forth our EBITDA, EBITDA Margin, PAT Margin and ROE, in each of the Fiscal Year 2024 and Fiscal Year 2023
| Particulars | For the year ended March 31, | |
| In MM | 2024 | 2023 |
| Total income (A) | 6,399.33 | 6,676.39 |
| Revenue from operations (B) | 5,956.69 | 6,510.74 |
| Profit before tax and prior period items (C) | 1,140.17 | 1,744.79 |
| Add: Finance costs (D) | 85.17 | 50.93 |
| Add: Depreciation and amortization expenses (E) | 394.15 | 232.45 |
| Less: Other income (F) | 442.64 | 165.65 |
| EBITDA (G=C+D+E-F) | 1,176.84 | 1,862.51 |
| EBITDA Margin (H=G/B) | 19.76% | 28.61% |
| Profit for the period (I) | 880.98 | 1,304.17 |
| Total equity (J) | 20,689.33 | 12,446.09 |
| PAT Margin (I/A) | 13.77% | 19.53% |
| Return on Equity - ROE (I/J) | 4.26% | 10.48% |
Capital Employed and Return on Capital Employed (ROCE) The following table sets forth our Capital Employed and Return on Capital Employed (ROCE), including a reconciliation of ROCE to our profits/losses before tax and prior period items in each of the Fiscal Year 2024 and Fiscal Year 2023.
| Particulars | As at, or for the year ended March 31, | |
| In MM | 2024 | 2023 |
| Profit before tax and prior period items (A) | 1,140.17 | 1,744.79 |
| Add: Finance costs (B) | 85.17 | 50.93 |
| Less: Other income (C) | 442.64 | 165.65 |
| EBIT (D=A+B-C) | 782.69 | 1,630.06 |
| Total equity (E) | 20,689.33 | 12,446.09 |
| Non-current borrowings (F) | 0.00 | 0.00 |
| Current borrowings (G) | 1,292.03 | 1.06 |
| Current investments (H) | 0.00 | 10.01 |
| Cash & cash equivalents (I) | 53.54 | 708.64 |
| Bank balance other than cash & cash equivalents (J) | 5,502.65 | 313.81 |
| Capital Employed (K=E+F+G-H-I-J) | 16,425.17 | 11,414.69 |
| ROCE (L=D/K) | 4.77% | 14.28% |
Debt, Net Debt, Debt-Equity Ratio and Net Debt-EBITDA Ratio The following table sets forth our Debt, Net Debt, Debt-Equity Ratio and Net Debt-EBITDA Ratio as at March 31, 2024 and March 31, 2023
| Particulars | As at, or for the year ended March 31, | |
| In MM | 2024 | 2023 |
| Non-current borrowings (A) | 0.00 | 0.00 |
| Current borrowings (B) | 1,292.03 | 1.06 |
| Debt (C=A+B) | 1,292.03 | 1.06 |
| Total equity (D) | 20,689.33 | 12,446.09 |
| Debt-Equity Ratio (E=C/D) | 0.06 | 0.00 |
| Total liabilities (G) | 2,867.96 | 1,353.08 |
| Less: cash and cash equivalents and bank balances (H) | 5,556.19 | 1,022.45 |
| Net Debt (I=G-H) | - 2,688.23 | 330.63 |
| EBITDA (J) | 1,176.84 | 1,862.51 |
| Net Debt-EBITDA Ratio (K=I/J) | -2.28 | 0.18 |
Overview of Revenue and Expenditure
The following descriptions set forth information with respect to key components of our income statement.
| Particulars | As at, or for the year ended March 31, | |
| In MM | 2024 | 2023 |
| Total income (A) | 6,399.33 | 6,676.39 |
| Revenue from operations (B) | 5,956.69 | 6,510.74 |
| Profit before tax and prior period items (C) | 1,140.17 | 1,744.79 |
| Add: Finance costs (D) | 85.17 | 50.93 |
| Add: Depreciation and amortization expenses (E) | 394.15 | 232.45 |
| Less: Other income (F) | 442.64 | 165.65 |
| EBITDA (G=C+D+E-F) | 1,176.84 | 1,862.51 |
| EBITDA Margin (H=G/B) | 19.76% | 28.61% |
| Profit for the period (I) | 880.98 | 1,304.17 |
| Total equity (J) | 20,689.33 | 12,446.09 |
| PAT Margin (I/A) | 13.77% | 19.53% |
Sale of products manufactured are done under our three business models, namely (i) Large-Scale Manufacturing of Specialty Chemicals, (ii) Contract Manufacturing, and (iii) Contract Research and Manufacturing Services ("CRAMS"). Such sales of products can be divided into (i) local sales, (ii) export sales (including sales to SEZ units within India), (iii) deemed exports (representing sales to Indian companies under an advance authorization license) and (iv) export sales under our CRAMS business model.
Sale of services are done under our CRAMS business model. Such sales can be divided into services provided to (i) overseas customers and (ii) customers in India.
Other income
Other income primarily comprises interest income, income from foreign exchange fluctuation, MEIS Duty Credit, SEIS Duty Credit, exports duty drawback, interest accrued on loans to employees, interest on income tax refund, interest subsidy amongst others.
Expenditure
Our expenditure comprises the following:
Cost of materials consumed
Cost of materials consumed comprises (i) the cost of raw materials used in the manufacture of our products; (ii) the cost of packing materials; (iii) the cost of stores and spares; and (iv) the cost of other materials. Our raw materials include crude oil derivatives such as phenol and other commodities such as hydrogen, ethylene oxide and Isobutylene gas.
Other important raw materials include chlorobenzonitrile methanol, toluene, methylene dichloride tetrahydrofuran, dichlorotoluene and thiophene.
Changes in inventories of finished goods and work-in-progress Expenses accounted for pursuant to an (increase)/ decrease in inventories of work-in-progress.
Employee benefit expenses
Employee benefit expenses comprises salaries, wages and bonus, contribution to provident and other funds, gratuity, staff welfare expenses, leave encashment expenses, employee medical insurance expenses, value of discount in ESOPs and other employee related expenses.
Finance costs
Finance costs comprises interest expenses on term loan, cash credit, Packing Credit Loan in Foreign Currency (PCFC), bill discounting, Stand by Letter of Credit (SLC), car loans and other unsecured loans.
Depreciation and amortization expenses
Depreciation and amortization expenses comprises depreciation of tangible assets including our plant and machinery, building, factory equipment, computer equipment, office and other equipment, furniture and fixture, amongst others; and amortization of intangible assets including computer software and others; and amortization of leasehold land.
Other expenses
Other expenses comprise primarily of (a) manufacturing expenses, such as gas expenses, steam charges, diesel expenses, water, fees paid to third party workers for solvent recovery services (classified as ‘job work charges in our Financial Statements), effluent disposal, and fees paid to contract works (classified as ‘manpower supply expenses in our
Financial Statements), amongst others; (b) administrative and general expenses, such as rents, salaries to directors, repairs and maintenance expenses, electricity expenses, legal and professional charges, amongst others; (c) selling and distribution expenses, such as freight and selling expenses and commissions paid to selling agents, amongst others; and (d) other expenses, such as loan processing fees and other documentation charges and bank charges, amongst others.
Operating Segment and Business Models
Our Company is exclusively engaged in the business of manufacturing of organic chemicals. As such, in accordance with Ind AS, our Companys business is considered to constitute one single primary segment.
Geographic information
The geographic information analyses our revenues by our country of domicile and other countries for the periods/years indicated. In presenting geographic information, revenue has been based on the location of the customers.
| Particulars | For the year ended March 31, | |
| In MM | 2024 | 2023 |
| India (including deemed exports) | 3,458.59 | 3,590.36 |
| Rest of the world (including SEZ) | 2,498.10 | 2,920.38 |
| Total | 5,956.69 | 6,510.74 |
The following table sets out the total carrying amount of assets as at March 31, 2024 and March 31, 2023, broken down by location of the assets.
| Particulars | As atMarch 31, | |
| In MM | 2024 | 2023 |
| India | 921.68 | 1,066.06 |
| Rest of the World | 1,377.54 | 1,523.75 |
| Total | 2,299.22 | 2,589.81 |
Business models
We have three broad business models within our primary operating segment, which are (a) Large-Scale Manufacturing of Specialty Chemicals, (b) Contract Manufacturing, and (c) Contract Research and Manufacturing Services ("CRAMS"), and our geographical segments: The following table sets out our revenue for each of the periods/fiscal years mentioned, broken down by our three (3) business models.
| Particulars | For the year ended March 31, | |
| In MM | 2024 | 2023 |
| Large Scale Manufacturing | 3,539.49 | 3,356.91 |
| Contract Manufacturing | 1,534.53 | 2,233.79 |
| CRAMS | 826.61 | 816.59 |
| Others* | 56.06 | 103.45 |
| Total Revenue from Operations | 5,956.69 | 6,510.74 |
*Others represents sale of wastage material, as well as packing material and certain raw material no longer required in our production activities.
Results of Operations
The following table sets forth our income statement data, the components of which are expressed as a percentage of total income for the periods indicated, for our operations for Fiscal Year 2024 and Fiscal Year 2023.
| Particulars | As at March 31, 2024 | As atMarch 31, 2023 | ||
| In MM | % | In MM | % | |
| Income | ||||
| Revenue from operations | 5,956.69 | 93.08% | 6,510.74 | 97.52% |
| Other income | 442.64 | 6.92% | 165.65 | 2.48% |
| Total income | 6,399.33 | 100.00% | 6,676.39 | 100.00% |
| Expenses | ||||
| Cost of materials consumed | 3,757.87 | 63.09% | 3,796.14 | 58.31% |
| Changes in inventories of finished goods and work-in- progress | (564.42) | (9.48%) | (622.76) | (9.57%) |
| Income | ||||
| Employee benefits expense | 386.11 | 6.03% | 344.57 | 5.16% |
| Finance costs | 85.17 | 1.33% | 50.93 | 0.76% |
| Depreciation and amortization expenses | 394.15 | 6.16% | 232.45 | 3.48% |
| Other expenses | 1,062.66 | 16.61% | 1,130.27 | 16.93% |
| Total expenses | 1,928.09 | 80.03% | 1,758.22 | 73.87% |
| Profit before tax before exceptional items | 1,277.78 | 19.97% | 1,744.79 | 26.13% |
| Exceptional items | 137.62 | 2.15% | 0.00 | 0.00% |
| Profit before tax | 1,140.17 | 17.82% | 1,744.79 | 26.13% |
| Tax Expenses | ||||
| Current tax | 172.90 | 2.70% | 311.22 | 4.66% |
| Deferred tax | 86.29 | 1.35% | 129.39 | 1.94% |
| Total tax expenses | 259.19 | 4.05% | 440.61 | 6.60% |
| Profit for the year | 880.98 | 13.77% | 1,304.17 | 19.53% |
Net Assets Value (NAV)
The following table sets forth the Net Assets Value (NAV) per share for Fiscal Year 2024 and Fiscal Year 2023.
| Particulars | As at March 31, | |
| In MM | 2024 | 2023 |
| Total assets (A) | 23,557.29 | 13,799.16 |
| Less: Other intangible assets (B) | 55.69 | 5.83 |
| Less: Right of use assets (C) | 1,326.71 | 1,122.55 |
| Less: Total liabilities (D) | 2,867.96 | 1,353.08 |
| Net Tangible Assets (F=A-B-C-D) | 19,306.92 | 11,317.69 |
| Cash and cash equivalents and bank balances (G) | 5,556.19 | 1,022.45 |
| Less: Bank deposits with remaining maturity of more than 12 months (H) | 0.00 | 0.00 |
| Less: Fixed deposits held as margin money (I) | 5,502.65 | 313.81 |
| Monetary Assets (J=G-H-I) | 53.54 | 708.64 |
| % of Monetary Assets to Net | 0.28% | 6.26% |
| Tangible Assets (K=(J/F)*100)) (in %) | ||
| Net Worth (L=(1+2+3+4+5)) | 20,689.33 | 12,446.09 |
| Issued subscribed and fully paid-up equity share capital (1) | 1,325.50 | 1,245.11 |
| General reserve (2) | 0.00 | 0.00 |
| Securities premium reserve (3) | 15,416.17 | 8,162.55 |
| Retained earnings (4) | 3,901.41 | 3,022.88 |
| Employees share options reserve (5) | 46.24 | 15.56 |
| Profit for the year/period (M) | 880.98 | 1,304.17 |
| Return on Net Worth (N=M/L) (in %) | 0.04 | 0.10 |
| Profit before tax and prior period items (O) | 1,140.17 | 1,744.79 |
| Less: Other income (P) | 442.64 | 165.65 |
| Add: Finance costs (Q) | 85.17 | 50.93 |
| Pre-Tax Operating Profit (R=O-P+Q) | 782.70 | 1,630.07 |
| Number of equity shares outstanding at the end of the period / year, after adjustment of bonus issue (S) (number in MM) | 132.55 | 124.51 |
| Effect of dilutive potential equity shares | 0.00 | 0.00 |
| Number of equity shares outstanding at the end of the period / year, after adjustment of bonus issue (T) (number in MM) | 132.55 | 124.51 |
| Net Asset Value per Equity Share (basic) (U=L/S) (in ) | 156.09 | 99.96 |
| Net Asset Value per Equity Share (diluted) (V=L/T) (in ) | 156.09 | 99.96 |
The following table sets out the comparison of the revenues and expenses for the Fiscal Year 2024 and Fiscal Year 2023.
| Particulars | For the year ended March 31, | Change | |
| In MM | 2024 | 2023 | % |
| Income | |||
| Revenue from operations | 5,956.69 | 6,510.74 | (8.51%) |
| Other income | 442.64 | 165.65 | 167.21% |
| Total revenue | 6,399.33 | 6,676.39 | (4.15%) |
| Expenses | |||
| Cost of materials consumed | 3,757.87 | 3,796.14 | (1.01%) |
| Changes in inventories of finished goods and work-in- progress | (564.42) | (622.76) | (9.37%) |
| Employee benefits expenses | 386.11 | 344.57 | 12.06% |
| Finance costs | 85.17 | 50.93 | 67.23% |
| Depreciation and amortization expenses | 394.15 | 232.45 | 69.56% |
| Other expenses | 1,062.66 | 1,130.27 | (5.98%) |
| Total expenses | 5,121.54 | 4,931.60 | 3.85% |
| Profit before tax before exceptional items and tax | 1,277.78 | 1,744.79 | (26.77%) |
| Exceptional times | 137.62 | 0.00 | 100.00% |
| Profit before tax | 1,140.17 | 1,744.79 | (34.65%) |
| Tax expenses: | |||
| Current tax | 172.90 | 311.22 | (44.44%) |
| Deferred tax | 86.29 | 129.39 | (33.31%) |
| Total tax expenses | 259.19 | 440.61 | (41.17%) |
| Profit for the year | 880.98 | 1,304.17 | (32.45%) |
Revenue from operations
The revenue from operations in Fiscal Year 2024 amounted to 5,956.59 MM, as against 6,510.74 MM, a reduction of 8.51% in the comparative periods. The main reasons for the reduction in the revenue from operations was due to:
• China dumping of the various products manufactured by us and thus lowering the realisation per KG, which has been on going since February 2023, but the impact of which was
• immense in the Fiscal Year 2024, in the first half to be precise. The prices of the products had corrected down side and were at the lowest of all time in these many years, since Aether Industries Limited started its commercial business.
• Fire accident at Manufacturing Facility 2 on November 29, 2023, impacting the Plant 2 and Tank Farm majorly and Plant 1, Plant 3 and other parts partially. This haunted the manufacturing of the entire Manufacturing Facility 2 for at least 3 months, till the first partial revocation was received for 50% of the Manufacturing Facility 2 in January 2023. The 50% facility started its production in mid February 2024, after all regulatory approvals and changes in the equipment etc. and hence the Company did not get the last 5 months to manufacture and sell the desired products.
Other Income
Our other income increased by 167.21% from 165.65 MM in Fiscal Year 2023 to 442.64 MM in Fiscal Year 2024. Such increase was primarily due to (i) interest on FDs created out of Idle IPO / QIP funds, which helped us earn 335.19 MM in Fiscal Year 2024, which was 74.23 MM only in Fiscal Year 2023 on FDs created from IPO funds and normal FDs created for margin monies, (ii) duty drawback earned on exports done by the Company in Fiscal Year 2024 amounted to 11.35 MM as against 8.84 MM in Fiscal Year 2023 and (iv) MEIS duty credit which amounted to 2.09 MM in Fiscal Year 2024 as against 1.32 MM in Fiscal Year 2023.
Cost of Materials Consumed
Our cost of materials consumed reduced marginally by 1.01% from 3,796.14 MM in Fiscal Year 2023 to 3,757.87 MM in Fiscal Year 2024, primarily due to an reduction in the volume of products manufactured (mainly due to the fire accident at Manufacturing Facility 2) and also the reduction in the prices of Raw Materials.
Change in inventories of finished goods and work-in-progress Our opening stock of (i) finished goods was 536.19 MM as at April 1, 2024, while it was 549.57 MM as at April 1, 2023 and (ii) work-in-progress was 1,062.81 MM as at April 1, 2024, while it was 426.68 MM as at April 1, 2023.
Our closing stock of (i) finished goods was 492.61 MM as at March 31, 2024, while it was 536.19 MM as at March 31, 2023 and (ii) work-in-progress was 1,809.78 MM as at March 31, 2024, while it was 1,062.81 MM as at March 31, 2023.
The reduction in our change in inventories of finished goods and work-in-progress to 564.42 MM in Fiscal Year 2024 from 622.76 MM in Fiscal Year 2023 was primarily as result of a increase in closing stock of work-in-progress by 746.97 MM and reduction in closing inventory of finished goods by 43.58 MM as at March 31, 2024, respectively. The main reason in the increase in the stock of work-in-progress was due to the fact that the fire accident affected Manufacturing Facility 2, started production after 3 months of stoppage from November 2023 end till January 2024 end and thus most of the finished goods being in production stage.
Moreover, we have also written off stock worth of 138.97 MM, which was destroyed during the fire accident in November 2023. The same is fully insured with the Insurance Company and the claim for the same is submitted already.
Finance Costs
Our finance costs reduced by 67.23% from 50.93 MM in Fiscal Year 2023 to 85.17 MM in Fiscal Year 2024, primarily because the Company, after its IPO proceeds used to pay off all the debts, had to start with fresh working capital facilities from the banks for the ever increasing business needs. This was also increased due to the rates of interest which increased in Fiscal Year 2024 as compared to Fiscal Year 2023.
Depreciation and Amortization Expense
Our depreciation and amortization expense increased by 69.56% from 232.45 MM in Fiscal Year 2023 to 394.15 MM in Fiscal Year 2024, primarily due to an increase in depreciation on plant and machinery installed in our new manufacturing unit/plant constructed on our second manufacturing facility (Manufacturing Facility-2), which is in line with the increased operations. The increase is also attributable to the 16MW Solar Power Plant, which was commissioned in July 2022 and the Greenfield
Manufacturing Unit (Site 3), which was operational from Q4 of F23. Further the Manufacturing Facility 3 and the revamped and expanded R&D Unit and Pilot Plants have also lead to increase in the deprecation costs. All these are attributable to the expansion plans of the Company.
Other expenses
Our other expenses reduced by 5.98% from 1,130.27 MM in Fiscal 2023 to 1,062.66 MM in Fiscal Year 2024. The reduction, was though not as much, just 67.61 MM, mainly because of (i) reduction in electricity charges, which was due to the 16MW Solar Power Plant, which was commissioned in July 2022 and which helped the Company lower this cost, (ii) reduced operations due to the fire accident at Manufacturing Facility 2, (iii) reduction in the steam prices, attributable to the reduction in the prices of the coals and crude and (iv) other cost saving initiatives undertaken by the Company.
Exceptional items
During the Fiscal Year 2024, there was a fire accident at our Manufacturing Facility 2 in November 2023, which lead to some one time and exceptional expenses, which amount to 137.62 MM. these mainly included the compensations paid to the families of the deceased employees and contract workers, who died in this fire accident, hospitalisation and medical treatment of the employees and contract workers, who were injured in the fire accident, penalty paid to the GPCB, increased insurance premium due to the claim submitted to the insurance company and other miscellaneous expenses connected with the fire accident.
Profit before tax
As a result of the foregoing, we recorded an reduction of 26.77% in our profit before tax before exceptional items and reduction of 34.65% in our profit before tax after exceptional items, which amounted to 1,277.78 MM in Fiscal Year 2024, as compared to 1,744.79 MM in Fiscal Year 2023, before exceptional items and 1,140.17 MM in Fiscal Year 2024, as compared to 1,744.79 MM in Fiscal Year 2023, after exceptional items.
Tax expenses
Our tax expenses (current and deferred) reduced by
41.17% from 440.61 MM in Fiscal Year 2023 to 259.19 MM in Fiscal Year 2024. Our effective tax rate in Fiscal Year 2024 and Fiscal Year 2023 was 22.73% and 25.25%, respectively. The reduced tax rate and taxation was due to the revenues which were reduced due to the fire accident at Manufacturing Facility 2.
Profit for the period
As a result of the foregoing, we recorded a reduction of 32.45% in our profit for the year from 1,304.17 MM in Fiscal Year 2023 to 880.98 MM in Fiscal Year 2024.
Liquidity and Capital Resources
Capital Requirements
Our principal capital requirements are for payment for the various capex expansions on going at Site 3, Site 3++, Site 4 and 1st Phase of Site 5 along with principal and interest on our borrowings, capital expenditure and working capital.
Our principal source of funding has been and is expected to continue to be, cash generated from our operations, supplemented by borrowings from banks and financial institutions and optimization of operating working capital. In Fiscal Year 2023, Initial Public Offering (IPO) done in June 2022, has also been a source of funding for the Company. For the Fiscal Year 2023 and Fiscal Year 2022, we met our funding requirements, including satisfaction of debt obligations, capital expenditure, investments, other working capital requirements, payouts to shareholders and other cash outlays, principally with funds generated from operations, optimization of operating working capital with the balance met from external borrowings, borrowings from Promoters and a fundraising by way of issuance of equity shares by way of Preferential Allotment of Shares and also Initial Public Offering (IPO).
For the expansion projects that we intend to undertake, we will be utilizing a portion of the funds generated from this Issue along with a mix of debt, fund raising from the public by means permitted by the regulators and internal accruals.
Liquidity
Our liquidity requirements arise principally from our operating activities, capital expenditures for construction of new facilities and undertaking of new projects, the repayment of borrowings and debt service obligations. Historically, our principal sources of funding have included cash from operations, short-term and long-term borrowings from banks, overdraft facilities that are repayable on demand, cash and cash equivalents and equity and financing provided by our shareholders We have also entered into various revolving credit and other working capital facilities, which provides sufficient liquidity for our requirements. In Fiscal Year 2023, Initial Public Offering (IPO) done in June 2022, has also been a source of funding for the Company, along with Qualified Institutional Placement (QIP) done during Fiscal Year 2024 during June 2023.
Cash Flows
Our cash flows from operations have been slightly negative on account of increase in the debtor days and inventory days, mainly on account of various customers delaying the payments especially at quarter ends and releasing the same in the next month along with the inventory increase due, mainly in work-in-progress (semi finished goods) as we had restarted our Manufacturing facility 2 (50%) after the fire accident, in February 2024, wherein various products were in manufacturing and thus the increase.
Our Cash Flows for the Fiscal Year 2024 and Fiscal Year 2023 have been as depicted in the below table:
| Particulars | For the year ended March 31, | |
| In MM | 2024 | 2023 |
| Net Cash generated from Operating | (19.60) | (65.52) |
| Activities | ||
| Net Cash (Used in) Investing | (3,988.69) | (3,484.14) |
| Activities | ||
| Net Cash from/(Used in) Financing | 8,542.03 | 4,391.95 |
| Activities | ||
| Net Increase / (Decrease) in Cash and Cash Equivalents | 4,533.74 | 842.29 |
| Cash and Cash Equivalents at the beginning of the year | 1,022.45 | 180.16 |
| Cash and Cash Equivalents at the end of the year | 5,556.20 | 1,022.45 |
Cash flows generated from operating activities We had negative 19.60 MM net cash from operating activities during the Fiscal Year 2024. While our net profit before tax was 1,140.17 MM, we had an operating profit before working capital changes of 1,271.77 MM, primarily due to adjustments for depreciation and amortization expenses of 394.15 MM, finance costs of 85.17 MM and foreign exchange loss of 6.91 MM, which were partially offset by interest income and income from mutual funds amounting to 335.39 MM and 5.38 MM, respectively. Our adjustments for working capital changes for the Fiscal Year 2024 primarily consisted of decrease in trade receivables by 290.60 MM, increase in inventories by 942.73 MM and increase in other current assets by 517.67 MM, which were partially offset by a decrease in current investments by 10.01 MM and an increase in trade payables by 123.06 MM. Our cash generated from operating activities was 153.30 MM, adjusted by tax paid (net of refund) of 172.90 MM.
We had negative 65.52 MM net cash from operating activities during the Fiscal Year 2023. While our net profit before tax was 1,744.79 MM, we had an operating profit before working capital changes of 1,949.15 MM, primarily due to adjustments for depreciation and amortization expenses of 232.45 MM and finance costs of 50.93 MM, which were partially offset by net unrealized foreign exchange loss, interest income and income from mutual funds amounting to 3.85 MM, 74.31 MM and 8.55 MM, respectively. Our adjustments for working capital changes for the Fiscal Year 2023 primarily consisted of increases in trade receivables by 955.02 MM, inventories by 860.22 MM and other current assets by 152.35 MM, which were partially offset by a decrease in current investments by 160.10 MM and an increase in trade payables by 116.64 MM. Our cash generated from operating activities was 252.31 MM, adjusted by tax paid (net of refund) of 317.84 MM.
Cash flows used in investing activities
Net cash used in investing activities was 3,988.69 MM in Fiscal Year 2024, primarily on account of 1,374.33 MM used for purchase of fixed assets principally for Manufacturing Facility - 1 (R&D and Pilot Plant expansion to three times), Manufacturing Facility – 2 (normal CAPEX), Manufacturing Facility – 3 (New Greenfield Production unit commissioned in January 2023), further investments in expansion of 1,657.52 towards the apex towards Manufacturing Facility 3+/ 3++ and Phase One of Manufacturing Facility 5 (at Panoli) and advance payment for new Solar Power Plant of 15MW (Auto-Tracker) still in Capital Work in Progress, which will be capitalised in future years. There was also investment of 994.94 MM in the 100% Wholly Owned Subsidiary (Aether Speciality Chemicals Limited for Manufacturing Facility 4) in form of unsecured loans. These were partially offsetting by 38.10 due to income from Mutual Fund investments.
Net cash used in investing activities was 3,484.14 MM in Fiscal Year 2023, primarily on account of 4,014.20 MM used for purchase of fixed assets principally for Manufacturing Facility - 1 (R&D and Pilot Plant expansion to three times), Manufacturing Facility – 2 (normal CAPEX), Manufacturing Facility – 3 (New Greenfield Production unit commissioned in January 2023) and for the 16MW Solar Power Plant installed and commissioned rom July 2022, offset by 447.72 reduced from Capital Work in Progress, which were capitalised in Fiscal Year 2023 and 82.86 due to income from Mutual Fund investments.
Cash flows generated from / (used in) financing activities
Net cash used in financing activities in the Fiscal Year 2024 amounted to 8,542.03 MM, which primarily consisted of proceeds from allotment of shares in QIP amounting to 7,500.00 MM, proceeds from allotments or vesting of ESOPs to employees amounting to 8.58 MM and new working capital limits utilised of 1,292.03 MM, which were offset by interest paid in the amount of 69.49 MM and QIP expense amounting to 180.63 MM.
Net cash used in financing activities in the Fiscal Year 2023 amounted to 4,391.95 MM, which primarily consisted of proceeds from Preferential allotment of shares in Pre-IPO phase amounting to 1,300.00 MM, proceeds from Initial Public Offering (IPO) amounting to 6,270.00 MM, proceeds from allotments or vesting of ESOPs to employees amounting to 9.00 MM, which were offset by interest paid in the amount of 50.93 MM, repayment of term loans to the banks amounting to 1,510.33 MM, zero down of working capital facilities amounting to 890.16 MM, repayment of unsecured loans from the promoters amounting to 449.20 MM.
Capital and Other Commitments
As of March 31, 2024 and March 31, 2023, the estimated amount of contracts remaining to be executed on capital account not provided for was 21.07 MM and 184.68 MM, respectively.
Capital Expenditure
Capital expenditures consist primarily of investments in new manufacturing facilities and equipment. We also make investments at our manufacturing facilities to add new technologies, modernise facilities and expand our product lines. Capital expenditure will vary from year to year depending upon a number of factors, including the need to replace equipment and the timing of certain projects, such as investment in new technologies. In the Fiscal Year 2024, we incurred capital expenditure of 3,185.57 MM (Fiscal Year 2023: 3,915.11 MM). A significant amount of our capital expenditure was aimed at constructing manufacturing and other facilities, increasing our manufacturing capacities and diversifying our product base, along with the construction of the Greenfield Project at site 3+/3++, first phase of expansion at Manufacturing Facility 5.
Contingent Liabilities
Contingent liabilities, to the extent not provided for, as of March 31, 2024 and March 31, 2023, as determined in accordance with Ind AS 37, are described below:
| In MM | As of March 31, 2024 | As of March 31, 2023 |
| Bank Guarantees Issued for: | ||
| Customs | 8.89 | 8.89 |
| Gujarat Gas Ltd. | 20.71 | 20.71 |
| DGVCL | 54.55 | 47.40 |
| NHI | 0.25 | 0.00 |
| GPCB | 0.75 | 0.00 |
| Total Margin for above items | 11.83 | 14.37 |
| Raw Material FLC (in US $ MM) | $ 0.06 | $ 1.10 |
| Total Margin for above items | 0.62 | 8.94 |
| Income Tax Demands*: | ||
| AY 2017-18 (PY 2016-17) | 0.15 | 0.15 |
| AY 2018-19 (PY 2017-18) | 0.94 | 0.94 |
| AY 2020-21 (PY 2019-20) | 1.00 | 1.00 |
*The Income Tax Demands are under appeal by the Company and the outcome of the same is not known and hence the demand amount has been considered as contingent liability.
Note
All the Contingent Liabilities, except Income Tax Demands, listed above, which are outstanding as on current Balance Sheet date are not 100% secured through cash margins placed with the banks. Company is enjoying Bank Guarantee and LC Limit facilities from the banks, which require 15% Margin Money on Bank Guarantees and 15% Margin Money on LC Facilities. Margin reduced to maximum 2.5% in FY 2023-24 on BG and LC.
Financial risk management
Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Companys receivables from customers.
The Companys exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry and country in which customers operate.
Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess impairment loss or gain. The Company uses a matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors and Companys historical experience for customers.
• The company has not made any provision on expected credit loss on trade receivables and other financials assets, based on the management estimates.
• Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks and financial institutions with high credit ratings assigned by domestic credit rating agencies.
Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Companys approach to managing liquidity is to ensure, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companys reputation.
The Companys treasury department within the Finance Department is responsible for liquidity and funding. In addition policies and procedures relating to such risks are overseen by the management.
The table below sets out an analysis of working capital and current ratio as at March 31, 2024 and March 31, 2023: The table below sets out exposure to financial liabilities based on the contractual maturity as at the reporting date:
| In MM | As of March 31, 2024 | As of March 31, 2023 |
| Total Current Assets (A) | 13,821.04 | 6,751.28 |
| Total Current Liabilities (B) | 2,395.65 | 940.00 |
| Working Capital (A-B) | 11,425.38 | 5,811.28 |
| Current Ratio | 5.77 | 7.18 |
The table below sets out exposure to financial liabilities based on the contractual maturity as at the reporting date:
| In MM | Carrying value | Less than 1 Year | More than 1 Year | Total |
| As at March 31, 2024 | ||||
| Borrowings | 1,292.03 | 1,292.03 | 0.00 | 1,292.03 |
| Trade payables | 938.24 | 938.24 | 0.00 | 938.24 |
| Lease Liabilities | 143.84 | 24.46 | 119.37 | 143.84 |
| Other liabilities | 114.68 | 114.68 | 0.00 | 114.68 |
| As at March 31, 2023 | ||||
| Borrowings | 1.06 | 1.06 | 0.00 | 1.06 |
| Trade payables | 815.18 | 814.52 | 0.66 | 815.18 |
| Lease Liabilities | 156.07 | 10.76 | 145.32 | 156.07 |
| Other liabilities | 96.92 | 96.92 | 0.00 | 96.92 |
Market Risk
Market risk is the risk that changes with market prices – such as foreign exchange rates and interest rates, will affect the Companys income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
Foreign Exchange Rate Risk
Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate. Company transacts business in its functional currency (INR) and in other foreign currencies. The Companys exposure to the risk of changes in foreign exchange rates relates primarily to the Companys operating activities, where revenue or expense is denominated in a foreign currency.
The table below sets out an analysis of unhedged foreign currency exposure:
| In MM | For the year ended March 31, 2024 | For the year ended March 31, 2023 | ||
| Foreign currency (in MM) | Rupees (in MM) | Foreign currency (in MM) | Rupees (in MM) | |
| (A) Financial Assets | ||||
| Trade | $ 16.52 | 1,377.54 | $ 18.54 | 1,523.75 |
| Receivables | ||||
| Balance with banks – in EEFC accounts | $ 0.45 | 37.72 | $ 1.80 | 148.30 |
| (B) Financial Liabilities | ||||
| Trade Payables | $ 0.10 | 8.27 | $ 3.09 | 254.16 |
| (C) Currency wise net exposure | ||||
| Financial Assets | $ 16.88 | 1,406.99 | $ 17.25 | 1,417.90 |
| – Financial | ||||
| Liabilities | ||||
Sensitivity analysis
| In MM | As of March 31, 2024 | As of March 31, 2023 |
| Impact on profit/equity (1% strengthening) - US $ | 14.07 | 14.18 |
| Impact on profit/equity (1% weakening) - US $ | (14.07) | (14.18) |
Reservations, Qualifications and Adverse Remarks Included in Financial Statements
There have been no reservations or qualifications or adverse remarks of our Statutory Auditors in the last three fiscal Years.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements, derivative instruments or other relationships with other entities that would have been established for the purpose of facilitating off-balance sheet arrangements.
Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companys exposure to the risk of changes in market interest rates relates primarily to the Companys debt obligations with floating interest rates. The Company manages its interest rates by selecting appropriate type of borrowings and by negotiation with the bankers.
The exposure of the borrowings (long-term and short- term) to interest rate changes at the end of the reporting period are as follows:
| In MM | As of March 31, 2024 | As of March 31, 2023 |
| Variable rate borrowings | 1,292.03 | 0.00 |
| Fixed rate borrowings | 0.00 | 1.06 |
| Total borrowings | 1,292.03 | 1.06 |
Sensitivity analysis
| Impact on Profit before tax / pre-tax equity | ||
| In MM | As of March 31, 2024 | As of March 31, 2023 |
| Increase by 50 basis points | (6.46) | (0.01) |
| Decrease by 50 basis points | 6.46 | 0.01 |
Capital management
The Companys capital comprises equity share capital, surplus in the statement of profit and loss and other equity attributable to equity holders.
The Companys objectives when managing capital are to : • safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and • maintain an optimal capital structure to reduce the cost of capital.
The Company monitors capital using debt-equity ratio, which is net debt divided by total equity. These ratios are illustrated below:
| In MM | As at March 31, 2024 | As at March 31, 2023 |
| Total liabilities | 2,867.96 | 1,353.08 |
| Less: cash and cash equivalents and bank balances | 5,556.19 | 1,022.45 |
| Net debt | (2,688.22) | 330.62 |
| Total equity | 20,689.33 | 12,446.09 |
| Net Debt-equity ratio | (0.13) | 0.03 |
Financial indebtedness
The financial indebtedness of the Company as on March 31, 2024 and March 31, 2023 are as depicted in the table below
| In MM | As at March 31, 2024 | As at March 31, 2023 |
| Short Term | ||
| Secured Borrowings, comprising of | 1,292.03 | 1.06 |
| Loans repayable on demand | 1,292.03 | 0.00 |
| Bank term loans | 0.00 | 0.00 |
| Bank vehicle loans | 0.00 | 1.06 |
| Unsecured Borrowing | 0.00 | 0.00 |
| Loans from Banks | 0.00 | 0.00 |
| Loans from Promoters | 0.00 | 0.00 |
| Long Term | ||
| Secured Borrowings, comprising of | 0.00 | 0.00 |
| Bank term loans | 0.00 | 0.00 |
| Bank vehicle loans | 0.00 | 0.00 |
| Total Indebtedness | 1,292.03 | 1.06 |
Related Party Transactions
We enter into various transactions with related parties. For further information see Financial Statements - Note 41.
Significant Economic Changes
Other than as described above, to the knowledge of our management, there are no other significant economic changes that materially affect or are likely to affect income from continuing operations.
Unusual or Infrequent Events of Transactions
None
| In MM | As at March 31, 2024 | As at March 31, 2023 |
| Total assets (A) | 13,821.04 | 13,799.16 |
| Less: Intangible assets (B) | 55.69 | 5.83 |
| Less: Right-of-use assets (C) | 1,326.71 | 1,122.55 |
| Less: Total liabilities (D) | 2,867.96 | 1,353.08 |
| Net tangible assets (E=A-B-C-D) | 9,570.67 | 11,317.69 |
| Cash and cash equivalent and bank balance (F) | 5,556.19 | 1,022.45 |
| Less: Bank deposit with maturity of more than 12 months (G) | 0.00 | 0.00 |
| Less: Fixed deposits held as margin money (H) | 5,502.65 | 313.81 |
| Monitoring asset (I = F-G-H) | 1,292.03 | 708.64 |
| % of Monitoring asset to net tangible assets (J=(I/E)*100) (in%) | 13.50% | 6.26% |
| Net worth (K=1+2+3+4+5) | 20,689.33 | 12,446.09 |
| Issued, subscribed, fully paid up equity share capital (1) | 1,325.50 | 1,245.11 |
| General reserves (2) | 0.00 | 0.00 |
| Securities premium reserve (3) | 15,416.17 | 8,162.55 |
| Retained earnings (4) | 3,901.41 | 3,022.88 |
| Employee share option reserve (5) | 46.24 | 15.55 |
| Profit for the year / period (L) | 880.98 | 1,304.17 |
| Return on net worth (M=L/K) (in%) | 4.26% | 10.48% |
| Profit before tax and prior period items (N) | 1,140.17 | 1,744.79 |
| Less: Other income (O) | 442.64 | 165.65 |
| Add: Finance cost (P) | 85.17 | 50.93 |
| Pre-tax operating profit (Q=N-O+P) | 782.70 | 1,630.07 |
| No. Of equity shares outstanding at the end of the year after adjustment of bonus issues (R) (No. In MM) | 132.55 | 124.51 |
| Effect of dilutive potential equity shares | 0.00 | 0.00 |
| No. Of equity shares outstanding at the end of the year after adjustment of bonus issues (S) (No. In MM) | 132.55 | 124.51 |
| Net asset value per equity share (Basic) (T=K/R) (in ) | 156.09 | 99.96 |
| Net asset value per equity share (Diluted) (U=K/S) (in ) | 156.09 | 99.96 |
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