Alkali Metals Ltd Management Discussions

The Management Discussion and Analysis Report sets out developments in the business, environment and Companys performance since our last report. The analysis supplements the Directors Report and Audited Financial Statements which together form part of this Annual Report.

India is the largest provider of generic drugs globally. The Indian Pharmaceutical and Chemical industry are currently ranked in the top 5 in terms of production volume and are growing at a CAGR of 9.5% since the last decade.

Indian Pharmaceutical and Chemical Industry constitute around 3500 companies with a total of 11,000 manufacturing units combined. Along with immense infrastructure, India has a great pool of skilled talent like scientists to steer the industry ahead to greater heights.

The Pharma Sector currently contributes to around 1.8% of the Countrys GDP. Based on a recent FICCI report, the Indian Pharmaceutical Market is estimated to touch $ 130 billion in value by the end of 2030 and the global market volume is estimated to touch $ 1.7 trillion mark by 2030.

Alkali Metals Limited delivered a decent annual performance amid macro headwinds caused by geo-political conflicts, disruptions and economic downturn.

The Alkali team showed great resilience of strategic and operational capabilities reflected in its ability to adapt to volatile, fluctuating business environments and navigate their way through complex business situations. Irrespective of macro and micro hurdles the growth was sustained based on quick, agile and efficient decision-making skills at the appropriate time.

The Companys efforts to new molecules and expand our product portfolio. The network of buyers and suppliers has increased exponentially as compared to previous years. The presence of Alkali is across four continents now and is rapidly growing across smaller nations and a sustained business will be captured over the next couple of years.

We are targeting to expand our presence in more than 30 Countries by 2027 including Countries in Eastern European region and big nation like China. The targeted revenue from the Chinese Market by end of 2027 is $ 1 million which translates to 8.6 Crores as per current conversation rate and by the end of 2030 it is $ 5 million which translates to 43.42 Crores as per current conversation rate.

With our commitment to innovation, quality, and customer satisfaction, we are confident about our ability to navigate market opportunities and challenges, and we look forward to achieving strong growth and success in the years to come.

Lack of strategic initiatives to cover the Infrastructural deficit

Lack of initiatives for diversification

Regulatory complexities

Sluggish demand due to Geo political situation across the European and other Countries

Over capacity scenario

Low margins in the domestic market

The Company has sold 1068 MT of finished products during 2024-25 and realized a turnover 82.33 Crores. The Company sold sodium derivatives, pyridine derivatives and fine chemicals. The Company continues its effort in developing new products and re-inventing the wheels to churn out new product line with a prolonged financial and product shelf life.

The Board believes that the Company has in place effective systems of internal control commensurate to its size

and nature of business which provides for:

Efficient use and safeguarding resources

Accurate recording and custody of assets

Compliance with prevalent statutes, policies, procedures, listing requirements, management guidelines and circulars.

Transactions being accurately recorded, cross verified and promptly reported

Adherence to applicable accounting standards and policies.

IT systems which include controls for facilitating the above.

The internal control system provides for well documented policies, guidelines, authorizations and approval procedures. Also, the internal audit reports are laid before Audit Committee and discussions are held periodically by the Audit Committee at its meetings. The observations / findings made in internal audit reports, along with the status of action thereon are reviewed by the Audit committee of the Board of directors on a regular basis. The company has an exhaustive budgetary control system and the management regularly reviews actual performance.

The book value per share stands at Rs 43.73 as on 31st March 2025.

The exports contributed around 62% of the total turnover

Net foreign exchange earnings of Rs 4,460.93 Lakhs

The management believes that competent and committed human resources are important to attain success in the organisation. The Company believes in creating a pool of talent within its people whose skills, expertise and experience provide the impetus towards market leadership. The Companys human resource practices are widely accepted by the management, staff and workers. During the year under review, the Industrial relations with Employees/ workers at all the Companys locations continued to be harmonious and positive. The Company trains the employees regularly to increase the level of operational excellence, improve productivity and maintain compliance standards on quality and safety.

Statements in the Management Discussion and Analysis Report which describe the Companys objectives, projections, estimates, expectations or predictions may be considered to be "forward - looking statements" within the meaning of applicable Securities Laws and Regulations. These statements are based on certain assumptions and expectations of future events. Actual results could however materially differ from those expressed or implied. Important factors that could make a difference to the Companys Operations include global and Indian political scenario, economic & demand-supply conditions, finished goods prices, raw materials cost & availability, cyclical demand and pricing in the companys principal markets, changes in Government regulations, Policies, tax regimes, economic developments within India besides other factors such as litigation and industrial relations as well as the ability to implement the strategies.