INDUSTRY STRUCTURE AND
DEVELOPMENTS:
We are global manufacturers and
suppliers of amines, amine derivatives and other specialty chemicals. We have three
manufacturing sites, two in Maharashtra, i.e. at Patalganga and at Kurkumbh and one in
Gujarat, i.e. at Dahej. We have a Research & Development Centre (R&D) and
Technology and Projects Office located at Pune, Maharashtra, equipped with advanced
equipment and analytical instruments. We also have three Solar Plants located at: i)
Bhoom, Dist. Osmanabad, Maharashtra, ii) Manwath, Dist. Parbhani, Maharashtra, and iii)
Talegadh, Taluka Deesa, Dist. Banaskantha, Gujarat (Commissioned in January, 2024). We
have an excellent team of technical and commercial professionals with expertise in
chemical manufacturing and marketing. We have our Registered Office at Vashi, Navi Mumbai
and Corporate Office at Worli, Mumbai.
Our products have application in
important industries like pharmaceuticals, agro-chemicals, water treatment chemicals,
rubber chemicals, etc. We cater to both domestic and international market. We have
competition both from local and international producers. For more details, please refer to
our website www.alkylamines.com
OPPORTUNITIES AND THREATS
The Chemical Industry is critical
for the economic development of our country, providing products and enabling technical
solutions in virtually all sectors of the economy. The demand for our products is steadily
increasing both in India and abroad. Key drivers for success in the chemical sector
include proximity to strong growth markets, greater ease in doing business and the
continued development of petroleum, chemicals and petrochemical investment.
Your Company is ready to take the
challenges of increased demand by continuously adding capacities, adding new products and
investing in upgradation of its manufacturing capacities. The in-house R&D Department
has been developing quality products and is also striving for achieving cost efficiencies.
The industries in which our
products have application, like pharmaceuticals, agrochemicals, rubber chemicals etc. are
growing at a reasonable pace. We have a fair chance of improving our position as a
reliable supplier of good quality chemicals to these industries. Our Core Competence in
chemical handling and manufacturing supported by an able technical team, should provide a
lot of opportunities and scope to the Company to improve its performance. We enjoy
leadership position in some of the products in domestic market, driven by strong in-house
technology, diversified product portfolio and customer base.
The commodity nature of some of
our products makes them susceptible to fluctuations in raw material prices and exchange
rates. Petroleum based raw materials are subject to international gas/crude oil price
fluctuation. Being a global player, we are also exposed to competition not only from
domestic players but also large international players. Cheap imports have posed problems,
which are being addressed by consistency in quality of the products and improving
production efficiencies and also by initiating anti-dumping investigations.
OUTLOOK
The Company has established a
leading position in domestic market and a presence in international market with a
reputation for reliable service and quality products. For the financial year 2024-25, our
focus will continue on sustainable growth by taking measures for increasing our market
share of existing products and also introducing new products.
Our customers in agrochemicals
and pharmaceuticals sectors are facing global competition from Chinese manufacturers
resulting in loss of business. This has impacted sales of our products to major customers.
Due to increase in Acrylonitrile production in China, dumping of low price imports of
Acetonitrile continues to increase, resulting in reduction in its sales and creating
margin pressures. We have applied for anti-dumping duty on Acetonitrile imports. However,
with the global growth of chemicals focused more on Asia, it is expected that there will
be further growth in chemical industry.
In order to meet the growing
demand for Companys products, a newly set up plant at an investment cost of Rs. 400
crores at our existing Kurkumbh site, Maharashtra for enhancing manufacturing capacity of
Ethyl Amines was successfully commissioned. We commenced commercial production from
October 2023 and it is fully operational now. Hence, the old Ethyl Amines production
facility shall be utilised for manufacturing of Methyl Amines, thereby enhancing the
production capacity of Methyl Amines. During the financial year 2024-25, we expect our
investments in various other projects to add to both our top-line and bottom-line. We will
continue with our efforts for improving our bottom-line by expanding our product-range,
while re-looking at business strategies and models, wherever necessary. We will continue
our efforts for improving efficiencies and margins.
RISKS AND CONCERNS
The economic and business
environment is fast evolving. The global market is complex and demands a very efficient
and complex supply chain configuration. The Company has a risk management policy, which
from time to time, is reviewed by the Risk Management Committee and Audit Committee of
Directors as well as by the Board of Directors. The Policy is reviewed by assessing the
threats and opportunities that will impact the objectives set for the Company as a whole.
The Policy is designed to provide the categorization of risk into threat and its cause,
impact, treatment and control measures. As part of the Risk Management policy, the
relevant parameters for all manufacturing sites are analyzed to minimize risks associated
with protection of environment, safety of operations and health of people at work and
monitored regularly with reference to statutory regulations and guidelines defined by the
Company. The Company fulfils its legal requirements concerning emission, waste water and
waste disposal. Improving work place safety continued to be top priority at all
manufacturing sites. This apart, the Company has Business Continuity Plan which provides a
framework, guidance and concept of operations to support businesses to continue and/or
rapidly restore their critical business functions in the event of disruption to normal
operations.
INTERNAL CONTROL SYSTEMS AND
THEIR ADEQUACY
Your Companys internal
control procedures which include internal financial controls, ensure compliance with
various policies, practices and statutes in keeping with the organizations pace of
growth and increasing complexity of operations. We have set up a statutory compliance
management system to ensure compliance with various applicable laws.
We have in place internal control
systems in all spheres of activities commensurate with the size of the Company. The system
is helping the Managers to advantageously assimilate information and make more
knowledge-based and efficiency-driven decisions. The internal control is supplemented by
effective internal audit being carried out by an external firm of chartered accountants.
The Internal Auditors team carries out extensive audits throughout the year across
all locations and across all functional areas. During the financial year 2022-23, the
existing SAP system was replaced with HANA and the same is working satisfactorily. The
Audit Committee of Directors regularly reviews the findings of the Internal Auditors and
effective steps to implement the suggestions/observations of the Auditors are taken and
monitored regularly.
Your Company also has laid down
procedures and authority levels with suitable checks and balances encompassing the entire
operations of the Company.
FINANCIAL PERFORMANCE WITH
RESPECT TO OPERATIONAL PERFORMANCE AND SEGMENT-WISE PERFORMANCE AND KEY FINANCIAL RATIOS
Total Income amounted to Rs. 1,45,566
lakhs compared to Rs. 1,69,624 lakhs of the previous financial year. The profit before tax
amounted to Rs. 20,247 lakhs compared to Rs. 30,856 lakhs reported last
financial year.
The Company operated in one
segment area i.e. Specialty Chemicals. During the financial year, our gross domestic sales
amounted to Rs. 1,27,565 lakhs compared to Rs. 1,45,231 lakhs of the previous
financial year. Exports reduced from Rs. 36,665 lakhs (FOB) of the previous
financial year to Rs. 31,779 lakhs (FOB) for the financial year 2023-24. The details of
key financial ratios i.e., debtors turnover, inventory turnover, interest coverage,
current ratio, debt-equity ratio, operating profit margin, net profit margin and return on
Net Worth are given in financial highlights and Note 45 and Note 48.1 to the Audited
Accounts.
HUMAN RESOURCES AND INDUSTRIAL
RELATIONS
The Company believes that its
employees are the key to driving sustainable performance and developing competitive
advantage. The Human Resource policies and procedures of your Company are geared towards
nurturing and development of Human Capital. The Company had 692 employees as on March 31,
2024. Your Company has transparent processes for rewarding performance and retaining
talent.
Skill Gap Analysis and other
systems are also in place to identify the training interventions required. Employee
relations at all locations continued to remain cordial. Your Directors wish to acknowledge
the sincere and dedicated efforts of the employees of the Company and would like to thank
them for the same.
For and on behalf of the Board |
|
Place: Mumbai |
YOGESH M. KOTHARI |
Date: May 09, 2024 |
Chairman & Managing
Director |
(DIN: 00010015) |
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