Amal Ltd Management Discussions

The Company manufactures bulk chemicals such as Sulphuric acid and Oleum and their downstream products such as Sulphur dioxide and Sulphur trioxide at its manufacturing site at Ankleshwar.

These chemicals find their use in several industries like Dyestuff, Fertiliser, Personal care, Petrochemical, Pharmaceutical, Textile, etc. These chemicals are generally sold locally within a radius of 200 km from the manufacturing site.

During 2023-24, revenue from operations decreased from Rs 3,916 lakhs to Rs 3,133 lakhs. The world market for Sulphuric acid is estimated at about 290 million tonnes per annum and the Indian market at about 17 million tonnes per annum. Both, the world and Indian markets are growing at about 3% per annum.

The manufacturing plant of the Company at Ankleshwar has an installed capacity of 140 tonnes per day of Sulphuric acid (including downstream products). Optimising the product mix is a key factor. The way to succeed in these products is to ensure high capacity utilisation, excellent conversion efficiency and full deployment of the steam. The facility at Amal Speciality Chemicals Ltd (ASCL) has commenced operation and has the capacity to manufacture 300 tonnes per day of Sulphuric acid (including downstream products). This will help the Company to have a higher market share.

The products manufactured by the Company are commodities in nature whose prices and contributions fluctuate significantly. The price of the key raw material Sulphur, varies from month to month.

The internal control systems of the Company are commensurate with the nature of its business and the size and complexity of its operations. These are routinely tested, certified and upgraded wherever required by the Statutory as well as the Internal

Auditors covering all key areas of business. Significant audit observations and follow-up actions and recommendations thereon are reported to the Senior Management and Audit Committee for their review.

The Company is working with reputed firms specialised in internal audit functions. The combined efforts are helping the Company to introduce the best practices required to manage its business.

The Company believes that people are the foundation on which the business is built, and this remains a key focus area. It continued with its drive to institutionalise and upgrade HR processes. In particular, it focused on improving its processes related to recruitment, training and development, performance management and succession planning in order to manage a dynamic and growing business.

The training needs are identified based on self-assessment and L+1 assessment. In addition, there are certain standard courses which everyone is expected to go through, depending upon their grades.