Ami Organics Ltd Management Discussions

Global Economic Overview

In 2024, the global economy remained relatively stable despite ongoing challenges in geopolitics, trade, and policy. According to IMFs World Economic Outlook, global GDP grew by 3.3%, with advanced economies slowing while emerging markets, particularly in Asia, maintained steady momentum.

Persistent geopolitical tensions continued to strain global trade and supply chains. However, inflation trends improved, with inflation at consumer prices declining from 4.6% in 2023 to 2.6% in 2024 for the advanced economies. For the emerging markets and developing economies, this figure reduced from 8.0% in 2023 to 7.7% in 2024. Developed markets are expected to reach inflation targets faster, averaging 2.6%, while emerging markets will experience a more gradual decline.

In response, major central banks implemented substantial rate cuts, with G10 economies reducing rates by a combined 825 basis points in 2024, the most significant easing since 2009.

a $5 Trillion economy by FY2028 and $30 Trillion by 2047, the government is driving growth through infrastructure investments, digital transformation, and schemes like Make in India and the PLI initiative. The capital investment outlay for FY2026 has been raised to 11.21 Lakh Crore (3.1% of GDP).

The nations manufacturing sector registered a 4.3% growth during the year under review as against 12.3% in FY2024. This slowdown was also reflected in the Index of Industrial Production (IIP), which recorded a four-year low of 4% growth in FY2025. This slowdown in the manufacturing segment is attributed to a global economic slowdown, supply chain disruptions and the potential adverse impact of global trade policy shifts.

As part of the Union Budget 2025-26, the Government of India allocated 1,61,965 Crore (approximately $18.7 Billion) to the Ministry of Chemicals and Fertilizers, underscoring its ongoing commitment to strengthen the chemicals sector.

Within this allocation, the Department of Pharmaceuticals (DoP) received 5,268.72 Crore ($602.90 Million), representing a 28.8% increase from the previous years estimate of 4,089.95 Crore ($468.01 Million). This significant rise highlights the governments focus on accelerating growth and fostering innovation within the pharmaceutical industry.

Outlook

Global growth is expected to remain stable at 2.8% in 2025 and 3.0% in 2026, supported by strong performance in the U.S. and key emerging markets. U.S. GDP is projected at 1.8% in 2025 and 1.7% in 2026, reflecting moderating consumer demand and labour market shifts. The Eurozone is forecast to recover gradually, with growth rising from 0.8% in 2025 to 1.2% in 2026 due to easing inflation and improved consumption.

Global inflation is set to decline to 4.3% in 2025 and 3.6% in 2026, though regional disparities will persist. Monetary policy will likely diverge across economies based on local conditions.

Indian Economic Overview

India continued its stable growth trajectory in FY2025, with real GDP projected to rise by 6.5% according to the NSOs Second Advance Estimates, following 9.2% growth in the prior year. This momentum reflects strong domestic demand, effective policy reforms, and a resilient services sector.

India remains the worlds fifth-largest economy by nominal GDP and third-largest by purchasing power parity. With targets of reaching

Outlook

Indias growth is forecasted at 6.2% in FY2026, supported by rising private investment, infrastructure expansion, favourable demographics, and strong consumer demand. The nation is expected to become the worlds third-largest economy by 2030.

The 2025-26 Union Budget emphasises inclusive growth, with a higher tax exemption limit of 12 Lakh to boost consumption, and enhanced capital spending in roads, railways, and manufacturing. The budget also strengthens PLI incentives and promotes logistics and financial inclusion through initiatives like transforming India Post. Inflation is expected to ease by late 2025, creating room for more accommodative monetary policy.

Chemicals Industry Overview Global Market

The global chemicals market was valued at $5,614.19 Billion in 2024 and is expected to grow steadily, reaching $8,580.40 Billion by 2029 at a CAGR of 8.6%. This growth is underpinned by rising demand across diverse sectors such as pharmaceuticals, flavours and fragrances, rubber processing, battery chemicals, and electronics chemicals.

The market is experiencing robust growth, driven by rising demand from high-tech and innovation-led sectors such as battery chemicals, pharmaceuticals, and semiconductors. The accelerating shift toward electric vehicles and renewable energy storage is propelling the need for advanced battery chemicals like electrolyte additives and binders that enhance energy density and safety.

Simultaneously, the pharmaceutical sector continues to expand with increasing investments in drug discovery, biotechnology, and personalised medicine, fuelling the demand for high-purity intermediates and specialty ingredients.

In parallel, the rapid growth of the digital economy is spurring the semiconductor industry, where ultra-high-purity chemicals are critical for the fabrication of microchips and electronic components.

The specialty chemicals market is also driven by segments like agrochemicals, personal care ingredients, coatings, and construction chemicals, supported by rising urbanisation, evolving consumer preferences, and a growing focus on performance and sustainability.

As nations strengthen domestic manufacturing through incentives and shift away from China-centric supply chains, demand for these specialised chemicals is rising globally. Together, these sectors form the backbone of future technologies, positioning specialty chemicals as essential enablers of innovation and sustainable growth.

a CAGR of ~8.1% between 2024 and 2028, and being valued at $300 Billion at the end of the forecast period

This sustained growth is being shaped by rising demand across multiple sectors, including agriculture, construction, automotive, and electronics. As industrialisation and urbanisation accelerate, so does the need for innovative, high-performance chemical solutions. Domestic production is gaining strength, thanks to supportive government policies and increasing foreign investment. At the same time, a clear shift toward eco-friendly and sustainable formulations is opening new doors, supported by advancements in technology and a growing emphasis on research and development.

Several key trends are steering the industry forward. Sustainability is becoming central, with companies adopting green chemistry practices to create low-toxicity, biodegradable products that align with global environmental standards. Demand is also surging in sectors like construction, pharmaceuticals, and automotive, where customers seek advanced materials and innovation is spurred by active drug formulation and R&D initiatives. A growing focus on R&D continues to shape the market landscape, as companies invest heavily to expand their portfolios and collaborate with academic institutions to meet evolving customer and regulatory expectations.

Regionally, Maharashtra and Gujarat anchor the countrys chemical manufacturing dominance, while North India benefits from strong infrastructure and access to raw materials. South India is seeing rapid industrial growth across multiple sectors, and the East and Northeast regions are emerging as new hubs, especially in chemicals related to mining, agro-based industries, and tea processing.

Indias share in the global specialty chemicals space is on the rise, underscoring the countrys growing global relevance. This upward trajectory is being further supported by strong demand from both export markets and domestic end-user industries.

Indian Market

Indias chemical industry is among the largest globally, ranking sixth in overall production and 14 th in exports. It is the second-largest manufacturer and exporter of dyes, the third-largest consumer of polymers, and the fourth-largest producer of agrochemicals across the globe. With a portfolio of over 80,000 chemical products, the industry is also one of the most diverse in the country. It plays a critical role in supplying raw materials to multiple end-use sectors, positioning itself as a key driver of national development and Indias broader push towards self-reliance.

The Indian chemicals industry has shown strong momentum on the back of a robust domestic demand and strategic efforts to enhance self-sufficiency, reaching an approximate $220 Billion in 2024. Looking ahead, the market is projected to further grow steadily at

Government Initiatives

• As part of the Union Budget 2025-26, the Government of India allocated 1,61,965 Crore (~$18.7 Billion) to the Ministry of Chemicals and Fertilizers, highlighting its continued focus on strengthening the sector.

• The Production Linked Incentive (PLI) scheme for the National Programme on Advanced Chemistry Cell (ACC) Battery Storage received Cabinet approval in May 2021, aiming to boost domestic battery manufacturing capabilities.

• Additionally, PLI schemes have been launched to support the development of Bulk Drug Parks, backed by a budget of 1,629 Crore ($213.81 Million), to enhance domestic pharmaceutical production.

• The Petroleum, Chemicals, and Petrochemicals Investment Region (PCPIR) at Paradip has also seen significant momentum, attracting investments worth 73,518 Crore ($8.84 Billion). This initiative has not only driven industrial growth but has also created employment opportunities for nearly 40,000 people, reinforcing the regions importance as a key industrial hub.

Pharmaceuticals Market Overview Global Market

The global pharmaceutical market, valued at $1,645.75 Billion in 2024, is projected to grow to $2,350.43 Billion by 2030, expanding at a CAGR of 6.12% from 2025 to 2030. This growth is largely driven by the rising prevalence of chronic diseases, aging populations, and increasing healthcare expenditures worldwide.

A surge in drug discovery and development, along with the steady expansion of healthcare infrastructure, is fuelling this momentum. The rising burden of life-threatening conditions, such as cardiovascular diseases, diabetes, and cancer, which together account for nearly 71% of all global annual deaths, continues to heighten the demand for effective pharmaceutical solutions.

Simultaneously, the emergence of cutting-edge biotechnology is reshaping treatment approaches. There is growing interest in advanced therapies, particularly gene therapy and RNA-based drugs, which are unlocking new possibilities for managing complex diseases. This innovation wave is being actively supported by substantial investments from governments and healthcare institutions across the globe. For instance, in 2023, the U.S. National Institutes of Health (NIH) allocated over $45 Billion to medical research, significantly accelerating the development of new drugs and vaccines, and reinforcing the markets long-term growth trajectory.

CRAMS Market

The global Contract Research and Manufacturing Services (CRAMS) market was valued at $138.9 Billion in 2024 and is projected to grow to $211.4 Billion by 2030, registering a CAGR of 7.2% during the forecast period. CRAMS includes a broad range of outsourced services provided to pharmaceutical and biotech companies, encompassing discovery, development, and manufacturing. The markets growth is supported by rising drug development complexity and mounting cost pressures across the pharmaceutical sector.

While biologics are contributing to market expansion, a significant share of CRAMS demand continues to be driven by small molecule drugs, which remain the backbone of global pharmaceutical consumption. The increasing number of generic drugs, patent expiries, and a robust pipeline of small-molecule therapies are creating strong opportunities for CRAMS providers specialising in chemical synthesis and formulation. Besides, the increasing prevalence of chronic diseases, advancements in drug discovery, and the rising trend of outsourcing among pharmaceutical companies are also playing a part in the growth of this segment.

Smaller biotech firms and mid-sized pharma companies often rely on CRAMS to overcome infrastructure and resource constraints, while larger players seek cost efficiency and agility through external partnerships. Growing demand for quicker market delivery, coupled with stricter regulatory expectations and global supply chain diversification, is encouraging pharmaceutical companies to collaborate with CRAMS providers. With capabilities across both small molecules and niche therapeutic areas, CRAMS players are becoming indispensable partners in enabling efficient and scalable drug development and manufacturing.

Pharmaceutical CDMO Market

The global pharmaceutical Contract Development and Manufacturing Organization (CDMO) market was valued at $156.62 Billion in 2024 and is projected to more than double, reaching approximately $315.08 Billion by 2034. This strong growth trajectory is being propelled by increased research and development efforts, a rising demand for advanced therapies, and the growing complexity of pharmaceutical manufacturing.

On a geographical basis, North America continued to dominate the market, supported by widespread adoption of cutting- edge technologies and substantial investment inflows into pharmaceutical infrastructure.

A key trend shaping the market is the surge in R&D activities, as companies increasingly focus on developing novel pharmaceuticals and biopharmaceuticals, including more personalised treatment options. This has significantly amplified the demand for specialised development capabilities that CDMOs are uniquely positioned to offer.

Moreover, the rise in biologics, such as cell and gene therapies, vaccines, and monoclonal antibodies, has further bolstered the market. These therapies often require sensitive, large-scale production environments and advanced technical know-how, making CDMOs indispensable partners in the development process. The market is also witnessing heightened collaboration through mergers and acquisitions, not only between pharmaceutical companies and CDMOs, but also among CDMOs themselves. These alliances improve scalability, expand service offerings, and provide access to newer technologies, enabling faster and more efficient drug development across global markets.

Indian Market

Indias pharmaceutical industry is on a remarkable growth trajectory, with the market valued at an estimated $65 Billion by 2024, and anticipated to reach ~$130 Billion by 2030, and an estimated $450 Billion by 2047. Nearly half of the industrys value comes from its exports, underscoring Indias global significance, especially in generics, where the country supplies nearly 20% of global demand.

India ranks third globally in pharmaceutical production by volume and 14 th by value. Its domestic industry is well-established, comprising over 3,000 pharmaceutical companies and ~10,500 manufacturing units. The countr y also holds the distinction of having the largest number of USFDA-compliant pharmaceutical plants outside the United States, along with more than 2,000 WHO-GMP- certified facilities serving over 150 countries.

India has also emerged as a global hub for medical tourism, offering affordable, high-quality treatments powered by cutting- edge technology and healthcare reforms. Its leadership in providing access to cost-effective HIV treatments is considered one of the major breakthroughs in global health. Furthermore, as one of the worlds largest suppliers of low-cost vaccines, India continues to earn its title as the Pharmacy of the World, playing a vital role in improving healthcare access worldwide.

Government Initiatives

• Up to 100% Foreign Direct Investment (FDI) is allowed through the automatic route for Greenfield pharmaceutical projects. For Brownfield projects, FDI is permitted up to 74% via the automatic route, with investments beyond that requiring government approval.

• The Union Budget 2025-26 proposed an allocation of 5,268.72 Crore (US$ 602.90 Million) for the Department of Pharmaceuticals (DoP), marking a 28.8% increase over the previous years estimate of 4,089.95 Crore (US$ 468.01 Million), reflecting the governments continued focus on bolstering the sectors growth and innovation capacity.

CRAMS/CDMO Market

Indias Contract Research and Manufacturing Services (CRAMS) and Contract Development and Manufacturing Organisation (CDMO) sectors have evolved into critical pillars of the global pharmaceutical supply chain. What began in the early 1980s as a cost-effective outsourcing solution for multinational pharmaceutical companies has matured into a robust ecosystem that supports the full drug development lifecycle, from research to large-scale manufacturing.

As of 2023, Indias CRAMS market was valued at approximately $21 Billion, contributing around 20% to the overall Asia-Pacific market. This market is further expected to grow at a CAGR of nearly 10% from 2023 to 2028, indicating strong momentum across both research and manufacturing verticals. Meanwhile, the nations pharmaceutical CDMO segment alone stood at $12,544.3 Million in 2023 and is projected to reach $21,730 Million by 2030, growing at a CAGR of 8.2% between 2023 and 2030.

Indias rise in this space is fuelled by several structural advantages, which include a vast pool of skilled scientific professionals, globally recognised regulatory compliance led by the Central Drugs Standard Control Organization (CDSCO), and significant cost advantages, with labour costs estimated at just 35% of those in China as of 2022. These fundamentals make India a preferred outsourcing hub for both large pharmaceutical companies and emerging biotech firms.

Government policies have further accelerated this growth. Initiatives like the Production Linked Incentive (PLI) schemes and the Promote Research in Pharma (PRIP) programme have fostered a business- friendly environment, encouraging investment and innovation in the sector. Moreover, Indias growing footprint in global formulation exports, the rise of complex drug molecules, cost-efficient manufacturing, and the increasing trend of small and mid-sized companies outsourcing development and manufacturing have all contributed to the sectors upward trajectory.

The market is also benefitting from technological advancements, including the adoption of AI in drug discovery and development, which are enhancing speed, accuracy, and cost efficiency. The CRAMS space is typically divided between Contract Research Organizations (CROs), focused on discovery and early-stage development and CDMOs, which handle development, scale-up, and commercial manufacturing. Indian players are increasingly offering integrated, end-to-end solutions, creating a seamless value chain from lab to market.

With a strong foundation, rising global relevance and increasing demand for scalable and efficient pharmaceutical manufacturing, Indias CRAMS/CDMO market is well-positioned for sustained growth and strategic leadership in the years ahead.

Semiconductor Market Overview

Global Market

The global semiconductor sales reached a record-breaking $627.6 Billion in 2024, marking a 19.1% increase over the 2023 total of $526.8 Billion. The year 2024 marked a historic milestone for the global semiconductor industry, surpassing $600 Billion in annual sales for the first time ever. With semiconductors powering a vast range of technologies from medical devices and defense systems to AI, communications, and advanced mobility, the industrys outlook remains highly optimistic, as double-digit growth is already projected for 2025.

Regionally, the Americas led with a 44.8% annual increase, followed by China at 18.3% and Asia-Pacific (and all others) at 12.5%. In contrast, sales declined slightly in Japan (-0.4%) and more significantly in Europe (-8.1%).

Among the product segments, logic chips led the market with $212.6 Billion in sales. This was followed by memory products at $165.1 Billion, which recorded an impressive 78.9% year-over-year increase. DRAM, a major subset of memory, recorded the highest growth rate across all categories, surging by 82.6% in 2024.

On a more micro level, the global semiconductor chemicals market was valued at $15,676.9 Million in 2024 and is expected to grow to $30,935.6 Million by 2030, registering a strong CAGR of 12.3% between 2024 and 2030. This robust growth is largely driven by the rising demand for consumer electronics, including smartphones and tablets, as well as the rapid expansion of the EV segment in the automotive industry worldwide.

The photoresist chemicals market is estimated to reach $3,386.2 Million in 2024 and is projected to grow at a CAGR of 3.6%, reaching $4,837.2 Million by 2034. While growth was relatively sluggish in the earlier years, it is expected to pick up pace over the next decade. A key growth driver is the rising demand for semiconductors in the electrical and electronics sectors. Besides, the increasing adoption of advanced display technologies is anticipated to further boost market expansion.

Indian Market

Indias semiconductor market is poised for significant growth, projected to expand from 4.5 Trillion ($52 Billion) in 2024 to 9 Trillion ($103.4 Billion) by 2030, according to the India Electronics and Semiconductor Association (IESA). This surge is being driven by high demand across key sectors such as mobile handsets, IT, telecommunications, consumer electronics, automotive, aerospace, and defence. Notably, mobile devices, IT, and industrial applications alone account for nearly 70% of the industrys revenue and are expected to continue leading the charge. The automotive and industrial electronics sectors, in particular, offer substantial opportunities for value creation as technology adoption deepens.

Indias semiconductor chemicals market is projected to grow on account of increasing investments in domestic chip manufacturing, rising demand for electronics and electric vehicles, and the expansion of data centres and 5G infrastructure. Moreover, government initiatives such as the India Semiconductor Mission (ISM) and PLI schemes are also supporting the development of a robust ecosystem for semiconductor and allied industries, driving demand for high- purity chemicals essential for chip fabrication.

Besides, the photoresist chemicals market in India is poised for growth, supported by the countrys increasing focus on domestic semiconductor and display manufacturing. Government initiatives such as the India Semiconductor Mission (ISM) and PLI schemes are driving investments in chip fabrication and electronics production, boosting demand for high-purity photoresist chemicals used in photolithography. As India builds its semiconductor ecosystem, the photoresist segment is set to benefit significantly from increased localisation, R&D, and technology partnerships with global industry leaders.

To support this growth, the government has introduced focused incentive schemes for semiconductor fabrication (fabs) and outsourced semiconductor assembly and testing (OSAT) facilities, alongside increased investments in R&D and cross-sector collaboration. Key recommendations to advance Indias semiconductor ambitions include extending the semiconductor incentive scheme beyond the initial $10 Billion and refining the design-linked incentive framework.

In parallel, the government has set clear targets for increasing local value addition in electronics manufacturing, aiming for 25% by FY2026 and 40% by 2030, to strengthen domestic capabilities and reduce reliance on imports.

Battery Chemicals Market

Global Market

The global shift towards electrification is driving unprecedented demand for electric vehicles (EVs) and energy storage systems, creating significant growth opportunities for the battery chemicals market. In 2024, EV sales surged by 25%, reaching 17 Million units and pushing global battery demand past 1 terawatt-hour (TWh) for the first time. At the same time, battery pack prices dropped below $100 per kilowatt-hour, a critical threshold for cost parity with internal combustion engine vehicles.

In parallel, the energy storage systems market is expected to expand from 254.7 GW in 2024 to 494.3 GW by 2033, growing at a CAGR of 7.27%. This is driven by rising electricity needs, increased adoption of renewables, and efforts to reduce emissions. These developments are accelerating the demand for advanced battery chemistries and materials, positioning battery chemicals, such as electrolytes, additives, and separators, as key enablers of both mobility and grid-scale energy solutions.

The worldwide energy transition is catalysing an unprecedented expansion in the battery chemicals market. Propelled by the soaring demand for electric vehicles and large-scale renewable energy storage, the market is valued at over $70 Billion in 2025. Forecasts project it will exceed $107 Billion by 2029, reflecting a robust compound annual growth rate. This expansion is geographically widespread, with significant manufacturing and R&D activities concentrated in Asia, Europe, and North America.

At the core of this growth are the chemical components that define battery performance. This includes advanced cathode materials like high-nickel NMC and cobalt-free LFP, and innovative anode materials, where silicon is increasingly being added to graphite to boost energy density. However, the most nuanced innovations are happening with electrolyte additives. These specialised compounds are crucial for pushing the boundaries of what batteries can do, working at a molecular level to form protective layers on electrodes.

These additives enhance stability, significantly extend the batterys operational life, and improve safety by preventing dangerous thermal runaway events. As the industry aggressively pursues next-generation technologies such as solid-state and sodium -ion batteries, the role of advanced chemical formulations and novel additives will become even more critical in achieving breakthrough performance and securing a sustainable, clean energy market.

Indian Market

Indias battery chemicals sector is rapidly transforming into a sunrise industry, primarily driven by decisive government action. National strategies like the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) manufacturing, with its outlay of 18,100 Crore, are fostering a vibrant domestic ecosystem. This policy-driven momentum, combined with surging consumer demand for electric two-wheelers and passenger vehicles, which saw sales jump over 20% in early 2025, is set to fuel market growth at a CAGR of over 15%.

This optimistic outlook is, however, tempered by Indias significant reliance on imported raw materials like lithium and cobalt, creating supply chain vulnerabilities. To mitigate this, the national strategy emphasises localizing the entire value chain, from raw material processing to cell production. This includes building a robust battery recycling ecosystem to create a circular economy and recover valuable materials.

Central to this mission of self-reliance (Atmanirbhar Bharat) is developing indigenous capabilities in high-value components like electrolyte additives. Mastering their production is vital for Indian manufacturers to elevate the quality, safety, and global competitiveness of their batteries. Achieving this will not only satisfy immense domestic demand but also establish India as a key, quality- conscious hub in the global energy storage supply chain.

Methyl Salicylate Market Global Market

The global methyl salicylate market was valued at over $225.36 Million in 2024 and is anticipated to have reached $248.27 Million by 2025, growing at a year-on-year rate of ~10.17%.

This growth is largely driven by the increasing use of methyl salicylate in the pharmaceutical sector. Commonly used in pain-relieving creams and topical treatments, it plays a vital role in managing arthritis, joint pain, and muscle aches. Studies indicate that local analgesics, used for both human and veterinary medicine, contains 12% to 20% methyl salicylate, underscoring its importance in pain management formulations.

Beyond pharmaceuticals, methyl salicylate is also finding growing applications in the food and beverage industry as a flavouring agent. It is widely used to add fragrance and flavour to products like chewing gum, candies, and mints, another key factor propelling market demand.

Regionally, the Asia Pacific market is poised for robust growth, supported by expanding pharmaceutical, skincare, and haircare sectors in countries like China and India. North America is expected to dominate the market by 2037, driven by rising healthcare investments and research activity. Meanwhile, Europe is witnessing increased demand for personal care and medical applications, further supported by growing consumer awareness and industry innovation.

Indian Market

The Indian methyl salicylate market is experiencing steady growth, driven by rising demand for pain relief products and expanding applications in pharmaceuticals, personal care, and food flavouring. Known for its anti-inflammatory and analgesic properties, methyl salicylate, commonly used in ointments, creams, and gels, is gaining popularity for treating muscle pain, arthritis, and sports injuries. Growing health awareness, lifestyle changes, and a focus on wellness are boosting consumer interest in such products. The increase in disposable incomes and demand for natural, plant-based solutions is further shaping market preferences.

With a surge in sports-related injuries and joint ailments, demand for topical solutions continues to rise. In response, companies are investing in product innovation, strategic partnerships, and marketing initiatives to cater to evolving consumer needs and regulatory standards. The shift towards organic formulations and the emphasis on cleaner, safer ingredients are also influencing purchasing behaviour, helping to position methyl salicylate as a key ingredient in Indias healthcare landscape.

Paraben Market Overview Global Market

The global paraben market is expected to reach approximately $869.9 Million by 2033, up from $468.9 Million in 2023, growing at a CAGR of 6.7% over the forecast period from 2023 to 2033.

Parabens are widely recognised for their cost-effectiveness and preservative efficiency, making them essential across cosmetics, pharmaceuticals, and food industries. Demand is primarily driven by their critical role in cosmetics and personal care, where they prevent microbial growth and extend product shelf life. Moreover, their use in the food and beverage industry is on the rise, particularly in processed items like sauces and dressings, supporting the global trend towards convenience foods.

By application, the food and beverage segment leads the market with a 48.2% share, underscoring the importance of shelf life and safety in packaged foods. Pharmaceuticals and personal care products also account for significant usage, benefiting from the stability that parabens provide.

Regionally, North America holds the largest market share at 33.6%, supported by strong cosmetics and pharmaceutical sectors. This is followed by Europe with 28.4%, shaped by regulatory oversight, while Asia Pacific accounts for 26.0%, driven by rapid growth in beauty and healthcare markets, particularly in China and India.

Indian Market

The Indian parabens market is witnessing steady growth, supported by strong demand from the cosmetics, personal care, food, and pharmaceutical industries. Parabens are widely used as effective and affordable preservatives, helping extend shelf life and prevent microbial contamination in products such as creams, shampoos, packaged foods, and medicines. As Indias FMCG sector continues to expand and personal care consumption rises, particularly in urban areas, the demand for parabens remains robust. The cost-efficiency of parabens compared to other preservative options makes them especially popular among mid-range product manufacturers.

Company Overview

Founded in 2004 as a partnership firm to Ami Organics Limited, the company has built a strong reputation over two decades for its expertise in manufacturing, developing, and commercialising specialty chemicals. Recently, Ami Organics Limited has officially changed its name to Acutaas Chemicals Limited, with a focus on continuing its exponential growth. Known for its strong research capabilities, Acutaas Chemicals plays a key role in producing advanced pharmaceutical intermediates and niche specialty chemicals, including electrolyte additives for lithium-ion batteries and photoresist chemicals used in the semiconductor industry.

With a strategic focus on both domestic and international markets, spanning North and South America, Europe, and Asia, the company has established itself as a global player in the specialty chemicals space. Its in-house R&D centre, approved by the Department of Scientific and Industrial Research (DSIR), houses dedicated teams for research and development, quality control, quality assurance, and regulatory affairs. Manufacturing operations are carried out in state-of-the-art facilities located in Sachin, Ankleshwar, and Jhagadia in Gujarat, and Greater Noida in Uttar Pradesh.

Key Highlights for the year under review:

• Successfully concluded Good Manufacturing Practices (GMP) inspection by Pharmaceutical and Medical Devices Agency, Japan (PMDA) without any critical/major observation, as the agency issued Inspection Result Report declaring the Sachin Facility as a Good Manufacturing Practices (GMP) compliant.

• Successfully raised funds worth 500cr. through QIP and Preferential allotment to deleverage balance sheet and support capex.

• Achieved robust year-on-year growth of 40.3%, crossing the 1,000 Crore milestone with revenue from operations reaching 1,006 Crore.

Pharma Intermediate Business

Acuta as Chemicals is a global manufacturer specialising in advanced intermediates for the pharmaceutical industry. With a strong emphasis on research and development, the company focuses on creating advanced intermediates for both regulated and generic Active Pharmaceutical Ingredients (APIs) as well as New Chemical Entities (NCEs). Over the years, Acutaas Chemicals has developed more than 550 pharmaceutical advanced intermediates across 17 therapeutic segments, including antidepressants, antipsychotics, anticancer, anticoagulants, anti-Parkinsons, and anti-inflammatory drugs.

The Company plays a vital role in the pharmaceutical value chain by delivering innovative and cost-efficient advanced intermediates through continuous process optimisation. In FY2025, Acutaas Chemicals marked significant progress in its growth and innovation journey. The company completed the majority of its capital expenditure at its Ankleshwar facility and secured a long-term supply agreement with a subsidiary of an innovator pharmaceutical company for four new pharmaceutical intermediates targeting a single API under the CDMO model. The new Ankleshwar plant is equipped with advanced technology and operates on a distributed control system, positioning it among the one of first automated facilities for advanced intermediates in India.

Moreover, the Companys manufacturing facility, Unit I, located in Sachin, Surat, engaged in the production of various intermediates for Active Pharmaceutical Ingredients, underwent a Good Manufacturing Practices (GMP) inspection by the Pharmaceutical and Medical Devices Agency (PMDA), Japan, starting June 4, 2024. The inspection concluded successfully on June 7, 2024, with no critical or major observations. Furthermore, PMDA issued Inspection Result Report declaring the Sachin Facility as a Good Manufacturing Practices (GMP) compliant.

Speciality Chemicals

Acutaas Chemicals is a global manufacturer of specialty chemicals serving a wide range of industries, including battery chemicals, semiconductors, agrochemicals, cosmetics, and polymers. The company is dedicated to delivering high-quality products, with a strong focus on innovation, reliability, and customer satisfaction. This commitment has positioned Acutaas Chemicals as a trusted partner for businesses seeking specialised chemical solutions tailored to their evolving needs.

Semiconductor Business

In FY2023, Acutaas Chemicals entered the semiconductor industry by acquiring a 55% stake in Baba Fine Chemicals (BFC), effective April 1, 2023. BFC produces high-value specialty chemicals, including photoresist chemicals critical to semiconductor applications. This acquisition marked a strategic move into a high-entry-barrier market with low competition and a focus on advanced technology.

Electrolyte Additive Business

Acutaas Chemicals entered the battery chemicals space in 2022 through its subsidiaries Ami Organics Electrolytes limited. The company developed essential electrolyte additives for lithium battery cells, becoming global first non-Chinese player to innovate at a scale. Key products in this segment include Vinylene Carbonate, and Fluoroethylene Carbonate, among others.

Commodity Chemicals Business

Acutaas Chemicals manufactures specialty fine chemicals like parabens, methyl salicylate, and niche KSMs for industries such as cosmetics, agrochemicals, and fine chemicals. Over the years, the company offered 60+ products to over 400 customers in 50+ countries.

Growth Enablers Technology

Acutaas Chemicals consistently leverages advanced technologies and platforms such as Distributed Contol System (DCS), Powder Transfer systems (PTS), and e-lab to develop and manufacture high- quality specialty chemicals. The Companys focus on innovation through research and development enables it to cost-effectively expand its product portfolio and stay ahead in a competitive market.

Diversification of Business

The Company diversifies its business through robust research and development efforts, focusing on niche products that have high entry barriers. Besides, this diversification is also achieved through strategic collaborations and acquisitions, which complement the in- house innovation by enhancing technical capabilities and extending market reach.

Cost Advantage

Through the adoption of cutting-edge technologies and continuous process innovation, Acutaas Chemicals effectively reduces production costs. The Company also benefits from sourcing the majority of its raw materials domestically, ensuring supply chain efficiency and cost stability. Acutaas Chemicals has transitioned several products and chemistries to more environmentally friendly processes such as Flow Chemistry. This shift not only reduces the consumption of solvents and utilities but also improves input-output efficiency. These strategic levers enable Acutaas Chemicals to maintain its cost leadership while strengthening its position as an environmentally responsible and sustainable player in the industry.

Diversified Customer Base

Acutaas Chemicals serves a wide and geographically diverse customer base, significantly lowering dependence on any single market or client. This broad exposure helps mitigate risks tied to regional economic fluctuations or customer-specific demand volatility. Acutaas Chemicals is actively working towards diversifying the industries it serves, with the objective of reducing dependency on any single sector in the future.

Portfolio for Future Growth

The Company boasts a robust portfolio of over 610+ commercialised products, with several others in the pipeline. These offerings span high-growth sectors such as semiconductors, battery chemicals, and advanced pharmaceutical intermediates for therapies like anti-cancer, anti-psychotic, CNS, and anti-cardiovascular, among others. This strong product base positions Acutaas Chemicals well for future expansion across next-generation industries.

China+1 Opportunity

With global companies derisking supply chains away from China, India is emerging as a strong alternative. Acutaas Chemicals is the first Indian company outside China to develop battery-grade electrolyte additives, strengthening its position in this shift. Its acquisition of Baba Fine Chemicals for semiconductor chemicals enhances its leverage under the China+1 strategy.

Rising Demand for Sustainability

Sustainability is becoming a critical growth lever globally. Acutaas Chemicals commitment to green chemistry, reflected in its Ecovadis Platinum Certification, Zero Liquid Discharge plant, and plans for Net Zero by 2050, positions it strongly with environmentally conscious customers and regulators. Its 16MW captive solar plant reinforces its move toward energy-efficient operations.

Challenges and Risks

As a manufacturer of Advanced Pharmaceutical Intermediates and specialty chemicals, Acutaas Chemicals operates in a highly regulated environment that demands strict adherence to quality standards and compliance protocols. Any lapse in meeting these regulatory requirements could adversely affect the companys operations, financial performance, and reputation.

Moreover, accurate estimation of market demand is equally critical, as miscalculations may lead to inefficiencies that undermine profitability and financial stability.

The Company operates under increasingly stringent environmental, health, and safety (EHS) regulations. Non-compliance, or adverse changes in these laws, covering areas such as labour, workplace safety, and environmental protection, could negatively impact business operations and overall financial health.

Acutaas Chemicals success is also closely tied to the strength of its relationships with customers and suppliers. Any disruptions in these partnerships or challenges in sustaining them could have a detrimental effect on the Companys performance.

Furthermore, any unplanned, unscheduled, or prolonged disruption in manufacturing operations could significantly impair business continuity and financial outcomes.

Risk Management

The Companys risk management policy is designed to identify and address risks in line with the Companies Act, 2013, and the SEBI Listing Regulations. In accordance with Regulation 21 of the SEBI Listing Regulations, the Board has constituted a Risk Management Committee responsible for formulating and overseeing the companys risk strategy. This committee, which includes one independent director, monitors the overall risk management process. To strengthen this framework, the company adopts a three lines of defence model and has established a dedicated Risk Co-ordinator (RC Group) to further reinforce its risk management efforts.

Risk	Risk description	Mitigation strategy
Geopolitical risk	Ongoing geopolitical tensions, including disruptions in global supply chains, may adversely affect the Companys operations.	Acutaas Chemicals mitigates this risk through its well-diversified international footprint and customer base. Its products serve multiple industries and are distributed both domestically and across more than 55 countries, reducing the potential impact of regional economic slowdowns or geopolitical disturbances.
Operational risk	Operational efficiency can be affected by factors such as equipment breakdowns, labour disputes, and environmental challenges.	Acutaas Chemicals addresses these risks through well-defined standard operating procedures, a skilled workforce, experienced management, and a dedicated quality assurance unit. Moreover, the Company ensures its equipment and facilities are carefully designed and regularly maintained to support smooth and uninterrupted operations.
Raw material risk	Challenges in sourcing raw materials or fluctuations in their prices can adversely affect the Companys profitability.	The Company mitigates this risk by diversifying its supplier base and avoiding long-term binding contracts with specific vendors, allowing greater flexibility in procurement. Approximately 71% of the Companys raw materials are sourced domestically, while only about 21% are imported from China, reducing dependency on any single region and enhancing supply chain resilience.
Demand risk	Fluctuations in market demand for the Companys products can affect growth strategies, inventory management, sales performance, and overall profitability.	Acutaas Chemicals mitigates this risk through its extensive portfolio of over 610+ commercialised products which have been invoiced to customers in the last five years. This diverse product range enables the Company to balance demand shifts across different segments and maintain stable business performance.
Product risk	The Company faces product-related risks arising from shifts in technology, the development of new products, and changing consumer preferences. Such changes can disrupt ongoing or planned product development, while delays in timely investments may adversely impact operations and financial performance.	Acutaas Chemicals ensures all products are rigorously developed and tested to meet stringent regulatory standards. The Company has obtained key regulatory approvals, enabling it to remain competitive and respond swiftly to evolving market demands. It also focuses on continuous process and product development to stay ahead of the curve and drive long-term innovation.
Competition risk	Intensifying industry competition can affect the Companys revenue generation and operational efficiency.	The Company focuses on product differentiation, ensuring its offerings stand out in the market. It also drives cost efficiency through continuous productivity improvements and technological innovation.
Customer risk	The Companys operational performance and revenue are influenced by demand from its top customers, with client output and inventory levels directly impacting sales.	The Company has built long-standing relationships with both domestic and international clients, and bases production forecasts on purchase orders from key accounts. Significantly, most customers source more than two products from the Company, helping reduce the risk of product and customer concentration.
Technology risk	The Company faces the risk of operational and financial disruption if it fails to upgrade its manufacturing capabilities, develop new products, or retain skilled R&D personnel.	The Company continually adapts to industry changes through technological and scientific advancements. It invests significantly in research and development while ensuring that its equipment, infrastructure, and processes align with the latest global standards.
Forex risk The Company is exposed to foreign exchange fluctuations since a significant portion of its sales and purchases is conducted in international currencies.	The Company aligns some of its purchases in the same currencies as its revenues, reducing transactional exposure. It also actively monitors currency risks and uses instruments like foreign exchange forward contracts to manage and hedge against forex volatility.
Environment risk The Company must comply with environmental regulations, and any failure to do so could adversely affect its performance and reputation.	The Company has implemented advanced systems such as a Zero Liquid Discharge (ZLD) effluent treatment plant, a reverse osmosis (RO) plant with pre-treatment, and a soil biological treatment facility to manage waste responsibly. Furthermore, all manufacturing units are ISO-certified, underscoring the Companys commitment to environmental compliance and sustainable operations.

Human Resources

Acutaas Chemicals acknowledges human capital as one of its most vital assets, recognizing that the dedication and continuous efforts of its people are central to the Companys success. As of March 31, 2025, the Company employed 879 individuals, representing a robust and capable workforce. With a strong focus on training and development, Acutaas Chemicals invests in upskilling its employees to enhance productivity and adaptability. By nurturing a culture of continuous learning, the Company empowers its teams with the knowledge and tools needed to perform effectively, fostering both individual growth and long-term organisational resilience in a competitive landscape.

Acutaas Chemicals is also committed to inclusive practices, embracing diversity and ensuring equal opportunities across the organisation. This inclusive environment encourages employees from varied backgrounds to contribute their perspectives, strengthening innovation and team cohesion. Furthermore, the Company actively promotes cross-functional collaboration, enabling teams from different departments to work together, share expertise, and drive creative solutions to complex challenges. By emphasizing continuous learning, inclusive practices, and cross-functional collaboration, Acutaas Chemicals builds a dynamic and agile workforce prepared to meet the evolving needs of the industry.

Financial Performance

Particulars	Numerator/ Denominator	UoM	As of March 31, 2025	As of March 31, 2024	Change in %	Remark for Deviation
Current ratio	Current asset/current liabilities	Times	3.91	1.2	226.18%	Due to an increase in cash and cash equivalents and a reduction in current maturities of borrowing
Debt-equity ratio	Total debts/equity	Times	0.01	0.32	-98.06%	Due to repayment of debt during the year
Debt service coverage ratio	Earnings available for debt service/ interest + instalments	Times	30.08	2.86	951.69%	Due to repayment of debt during the year
Return on Equity Ratio	Profit after tax/average shareholders equity	Percentage	16.0%	6.5%	146.23%	Due to a substantial increase in PAT. In the previous year, there was an exceptional item
Inventory turnover ratio	Total turnover/average Inventories	Times	5.98	5.20	15.03%	Due to higher turnover
Trade receivables turnover ratio	Total turnover/average accounts receivable	Times	4.05	3.29	23.19%	Due to higher turnover
Trade payables turnover ratio	Total purchase/average account payable	Times	3.92	3.25	20.64%	Due to higher purchase
Net capital turnover ratio	Total turnover/ net working capital	Times	1.79	3.41	-47.50%	Due to higher current assets on account, higher cash and cash equivalents
Net profit ratio	Net profit/total turnover	Percentage	15.7%	5.7%	173.69%	Due to a substantial increase in PAT. In the previous year, there was an exceptional item
Return on capital employed	Net profit/capital employed	Percentage	16.8%	10.8%	55.55%	Due to a substantial increase in PAT. In the previous year, there was an exceptional item

Internal Control Systems and Their Adequacy

The Company has extensive internal control systems appropriate for the scale and complexity of its operations as well as the nature of its business. They offer a fair level of assurance regarding the efficacy and efficiency of its business operations, the accuracy of its financial reporting, and adherence to all relevant legal and regulatory requirements. The management regularly tests and updates the internal control systems— which combine modern and old processes for both design and operational effectiveness, and the Statutory Auditors conduct audits of the same. Senior Management and the Audit Committee receive reports on significant audit observations, actions taken in response, and recommendations made thereon for their consideration. The reputed audit company M/s. K.C. Mehta & Co. LLP (Chartered Accountants) which specialises in internal audits and assurance, has been hired by the Company. The Audit Committee reviews and approves the yearly internal audit plan to guarantee adequate coverage at the start of each fiscal year. The Management and Audit Committees examine the status of identified actions, the progress of the internal audit plan, and important observations made during internal audits on a quarterly basis.

Cautionary Statement

Management Discussion and Analysis remarks that describe the industry landscape, Companys objectives, plans, estimates, and expectations may be considered forward-looking statements under applicable securities laws and regulations. The actual outcomes could be very different from the stated or anticipated ones. Economic factors that impact supply and demand, pricing conditions in the domestic and international markets where the company operates, competitive pressures in these markets, changes in governmental regulations, tax laws and other statutes, and incidental factors are all significant variables that could have an impact on the results.