A. Economic Overview
Global Economy:
After a succession of adverse shocks in recent years, the global economy is facing another substantial headwind, with increased trade tension and heightened policy uncertainty, contributing to a deterioration in prospects across most of the worlds economies. For emerging market and developing economies (EMDEs), the ability to narrow per capita income gaps with richer countries, boost job creation, and reduce extreme poverty remains insufficient. The outlook largely hinges on the evolution of trade policy globally. Downside risks to the outlook predominate, including an escalation of trade barriers, persistent policy uncertainty, rising geopolitical tensions, and an increased incidence of extreme climate events. Growth is expected to weaken to 2.3 percent in 2025, with deceleration in most economies relative to last year. This would mark the slowest rate of global growth since 2008, aside from outright global recessions. New U.S. trade policy created a structural shock to the worlds economy, with the uncertainty generated by higher tariff scrimping demand globally.
Conversely, policy uncertainty and trade tensions may ease if major economies succeed in reaching lasting agreements that address ongoing trade disputes. The challenging global context faced by EMDEs is compounded by the fact that foreign direct investment inflows into these economies have fallen to less than half of their peak level in 2008 and are likely to remain subdued.
Across EMDEs, domestic policy action is also critical to contain inflation risks, strengthen fiscal resilience through improved revenue mobilization, and reprioritize spending. To unlock job creation and long-term growth, structural reforms must focus on raising institutional quality, attracting private investment, and strengthening human capital and labour markets.
Outlook: Global co-operation is needed to restore a more stable and transparent global trade environment for mitigating risks and promoting growth. Governments should focus on policies that promote healthy aging, enhance labour force participation and foster productivity growth. Continued investment in infrastructure can help stimulate economic growth and improve longterm productivity whereas businesses needs to adapt to changing market conditions and be prepared to navigate a more volatile global landscape.
Indian Economy and Outlook
India, the worlds fourth-largest economy, has emerged as the fastest-growing major economy and is on track to become the worlds third-largest economy with a projected GDP of $7.3 trillion by 2030. India is projected to be worlds fastest growing major economy (6.3% to 6.8% in 2025-26). This transformation is the result of a decade of decisive governance, visionary reforms, and global engagement under the present Government. Driven by robust domestic demand, a dynamic demographic profile, and sustained economic reforms, India is asserting its rising influence in global trade, investment, and innovation. The numbers reflects Indias shift in last Eleven years, from a ‘dependent economy to a self-reliant, globally competitive powerhouse.
At the core of this transformation is the vision of ‘Aatmanirbhar Bharat, a movement that promotes innovation, entrepreneurship, and technological sovereignty. Strategic initiatives like the Production Linked Incentive (PLI) schemes, revitalisation of MSMEs, and the expansion of digital infrastructure have laid the foundation for a high-growth, high-opportunity economy.
Digital transactions surged 9x in volume (FY18-FY24), with UPI processing 172 billion transactions in 2024 alone.
Inflation was reduced from an average of 8.2% (2004-14) to around 5% (2015-25) through targeted fiscal and monetary policies.
Retail inflation fell to 4.6% in 2024-25, the lowest since 2018-19.
Tax revenues hit record highs with GST collections peaking in April 2025 and tax-to-GDP ratio estimated at 12% for FY26
Indias GDP has witnessed a remarkable transformation over the past decade. At current prices, GDP has increased from 106.57 lakh crore in 2014-15 to an estimated 331.03 lakh crore in 2024-25, an approximate threefold rise.. In 2024-25 alone, nominal GDP grew by 9.9% over the previous year, while real GDP (at constant prices) increased by 6.5%, reflecting sustained economic momentum. This steep growth reflects the countrys expanding economic base and rising income levels.
India has rapidly become one of the worlds most attractive destinations for Foreign Direct Investment (FDI), fuelled by structural reforms, investor-friendly policies, and enhanced global competitiveness. Investor confidence has surged due to improvements in key international rankings and strategic initiatives.India
s digital payment transactions volume grew from 2,071 crore in FY 2017-18 to 18,737 crores in FY 2023-24, achieving a CAGR of 44% whereas the value of transactions rose from 1,962 lakh crore to 3,659 lakh crore, with a CAGR of 11%.Over the past decade, India has undergone a profound economic transformation rooted in structural reforms, visionary policymaking, and unwavering political will. From achieving historic GDP growth and record exports to revolutionising digital payments and empowering millions through financial inclusion, the country has laid the foundation for a resilient, equitable, and future-ready economy. With robust FDI inflows, expanding trade, and innovation-driven sectors leading the charge, India is no longer a passive participant in the global economy, it is a key architect of its future. As the country moves confidently toward its goal of becoming a top three economic power, the momentum signals that India
s economic rise is not just a moment—it is a movement.India
s GDP is forecasted to grow between 6.5% and 6.7% in FY2026, powered by domestic demand, fiscal support, and stable inflation. The impact of reciprocal tariffs imposed by the United States on Indian GDP could be range bound Impact of reciprocal tariffs on Indias exports to the US.The tax exemptions announced in the budget will increase consumer spending and may boost GDP by 0.6% to 0.7%. However, uncertainty around the tariff rates imposed by the United States on Indian exports could offset those gains by 0.1% to 0.3% and hence the outlook remains optimistic, but cautious.
INDIAN AUTOMOBILE INDUSTRY
Since liberalization in the early 1990s, the Indian automobile industry has transformed dramatically. The sector evolved from a small, protectionist market into a major global manufacturing hub.
The automotive sector plays a pivotal role in India
s economy, contributing about 6-7% to the national GDP and supporting millions of jobs both directly and indirectly. Indias auto component segment is also a major pillar, providing critical inputs to domestic and export markets, with exports playing a growing role in the countrys manufacturing exports.Research suggests that the Indian Automobile Industry is on a growth trajectory, with the market size projected to reach USD 137.06 billion in 2025, up from an estimated USD 125.82 billion in 2024. This growth is expected at a Compound Annual Growth Rate (CAGR) of 8.2% from 2025 to 2030, reaching USD 203.25 billion by 2030
The industry
s share in Indias GDP remains significant at around 7.1%, with total employment (direct and indirect) estimated at 19 million.India has a strong market in terms of domestic demand and exports. In December 2024, the total production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles was 19,21,268 units. Sector contributes approximately 0.6% in 2024 to the nation
s GDP and is expected to grow at a CAGR of around 11%, aiming for a market size of 3 lakh crore (US$ 34.5 billion) by 2029.India is on track to become the largest EV market by 2030, with a total investment opportunity of more than US$ 200 billion. INDIAN AUTO COMPONENT INDUSTRY
The Indian auto component industry is one of the world
s most dynamic and rapidly evolving sectors. It plays a crucial role in supporting both domestic vehicle production and global supply chains. In the first half of fiscal year 2024-25, the industry reportedly achieved a turnover of approximately 3.32 lakh crore (around USD 39.6 billion), growing at an impressive rate of 11.3% over the corresponding period of the previous fiscal year. This robust performance is largely driven by steady domestic vehicle production (across passenger, commercial, and two-wheeler segments), coupled with healthy export growth.Exports: It seems likely that exports of auto components grew by 7% to USD 11.1 billion (? 93,342 crore) during H1 FY 2024-25. North America led the growth with an 8.3% increase, accounting for 31% of total exports, while Asia saw a 10% rise. Europe, also accounting for 31% of exports, remained steady.
Domestic Market: The evidence leans toward strong growth in domestic OEM (Original Equipment Manufacturer) supplies, which increased by 11.2% to 2.83 lakh crore (USD 33.8 billion), reflecting robust demand from the automotive manufacturing sector. The aftermarket segment also grew by 5% to 47,416 crore (USD 5.7 billion), supported by e-commerce growth, particularly in rural areas.
Growth Drivers and Trends
Export Potential: India is emerging as a global hub for auto component sourcing, with exports expected to reach USD 80 billion by 2026, as noted in recent analyses Indian Auto Components Industry Analysis.
Government Initiatives: The Indian government has implemented several schemes to bolster the sector, including:
• The Production Linked Incentive (PLI) scheme, which encourages domestic manufacturing.
• The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, with an additional fund of 1,500 crore (USD 180.3 million) approved in January 2024 for the second phase of FAME-II Indian Auto Components Industry Analysis.
• The Bharat New Car Assessment Program (BNCAP), which strengthens the value chain and drives innovation in component manufacturing.
The outlook for the Indian Auto Component Industry is optimistic, with significant growth potential in the coming years. The industry is targeting auto component production to reach USD 145 billion by 2030, with exports tripling to USD 60 billion, contributing to a trade surplus of USD 25 billion, as outlined in a recent NITI Aayog report India aims for $145 billion auto component production by 2030.
Household Appliances:
India Consumer Electronics and Appliances Market valued at USD 86.08 billion in 2024 is anticipated to grow with a CAGR of 12.83% through 2030. This market in India is dynamic and rapidly evolving sector characterized by significant growth driven by several key factors. With a population exceeding 1.3 billion people and a growing middle class, India represents a vast market for consumer electronics and home appliances. Factors such as increasing disposable incomes, urbanization and the availability of easy financing options have fuelled the demand for a wide range of products including smartphones, televisions, refrigerators, washing machines, air conditioners and kitchen appliances. This highly competitive market fosters innovation and drives technological advancements tailored to local preferences and affordability.
Key market trend in India Consumer Electronics and Appliances sector demonstrates:
Rise of Smart and Connected Devices - One of the most significant trends in the Indian consumer electronics market is the growing popularity of smart and connected devices. These include smart TVs, home automation systems, connected kitchen appliances, and wearable devices. Consumers are increasingly seeking products that can be controlled remotely via smartphones or voice assistants, enhancing convenience and efficiency in daily tasks.
Shift towards Energy Efficiency and Sustainability - There is a growing awareness and emphasis on energy efficiency and sustainability in the consumer electronics and appliances sector. Consumers are prioritizing products that are energy-efficient and eco-friendly. Energy-efficient appliances such as refrigerators, air conditioners, and washing machines are gaining popularity due to their lower operating costs and reduced carbon footprint.
Demand for Premium and Innovative Products - There is a growing demand for premium and innovative products, driven by rising disposable incomes and aspirational lifestyles. Consumers are willing to invest in technologically advanced products that offer superior performance, design aesthetics, and enhanced user experience.
Adoption of AI and Machine Learning - Artificial Intelligence (AI) and Machine Learning (ML) are transforming the consumer electronics and appliances market by enabling smarter, more intuitive products. AI-powered technologies enhance device functionality, automate routine tasks, and personalize user experiences based on behavioural patterns and preferences. Voice assistants are increasingly integrated into smart home devices, allowing users to control appliances, access information, and manage tasks through voice commands.
bhANSAli ENqiNEERiNq polyMERS Wmnd
An ISO 9001:2015 Company
B. Opportunities & Threats:
Opportunities: There is immense scope for growth, considering the existing supply and demand mismatch, and knowing the fact that the consumption of ABS in India is voluminously larger as compared to the combined output of the domestic manufacturers.
Threats: The limitation arises out of deliberate decision on the part of domestic manufacturers to keep low inventories of its imported key raw materials which is more than 85% (i.e. Styrene and Acrylonitrile monomers) to limit the risk of price fluctuations which may result in huge loss, if the price of monomers drastically falls in the international market, which happen many a times due to unpredictable reasons, i.e. fluctuation in price of crude oil, benzene and ethylene.
C. Risk and Concern:
The ABS business in India is exposed to the risk of foreign exchange fluctuations, as the key raw materials viz.
‘Styrene and ‘Acrylonitrile monomers are import dependent, as there is no indigenous producer for these monomers. The only raw material which is indigenously available is Butadiene monomer, which constitutes around 15 per cent (weight wise) of the total raw material composition.The Company has long term contracts for smooth supply of basic raw materials and maintains appropriate level of inventories for smooth operations. Further, the Company is taking various steps for energy saving by way of efficient equipment and alternative sources of energy.
D. Segment/Product Wise Operational Performance:
Expansion: Details to be inserted subsequently.
The Company deals with single business segment viz. manufacturing of ABS and SAN resins (which is classified under the category of Highly Specialized Engineering Thermoplastics).
During the financial year 2024-25, the Company achieved a production volume of 74,681 TPA against installed capacity of 75,000 TPA. Sales volume for the year stood at 74,381 TPA as compared to 75,143 in FY 2023-24.
During the year under review, the gross sales of goods manufactured and traded by the Company (on standalone basis) amounted to 1,64,898.74 lakhs as against 1,43,951.21 lakhs during last fiscal. The Operational Revenue (net) for FY 2024-25 stood at 1,39,774.37 lakhs as compared to 1,22,173.60 lakhs for FY 2023-24. The EBIDTA for FY 2024-25 stood at 25,278.60 lakhs as against 25,266.62 lakhs for FY 2023-24. The PBT was 24,359.02 lakhs as against 24,276.41 lakhs for previous financial year. After considering the provision for tax of 6377.09 lakhs (previous year 6,303.11 lakhs), the profit from continuing operations after tax stood at 17,981.93 lakhs as against 17,973.30 lakhs in FY 2023-24. The total Comprehensive Income for FY 2024-25 amounted to 17863.38 lakhs as compared to 17,863.56 lakhs for FY 2023-24.
The Key Financial ratios as per Schedule V of the LODR Regulations have been disclosed in the Board
s Report, under the head ‘Financial Highlights.E. Internal Control System and its adequacy:
The Company has an effective internal control system considering the size of its operations. It maintains its accounting records on SAP a well renowned software. The financial transactions are properly documented in accordance with the policies & procedures, as set out by the management from time to time and are properly approved and authorized, as per the approval matrix and reported to the management in a prescribed manner.
The Company has appropriate and adequate insurance cover for its immovable and movable assets. Both, the insurance cover and the assets are closely and consistently monitored by the management from time to time.
The Report on Internal Audit, carried by an independent Internal Auditor is placed before the management on quarterly basis, and requisite corrective actions, if any, are being taken. Observations of the auditors are properly reviewed and appropriate follow-up action(s) are taken by the concerned department(s) and reported to the management, who in turn, also reviews the sufficiency and effectiveness of the internal control system and monitors the implementation of audit recommendations, including those relating to strengthening of the Company
s internal policy and management practices.F. Material Development in Human Resources/Industrial Relations Front, including the number of
people employed:
The Company firmly believes that an able, disciplined, motivated, trained and skilled manpower is the key for sustaining growth of an organization. The Company has strengthened the team of top management by new recruitment of strong talent pool.
The Company organizes and provides requisite training to its employees from time to time. Periodical appraisal and rewarding systems are in place. Industrial Relations at both the plants (i.e. Abu Road, Rajasthan and Satnoor, Madhya Pradesh) as well as inter-se relationship between employer and employee have been cordial and conducive during the year.
The Company follows the principle of Mr. Peter Drucker (Management Consultant and Educator) of
“Right Person for Right Job” and takes appropriate steps towards the same. As on 31st March, 2025, the permanent employee strength of the Company was 496 (previous year 478).
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2025, IIFL Capital Services Ltd. All Rights Reserved
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016, BSE Enlistment Number (RA): 5016
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.