Chemiesynth Vapi Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The key areas of Management Discussion and Analysis are given below:

The company is into manufacturing of chemical dyes and specialty intermediates for leading agrochemical and specialty chemical companies in India.

Industry Overview

Last year saw a considerable increase in macroeconomic volatility due to geopolitical tensions, currency fluctuations, inflationary conditions and other global factors like levy of differential tariffs by USA, which impacted overall trade conditions.

Despite this the Indian agrochemicals market is projected to register a CAGR of 8.5% during the forecast period (2022-

2027). The likely reshaping of supply chain will happen over next one year on account of tariffs and protectionist measures adopted by various countries. The long term outlook still remains intact and will result in better and stable business volumes. in the global specialty chemicals industry with developed countries losing Thelasttwodecadeshaveseenasignificant their production supremacy (particularly the US and Europe) to emerging market nations in Asia. Key facilitators for this shift include stricter environmental norms in western countries and cost advantages enjoyed by emerging markets in terms of logistics and labour.

Outlook

The chemicals industry supports Indias agricultural and industrial development. It provides raw materials, intermediates and process chemicals for dyes and chemicals, agrochemicals, detergents and soaps, textiles, paper, paints, pharmaceuticals, varnish, etc. Specialty chemicals segment has grown rapidly in last few years, driven by an increase in domestic consumption from various end-user industries and rising exports. It is expected that this segment to clock 6-8% CAGR during fiscals

2026 to 2029 driven by rising domestic consumption and exports.

Opportunities and Threats

Market for agrochemicals is rising rapidly in India and has shown considerable resilience despite global volatility. Innovation led growth will sustain the growth rate of agrochemicals and will lead to better market conditions.

Consolidation of vendor ecosystems is an emerging theme across global chemicals supply chains, with many products being sourced from countries with robust ecosystems. These trends stem from cutting the need to cut costs, drive volumes and adhere with global environmental regulations. India is well-positioned with a scalable, compliant ecosystem for manufacturing agrochemicals and specialty chemicals. This is being accentuated by realignment of geopolitical equations, in turn driving foreign trade and creating favourable diversification in global manufacturing from China to countries like

India.

Risks & Concerns Regulatory Risks:

The Company remained cognisant of the importance of adopting Safety, Health and Environment (SH&E) norms. It also judiciously follows reduce-reuse-recover principles across sites. Stricter regulatory norms may result in higher compliance costs.

Innovation Risk

Risk of redundancy and losing out to competition on account of poor R&D is a major overhang.

The Company has been focused on strengthening its technical skill set around niche application and has always emphasised product innovation and improvement in process engineering.

Raw Material Risk

The Company runs the risk of ready availability of raw materials and fluctuation in raw material prices especially due to

West Asia war The Company has fostered long-standing relationships with its suppliers to ensure steady availability of raw materials at competitive prices to the extent possible.

Internal Control System and Adequacy

The Company has suitable and adequate internal control system and adequacy system for safeguarding the assets. Board of Directors is reviewing the system from time to time for benefits of the company. Reviews are conducted on an on-going basis, based on a comprehensive risk-based audit plan, which is approved by the Audit Committee at the beginning of each year. The Audit Committee meets on a quarterly basis to review and discuss the various Internal Audit reports and follow up action plans of past significant audit issues and compliance to the audit plan.

Human Resources

The company is providing sufficient motivation for better performance of human resources. Companys main emphasis is on developing skill and expertise in employees. Steps are taken for reskilling and upskilling Companys talent pool with future-ready and future-engaged competencies. This includes functional capability, behavioural or managerial capability and leadership capability.

Financial Performance

The financial Performance of the Company for the year under review is discussed in detail in the Directors Report.

Place: Vapi	For and on behalf of the Board of Director
Date:12/08/2026
	Mr. Sandip S. Zaveri	Mr. Satish B. Zaveri
	Managing Director	Director
	DIN: 00158876	DIN: 00158861