ANNEXURE-V
Financial Review
The operating income of the Company for the financial year ended 31st March, 2025 stood at Rs. 9,075.01 Lakhs as against Rs. 9,767.91 Lakhs in the previous financial year ended 31st March, 2024. Despite a marginal decline in operating income, the Company has achieved a significant improvement in profitability, recording a net profit of Rs. 182.53 Lakhs as compared to Rs. 66.61 Lakhs in the previous year
Industry Overview for the Company
Agriculture
India continues to remain among the leading exporters of agricultural products globally. During the financial year 2024-25, agricultural exports increased by 6.4% year-on-year, rising from US$ 48.8 billion in FY 2023-24 to US$ 51.9 billion, thereby sustaining the upward momentum achieved after the historic peak of US$ 53.2 billion in FY 2022-23.
The countrys agricultural trade recorded a healthy surplus of US$ 13.4 billion in FY 2024-25, with major contributions from marine products, basmati and non-basmati rice, spices, buffalo meat, sugar, and other processed items. Notably, in April 2025 alone, exports of agricultural and processed food products grew by 15% year-on-year, amounting to Rs. 18,169 crores (approx. US$ 2.13 billion), driven by strong demand for rice, meat, and fruits.
The processed food and value-added segment continues to demonstrate significant growth potential. As of FY 2024, processed food exports were valued at US$ 8 billion, with industry bodies (Deloitte & FICCI) emphasizing that innovation and strategic investments can substantially enhance Indias position in the global food trade. The Government has also set an ambitious target of doubling agro-exports to US$ 100 billion by 2030, supported by policy reforms, including phased relaxation of export restrictions on key commodities such as rice and sugar.
Despite abundant production and re-entry into global markets, rice prices remained under pressure due to high stockpiles and ample global supply. To address surplus management and strengthen sustainability, India diverted 5.2 million metric tonnes of rice towards ethanol production, aligning with its national ethanol blending programme.
At the regional level, initiatives by the Agricultural and Processed Food Products Export Development Authority (APEDA) played a key role in strengthening agri-exports. For instance, its programme at Varanasi Airport enabled Farmer Producer Organisations (FPOs), Farmer Producer Companies (FPCs), and exporters to expand their reach, raising the regions agricultural export volumes from negligible levels to over 1,000 metric tonnes in FY 2024-25.
Chemical
The Indian specialty chemicals market continues to demonstrate strong momentum and is expected to maintain a double-digit growth trajectory. As of FY 2024-25, the industry is estimated to be valued at ~US$ 40-42 billion, accounting for nearly 22% of Indias overall chemicals and petrochemicals market. The sector is projected to grow at a CAGR of 11-12% over the medium term, driven by rising domestic demand, substitution of imports, and strong export performance.
Specialty chemicals remain a significant contributor to Indias chemical trade, representing over 50% of chemical exports. India has emerged as a reliable global supplier, benefitting from the China+1 diversification strategy of multinational corporations. Exports of specialty chemicals grew steadily in FY 2024-25, supported by demand in key segments such as agrochemicals, dyes and pigments, construction chemicals, and personal care ingredients.
According to CRISIL, Indian specialty chemical manufacturers recorded revenue growth of ~15% in FY 2024-25, following a period of moderation in FY 2023-24. This growth was driven by recovery in demand from end-user industries, improved realizations, and robust export orders. The industrys share in the global specialty chemicals market has now expanded to ~5%, up from 3-4% a decade ago.
Capital expenditure (capex) in the sector also remained buoyant. Investments during FY 2024-25 crossed Rs. 9,500 crores, reflecting continued capacity expansion and technology upgradation. This capex cycle is expected to sustain over the next 3-4 years, supported by rising domestic consumption and increasing global outsourcing opportunities.
Government policy initiatives have played a vital role in strengthening the industry. Measures such as mandatory BIS-like certification for imported chemicals to curb dumping, the Production Linked Incentive (PLI) scheme, and promotion of chemical parks and clusters are expected to provide a further boost. The Government of India has also highlighted the chemical sector as a key driver of manufacturing growth, with a target to increase its share to nearly 25% of the manufacturing GDP by 2025.
Mentha Oils:
Production: India remains the largest producer of Mentha oil, accounting for nearly 80% of global output. The financial year 2023-24 saw stable production levels, supported by favorable weather conditions.
Price Trends: Mentha oil prices have fluctuated due to varying demand from pharmaceuticals and personal care sectors but remained overall stable.
Export Performance: India maintained strong export volumes to key markets like the U.S., Europe, and Southeast Asia, solidifying its position in the global Mentha oil market.
Challenges: The industry faces challenges such as price volatility and the need for advanced processing technologies to improve oil quality and yield.
Critical Drug Intermediates and Active Pharmaceutical Ingredients (API):
Strategic Importance: Critical drug intermediates and APIs are vital for Indias pharmaceutical sector, which is one of the largest in the world. The financial year 202324 underscored the importance of self-reliance in API production, particularly in light of global supply chain disruptions.
Government Support: The government has launched various initiatives, including the Production Linked Incentive (PLI) scheme, to boost domestic manufacturing of APIs and reduce dependency on imports, especially from China.
Production and Growth: There has been a significant increase in the domestic production of APIs, with key focus areas including antibiotics, cardiovascular drugs, and antiinflammatory agents.
Export Performance: Indias API exports have remained strong, catering to major pharmaceutical markets globally. The sector is seeing increased investment in advanced manufacturing technologies to enhance production efficiency and product quality. Challenges: The industry continues to face challenges such as high production costs and the need for stringent regulatory compliance. Additionally, environmental concerns related to API manufacturing remain a critical area of focus.
The outlook for both Mentha oils and APIs is positive, driven by robust demand, government support, and Indias growing capabilities in high-value chemical production. These segments are expected to continue contributing significantly to the overall growth of the chemicals sector in the coming years.
Sd/-
PRAVEEN RASTOGI
Chairman and Managing Director
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Date: 02/09/2025
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