Goyal Salt Ltd Management Discussions

The Management Discussion and Analysis Report has been prepared in accordance with the provisions of Regulation 34(2)(e) of Listing Regulations, read with Schedule V(B) thereto, with a view to provide an analysis of the business and Financial Statements of the Company for FY-2024-25 and should be read in conjunction with the Companys financial statements, the schedules and notes thereto and other information included elsewhere in the Annual Report. The objective of this report is to convey the Managements perspective on the external environment and our industry, as well as strategy, operating and financial performance, material developments in human resources and industrial relations, risks and opportunities in the Company during the FY 2024-25. The Companys financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) complying with the requirements of the Companies Act, 2013, as amended and regulations issued by the Securities and Exchange Board of India (SEBI) from time to time.

COMPANY OVERVIEW

Goyal Salt Limited (Formerly known as Goyal Salt Pvt. Ltd.) situated on the land of Nawa City near Sambhar Lake (Indias largest Inland Salt water lake), Rajasthan. It is the leading Manufacturers and Supplier of wide range of Salt i.e., Triple Refined Free Flow Iodised Salt, Triple Refined Free Flow Industrial Salt, Double fortified Salt (Iron Plus Iodine) and many other types of industrial salts. The Company is having refining unit at Khasra No 546, Mohanpura Bye-pass, Near Biyani Petrol Pump, Nawa city, Distt. - Didwana -Kuchaman, Rajasthan and Company is in process of installing another refining unit at Khasra No. 416, Village: Moti Chirai, Taluka: Bhachau, District: Kutch, in the state of Gujarat and the said project was completed in the month of April, 2025.

GLOBAL ECONOMY OVERVIEW

The global salt market size was valued at USD 25.98 billion in 2024. The market is projected to grow from USD 26.92 billion in 2025 to USD 36.13 billion by 2032, exhibiting a CAGR of 4.3% during the forecast period. Asia Pacific dominated the salt market with a market share of 46.23% in 2024. Moreover, the U.S. salt market is projected to reach USD 4.91 billion by 2032, fuelled by food-grade salt demand and growing use in industrial and de-icing applications.

Salt is one of the inorganic compounds widely used across various industries and is one of the worlds most valuable minerals. It is an essential element of food consumption. The product is a mixture of chlorine and sodium that undergoes a number of processing methods involving seawater evaporation, brine extraction, rock salt, and mining.

The market is driven by the rise in product demand from the chemical manufacturing industry, especially in chlorine-alkali chemicals production. In the chemical sector, the chlorine-alkali industry is a major user of the product due to a lack of economically viable alternatives. However, the process of extracting the substance from mines includes additional approvals and licenses from mining officials worldwide, which are supposed to curb production.

Market Share:

? Asia Pacific led the global salt market in 2024 with a market share of 46.23%, driven by strong demand from the chemical processing industry, growing population, and expanding food sector. The region grew from USD 13.86 billion in 2023 to USD 12.01 billion in 2024, with China, India, and Australia as key contributors.

? By type, rock salt dominated the market in 2024 due to its wide use in de-icing, chemical processing, and food preservation.

? By source, salt mines held the largest share in 2024 owing to the abundance of underground salt deposits and well- established mining operations.

? By application, chemical processing accounted for the largest market share in 2024, with the de-icing segment projected to hold a 13.3% share due to strong demand in colder regions.

INDIAN ECONOMY OVERVIEW

India Salt Market size was estimated at USD 11.1 billion in 2024. During the forecast period between 2025 and 2031, India Salt Market size is projected to grow at a CAGR of 8.15% reaching a value of USD 19.2 billion by 2031. The Salt Market in India is driven by an increasing demand from the food processing industry, where salt is essential for preservation and flavour enhancement. Expanding applications in chemical processing, such as chlorine and caustic soda production, further boost market growth. Rising urbanization and population growth contribute to higher consumption of processed and packaged foods, increasing salt demand. Additionally, the development of premium and specialty salt products, along with growing export opportunities to neighbouring countries, creates significant growth potential for the market.

INDUSTRY OVERVIEW

The salt manufacturing industry in India continues to hold a significant position globally, ranking as the third-largest producer after China and the USA. In the fiscal year 2024-25, Indias total salt production was estimated at around 30 million metric tonnes (MMT). Gujarat alone contributed nearly 78% of the national output, leveraging its extensive coastal salt pans in regions such as Khara Ghoda, Bhavnagar, and Porbandar. The remaining production included rock salt from Himachal Pradesh and Rajasthan.

The industry caters to diverse demand segments, with 75% of salt consumed by industrial sectors, particularly the chlor-alkali industry for caustic soda and chlorine production, along with dyes and pharmaceuticals. Another 15% goes to edible salt, including iodized salt for household consumption, while 10% is exported to countries like Japan, Bangladesh, Indonesia, and Middle Eastern markets. The fiscal year 2024-25 saw steady growth in industrial demand, driven by expansions in chemical and pharmaceutical manufacturing. Government initiatives, such as the PM MITRA Parks scheme for textiles and chemicals, further boosted industrial salt consumption, while welfare programs for salt farmers aimed at improving productivity.

However, the sector faced challenges, including climate variability affecting salt crystallization, labour shortages due to seasonal dependence, and competition from synthetic alternatives in industrial applications. Despite these hurdles, the industry is adopting sustainable practices like solar evaporation and better brine management. Looking ahead, the sector is projected to grow at 5-7% annually, supported by rising industrial demand, export opportunities, and technological advancements in refining processes. With continued government support and modernization, Indias salt industry is poised for sustained growth in the coming years.

USES OF SALT

A. Human Consumption

• It Flavors food and is used as a binder and stabilizer

• It maintains the fluid balance in the body

• Salt acts as a preservative by reducing the availability of water in foods

• The human body requires a small amount of sodium to conduct nerve impulses, contract and relax muscles and maintain

the proper balance

• Salt is important for hydration energy and nerve transmission

B. Industrial Consumption

• For De-icing of roads, Oil & Gas Industry, Energy Industry, Chemical Industry

• Chloralkali Industry or Electrolysis Metal Industry Textile Industry, Rubber Industry, Pharmaceutical Industry, Soap & Washing Powder Industry, Pigment Industry etc

Moreover, Potential for the Growth of Salt Industry:

• India has very long coast line and out of that Gujarat Coast line is of 1600 Kms

• In Gujarat in addition to existing salt industry lot of Land available along the side of coast for developing more salt works.

• Climatic conditions are suitable for salt industry.

• Easy Availability of skilled labours

• Good Administration of our Govt. and their Corporation.

• Our low cost of production

• Government support for critical infrastructure facilities.

• Minor Ports have loading capacity 5000 tons /day to 20000 tons /day in mid-stream loading where as big port like Kandla have achieved the av. rate of loading of 25000 tons / day. We have a big advantage that ships of the capacity from 5000 tons to 100,000 tons could be loaded at our ports. There is potential for developing more ports as per requirement. In south India there is also a big port, Tuticorin close to salt manufacturing area.

• Now only 20% industries have gone for mechanization and modernization, 50% from balance can also go immediately.

Average yield of salt works is only 100 tons per hectare. This can be increased to 300 tons per annum by adopting modernization. India has very long coast line and out of that Gujarat.

With its expanding market value and enduring relevance, the sector stands poised to shape economies and industries worldwide for years to come.

BUSINESS OVERVIEW

We Goyal Salt Limited established in the year 1985 with the name "Goyal Iodised Salt Works", one of the largest Manufacturers and Dealers in all varieties of Sodium Chloride (NaCl). We manufacture best quality of Industrial as well as edible Salt, meant for human consumption.

Our management consist of highly qualified professionals in chemical., mechanical, technical and commercial fields. These professionals are engaged in maintaining high quality norms consistently and cater to customize sodium chloride requirements of Various industries viz Chemical Industry, Dye Textiles, Detergent & soap, Cattle Field, Leather, Power Generation, Oil & Gas, food Industries and many more. Our products are accepted and appreciated from last many decades for their high-grade quality standards.

We have installed and updated our plant with latest state of the Art, Technology and Infrastructure necessary for salt refining. We have installed adequate internal quality checks to ensure best Quality of product delivered to our valuable customers.

We have a huge range of Salt which enables us to cater a wide range of clients. We are known in the industry for customized quality in various industries applications. The Company has experienced in Salt manufacturing and marketing which helps in study growth in business.

Our products are focused on demand of our ideal customers. Products are the soul of any Company. We offer a wide range of sodium chloride (NaCl). Our commitment to quality assurance makes them a reliable choice for the various requirements of the customers.

We have a well-equipped lab with the best qualified technicians and a team of highly trained chemists. They keep a check on production quality round the clock. For the quality testing purpose random samples are drawn from the various spots of the online production line in every 15 minutes. After the sample meets all the quality parameters, then only the production batch is sent for packaging, and this is a regular process.

Your company delivered strong financial performance, achieving a sales turnover of ^12,997.20 lakhs, a significant increase from ^11,774.55 lakhs in the previous year. Additionally, bolstered by higher other income, the company posted an exceptional profit after tax (PAT) of ^1,324.69 lakhs, up from ^945.32 lakhs in FY 2023-24, reflecting robust operational efficiency and strategic growth initiatives. This shows that were really focused on making sure we keep making good profits.

In sum, our journey is a testament to resilience, innovation, and an unwavering commitment to progress. The numerical data weaved into our narrative paints a picture of consistent growth, with each year marking another stride forward on our path of prosperity.

OUTLOOK

Goyal Salt Limited is one of the leading refiner of edible and industrial salts, operating on a B2B and wholesale basis. Our production is managed through three strategic facilities: two refineries in Nawa, Rajasthan, and a major new refinery near Gandhidham, Gujarat. The Companys dual presence in Rajasthan and Gujarat?Indias primary salt-producing regions? provides a significant strategic advantage. It allows us to efficiently serve previously hard-to-reach markets in Southern and Central India, overcoming previous constraints of high transportation costs. Production from our Gujarat refinery will be primarily dedicated to consumer retail packages (e.g., 1kg, / kg, 200g, 50g, and 10g formats). To meet rapidly growing domestic retail and export market demands, we have significantly expanded our operations. Our new Gujarat refinery adds 1,500 MT per day to our existing 700 MT capacity in Rajasthan, bringing our total daily production capacity to 2,200 MT. This establishes us as one of Indias largest salt producers.

We have expanded our product offerings to include packaged Rock Salt and Black Salt. This year, we also introduced new packaging for our premium consumer product, "Goyal Premium Salt," with an initial focus on Tier I cities.

Our growth is underpinned by robust financial health, exemplified by a 167.23% surge in profit. We are committed to continuous innovation, technological adoption, and sustainable environmental practices.

With a strong balance sheet and efficient operational strategies, we are well-positioned to capitalize on emerging market opportunities. Our unwavering focus on quality, customer satisfaction, and strategic expansion paves the way for sustained growth and industry leadership in the years to come.

HUMAN RESOURCE MANAGEMENT

Our management consist of highly qualified professionals in chemical, mechanical, technical and commercial fields. These professionals are engaged in maintaining high quality norms consistently and cater to customize sodium chloride requirements of Various industries viz Chemical Industry, Dye Textiles, Detergent & soap, Cattle Field, Leather, Power Generation, Oil & Gas, food Industries and many more. Our products are accepted and appreciated from last many decades for their high-grade quality standards. Human Resource Management (HRM) in our company is full of promise and positive change. As we move forward, HRM will play a pivotal role in shaping our organizational culture, fostering employee engagement, and driving performance. We plan to help our team get better at their jobs by teaching them new skills and training. This will make sure our employees can handle any changes that happen in our business. Our commitment to employee well-being and work life balance will remain unwavering, fostering a positive and supportive workplace that attracts and retains top talent. By aligning HRM strategies with our companys overall goals, we are focused to create a future where our employees thrive, our organization flourishes, and innovation flourishes at every step.

STRENGTH & OPPORTUNITY

The strength and opportunity for our company based on the following factors:

A. INTERNAL ENVIRONMENT

The Internal Environment consists of the following aspects:

I. Marketing Aspect

Marketing is the process of determining, anticipating, creating, and satisfying customer needs for products or services.

II. Financial and Accounting Aspects

Financial condition is often considered as the best measure of the strength or competitive position of the company and the main attraction for investors. Determining the financial strengths and weaknesses of the organization/company is important in formulating an effective strategy.

III. Aspects of Human Resources

Human resources are internal environmental factors in the company that carries out all activities within the company. Companies can work well if they have human resources who have the capability, expertise in competition, and good management.

B. EXTERNAL ENVIRONMENT

The external environment can be said as components that are or come from outside the Company. These components tend to be outside the reach of the Company, meaning that the company cannot intervene on these components. Components are more likely to be needed as something that is given or something that inevitably must be accepted

RISKS & THREATS

While our company enjoys numerous opportunities and strengths, its essential to be mindful of potential risks and threats that could impact our progress. However, the followings are the risks/threat which our company faces:

• There is no local government policy that provides certainty of standard prices for raw material salt, and there are no incentives for salt industry players.

• The invasion of imported salt with good quality and competitive prices threatens the national salt industry.

• The expansion of salt ponds on a large scale destroys mangrove conservation areas along the coast.

• The governments lack of supervision over the imported salt trade system causes the peoples salt absorption capacity to be low and prices uncompetitive

However, by proactively identifying and mitigating these risks, and leveraging our strengths, we can navigate challenges and position our company for resilience and sustainable growth in the face of potential threats.

CONCLUSION

In conclusion, the journey detailed within this report reflects our teams dedication, resilience, and strategic vision. As we forge ahead, delighted by opportunities and fortified against challenges, we remain dedicated in our pursuit of industry leadership and continued success. We extend our heartfelt appreciation to our dedicated workforce, valued stakeholders, and partners for their integral role in our achievements. Together, we stand assured to embrace the future with confidence and enthusiasm, ready to chart new milestones and elevate our company to greater heights.

Disclosure of Particulars of Employees, as required under Rule 5 (2) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014

i. The ratio of the remuneration of each director to the median remuneration of the employees of the company for the financial year 2024-2025:

Name of Director/KMP	Designation	Ratio of Remuneration to the median of the employee	% increase in remuneration in the financial year
1. Mr. Rajesh Goyal	Chairman cum WTD	8.25	11.29%
2. Mr. Pramesh Goyal	Managing Director	8.25	11.29%
3. Mr. Lokesh Goyal	Whole Time Director	8.25	11.29%
4. Mrs. Priyanka Goyal	Non-Executive Director	-	-
5. Mr. Narendra Dev Garg	Independent Director*	-	-
6. Mrs. Manisha Godara	Independent Director*	-	-
7. Mr. Amit Kumar	Chief Financial Officer	1.24	4.77%
8. Mrs. Jayanti Jha Roda	Company Secretary & Compliance Officer	2.60	31.94%

*Sitting Fees is paid to the Independent Directors therefore shall not be counted for this purpose

ii. The percentage decrease in the median remuneration of employees in the financial year 2024-25: 2.98%

iii. The number of permanent employees on the rolls of company as on March 31st, 2025: 26

iv. Average percentile increases already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:

During FY 2024-25, the managerial remuneration of directors increased by 11.29%

v. The Company affirms that the remuneration is as per the remuneration policy of the company.

vi. Names of the top 10 employees of the Company in terms of the remuneration withdrawn in the Financial Year 2024-25:

Name of Director/KMP	Designation	Remuneration in F.Y. 2024-25
1. Mr. Pramesh Goyal	Managing Director	1659000
2. Mr. Rajesh Goyal	Chairman cum Whole Time Director	1659000
3. Mr. Lokesh Goyal	Whole Time Director	1659000
4. Mrs. Jayanti Jha Roda	Company Secretary & Compliance Officer	523572
5. Mr. Mukesh Kumar Agarwal	General Manager (Marketing)	425198
6. Mr. Mahendra Singh Rathore	Packaging In charge	393092
7. Mr. Banne Singh	Maintenance Head	315591
8. Mr. Gopal Lal Mali	Sr. Supervisor	297859
9. Mr. Radhe Shyam	Operation Manager	291618
10. Mr. Abhishek Kumar Singh	Production Manager	281026

All the afore-mentioned employees are on the permanent rolls of the Company.

vii. No. of employees employed throughout the year who was in receipt of remuneration for the year which, in the aggregate, was not less than Rs.1.2 Crores: NIL

viii. No. of employees was in receipt of remuneration for the year which, in the aggregate, was not less than Rs.8.5 lakhs per month: NIL

ix. No. of employees, who was employed throughout the financial year or part thereof, who was in receipt of remuneration in that year was in excess of that drawn by the managing director or whole-time director or manager and holds by himself or along with his spouse and dependent children, more than two percent of the equity shares of the company: NIL

	For and on behalf of the Board
	Goyal Salt Limited
Place: Jaipur
Date: 26.08.2025	Sd/-	Sd/-
	Pramesh Goyal	Rajesh Goyal
	Managing Director	Chairman
	DIN:03304953	DIN:03324131