iifl-logo

Hindprakash Industries Ltd Management Discussions

131.71
(-1.87%)
Oct 6, 2025|11:19:23 AM

Hindprakash Industries Ltd Share Price Management Discussions

COMPANY OVERVIEW:

The Company was originally incorporated as Hindprakash Lonsen Industries Private Limited under the provisions of Companies Act, 1956. The name of the Company was changed to Hindprakash Industries Private Limited on February 16, 2018. The company was subsequently converted into public company and consequently name was changed to Hindprakash Industries Limited. The CIN of the company is L24100GJ2008PLC055401.

The Company is engaged in the manufacturing and trading of Dyes, Auxiliaries, Intermediates and Chemicals. Company started manufacturing unit in the year 2008 to produce Disperse Dyes, Reactive Dyes and Textile auxiliaries for catering the needs of domestic textile industry. The Company has achieved a steady growth in productivity and has expanded its range of products from dyes to auxiliaries to speciality chemicals. We believe that Company’s expertise in chemical manufacturing has enabled to expeditiously increase the production capacity and expand into new value added products. With wide range of products, Company cater to various industries viz. Dyestuff and Dye intermediates, Textiles, Construction Chemicals, Speciality Chemicals etc.

The Company is located at Vatva i.e. in the heart of Gujarat Industrial Development Corporation, an Industrial Estate for manufacturing, blending and formulation of dyes, auxiliaries & intermediaries. The Estate has common effluent treatment plant of which most of the units in the estate are members apart from having their own environmental treatment facilities.

The Company is promoted by Mr. Om Prakash Mangal, Mr. Sanjay Prakash Mangal and Mr. Santosh Narayan Nambiar. With decades of experience in this industry, Company’s Promoters along with the team of management are actively involved in the day to day affairs of the company’s operations adding valuable knowledge and experience required for sustainable growth.

FINANCIAL YEAR 2024-25 AND OUTLOOK:

During the year ended March 31, 2025, the company achieved a total net sale of Rs. 10,181.60 Lakhs and achieved net profit after tax of Rs. 164.43 Lakhs.

ECONOMIC / INDUSTRY OVERVIEW:

• Global Scenario:

The Chemicals industry is one of the fastest growing sectors of the manufacturing industry. The growth in the forecast period can be attributed to stringent environmental regulations, shift in consumer preferences, renewable and bio-based materials, geopolitical factors, health and safety prioritization. Major trends in the forecast period include sustainability and green chemistry, digital transformation, circular economy, advanced materials and nanotechnology, supply chain resilience, and digitalization. The industry growth exceeds that of the manufacturing sector, despite the challenges of escalating crude oil prices and demanding international environmental protection standards which are now adopted globally. The global chemicals industry is being shaped by following trends that are impacting business models, processes and product segments of multinational players.The key segments of the chemical industry are Commodity chemicals, Specialty chemicals, Pharmaceuticals, Agrochemicals and Consumer Products.

• Indian Scenario:

Covering more than 80,000 commercial products, India’s chemical industry is extremely diversified and can be broadly classified into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilisers.

India is the 6th largest producer of chemicals in the world and 3rd in Asia, contributing 7% to India’s GDP. As of 2023, the Indian chemicals market consumption stood at around $220 billion, expected to expand to $400-450 billion by 2030 and $850-1,000 billion by 2040. This industry remains an active hub of opportunities, even in an environment of global uncertainty.

Globally, India is the fourth-largest producer of agrochemicals after the United States, Japan and China. India accounts for 16-18% of the worlds production of dyestuffs and dye intermediates. Indian colourants industry has emerged as a key player with a global market share of ~15%. The country’s chemicals industry is de-licensed, except for a few hazardous chemicals.

India has traditionally been a world leader in generics and biosimilars and a major Indian vaccine manufacturer, contributing more than 50% of the global vaccine supply.

India holds a strong position in exports and imports of chemicals at a global level and ranks 14th in exports and 8th in imports at the global level (excluding pharmaceuticals). From April-November 2024, Indias dye exports (Dyes and Dye Intermediates) totalled Rs. 14,712 crore (US$ 1.70 billion).

• Indian Government Initiatives:

> The Indian government has actively endorsed skill training, technology, academia, and research to boost the chemicals sector. This is evident through the creation of Centers of Excellence (COE) under the National Policy on Petrochemicals and the Chemicals Promotion Development Scheme (CPDS).

> To bolster indigenous producers, the Indian government enacted the deregulation of non-hazardous chemical production and enforced anti-dumping duties on substandard imports as a protective measure. These actions are anticipated to uplift domestic manufacturers, fostering increased scale and profitability within the industry.

> A 2034 vision for the chemicals and petrochemicals sector has been set up by the government to explore opportunities to improve domestic production, reduce imports and attract investments in the sector. The government plans to implement production-link incentive system with 10-20% output incentives for the agrochemical sector; to create an end-to-end manufacturing ecosystem through the growth of clusters.

> The government has established four petroleum, chemicals and petrochemical investment regions (PCPIRs) as investment regions for petroleum, chemicals and petrochemicals, along with associated services.

> 100% FDI is allowed under the automatic route in the chemicals sector with few exceptions that include hazardous chemicals. FDI inflows in the chemicals sector (other than fertilizers) reached US$ 22.146 billion between April 2000-March 2024.

> The government has proposed several incentives for setting up a sourcing or manufacturing platform within an Indian SEZ.

> Effective April 1, 2020, 100% Income Tax exemption on export income for SEZ units for the first five years, 50% for the next five years thereafter and 50% of the ploughed back export profit for next five years.

> Single window clearance for central and state-level approvals.

> Duty-free import/domestic procurement of goods for development, operation and maintenance of SEZ units.

ROAD AHEAD:

The Indian chemical industry has numerous opportunities considering the supply chain disruption in China and trade conflict among the US, Europe and China. Anti-pollution measures in China will also create opportunities for the Indian chemical industry in specific segments.

Additional support, in terms of fiscal incentives, such as tax breaks and special incentives through PCPIRs or SEZs to encourage downstream units will enhance production and development of the industry. The dedicated integrated manufacturing hubs under Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR) policy to attract an investment of Rs. 20 lakh crore (US$ 276.46 billion) by 2035.

The Indian Dyestuff Industry is an important sub-sector of the Chemicals industry. It has forward and backward linkages with various sectors such as paper, textiles, plastics, printing inks, leather and foodstuffs. The sub-sector has immense potential and serves as a profitable opportunity for investors.

OPPORTUNITIES:

Growing demand for chemicals: The demand for chemicals will continue to rise as the global population grows and urbanizes. Chemicals are used in almost every aspect of modern life, from construction to transportation to healthcare, making this industry an essential part of the global economy.

Technological advancements: The chemical industry is constantly evolving, and new technologies are being developed to increase efficiency, reduce waste, and improve safety. Innovations such as green chemistry, process intensification, and 3D printing are changing how chemicals are produced and consumed.

Sustainable practices: With increasing pressure to reduce the environmental impact of industrial processes, there is a growing focus on sustainable practices in the chemical industry. This presents an opportunity for companies to invest in developing chemical eco-friendly products and strategies and implement more efficient waste management and recycling practices.

CHALLENGES:

Environmental concerns: Chemical production can have a significant impact on the environment, with the potential for air and water pollution, soil contamination, and the release of greenhouse gases. As a result, chemical companies are under increasing pressure to develop sustainable practices and reduce their carbon footprint.

Regulatory compliance: The chemical industry is subject to a wide range of regulations and safety standards, which can be complex and costly. Ensuring compliance while maintaining profitability can be a significant challenge for companies.

Volatility in raw material prices: Chemical production requires various raw materials, including oil, natural gas, and minerals. The prices of these materials can be volatile, making it difficult for companies to predict costs and manage supply chain risks.

BUSINESS MODEL OF THE COMPANY:

LOCATIONS:

Registered Office Factory

301, Hindprakash House, Plot No.10/6, Phase-I, GIDC, Vatva, Ahmedabad-382445, Gujarat, India

Plot No. A2-114 &115, GIDC, Industrial Estate, Phase-II, Vatva, Ahmedabad, Gujarat, India

Plot No. T-10 to T-12, Saykha Industrial Estate, GIDC, Ta. Vagra, Dist. Bharuch, Gujarat, India.*

*The Company has a manufacturing facility at Plot No. T-10 to T-12, Saykha Industrial Estate, GIDC, Taiuka Vagra, District Bharuch, Gujarat, India. Operations at the facility are being aligned in a phased manner, taking into account prevailing market conditions and demand trends. The Company remains focused on optimizing the deployment of resources at this location and continues to explore opportunities to enhance operational efficiency and output as market dynamics evolve.

MANUFACTURING PROCESS:

The Manufacturing of dyes, auxiliaries & chemicals require various processes to obtain final product. The major steps include:

Raw Material Procurement

Raw Material Inspection

In-putting

Synthesizing

Process

Inspection

Drying

Blending

Quality Control & Inspection

Packaging

Storage & Delivery

BUSINESS STRATEGY:

Going forward to our business strategy will rest on below mentioned pillars, the idea is to put in place a proper framework to give us the best chance to grow in the face of challenges from the competition and external events over which we may have no control. Each of tenets of our strategy is explained below:

KEY RISK AND CONCERNS:

The company is exposed to business risk which may be internal as well as external and the growth of our industries is linked to the overall economic growth. Primary risk to the business will be on account of adverse changes to the economy, another is Company faces tough competition in terms of pricing and customer base.

FINANCIAL AND OPERATIONAL PERFORMANCE:

The key standalone financial are as under:

(Rs. in Lakhs)

PARTICULARS FOR THE YEAR ENDED

Standalone

March 31,2025 March 31,2024

Revenue from operations

10181.60 9950.38

Profit before Tax

223.98 212.86

Profit after Tax

164.43 153.44

KEY FINANCIAL RATIOS:

Sr Ratio No.

Unit

Numerator

Denominator

31- Mar- 25 31- Mar- 24 Variance in %

Explanation for any change in the ration by > 25% as compared to preceding year

1 Current Ratio

In Times

Current Assets

Current Liabilities

2.19 1.53 42.77%

See Note (i)

2 Debt Equity Ratio

In Times

Total Debt

Shareholder’s Equity

0.58 0.45 31.04%

See Note (i)

3 Debt Service Coverage Ratio

In Times

Earnings Available for Debt Service

Debt Service

1.35 1.33 1.89%

NA

4 Return on Equity Ratio

In %

Net Profit after taxes available to Equity Share Holder

Average Share Holder Equity

3.23% 3.31% 2.39%

NA

5 Inventory Turnover

In Times

Cost of Goods Sold

Average Inventory

4.69 5.17 9.34%

NA

6 Trade Receivable Turnover Ratio

In Times

Net Credit Sale

Average Trade Receivable

3.54 3.40 4.18%

NA

7 Trade Payables Turnover Ratio

In Times

Net Credit Purchase

Average Trade Payable

8.92 7.24 23.22%

NA

8 Net Capital Turnover Ratio

In Times

Net Sales

Average Working Capital

4.23 5.43 (22.09%)

NA

9 Net Profit Ratio

In %

Net Profit after taxes Earnings

Net Sales

1.61% 1.54% 4.73%

NA

10 Return on Capital Employed

In %

Before Interest and Taxes

Capital Employed

4.86% 6.64% (26.71%)

See Note (ii)

11 Return on Investment

In %

Income from Investment

Cost of Investment

9.56 0.05% 19973%

See Note (iii)

Reason for Variance:

(i) Company arranged Working Capital Term Loan in the form of mortgage loan from bank.

(ii) Due to decrease in operating earnings before interest and taxes.

(iii) The company earned from disposal of investment and hence data are not comparable with previous period.

SEGMENT-WISE OR PRODUCT WISE PERFORMANCE:

As the Company has identified manufacturing, dealing and trading of Dyes, Intermediates, Auxiliary, Chemicals and other merchandise etc. as its sole primary business segment, the disclosure requirements of segment wise reporting is not applicable.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has an adequate and efficient internal control system, which provide protection to all its assets against loss from unauthorised use and for correct reporting of transactions. The Company has put in place proper controls, which are reviewed at regular intervals to ensure that transactions are properly authorised and correctly reported and assets are safeguarded. The Audit Committee of the Board addresses issue raised by Auditor. The internal control system is implemented to safeguard the company’s assets from loss and damages. To keep constant check on cost structure and to provide adequate financial and accounting controls and implement accounting standards. In addition to above, the Company has formulated a vigil Mechanism (Whistle Blower Policy) for its Directors and Employees of the Company for reporting genuine concern about unethical practices and suspected malpractices.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS:

The Company has in place adequate number of employees as required in its registered office and its factory. Professionals with required amount of experience and knowledge are hired on need to need basis by the Company. The Industrial relation of the Company with various suppliers, customers, financial lenders and employee is cordial. There are total 79 Employees on payroll of the Company.

Registered Office:

For and on behalf of Board of Directors

301,"Hindprakash House",

Hindprakash Industries Limited

Plot No.10/6, Phase-1, GIDC, Vatva,

CIN:L24100GJ2008PLC055401

Ahmedabad - 382 445

 

Sanjay Prakash Mangal

Santosh Narayan Nambiar

Date: September 01, 2025

Managing Director

Wholetime Director

Place: Ahmedabad

DIN:02825484

DIN: 00144542

Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities 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)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.