Indo Amines Management Discussions


The global economy is yet again at a highly uncertain moment, with the cumulative effects of the past three years of adverse shocks- most notably, the COVID-19 pandemic and Russias invasion of Ukraine-manifesting in unforeseen ways. Though, the global economy saw a remarkable recovery during the pandemic and other related headwinds, albeit from a lower base. The World Economy is facing several challenges such as incremental inflation, the cost of living, trade wars and protracted geopolitical conflicts. The world economy has finally regained its positive growth momentum. Effective economical stances undertaken by Governments across the world helped build the way for more resilience across nations and businesses, to stay future-prepared and on their toes. The shock of Russias invasion of Ukraine in February 2022 continues to reverberate around the world. The Russian-Ukraine humanitarian crisis and consequent supply-chain disruptions, hikes in energy prices, rising commodity prices, and widespread inflation all weighed heavily on the overall prospect of the global economy in 2022. To battle inflation, central banks worldwide hiked policy interest rates. As a result, inflation moderated by the end of the year. However, despite inflation, global trade flourished in 2022. By mid-December, global trade in goods grew 10%, and global trade in services grew 15% yearly. Also, global trade volumes grew significantly during 2022, signaling a rise in global demand. As per IMF World Economic Outlook, January 2023, the world economy grew by 3.4% in 2021-22 with an upgrade of 20 basis points from the previous forecast. Post Covid-19 pandemic, the sharp recovery in economic activities went subdued by the gradual yet firm grip of inflation that surcharged in the first half of 2021-22. As a cascading effect, the advanced and emerging economies also faced a slowed-down economic pace. For the advanced economy, according to IMF World Economic Outlook, January 2023, the estimated real GDP growth figures are 2.7% in 2021-22 and 1.2% in 2022-23 while for the emerging economies, the estimated figures are to stay at 3.9% for 2021-22 and 4.0% for 2022-23. (Source: World Economic Outlook (


Indian economy continued to remain strong in the face of adverse global macroeconomic challenges during the FY 23. According to the data by MoSPI (Ministry of Statistics and Programme Implementation), Indias GDP grew by about 7.2% in FY23. Indias economic growth story was primarily supported by robust investment activity reinforced by government capex push, return of private consumption and capital formation, which also helped generate employment in the country. Further, the widespread vaccination drive lifted consumer sentiments which sustained over all consumption both industrial and domestic fronts. Though, the global turmoil in FY23 triggered broad-based inflation worldwide, and India was no exception. In April 2022, retail inflation, measured by CPI (consumer price index), reached the highest (7.79%). RBI increased interest rates to contain the soaring inflation. By the end of this fiscal, CPI (consumer price index) came down to 5.66%. The index of industrial production grew by 5.1%, against a growth of 11.4% in FY22. Despite this drop, GST collection in FY23 stood at H18 lakh crore, clocking a growth of 22% over last year. It shows the resilience of the Indian economy amid several global headwinds. Net Direct Tax collections (provisional) for the FY23 stood at H16.61 lakh crore marking a growth of 17.63% on a y-o-y basis. However, despite weak global demand, merchandise exports hit a record high of US$ 447.46 billion, registering a 6.03% growth over FY22. Imports, on the other hand, rose to US$ 714.24 billion in FY23. Last year it was US$ 613.05 billion. As a result, the trade deficit moved north to US$ 266.78 billion. Net FDI declined by nearly 27% to US$ 28 billion in FY23 as compared with US$ 38.6 billion a year ago, mainly due to moderation in gross foreign direct investment inflows and an increase in repatriation. Fitch Ratings affirmed Indias long-term foreign-currency issuer default rating (IDR) at BBB- with a Stable outlook, backed by robust growth outlook and abating core inflation pressure. In an effort to push the infrastructure capex, in the financial budget for FY24, the Central Government announced a massive increase of 33% in the capex outlay to H10 lakh crore, about 3.3% of the GDP This is said to have a multiplier effect resulting in additional economic activities and job creation with all round economic activity being the single point agenda. (Source: Government publications & RBI)


The global chemical output grew by 2% in 2022 (2021 it grew by 5%) and is expected to grow by 3% in 2023 as we expect Asia- pacific region to bounce back. India and China will be the main growth drivers for the Asia-pacific region both in terms of production and demand as well for chemicals. The deterioration of the economic environment in 2023 will affect demand for most chemical products amid high feedstock and energy costs. Moreover, increased supply due to big capacity additions in Asia will put more pressure on chemical margins globally, now that the cost of freight from Asia has eased substantially, reviving competition that was largely absent in 2021 and 1H22. Trends will vary across regions, with European producers most severely affected due to high regional energy costs, and US and Middle East producers continuing to benefit from lower domestic gas prices. Chinese producers reliance on coal feedstock will mitigate the effect of high oil prices, and we expect Chinas GDP growth to pick up in 2023, after weak growth in 2022 due to the restrictions of its Zero Covid policy. Sustainability has increasingly become a focus for the chemical industry and many companies are responding with shift to green chemistry and commitments to decarbonisation, recycling and resource recovery. Large companies are leading the way to net-zero greenhouse gas emission commitments. Initiatives such as European plastic tax and green hydrogen stimulus packages in the US, Canada and Europe are accelerating the adoption of sustainable practices and goals. Industry players are showing heightened focus on new and innovative technologies such as Carbon Capture and Utilization (CCU).

In addition, companies continue to advance work on chemical recycling, green hydrogen, etc. These will boost usage of renewables, improve energy efficiency, reduce emissions and create new market for carbon and other by-products as part of an increasingly circular economy. Chemical companies are likely to focus on repositioning their asset portfolios and balancing trade-offs between different strategic options with critical considerations such as scale, the scope of products and growth opportunities. To deliver strong growth and improve financial performance, firms may consider looking into few activities like investment In high value added opportunities, consumer preference, etc. (Source: Various industry reports (Deloitte Chemical Industry Outlook 2022, C&EN World Chemical Outlook, etc.)


The Indian specialty chemicals sector looks at a period of fast-paced growth driven by several market forces. India is emerging as a preferred manufacturing hub for specialty chemicals for domestic and export markets. Approximately 20% of the total chemicals market in India1, the specialty chemicals sector has been playing a pivotal role in driving the chemicals industrys growth. The Indian chemicals industry is a major player in the global market, ranking 6th in production and 14th in exports2. The sector provides essential building blocks and raw materials for many industries, including agrochemicals, pharmaceuticals, textiles, paper, paints, and soaps. It is valued at US$220b, and projected to grow by approx. 9% p.a. during 2020-25 to reach US$300b by FY 2025. The sector is expected to hit the US$1t mark by FY 2040. Indian specialty chemicals companies are at their lifetime high capex with healthy revenue and earnings growth over FY19-22. They benefit from strong demand from global clients as they look beyond China and increase domestic consumption. Stock prices are also at their lifetime peak and remain well above global valuations.

In the future, strong demand uptick from domestic and international markets will continue to aid revenue growth for Indian specialty chemical players. This growth will result in strong earnings in the medium term and sustain high valuations. Companies with robust chemistry and technical skills and a healthy balance sheet are expected to continue outperforming cyclical/ bulk commodity players, which may experience price volatility once China ramps up production in FY23.

The fast-paced growth of the Indian specialty chemicals industry is inevitable. However, companies will need agility to adapt quickly to the evolving macroeconomic and industry landscape to ensure sustainable and transformative growth over the longer term. They also have to focus on customer value creation through product differentiation, identification of customer needs through focused customer collaboration, and building resilient supply chains supported by higher investments in R&D and digital. They must reduce their carbon footprint by adopting alternative methods that create a green ecosystem. The industry will seek continued government support to create a business-friendly environment and world-class infrastructure, including additional PCPIRs and feedstock availability to fuel growth. In conclusion, while the macroeconomic levers of growth, such as rising population and increasing disposable income coupled with exports, will provide the requisite tailwinds, the Indian specialty chemicals industry will need to consciously focus on innovation, decarbonization, digitalization, automation, and investing in skilling its workforce (Source : EY Chemicals Industry Report)


Your company is a global manufacturers and suppliers of Fine & speciality chemicals. Your Company is one of the leading players in the industry which has a balanced portfolio of technical along with backward integration for some products. Availability of technically trained manpower, seasonal domestic demand and production capacities for generics built to cater to overseas markets are the other reasons for strong exports. Exports account for more than 51.66% of the company production. Your Company is a leading manufacturer of Specialty Chemicals with diversified end uses into Agrochemicals, Pharmaceuticals, High Performance Polymers, Paints, Pigments, Printing Inks, Rubber Chemicals, Additives, Surfactants, Dyes, Flavors & Fragrances, Home & Personal Care applications, etc. Your Company makes continuous efforts to explore and innovate new products & processes in all segments. This diversified end-user base helps the Company to reduce its risk from downturn in any individual business segment and also to capitalize on the growth opportunities in each of the end-user segments. The Company had upgraded its various manufacturing units into Zero Liquid Discharge Units (ZLD) and also has put in place various processes to control/limit generation of effluents and improve the treatment of the same. As part of the Risk Management policy, the relevant parameters for all manufacturing sites are analyzed to minimize risk associated with protection of environment, safety of operations and health of people at work and monitored regularly with reference to statutory regulations and guidelines defined by the Company. The Company fulfills its legal requirements concerning emission, waste water and waste disposal. Improving work place safety continued to be top priority at all manufacturing sites.

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Sr No Particulars FY2022-23 2021-22 Change % Change
1 Revenue from operations (net) 92,206.18 78,018.43 14,187.75 18.19%
2 EBIDTA 8,454.68 6,074.73 2,379.95 39.18%
3 Profit before Tax 5,261.54 3,507.63 1,753.91 50.00%
4 Profit after tax 3,799.53 2,480.26 1,319.27 53.19%
5 Net worth 21,733.88 18,302.92 3,430.96 18.75%
6 Debt 22,992.76 20,630.25 2,362.51 11.45%
7 Trade Receivables 20,226.84 18,527.77 1,699.07 9.17%
8 Inventory 11,409.31 9,800.93 1,608.38 16.41%
9 Debt Equity Ratio 1.06 1.13 -0.07 -6.19%
10 Current Ratio 1.20 1.08 0.12 11.11%
11 Receivables Turnover Ratio 4.56 4.21 0.35 8.31%
12 Inventory Turnover Ratio 8.08 7.96 0.12 1.51%
13 EBIDTA Margin (%) 9.17 7.86 1.31 16.67%
14 PBT Margin (%) 5.71 4.54 1.17 25.77%
15 PAT Margin (%) 4.12 3.22 0.90 27.95%
16 Interest Coverage Ratio 4.55 4.19 0.36 8.59%
17 Net Profit Margin 0.04 0.03 0.01 33.33%


The Chemical Industry is critical for the economic development of our country providing products and enabling technical solutions in virtually all sectors of the economy. The demand for our products is steadily increasing both in India and abroad. Key drivers for success in the chemical sector include proximity to strong growth markets, greater ease in doing business and the continued development of petroleum, chemicals and petrochemical investment. Your Company is ready to take the challenges of increased demand by continuously adding capacities, adding new products and investing in upgradation of its manufacturing capacities. The in-house R&D Department has been developing quality products and is also striving for achieving cost efficiencies. The industries in which our products have application are growing at a reasonable pace. We have a fair chance of improving our position as a reliable supplier of good quality chemicals to these industries. Our Core Competence in chemical handling and manufacturing supported by an able technical team, should provide a lot of opportunities and scope to the company to improve its performance. We enjoy leadership position in some of the products in domestic market, driven by strong in-house technology, diversified product portfolio and customer base. The commodity nature of some of our products makes them susceptible to fluctuations in raw material prices and exchange rates. Petroleum based raw materials are subject to international gas/crude oil price fluctuation. Being a global player, we are also exposed to competition not only from domestic players but also large international players. Cheap imports have posed problems, which are being addressed by consistency in quality of the products and improving production efficiencies and also by initiating anti-dumping investigations.


From CY2020 to CY2025, the speciality chemical market is expected to grow globally by CAGR of 6.2% and in India by CAGR of 5.2%. This growth is expected to be led by sustained demand in end-use customer segments for our intermediate and speciality chemical products, which are experiencing consumption-led growth in India and key global markets. The Indian chemical industry plays a pivotal role in contributing to the economy of the country, accounting for approximately 7 per cent of GDP and is expected to reach USD304 billion by 2025, up from USD178 billion in 2021. The industry continues to remain an attractive hub for opportunities for both domestic and multinational manufacturers. Specialty chemicals segment comprises a significant portion of India s chemical industry. With rising demand for value-added products by both domestic consumption and exports, the industry has experienced a significant increase from end-user segments such as the food industry, automobile industry, real estate, clothes and cosmetics, among other industries. Additionally, the Indian specialty chemicals industry is also expected to outpace China, Japan and the rest of the world. The Indian specialty chemicals industry has expanded exponentially in recent years. It represents 22 per cent of India s overall chemicals and petrochemicals market and is valued at $ 32 billion. The industry is anticipated to reach USD64 billion by 2025 at a CAGR of 12.4 per cent (Source: Indian Specialty Chemicals, Yes Securities, January 2022, Livemint, June, 2022).


The Company has comprehensive internal control systems commensurate with the nature of its business and size and complexity of its operations. They provide reasonable assurance on effectiveness and efficiency of its operations, reliability of financial reporting and compliance with the applicable laws and regulations. The internal control systems that deploy an amalgam of modern and traditional processes are routinely tested and upgraded for both design and operational effectiveness by the Management and the same is audited by the Statutory Auditors. The Company has an in-house Internal Audit department which includes professionals from finance, data analytics and engineering disciplines and is also working with reputed audit firms specializing in internal audits and assurance domain. The annual internal audit plan is reviewed and approved by the Audit Committee in beginning of the financial year to ensure adequate coverage. Together, they have the responsibility to bring in excellence in the function, continuously identify areas of operations requiring strengthening and introduce best processes and practices to manage a growing business which comprises subsidiary, joint venture and associate entities. Progress of internal audit plan, significant observations noted during internal audits and status of identified actions and recommendations are reviewed by the Management periodically and by the Audit Committee on quarterly basis.


Over the years, the company has launched several new products by establishing an DSIR approved In-House R&D unit that innovates products and helps to attain better production efficiencies. We have a dedicated team of experienced scientists who provide us with a strong base for introducing new products, and process development, quality, safety standards and environmental protection. We will continue to invest towards technological development that not only improves our product and process, but also helps us to minimize the impact of climate change.


The company maintains very cordial & healthy industrial relationship. Company undertakes various measures to get view of the employees on safety, performance improvements, employee benefit schemes etc. This ensures employees participation in the day to day operations of the company. Imparts training both internal & external to its employees which keeps them refresh with the new changes taking place & improves their efficiency. Your Company is continuously striving to create appropriate environment, opportunities and systems to facilitate identification, development, and utilization of their full potential and inculcating a sense of belongingness. Your Companys industrial relations continued to be cordial & harmonious during the year under review.


Your Company considers its employees the most valuable assets. It emphasises fostering a culture that empowers employees to cultivate their talent and improve communication while increasing their productivity. Employee well-being is also high on the HR agenda. The HR team takes care of the peoples safety and wellness, motivation and training of its employees for their career growth. The Company has empowered its team to make decisions that will improve business operations and help them execute business strategies better. It recognises and rewards employee and team contributions to the furtherance of business performance. This goes a long way in motivating the team for greater efficiency and planning their career path with futuristic goals. We also continued to maintain a cordial and amicable relationship with workers at all our sites. The total number of employees on the rolls of the Company, as on March 31, 2023, was 568 as against 512 on March 31, 2022.

Your Directors wish to acknowledge the sincere and dedicated efforts of the employees of the company and would like to thank them for the same.


Industrial safety is being considered as very important aspect. At each location one person is specifically designated to see that proper rules of safety are observed & no compromise is made from safety angle. Periodically industrial safety seminar is organized to train employees on safety rules. We conduct safety audit both internal & external to trace out any loop holes from safety point of view and the changes, new measures recommend is implemented on priority. All safety equipments such as fire extinguisher, sparklers etc. are always keep in proper condition. There were no major accidents during the year under review.


Your company is very sensitive towards environment & pollution control. The Company sets a strong focus on continuously steering its environmental performance towards increased sustainability and setting new environmental benchmarks though leading edge operations and innovation. With our vision to become climate neutral by 2050, we have set ourselves ambitious targets that allow us to measure our success based on clearly defined metrics and milestones. All sites undergo a regular aspect, impact review of their environmental and necessary control measures are implemented to the mitigate and control the possible impacts. The sites stringently monitor and ensure compliance with all the State Pollution Control Board requirements. Additionally, Company has set up the goal to achieve implementation of sustainable water management systems at all sites in areas of high-water stress. A water risk assessment annually is conducted to identify sites located in water risk regions and measures required to mitigate the risks. The Company has undertaken sustainable initiatives on clean technology, energy efficiency, renewable energy, etc. We have identified savings potential through detailed analysis of energy consumption across operations and oversees all forms and usages of energy at the Company - electricity, heating and cooling, steam, natural gas, nitrogen. By implementing this program, many improvement projects are being identified to optimize our energy usage across all sites. Some of them are as under: -

• Agro-Mass Briquettes, being the most economical fuel, are used to produce 95% of steam required on site

• VFD installation for pumps, blowers etc.

• Improvement of cooling water supply system efficiency

• Use of transparent roof sheets and Solar Tubes for natural lights thereby leading to reduction in energy consumption

• Increased usage of energy efficiency of new equipments

• Use of Turbo Ventilators for extraction of heat from the building

• Use of LPG instead of Furnace oil for clean environment.

The Companys emissions, effluents and wastes are within the permissible limits set by State Pollution Control Boards of respective States.


Business is all about taking risks with the objective of capitalizing on emerging opportunities. As such, INDO AMINES LIMITED takes calculated risks in identifying the products and processes which are commensurate with present industry standards. The Company identifies risks which could impact business operations and address them ahead of time leveraging root cause analysis. The Comp any focuses on early identification of probable risks based on the dynamic and evolving external ecosystem and believes in mitigating risk early with the objective of minimizing business disruptions. The Audit Committee and Management team work in tandem to identify the risks and mitigate them. Following are some of the major risks and migratory responses for the Company: -

1) Environmental Risk :

Change in climate plays an essential role in driving the Companys business. The demand for the Companys various products is highly based on climatic changes. Your Company manufactures Specialty Chemicals, which exposes it to significant environmental concerns. Effluent discharge, hazardous pollutants, inappropriate waste management, and resource depletion are only a few of the primary risks that the Companys business is exposed to.

Mitigation Measure:- Your Company has built a long-term business with decades of experience by adhering to all the applicable rules and regulations. The Company ensures that all of its operations and environmental responsibilities are taken good care of. The Company has invested in environment friendly methods that include Zero Discharge Plant and moved towards utilization of bio fuel energy and is further adding more to grow its sustainable footprints while being responsible.

2) Changes in Government Policies:

The Companys business and decision making may get affected due to certain Government interventions and new policies. The Company follows established regulations but the risk of the Companys products failing to meet compliance standards can negatively impact its business operations and sales.

Mitigation Measure :- Your Company enjoys a strong global presence and a rich clientele across Home, Personal Care and Performance Chemicals, Textiles, Agro chemicals, etc. The Company proactively ensures that its business follows all the regulatory standards, financial frameworks and conducts audit at periodical intervals.

The Company has aligned its policy on risk assessment to that of the global approach and risk assessment reports are reviewed at regular intervals. The Company has also adopted a focused approach toward risk management in the form of a corporate insurance program. The goal of this program is to optimize the financing of insurable risks by using a combination of risk retention and risk transfer. The program covers all potential risks relating to the business operations of the Company at its various locations. As part of the global policy, the relevant parameters for all manufacturing sites are analyzed to minimize the risk associated with the protection of the environment, the safety of operations, and the health of people at work. These are then monitored regularly concerning statutory regulations prescribed by government authorities and guidelines defined by the group. The Company fulfills its legal requirements concerning emission, wastewater, and waste disposal. Improving workplace safety continues to be the top priority at all manufacturing sites. The Company continues its focus on compliance in all areas of its business operations by rationalizing and strengthening controls. This is also an important component of our Code of Ethics. The Company has set in place the requisite mechanism for meeting the compliance requirements and periodic monitoring to avoid any deviation. We aim to set exemplary and sustainable standards, not only through products, services, and performance but also through integrity and behavior. As part of continuing efforts to ensure that we maintain such exemplary standards and to provide employees with a good understanding of the Anti-Trust/Competition laws, we have launched and imparted training on the aforesaid topics. The business operations of the Company are exposed to a variety of financial risks such as market risk (foreign exchange risk, interest rate risk, and price risk), credit risk, liquidity risk, etc. The risk management program focuses on the unpredictability of financial markets and seeks to reduce potential adverse effects on financial performance. The Companys business - critical software is operated on a server with regular maintenance and backup of data and is connected to a centralized computer center with physically separated server parks operated by the group. The systems parallel architecture overcomes failures and breakdowns. The global communication network is managed centrally and is equipped to deal with failures and breakdowns.


The Corporate Social Responsibility Committee was constituted as per Section 135 of the Companies Act, 2013 ("the Act") read with the Companies (Corporate Social Responsibility Policy) Rules, 2014.

The average profit of the Company for last three years is Rs 3,223.50 Lakh. Prescribed CSR expenditure is Rs 64.47 Lakhs. Details of CSR spent during the financial year 2022-23 are as per Annexure V enclosed. The Corporate Social Responsibility (CSR) policy of the Company has been posted on website of the Company.


The Company has established a leading position in domestic market and a presence in international market with a reputation for reliable service and quality products. For the financial year 2023-24, the overall growth scenario is expected to remain robust, although significant challenges persist in the global market. Our focus will continue on sustainable growth by taking measures for increasing our market share of existing products and also introducing new products. Increased competition from global and domestic players, are putting pressure on sales prices. With the growing demand for Companys products, the capacity of sites in Maharashtra is being enhanced. During the financial year 2023-24, we expect our investments in various other projects which will in turn add to both, top-line and bottom-line. We will continue with our efforts for improving our bottom-line by expanding our product-range, while re-looking at business strategies and models, wherever necessary. We will continue our efforts for improving efficiencies and margins.

Cautionary Statement

Statements in the Management Discussion and Analysis describing the objectives, projections, estimates and expectations of the Company, its direct and indirect subsidiaries and its associates, may be forward looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, among others, economic conditions affecting demand/supply, price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and incidental factors.