Kemistar Corporation Ltd Management Discussions

H ECONOMIC REVIEW:

The global economy in FY 2024-25 presents a picture of resilience amid mounting challenges, with growth
projected to decelerate from 3.3% in 2024 to 2.9% in 2025 according to the latest OECD projections. This
slowdown reflects the impact of heightened trade policy uncertainty, elevated interest rates and
persistent geopolitical tensions that have dampened business confidence and investment decisions
worldwide. Advanced economies are expected to grow at a modest 1.8% in 2025, while emerging markets
maintain relatively stronger momentum at approximately 3.7%, though both represent downward
revisions from earlier forecasts. Global inflation is gradually moderating from 4.5% in 2024 to an
estimated 3.5% in 2025, supported by weaker commodity prices and softening demand, though it remains
above pre-pandemic levels. The US economy is projected to slow significantly from 2.8% growth in 2024
to 1.6% in 2025, while Chinas growth is expected to moderate to 4.7% as structural challenges persist
India stands out as a bright spot, maintaining robust growth at 6.3% in FY26, positioning it as the fastest-
growing major economy despite some moderation from previous years.

Key Challenges and Risks The global economic landscape faces unprecedented challenges driven
primarily by escalating trade tensions and policy uncertainty, with effective tariff rates reaching levels
not seen in a century. Geopolitical risks continue to fuel volatility, particularly from ongoing conflicts in
Europe and the Middle East, which have disrupted supply chains, elevated energy prices and contributed
to persistent inflationary pressures. Central banks worldwide are navigating a complex monetary policy
environment, with most maintaining restrictive stances despite declining inflation, as evidenced by policy
rates remaining well above pre-pandemic levels across major economies. Financial market volatility has
intensified due to trade policy shocks and uncertainty, leading to delayed investment decisions and
reduced business confidence. Emerging markets face additional headwinds from tighter global financial
conditions, elevated debt burdens and reduced export demand from advanced economies, while
structural challenges including demographic constraints and supply chain fragmentation pose medium-
term growth risks. The threat of renewed trade wars and potential retaliatory measures could further
derail growth prospects, with the World Bank estimating that a significant escalation in trade restrictions
could reduce global growth by 0.5% in 2025.

Outlook

The outlook for the global economy remains cautiously optimistic but heavily dependent on policy
coordination and the resolution of current uncertainties, with growth expected to stabilize around 2.9%
in both 2025 and 2026. Inflation is projected to continue its gradual decline toward central bank targets,
with G20 economies seeing headline inflation moderate from 6.2% to 3.6% in 2025 and further to 3.2%
in 2026. This disinflationary trend is expected to provide room for monetary policy easing in most
regions, though the pace will vary significantly across economies. Emerging markets are anticipated to
demonstrate greater resilience through robust domestic demand, diversification of export markets and
increased investment in digital infrastructure and innovation, while advanced economies face slower
growth trajectories constrained by structural headwinds and demographic challenges. The recovery in
global trade is expected to be gradual, with trade growth projected to reach only 2.4% in 2026, well below
the pre-pandemic average of 4.6%. Key upside risks include potential resolution of trade disputes through
multilateral cooperation and successful implementation of structural reforms, while downside risks
encompass further escalation of geopolitical tensions, financial market disruptions and renewed
inflationary pressures that could force more restrictive monetary policies. The trajectory will largely
depend on governments ability to foster international cooperation, maintain stable trade environments

and implement policies that support both short-term stability and long-term sustainable growth.

Source:

1. https://www.imf.org/en/Publications/WEO/Issues/2025/04/22/world-economic-outlookapril-
2025

2. https://www.ey.com/en us/insights/strategy/global-economic-outlook

3. https://www.oecd.org/en/about/news/press-releases/2025/06/global-economic-outlook shifts-as-
trade-policy-uncertainty-weakens-growth.html

4. https://cleartax.in/s/world-gdp-ranking-list

5. https://www.bofbulletin.fi/en/2024/4/impact-of-geopolitical-surprises-on-euro-area inflation-
varies-case-by-case/

6. https://www.cnbctv18.com/economv/world-bank-cuts-global-growth-forecast-to-2-3-for2025-india-
still-a-bright-spot-at-6-3-in-fv26-19618711.html

7. https://unctad.org/news/global-economy-under-pressure-could-slow-23-signals-un-trade and-
development

8. https://www.spglobal.com/en/research-insights/market-insights/geopolitical-risk

9. https://www.ecb.europa.eu/press/pr/date/2025/html/ecb.mp250605~3b5f67d007.en.html

10. https://www.oecd.org/en/publications/oecd-economic-outlook-volume-2025-issue1_83363382-en.html

11. https://www.morganstanlev.com/insights/articles/economic-outlook-midvear-2025

12. https://www.un.org/development/desa/dpad/publication/world-economic-situation-
andprospects-as-of-mid-2025/

13. https://indianexpress.com/article/business/world-bank-india-fy26-gdp-growth-forecastlowers-
2025-10059042/

14. https://www.triodos-im.com/articles/2025/emerging-markets-mid-year-2025-investmentoutlook

15. https://www.focus-economics.com/blog/global-inflation-rates/

16. https://www.global-rates.com/en/interest-rates/central-banks/

India

Indias economy demonstrated remarkable resilience in FY 2024-25, achieving a GDP growth of 6.5%
despite global headwinds and domestic challenges. While this represented a four-year low compared to the
previous years 9.2% growth, it maintained Indias position as the worlds fastest-growing major economy.
The economy showed strong quarterly momentum, with Q4 FY25 recording an impressive 7.4% growth,
the highest among all four quarters of the year. The services sector emerged as the primary growth driver,
expanding at 8.3% and contributing 55.3% to total GVA, while manufacturing grew at a modest 4.5% and
agriculture sector recorded 4.6% growth. Inflation remained well-controlled at 4.6% for the full year, the
lowest since 2018-19, with March 2025 witnessing a further decline to 3.34% year-on-year. The fiscal
deficit improved significantly to 4.8% of GDP from 5.6% in the previous year, while foreign direct
investment inflows surged 14% to $81.04 billion, with the services sector attracting the highest FDI equity
inflows.

Outlook

The outlook for Indias economy in FY 2025-26 remains cautiously optimistic, with growth projections
ranging between 6.3% to 6.5% across various international agencies, positioning India to continue as the
fastest-growing major economy globally. The Reserve Bank of India has adopted a supportive monetary
stance, cutting the repo rate by 50 basis points to 5.5% in June 2025 and shifting to a neutral policy stance
to maintain growth momentum amid global uncertainties. Key growth drivers include resilient private
consumption, robust government infrastructure spending and strong services exports, particularly in
technology and telecommunications where India ranks as the second-largest global exporter. However,
challenges persist from global trade tensions, potential US tariff impacts on merchandise exports and the

KEMI S

need for sustained private investment to complement government capital expenditure. The governments
focus on fiscal consolidation, infrastructure development and structural reforms through initiatives like
the Union Budget 2025s tax rationalization measures are expected to support medium-term growth
prospects, while maintaining Indias trajectory toward becoming a $4 trillion economy and achieving
developed nation status by 2047

Source:

1. https://timesofindia.indiatimes.com/business/india-business/india-q4-gdp-growth-beatsestimates-at-7-
4-full-year-2024-25-estimate-at-6-5-check-top-points-and- highlights/articleshow/121515213.cms

2. https://www.bbc.com/news/articles/clyn3dw9gl7o

3. https://www.indiatoday.in/business/story/indias-economic-growth-hits-4-year-low-of-65in-fy25-
2733165-2025-05-30

4. https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2098048

5. https://pib.gov.in/PressReleasePage.aspx?PRID=2122148

6. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2131716

7. https://www.cnbctv18.com/economy/india-fiscal-deficit-gdp-data-fv25-fv26-19613296.htm

8. https://www.ndtv.com/world-news/indias-gdp-growth-in-2025-2026-estimated-to-behighest-among-
g20-nations-report-8584105

9. https://www.financialexpress.com/policy/economy-rbi-mpc-meeting-iune-2025-liveupdates-governor-
saniay-malhotra-monetary-policy-big-announcement-repo-rate-gdpinflation-loan-interest-rate-
3870281/

10. https://www.business-standard.com/economy/news/un-cuts-india-s-2025-gdp-growth forecast-to-
6-3-sees-strong-momentum-125051600115 1.html

11. https://economictimes.com/news/economy/indicators/world-bank-retains-indias-fy26growth-at-6-3-as-
trade-tensions-bite-countries-globally/articleshow/121756677.cms

12. https://en.wikipedia.org/wiki/2025_Union_budget_of_India

13. https://economictimes.com/news/economy/indicators/rbi-mpc-meeting-gdp-forecastindias-
central-bank-retains-growth-forecast-6-5/articleshow/121664715.cms

H COMPANY OVERVIEW

SEGMENT AND PRODUCT PERFORMANCE

1. The Company is into the business of Colors, Intermediates, Agro Chemicals and Specialty
Chemicals, its its business networks across the globe from African countries Turkey, USA, Mexico,

Bangladesh, Columbia etc.

2. K.P International Private Limited is the wholly owned Subsidiary company of Kemistar
Corporation Limited, is working into diversified business including dyes chemicals, intermediates,
inorganic chemicals, agro chemicals, recycling etc. with two plants in India since 2000. Plants are
Located at DAHEJ and AHMEDABAD

3. Company is entering into battery, solar & e-waste recycling business

K.P International Pvt. Ltd is a full service E-Waste Management company based in Dahej, Gujarat. In
todays business world, you need a partner who can help you take advantage of E-Waste management.
Company is Authorized by Gujarat Pollution Control Board E-Waste Collection Segregation Refurbishing
Dismantling organization to a wide range of businesses all over India, Our recycling facility is located at
Dahej, India. We engaged in handling Recycling & Reusing of E-Waste in eco friendly way. The initiative is
to aim at reducing the accumulation of used and discarded electronic and electrical equipments. which
most end up in landfills or partly recycled in a unhygienic conditions by backyard recyclers and then
partly thrown into waste streams damaging the environment.

The objective of K.P International Pvt. Ltd is to create an opportunity to transfer waste into socially and
industrially beneficial raw materials like valuable metals, plastics and glass using simple, cost efficient ,
home grown, environmental friendly technologies suitable to Indian conditions.

E-Waste has become one of the primary concerns as the ever increasing number of devices that human
life has to rely on is increasing day by day, making it highly essential to manage E-Waste in a sustainable
and greener way. K.P International Pvt. Ltd, is a pioneer in asset management and electronics recycling,
with its top of the line services to efficiently manage, dispose and recycle discarded electronic items.

Our portfolio of services includes: comprehensive and eco-friendly recycling services as well as end-to-
end E-Waste recycling and metal extraction solution. K.P International Pvt. Ltd has a state-of-the-art
facility for extracting reusable resources from electronic waste under the supervision of its highly skilled
staff that pay maximum attention to ensure that all the recycling tasks are carried out in an eco-friendly
manner.

Our Services

K. P International Pvt. Ltd is an end-to end provider of E-Waste management services. Our experience and
approach are sure to prove to be a valuable asset.

Asset Management
Certificate

100% Data Destruction
EPR

Reserve Logistics
Safety Transport
WEEE Recycling
Recycling of E-Waste

Potential market size of li-ion battery recycling

Global market size in 2022 6-9 BILLION USD
Estimated market size BY 2031 25-35 BILLION USD
18-20% CAGR DURING 2024-2031

Estimated Recycling business in 2022 is 5GWH vs in 2030 "130 GWH"

Estimated Indian li-ion battery recycling market will reach $1 bn(2030) from 0.1 Bn (2022) hence
shows exponential growth.

ELI schem e eor GO I mays be available in recycling so bzost the industry
New EPR rules will force to recycle 70-75%) of battery volume

Solar panel recycling potentiality

? Estimated global market size of solar panel recycling 360 M USD for year 2023 which will
reach up to 1.7 BILLION USD by year 2028.

? Growth Forecast for 2023-2028 (5 year) is 38.8% CAGR.

? Changing technology of solar panel will create huge volume of this recycling business.

? It will generate aluminum waste, Eva waste, silicon cells waste.

RECYCLING OF E-WASTE

Potential market size of e-waste recycling

• Indian e-waste market size-1.66 BILLION USD in 2023

• Estimated market size BY 2032 is 5.2 BILLION USD by 2032

• 13-14% CAGR DURING 2024-2032

• Global size of e-waste recycling business in 2022 is 57.8 BILLION USD in 2022

• Globally estimated e-waste recycling market size is 245 BILLION USD by 2032

• CAGR 15-17% for 2023-2032

• New EPR rules will force to recycle 70-75% of e-waste volume

4. FINANCIAL PERFORMANCE

Revenue of the Company is from 1114.86 Lakhs to 1891.50 Lakhs. Profit After Tax is from 53.11 Lakhs to
60.11 Lakhs during the year. Despite of many challenges, the Companys EBIDTA is from 142.01 Lakhs to
131.31 Lakhs and able to maintain profitability of the Company on consolidated bases.

(In Lakhs)

	Year to date (2024-25)	Y e ar t o dat e (2023-24)	Yo Y %
Revenue	1891.50	1114.86	69.66
EBITDA	131.31	142.01	(7.53)
PAT	60.11	53.11	13.18
EPS	0.56	0.49	14.29

IE Key Financial Ratios

The Kev financial ratios for Standalone financials are as ner the below table:

Particulars	FY 2024-25	FY 2023-24
Debtors Turnover Ratio	4.15	2.55
Inventory Turnover Ratio	50.43	143.55
Interest Coverage Ratio	0.54	0.19
Current Ratio	14.43	4.07
Debt Equity Ratio	0.02	0.10
Net Profit Margin (%)	3.73	5.24
Return on Capital Employed (%)	0.01	0.02

E DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY
PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF:

Net worth of the company as on 31.03.2025 was Rs. 1573.86 lacs whereas on 31.03.2024 figure was Rs.
1574.46 lacs.

E Risks and Opportunities

Higher energy costs due to higher coal and fuel costs is a significant risk to the Companys business
performance. Other risks include pricing risk on account of capacity additions, higher inflation and
recessionary pressure (both global and domestic) leading to demand slowdown, currency devaluation,
and changes in the export sector or imports from global markets.

The Company continues to remain focussed on keeping the costs low, including variable costs like fuel
through raw material securitisation, and continuous improvement programmes to help mitigate the
adverse impact of these risks such as diversifying energy sourcing in addition to current sources to
improve sourcing flexibility, working on changing fuel mix, maximising use of alternate energy sources,
different contracting strategies and continuing with strategies like commodity hedging / advance fixing
of prices. Execution of expansion project, adherence to more stringent environmental norms, packaging
and improving safety performance in a sustainable manner are other key areas that the Company
continues to focus on during FY 2024-25.

Excessive rains are resulting in dilution of brine, which is affecting captive solar salt availability, leading
to rise

in cost of production as there is an increased need to purchase salt. Changes in monsoon pattern may also
have adverse effect on the agrochemicals demand. Carbon emissions taxation will impact the cost of
production. The Company is developing a holistic carbon abatement strategy at a corporate level, which
will help in mitigating this risk.

In addition to enhanced ease of doing business, customer partnerships around themes of innovation and
sustainability continue to offer opportunities for stronger customer connect. Increasing value-added
products and sustainable supply chain practices like bulk material are some steps the Company will
continue to focus on.

Using technology for digitalisation of the plants, and making processes smoother for customers and
internal stakeholders is going to be crucial as the Company heads into a digital age. Multiple projects
around plant and supply chain automation, as well as customer relationship management are being
implemented.

H Opportunities for the growth of the lead recycling industry:

KEHI

The increasing demand for batteries from electric vehicles and energy storage systems is anticipated to
augment market growth.

Lead is the only metal that can be recycled several times without having any diminishing impact on its
quality. As a result, the production of secondary (recycled) lead is increasing over primary, which is
anticipated to have a positive impact on market growth.

Recycling lead used in batteries improves the utilization of the metal, reduces greenhouse gas emissions,
and conserves natural resources.

Recycling lead helps reduce the amount of toxic waste produced while also lowering the demand for new
lead materials. This helps preserve natural resources and reduce the impact of lead production on the
environment.

H Opportunities for e-waste:

Recycling and recovering: developing efficient recycling process can extract valuable materials from
e-waste, reducing the need for raw materials and minimizing environmental impact.

Extended Producer Responsibility(EPR):implementing EPR holds manufacture accountable for
the entire lifecycle of the product, from production to disposal which encourages sustainable design and
responsible disposal practice.

Circular Economy Models: shifting towards a circular economy promotes product reuse, refurbishment,
and recycling-minimizes waste and maximizes lifespan of the electronic devices.

Innovation in material design: research into eco-friendly materials for electronic components can
reduce the environmental impact of e-waste.

H Challenges faced by the lead recycling industry:

Labour and supply chain challenges, exacerbated by the pandemic, have made it harder for smaller
operators to keep up.

The global metal recycling industry is growing at an unprecedented rate due to factors such as
urbanization, the spread of industrialization, concerns over resource depletion, and environmental
awareness. However, this growth also brings challenges such as increased competition and the need for
digitalization to improve efficiency.

Challenges for Li-ion Batteries

Absence of standardized procedures for collecting, transporting and recycling li-ion batteries, Changing
environmental policies & battery waste management rules 2022 of the govt. bodies may affect business
and capital cost Due to hazardous nature cross border transportation cost may be high Recovery ratio of
precious metals is variable it may affect cost-benefit ratio.

Challenges for e-waste

Still only 17% of the worlds electronic waste is properly managed and recycled. E-waste remains the
fastest growing solid waste stream globally and there is no slowdown in sight. Due to number of
societal factors, including new and improved technologies being introduced faster than ever, electronics
are becoming obsolete at a much faster rate than ever before. This results in approximately 100
billion pounds of e-waste generated each year, a metric which is growing at a staggering rate.

Despite the introduction of E-waste (Management) Rules in 2016, the enforcement and implementation
on the ground remain inconsistent. The e-waste sector in India is estimated to be only about 5%
organized, with The majority of e-waste still being handled by informal sectors that lack the necessary
health, safety and environmental standards.

Compounding the challenge is the fact that less than10% of e-waste in India is collectedand recycled by
formal recyclers.

The existing infrastructure for e-waste management is insufficient to handle thecountrys e-waste

output, which is growing at a very high rate.

Challenges and Barriers to Solar Panel Recycling

o Diverse materials: Solar panels are highly advanced and are manufactured using various
materials like aluminum, steel, glass, silicon, and even rare metals and elements. Each of them
may require different recycling methods, and improper recycling may result in losing these
valuable components.

o Hazardous components: Many solar panel products contain toxic materials such as lead and
cadmium. Improper recycling may result in serious health risks and environmental
contamination.

o Lack of awareness: A significant challenge to consider is the fact that many businesses and
consumers are still unaware of the importance, financial opportunities, and environmental
benefits of recycling solar panels. This can lead to difficulty in securing buy-ins and
commitments when attempting to recycle solar panels.

o Technological limitations: Recycling solar panels can be a technical challenge. Efficient
separation of various components included in the solar panels, like glass, aluminum frames,
silicon wafers, etc., can be challenging and require advanced technology. Not to mention, the
recycling process may require specialized knowledge and expertise.

H DEVELOPMENT IN HUMAN RESOURCES:

The most valuable resources are the employees of the Company hence the Company always believes to
have balanced environment. When the Company strategize the different areas, healthy and smooth
functioning goessimultaneously. Consistency in quality, efficiency and customer satisfaction are always
prioritized above all bythe Company.

H INTERNAL CONTROL SYSTEM:

Your Company remains committed to improve the effectiveness of internal control systems for business
processes with regard to its operations, financial reporting and compliance with applicable laws and
regulations. Your Company has adequate internal controls in place designed and developed to:

a) Safeguard its assets from unauthorised use or losses

b) Conduct its business operations efficiently in line with companys policies

c) Maintain accuracy, completeness & reliability of the Financial and accounting records

d) Compliance on laws and regulations

e) Detect and prevent any fraud the frauds in the accounting & reporting system The Company monitors
the efficacy and functioning of its internal financial controls through periodic internal audits and multiple
authority levels for expenditures and budgetary controls.

H Cautionary Statement

Certain statements contained in the Management Discussion and Analysis may be statements of the
Companys beliefs, plans and expectations about the future and other forward-looking statements that
are based on managements current expectations or beliefs as well as a number of assumptions about the
Companys operations and factors beyond the Companys control or third party sources and involve
known and unknown risks and uncertainties that could cause actual results to differ materially from
those contemplated by the relevant forward-looking statements. Forward-looking statements contained
in the Management Discussion

and Analysis regarding past trends or activities should not be taken as a representation that such trends
or activities will continue in the future. There is no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise. You should not place
Undue reliance on forward-looking statements, which speak only as of the date of this annual report.

For and on behalf of the Company

Sd/-	Sd/-
Ketankumar Patel	Hrishikesh Rakholia
Managing Director	Director
(DIN:01157786)	(DIN:08699877)

 

Place: Ahmedabad

Date: 6th September, 2025

 

Registered Office:

604, Manas

Complex,

Jodhpur Cross

Road,

Satellite, Ahmedabad - 380015