PCBL Ltd Management Discussions



The global inflation is expected to decrease from 8.7% in the FY 2021-22 to 6.5% in the current year 2022-23 and further decline to 4% in 2024, primarily due to reversal in energy and food prices Despite the positive outlook for global inflation decrease, several countries are still faced with persistently high core inflation rates. However, the projections indicate that these rates are predicted to gradually decline. Europe and the US are still anticipated to witness some weakness, while the Asian economy is projected to lead most of the global growth in 2023. This is owing to ongoing reopening dynamics and relatively lower inflationary pressures compared to other regions.

Looking back, the year 2022 was marked by a series of global challenges that had a significant impact on the world economy. The Russia- Ukraine war, the re-emergence of Covid-19 in China, fluctuations in commodity prices, and central banks policy decisions were among the macro-economic factors that affected the global economy projection to grow at estimated 2.9% in 2022 and forecasted to grow 1.7% in 2023. Measures are being taken to tackle the ongoing energy crisis in Europe, and concerted efforts are being made to stabilise the prices of essential commodities. Alongside, central banks have responded quickly to inflation pressures, demonstrating their commitment to maintain stable economic / conditions.


Economic Growth Projections (Region-Wise % Change)

(Source:: Global Economic Prospects: Sharp, Long-lasting Slowdown to Hit Developing Countries Hard (worldbonk.org))




World Output




Advanced Economies




United States




Euro Area




Emerging and Developing Economies




















South Africa





economic overview

Indian economy has demonstrated remarkable resilience in the face of global challenges, emerging as the fastest-growing economy in the world with a growth rate of 7% for 2022-23 as per RBI at the time of publishing this report. This growth was propelled by private consumption and investment, aided by Government policies, aimed at improving the transport infrastructure, logistics, and business ecosystem in the country.

However, inflation remained high for a significant portion of the year, leading to the RBI raising interest rates quarterly, which in turn, caused a contraction in spending. As a response, the RBI opted to maintain its current interest rates during the April 2023 quarterly Monetary Policy meeting, with the aim of allowing the effects of previous interest rate hikes to take hold. This has shown results and helped India successfully control

inflation, as evident from its 18 month low rate of 4.7%, registered in April 2023.

Further, as geopolitical uncertainties diminish, consumer sentiment is expected to improve, providing a significant boost to all sectors. Furthermore, Indias continued investments in technology, infrastructure, and energy are likely to position the country as one of the worlds largest economies in the coming decade. The Governments focus on taxation to support growth, coupled with its efforts to maintain fiscal responsibility, are set to ensure sustained economic momentum in the country.

(Source: RBI projects Indias GDP to grow at 6.5 per cent in FY241 Mint (livemint.com))

(Source: MoSPI, https://www.reuters.com/world/india/india-sees-





The global automotive industry is expected to increase vehicle production due to eased supply chain disruptions and improved demand. The industry is undergoing significant technological and regulatory changes, including the rise of electric and autonomous vehicles, and is poised for growth in the coming years.

The automotive industry is a critical economic sector that is poised to undergo significant transformation in the coming years with the advent of new technologies and innovations. Customers are demanding unique features and all-purpose vehicles, while keeping environmental concerns for fuel-efficient and alternative powertrain vehicles. In terms of regional market size, the Asia-Pacific region is currently the largest market for the automotive industry, driven by the growing demand for passenger cars and fuel-efficient vehicles. High pent-up demand, attributed to industry underproduction in the past few years, lower commodity prices, and reduced logistics costs will further encourage production across the industry.


As the world is shifting towards more sustainable energy sources, so does the global automotive industry. It is capitalising on this opportunity through a host of approaches, including a change from traditional Internal Combustion Engines (ICEs) to Electric Vehicles (EVs). Although automobile demand had been sluggish for some time, with sales picking up almost across all segments, except the two-wheeler segment, as its still below pre-Covid-19 level in India and the production registering recovery in 2022.


Reflecting resilience in its growth momentum, the Indian automobile industry is likely to sustain

its pace of progress once again in the FY 202324. While the overall production of automobiles exhibited upward trajectory, it also witnessed a strategic shift towards Electric Vehicles (EVs) from Internal Combustion Engine (ICE) vehicles. A segment that constituted only 1% of all auto sales in January 2021, formed approximately 7.5% in March, 2023.

This rise in EV sales is also boasted by the Indian Governments Target of 30% EVs by 2030 over ICE vehicles, further to support the Government target multiple Indian states have launched EV policies with subsidies for EV buyers which is further propelling the growth of the segment. More than 2.5 times Electric vehicle were sold in FY 2022-23 in comparison to that of FY 2021-22. Further to support the Governments target, multiple Indian states have launched EV policies with subsidies for EV buyers which is further propelling the growth of the segment.

(Source - Vahan)

(Source: FADA Vehicle Registration Data, Govt incentives to drive EV penetration in India, charging infrastructure key: Moodys Business News,The Indian Express, EV sales in India hit 1.17 million units in FY2023, charge past 100,000 for six months in row Autocar Professional)


India possesses all the necessary pre-requisite to become one of the largest markets for mobility in the world. Firstly, the shift towards electric vehicles has created opportunities for tyre manufacturers to innovate and cater to the specific needs of these new vehicles, resulting in increased tyre demand. This, in turn, is expected to drive the demand for

original equipment manufacturer (OEM) tyres in the long run. Secondly, the rising income levels within the country have made motor vehicles more affordable, particularly for the young and aspiring middle-class population. Finally, with its sizeable population clusters, youthful and internet- savvy demographic, India is well-positioned to capitalise on the emerging trends. Among others, the country is set to benefit from the utilisation of clean technology amid rising interest rates and cost, following new emission and safety norms. The Indian Government impetus is already boosting manufacturing across industries through initiatives such as the PLI scheme and the Make in India campaign and Scrap Vehicle Policy.

(Source: Perry Hope Partners Research - Global Innovative

Forecasts - Market: Commodity Chemicals

Mordor Intelligence: Global Carbon Chemical Market)


Carbon black is a commonly used reinforcement compound in the tyre industry due to its ability to enhance the mechanical and dynamic properties of tyres. Now as the EV segment pickup pace in sales, it will further fuel the demand for the tyre industry.

The global tyre market has been classified into radial and bias tyres. The radial tyres segment is growing faster on account, due to higher vehicle efficiency, increased fuel efficiency, lower ground damage, and lower transverse slip. The growth was primarily driven by increased vehicle production and higher economic activities across the construction, mining, and oil & gas industries, with the Asia-Pacific region accounting for the highest demand.


The automobile industry has gone through various structural changes over past few years, which in turn, affected the demand in tyre industry. The replacement demand has a higher share compared to OEM demand. However, with the transition towards electric vehicles, it is expected that a fresh



The automobile industry faced several challenges in recent years, which affected the tyre industry as well. Despite this challenges, the industry is well-positioned to benefit from the growth of the Indian economy and the rising demand for transportation.

India exports tyres to more than 170 countries, including key markets, such as North America and Europe. Even during first half of FY 2022-23, tyre exports continued to witness robust growth as India benefitted from the imposition of Anti-Dumping Duties by the US on China, and the increased acceptance of Indian tyres globally. Healthy demand from top export destinations, such as the US, the UK, and European nations continued to propel growth.

demand in the tyre segment will boost OEM tyre demand over the long-term.

(Source: https://www.rsm.global/insights/2023-outlook-rising- trends-automotive-industry

Top Three Automotive and Mobility Trends in 2023 - .


Perry Hope Partners Research - Global Innovative Forecasts - Market: Commodity Chemicals)


The automobile industry has taken significant steps to enhance manufacturing capacity, improve technology, conduct research and development, and address production limitations in various vehicle segments, including commercial vehicles, passenger vehicles, and two-and three-wheelers. The export of automobiles and tyres from India has been the major contributor to the overall tyre demand. This factor is expected to propel the passenger vehicle industry and drive growth in the tyre sector. Additionally, the demand for radial tyres is anticipated to rise in tandem with the increased demand for passenger cars and commercial vehicles

(Source: Auto industry looks to sustain growth momentum in 2023 - The Economic Times (indiatimes.com); CARE Edge Research)



Carbon black is used in multiple sectors worldwide, with the demand for it primarily driven by the tyre and rubber product industry. Additionally, carbon black is also extensively used in plastics and electrical applications, particularly in batteries, further contributing to the ongoing surge in its global demand.

Carbon black is a form of elemental carbon. It is produced by incomplete combustion processes or the thermal decomposition of liquid or gaseous hydrocarbons under controlled conditions.

Carbon blacks physical characteristics depend on the production technology, enabling different applications. Over the years, there have been significant technological changes in the carbon black production process.

In the year 2022, the global carbon black market (in volume) was estimated at 15 Million tonne. This Industry is forecasted to register a CAGR of 3.5%.

Carbon black has been used for decades, usually as reinforcement, and has emerged as the key component in the rubber industry . It finds applications in tyres, rubber goods such as conveyor belts, hoses, and sealants, among others. Non-rubber applications, also called specialty applications include pigments for paints, coatings, inks and toners. Other specialty applications include its use in the plastics industry for manufacturing fibres, mouldings, conductive packaging, semiconductive cable compounds and films. Carbon black has also been used in various electrical & electronics applications, including electrodes and batteries.




The carbon black sector is presented with opportunities stemming from the relatively low per capita penetration of motor vehicles in developing economies, the growth of industrialisation in emerging economies, policies aimed at scrapping older vehicles, and rising consumption driven by an increasing middle-class population.

As the world shifts towards a more sustainable approach, the focus on circular economy has spurred innovative approaches to downstream sector management. Due to which the pressure within the carbon black industry ecosystem have prompted upstream manufacturers to collaborate with downstream value chain partners, focussing on the development of new technologies that promote greener methods for carbon black production.


The Indian carbon black market is poised for decent growth through 2028, primarily driven by growing automobile & tyre demand & specialty applications. Carbon blacks versatility in combining with additives, elastomers, or binding agents to

create more innovative, environmentally friendly high-end products makes it a widely used material across several industries. This industry is led by PCBL with the highest production capacity in the country. Further, the Indian carbon black industry is highly concentrated, with a small number of players accounting for the majority of the production.


Specialty chemicals is a highly refined form of carbon black that contains lower levels of ash, sulfur, and metals, among other impurities to improve performance and durability.

Specialty chemicals is witnessing high growth rates in developed regions across industries. Its superior properties and diverse applications make it an important material in several industries.


The growing demand for specialty chemicals has prompted major manufacturers to bolster their production capacities and transition their production lines from standard carbon black to specialty variants. Companies are actively investing in research and development centres, positioning themselves for a competitive edge in the specialty chemicals. These strategic measures demonstrate a confident and prudent approach to meeting the evolving market needs and capitalising on the opportunities ahead.

(Source: Frost & Sullivan: Energy & Environment Research)




PCBL Limited EJ j1

PCBL, an integral part of RP-Sanjiv Goenka Group, was established by Mr. K. P. Goenka in 1960, commencing production operations in Durgapur with a capacity of 14,000 MTPA. Over the course of more than six decades, PCBL has played a pioneering role. In the field of tyres, performance and specialty chemicals through its five strategically located state-of-the-art plants in Durgapur (West Bengal), Palej (Gujarat), Mundra (Gujarat), Kochi (Kerala) and Chennai (Tamil Nadu) through its wholly-owned subsidiary PCBL(TN) Limited, PCBL has also established an R&D centre in Palej (Gujarat) and an Innovation centre in Ghislenghien (Belgium). Presently, it boasts a production capacity of 666,000 MTPA(Including the commissioning of the first phase of 63000 MTPA of the Greenfield Project in Chennai through its wholly-owned subsidiary PCBL(TN) Ltd.) and contributes 98 MW of Green Power. Today, PCBL stands as Indias largest manufacturer of carbon black and a prominent global player, catering to a diverse customer base across 50+ countries.

Over time, PCBL has implemented a series of initiatives with the aim of strengthening its resilience. These initiatives encompass operational excellence, research and development-driven innovation, a highly skilled workforce, a customercentric approach, a diverse portfolio of value-added products, and a focus on specialty chemicals.

The Company has pursued organic growth by expanding its production capacity in accordance with market demands, while maintaining a strong emphasis on tyre, performance and specialty chemicals. Additionally, an ongoing effort to digitalise internal processes is anticipated to enhance operational efficiency and sustain the Companys competitive advantage.

In a notable achievement, PCBL has successfully completed the first phase of its Greenfield Project in Chennai, Tamil Nadu. upon its full completion expected in FY 2023-24, this project will augment the Companys carbon black capacity to 147,000 MTPA and contribute an additional 24 MW of green power.


chennai, tamil nadu

Smart Factory

E) Smart Factory with incorporation of Industry 4.0 concepts, using machine learning and artificial intelligence for process control

Green Factory

O zero liquid discharge plant, rain water harvesting and water conservations


O Automated & advanced material handling and warehouse management system; Fully- automated process control through DCS

Proximity to Ports

O Located close to Kattupalli port and Ennore port, enabling easy import of raw materials (CBFS) and export sales


PCBL started its manufacturing journey with an initial capacity of 14,000 MTPA in 1960. Over the years, the Company has undergone significant growth and currently holds an impressive annual capacity of 6,66,000 MTPA. (including commissioning of the first phase of 63,000 MTPA of the Greenfield project in Chennai, Tamil Nadu, through its wholly-owned subsidiary PCBL(TN) Ltd.).

This increase is led by the operation of five strategically located plants across India, including Greenfield project in Chennai, Tamil Nadu through wholly-owned subsidiary PCBL(TN) Ltd.

In February 2021, PCBL Limited commissioned two specialty black lines, totalling about 32,000 MTPA, at Palej, Gujarat. The new lines, along with the plants in Durgapur (West Bengal), Mundra

(Gujarat),Kochi (Kerala), and Chennai (Tamil Nadu) through wholly-owned subsidiary, PCBL (TN) Limited are backed by cutting-edge technology. this helps switch seamlessly between alternative feedstock, make efficient use of resources, deliver a wide selection of grades, and accomplish high- quality standards

To strengthen our capabilities further, we have embarked on two expansion projects: The first is a greenfield project in Chennai, Tamil Nadu, through wholly-owned PCBL (TN) limited. We have successfully commissioned the first phase, and upon completion, the plant will add 1,47,000 MTPA of carbon black capacity and 24 MW of green power. The second is a brownfield project which is coming up in Mundra, Gujarat. The estimated capacity of the plant is 40,000 MTPA and will be completed in two phases. With this, total manufacturing capacity is projected to be 7,90,000 MTPA and 122 MW of green power.


PCBL has five manufacturing units located in strategic proximity to customer locations and ports in Durgapur (Eastern India), Cochin (southern India), Palej and Mundra (Western India) and Chennai (southern India) through its wholly-owned subsidiary , PCBL (TN) limited.


Carbon Black

green Power


1,63,500 MTPA

30 MW


92,500 MTPA

17 MW


1,42,250 MTPA

19 MW


2,04,750 MTPA

32 MW


(through its






63,000 MTPA


6,66,000 MTPA

98 Mw

The Company has strengthened its competitiveness by growing its global presence, diversifying its product portfolio and consistently delivering a robust performance.


PCBL has a well-established global presence, with seven offices located in both Europe, Asia and north America. Catering to a clientele spread across 50+ countries, the Company strategically places its well-equipped decanting stations and warehouses throughout the us, Europe, and Asia to ensure efficient distribution of its products. Its unwavering commitment to diversify its product portfolio and consistently deliver strong performances has further strengthened its competitive edge. Its impressive list of clientele comprises some of the most renowned global tyre majors. Additionally, the Company has also left a permanent mark as a key global player in the specialty black segment, cementing its position as one of the top leaders in the industry.


PCBL offers a comprehensive portfolio of tyres, specialty and performance chemicals utilising cutting-edge technology to address the diverse needs of its global customers.

The Companys portfolio includes carbon black grades that cater to renowned global tyre and industrial rubber goods manufacturers, enhancing the physical properties of their products.

In addition, PCBLs portfolio includes high-margin, non-rubber applications, with plastic holding the largest market size worldwide. PCBLs specialty portfolio is designed to meet over 90% of the plastic market by product segment in various industries globally. The Company has extensive

expertise in engineering plastics, fibres, and US FDA-compliant food contact grades, as well as semicon and cables, among other areas. PCBL aims to strengthen its capabilities in ink, paint, and coatings and high conductive applications like, conductive polymer, ESD and battery. PCBL is committed to leveraging its deep capabilities and cutting-edge technology to provide its customers with innovative and high-quality specialty and performance chemicals.


Technical and Moulded Rubber Goods

(3 Conveyor Belts

o Construction

(3 Extrusions and Profiles

(3 Damping Elements

o Hoses and Ducting

(3 Power Transmission Belts (V-belts)

(3 Rubber Mats and Shoe Soles o Rubber Pads and Caps O Anti-Vibration Grommets O Moulded Rubber Goods o Seals and Gaskets (3 Rubber-to-Metal Bonded Goods O Unvulcanised Sheets o Adhesives (3 Tubing


O Passenger Vehicle Tyres O Truck and Bus Tyres O Off-the-Road Tyres O Agricultural Tyres O Forestry Tyres O Two-Wheeler Tyres O Three-Wheeler Tyres O Cycle Tyres O Tyre Retreading Materials

Specialty Chemicals Applications Finds the Following downstream Applications

O Food Contact Plastic

O Synthetic Fibre and Textile Fabric

O Wire and Cable

O Film and Sheet Application

O Geo-Textile/Geo-Membrane

O Pressure Pipe

O Drip Irrigation Pipe Systems

O ESD and Conductive

O Plastics Moulded Parts

O Engineering Plastics

O Inks

O Paints

O Coatings

O Adhesives

O Sealants

O Batteries

Calculations and Explanation of Major Ratios:






























1. Current Ratio











Reasons for Variance

Due to liquidation of current investments - mutual funds for the purpose of investment in wholly- owned subsidiary PCBL (TN) Limited.

2.Debt Equity Ratio

total debt = Non-current borrowings + Current Borrowings

total Equity*







Reasons for variance

on Consolidated basis, during the current year the subsidiary company has availed term loan from bank.

3. return on Equity (%) / return on Net worth (%)

Net Profits after taxes

total Equity*


















4. Inventory Turnover ratio - Days~Refer note 1









Inventories = Raw Materials + Finished Goods + stores and spare Parts (including packing material).

(sales = sales of Finished Goods and traded Goods without Gst+sale of Power)

5. Debtors Turnover Ratio - Days~Refer note 1~(sales = sales of Finished Goods and traded Goods including Gst+sale of Power)









6. Net Profit Margin~(%)

Net Profit (Profit after tax)

net sales







7. Interest Coverage Ratio~note :~EBIT = Profit Before tax + Finance Costs~Finance Costs = Interest expenses on debts and borrowings + other borrowing costs + net loss/~(gain) on foreign currency transaction / translation - Interest on lease rent

Earning before Interest and tax (EBIT)

Finance Costs



remarks :~net gain on foreign currency transaction / translation during the year ended on 31 March, 2022 was higher than sum total of all other components of finance cost resulting in a negative finance cost. Hence interest coverage ratio has not been computed for the year ended on 31 March, 2022






























8. Long term Debt Equity ratio






Total Equity*







Total Equity

Non-current borrowings includes Current maturities of Long-Term Debt

Total Equity = Equity share capital + other equity.

reasons for variance

On Consolidated basis, During the current year the subsidiary company has availed Term loan from bank.

9. Operating Profit margin (%)

Operating Profit = Profit before tax + Depreciation and Amortisation expense including depriciation on right of use assets+ Finance Costs +

Net loss/(gain) on foreign currency transactions/ translations + Loss on disposal of property, plant and equipments - Other Income - Payment to lease liability












Notes :

1. The Companys turnover is highly sensitive to the changes in crude prices which may fluctuate widely between quarters. The Company, therefore, believes that the Debtors and Inventory turnover days computed on the basis of simple average of the turnover days for each of the four quarters of the year will be more appropriate and reflective on its operations. The turnover days for each quarter is derived by dividing the quarter-end outstanding debtors / inventory balance with sales for the respective quarter.

numbers for the previous year have also been recalculated accordingly.

2. Figures used for calculation of ratios for consolidated financial statements, include share of non-controlling interest whenever applicable.


At PCBL, research and innovation are critical drivers of technical and business growth and over the last few years, the Company has intensified its research commitment by making forward-looking investments in the development of infrastructure, human resources, and processes, which has strengthened the Companys capabilities in new product development, product customisation, product application, process efficiency etc.

The Company has been leveraging its ‘Competitive Intelligence study to identify the scope and opportunities for customer engagement, white space mapping, market-driven research, innovation, and intellectual property protection.

The R&D activities of PCBL stand out for their strategic innovations that have catalysed the Companys ‘New Product and Process Development Roadmap across carbon black, ‘Renewable Resourced Carbon Black, ‘Nanostructured Carbonaceous Materials, ‘Conducting

Carbon Black, and ‘Carbon Black Feedstock, CBFS from new and renewable resources. The innovation focus empowered the Company in the design of a competitive product portfolio that has accelerated sustainable business growth.

The Companys R&D mechanism, focussed on market/business needs and connecting to cutting- edge technology solutions, which strengthened the performance of existing grades and deepened its understanding of CBFS features, which, in turn, has helped to create superior quality products. PCBL has also harnessed partners knowledge and capabilities and used intra- and inter-organisational technology collaborations to leverage application research.

PCBL has set up global research and development facilities, the ‘Sushila Goenka Research and Development Centre at Palej, Gujarat, and ‘Sushila Goenka Innovation Centre at Ghislenghien, Belgium, to drive the innovation. The ‘Sushila Goenka Research and Development Centre at Palej, is recognised by the ‘Department of Scientific and Industrial Research (DSIR), Government of India.

The R&D activities of PCBL are advocated by a pool of experienced and qualified product and j

process development scientists and engineers, along with comprehensive infrastructure, equipment and facilities for feedstock and carbon black development. Research is also directed to evaluate morphological features, elemental, and microscopic analysis, assessing the physio- chemical properties, rheological, thermal, mechanical, dynamic, mechanical, electrical properties, and colour performances of rubber compounds, plastics compounds, and inks and coatings. The research and development laboratory is also equipped to evaluate the performance of carbon black for energy storage devices.

the R&D team focusses on the development of new products and technologies in line with the demanding processing, application, and environmental standards preferred by customers.


Information technology is one of the most essential enablers for business of PCBL. the organisation is making continuous efforts to remain at the leading edge of technology, ensuring security, confidentiality & availability of business data & information. Investments in cloud & digital platforms are enhancing the overall organisational efficiency on one hand while improving business performance on the other hand.

during FY 2022-23 there has been no business, financial or reputational loss due to IT. Best-in-class and modern ERP of sAP HANA in Cloud, Fiori apps, ERP-integrated sAP successFactors HRM Platform continue to provide the scalability, performance, compliance & security to the most critical data & systems of business. business from anywhere is ensured through secure two-factor authenticated VPN, sso & Containerisation.

azure active directory & Microsoft 365 setup for the entire PCBL it users ensure speed of deployment, security & seamless user experience. uniform patch management platform with cloud-enabled patching for users/Devices ensure hygiene security of systems even if user is not in office network.

The Company is aware about the current elevated levels of cybersecurity risks across the globe. all critical IT servers in cloud are protected with best- in-class UTM (Unified Threat Protection Firewall), with Managed security services (Mss) of a reputed

partner. security assessment has been carried out successfully through a reputed partner on the most critical & core IT systems.

The organisation has adopted & deployed one of the best-in-class advanced Threat Management Platform (ATP) for all End-user devices (laptops, desktops) through ad, which is monitored & managed centrally. Automated Containerisation and End-Point security deployment has been enforced through MDM for any personal Mobile/ Tab/iPad as well, if official data access is needed from that device.

A remote Disaster-Recovery Data Centre for most critical ERP Production data has been set up for continuous business transaction data replication in real-time. The replication / sync is monitored centrally through automated tools & alerts; periodic DR drill ensures effectiveness of the DR setup, thus eliminating risk of business-continuity in case of any major impact on primary Data Centre.

Automated tool-based backup is scheduled & monitored for all critical Cloud servers. Encrypted backups are stored separately and tested periodically for their effectiveness through restore drills.

local data of all End-user machines are automatically backed in real-time through a robust cloud backup. This ensures zero loss of organisational data & availability from anywhere, even in case of theft or complete damage of any laptop.

The Company has a designated Ciso and is embarking on the journey of adopting the latest version of IsMs: Iso27001.


over the years, PCBL has been expanding its product portfolio and widening its global presence. As we are maturing further as a global player, our responsibilities towards our environment and people have also increased. We have been advocating sustainable development since many years and our efforts towards it are rightly reflected in our performance and actions.

We have been utilising the waste gas produced during carbon black manufacturing process in our co-generation power plants to produce electricity. Electricity thus generated is sold to the local grid after meeting our own power requirements. by doing so, we offset the GHG emissions that would have been caused by using fossil fuels to produce the same amount of electricity. We have optimised our various processes and operations to keep our net GHG emissions intensity in check. We have invested in new technologies and more energy efficient equipment to upgrade our operations and to lower our carbon footprint. Due to the collective efforts and contributions of our teams across all locations, our GHG emissions stand lower than 2.0 tCo2e/MT which can be considered as satisfactory as far as carbon black industry is concerned. our R&D team is actively engaged in exploring new possibilities to substitute some of our fossil fuel consumption with bio-based fuels and other renewable energy sources.

We consider our employees as our most valuable assets and so their safety and well-being are the topmost priority for us. In line with our vision to provide an exciting workplace to our people, we believe that workplace safety plays the most crucial role in it. We are always striving to learn and implement best safety practices across our locations of operations and to foster a safety- first culture among our entire workforce. We continuously provide technical and behavioural safety trainings to raise awareness among our people and to ensure they are always a step ahead in terms of knowledge and technical skills required to perform their jobs in a safe manner. steps towards automation of some of our processes have been taken by us to minimise manual interventions.

All our manufacturing sites have occupation health centres to provide primary medical treatment. Team of trained First-aiders is available inside our plants round the clock to handle any medical incidents and we have tied-up with the nearby hospitals to handle any medical emergencies.

We also provide medical insurance cover to our employees to take care of their financial needs.

We strongly believe that economic growth

and sustainability go hand in hand. As a responsible organisation, we are committed to the environment, making relentless efforts ro keep our emissions, effluent discharge and waste disposal in compliance with the applicable regulatory guidelines. All our plants are Zero liquid Discharge compliant, and we have also installed CEMs (Continuous Emissions Monitoring systems) for real-time monitoring of our environmental emissions and to take proactive actions in case of any deviations from the set parameters. We have taken some improvement projects across our plants focussed on reducing our specific freshwater consumption, power consumption and minimising waste generation at source aligned with our commitment towards environmental stewardship.

We have identified communities as one of our stakeholders and have taken various CsR initiatives to engage with them for their betterment. We have been providing necessary support to them in terms of education, sports, healthcare, women empowerment, infrastructure development, green- belt development, skill-building among others.

We do not hesitate to invest in our communities beyond our legal obligations. our guiding mantra of ‘Touching lives in more ways than one keeps us motivated to care for our communities for their holistic development and to build long-term value for our societies. We are committed to uplift the lives of our surrounding communities as we grow further with each passing year.

Product stewardship has been identified as one of the key material topics at PCBL Limited. our R&D team is working continuously to reduce the hazardous substances (RoHs, sVHC, PAH etc.) in our product. We capture regulatory requirements of different countries regularly and comply with international regulations and norms. We have engaged an expert agency as the ‘only representative to help in REACH registration and meet regulatory requirements for the export of carbon black to European countries. Material handling and storage process for safe use of the product has been disclosed in sds section 7. The product complies with Eu waste code: 61303 and the disposal method of the product has been disclosed in sds section 13.


With a robust risk-management framework in place, PCBL has been able to stay ahead of the game and mitigate potential risks that may arise from various sources, whether internal or external. This proactive approach allows the Company to continually generate value for all its stakeholders, even when the economic landscape and industry trends may be less than ideal. It is worth noting that sEBI (Listing obligations and Disclosure Requirements) Regulations, 2015 mandates that

companies must educate their Board members on the intricacies of risk assessment and mitigation strategies. PCBLs Board takes its responsibility to manage risk very seriously and is fully committed to developing and overseeing a comprehensive risk-management plan. This plan is crucial for the Company to continue operating successfully and sustainably in the long run.

Sustainability and Risk Management Committee comprises the following members:-


Position held

Nature of Directorship

Mr. Kaushik Roy


Managing Director

Mr. Paras K




Independent Director

Mr. Pradip




Independent Director

Mr. T c



suseel Kuma


Independent Director

Risk-Mitigation Plan

The Board takes the following steps as a part of its risk management and mitigation plan:

O Defines the roles and responsibilities of the Risk Management Committee (3 Takes part in major decision making, affecting the organisations risk profile o Integrates risk-management reporting with the Boards overall reporting framework

Identification and Assessment Approach

Anticipating and estimating of the probability of occurrence, severity, category, and rating of risk

Prevention and Control Strategy

Articulating measures to avoid occurrence of risk, limit its severity, and reduce its consequences


Inspecting effectiveness of controls, responding to the results, and improving the approach

Reviewing and Reporting on the Risk

Processing by the Management at appropriate intervals (at least once a year)




Country Risk

Investing in any country carries inherent risks stemming from political instability, economic volatility, fluctuating exchange rates, and technological advancements. These factors could potentially lead to unexpected losses, underscoring the importance of conducting thorough risk assessments before making any investment decisions.

Likelihood of occurrence: Low

Ensuring a thorough understanding of the country-specific risks is a critical aspect of the Companys investment strategy.

To achieve this, PCBL relies on the expert assessments provided by accredited agencies and also conducts its own in-depth evaluations of economic, political, social, and structural factors, affecting the country.

The Companys senior leadership team and Board of Directors engage in rigorous discussions and deliberations to gain a comprehensive perspective on the associated risks, and makes informed decisions that align with its investment objectives.




Economic Risk

The Companys business prospects may face an unfavourable impact due to the persistent sluggishness of the global and Indian economy.

Likelihood of occurrence: Medium

The Companys senior leadership team is adept at tracking emerging trends, regulatory shifts, and economic developments to fine-tune its business strategies accordingly. PCBL conducts impact assessment studies as and when required to keep up with the ever-evolving business landscape.

investment Risk

It is imperative to maintain efficient project management practices that ensure timely delivery within budgeted capex to avoid potential impacts on cash flows or increased debt burden.

Likelihood of occurrence: Low

PCBL understands the importance of efficient project management and its impact on its financial health.

Therefore, it leaves no stone unturned when it comes to undertaking detailed project planning and feasibility studies. It believes in frequent review meetings to keep all stakeholders informed of the progress and streamline the projects execution.

The PCBL team comprises highly skilled individuals with experience in overseeing such projects, who utilise the latest technologies to ensure timely completion of projects within budget.

Supply Chain Risk

The reliability of the Companys supply chain partners is crucial to its smooth operations.

Any disruptions in the supply of materials from its major suppliers can have significant implications. Additionally, PCBL closely monitors and anticipates market volatility, particularly in crude oil prices, as it can affect both raw material and end product prices, potentially impacting its bottom line.

Likelihood of occurrence: Low

PCBL proactively manages the risks associated with supply chain disruption and raw material price volatility. It has built strong relationships with its suppliers, and maintains backup sources to ensure uninterrupted operations. Additionally, its senior management team carefully plans production schedules and maintains adequate inventory levels of key materials to mitigate risks.

In the face of raw material price fluctuations, the Company takes strategic actions such as implementing cost-reduction initiatives and adjusting non-contract sales prices. Moreover, a significant portion of its sales volume is based on a formula-driven pricing mechanism, which enables it to recover any cost changes from customers. These measures ensure that the Company maintains profitability, while continuing to deliver high-quality products to its customers.




Competition Risk

The ever-changing dynamics of the market and the emergence of new competitors can present a challenge to both the market position and financial performance of the Company.

Likelihood of occurrence: Low

By actively seeking and incorporating customer feedback, the Company is continuously enhancing its products and services to meet and exceed their expectations. It also conducts regular review meetings to ensure that its customers are satisfied with its offerings, as it proactively addresses any concern or grievance they may have.

To stay ahead of the competition, PCBL invests in market intelligence and strategic product differentiation. This allows the Company to identify emerging trends and customer preferences, and offer unique solutions

Rate Risk

the revenue generated from the sale of power forms a crucial component of the Companys overall earnings. Hence, any fluctuations in power tariffs could have an impact on its bottom line, making it imperative for the Company to keep a close eye on any such developments.

PCBL builds and maintains strong partnerships through strategic bilateral power purchase agreements, which enables it to secure reliable and cost-effective power supply for the short, medium and long-term.

Likelihood of occurrence: Low

Operational Risk

The sophisticated level of automation PCBL has integrated into its production process means that any machine breakdown has the potential to cause a ripple effect, impacting the entire operation.

Likelihood of occurrence: Medium

The Company maintains a tight grip on the manufacturing process by constantly monitoring its operations and has implemented cutting-edge predictive and preventive maintenance programmes to keep its equipment in top-notch condition. Additionally, PCBL conducts regular equipment overhauls to ensure uninterrupted and seamless production.




Financial Risk

The volatility of interest rates presents a challenge to the Companys profitability. Furthermore, maintaining adequate liquidity and effectively managing working capital are critical factors towards financial viability. The Company must also be mindful of the potential for non-payment from its debtors, as this could significantly impact its bottom line. It must recognise that strict compliance with the terms of its borrowing arrangements is essential to maintaining credit ratings and overall financial stability.

PCBL proactively manages interest rate fluctuations by optimising its borrowing mix, balancing fixed and floating rates. The Companys liquidity is closely monitored to ensure that it always has adequate funds to meet its operating needs.

The Company invests any excess cash in liquid, short-term instruments, such as bank deposits, marketable debt securities, and debt mutual fund schemes to maximise returns, while maintaining flexibility.

Likelihood of occurrence: Medium

PCBLs credit risk management policies and procedures are based on thorough customer profiling. It closely monitors changes in credit ratings, regulatory conditions, industry trends, and payment history to avoid any defaults.

To mitigate payment risks, the Company has implemented secure payment methods for its power sales, and closely observes its debt covenants to avoid any breach of borrowing conditions.

Technology Risk

The continuous advancement of technology presents a risk that the Companys technology may become outdated, potentially leading to non-compliance with quality standards, while impeding its efficiency.

Likelihood of occurrence: Medium/Low

To keep up with the ever-evolving technological landscape, the Company prioritises staying informed of the latest advancements and innovations. PCBLs technical team is dedicated to continuously reviewing and updating its technology to ensure it meets the highest standards of quality and efficiency. Additionally, it invests in hiring qualified personnel who possess the expertise and knowledge needed to evaluate and recommend new technology that can enhance its operations.




Currency Risk

The volatility in foreign currency exchange rates may pose a risk to the Companys profitability, especially with the depreciation of the Indian rupee.

Likelihood of occurrence: Medium

The Company proactively manages this risk by diversifying its sales portfolio between domestic and international markets.

PCBL employs financial instruments such as forward contracts and cross-currency interest rate swaps to hedge against potential currency fluctuations. The Companys strategy allows it to stay agile, and adapt to the ever-changing economic landscape, while safeguarding its financial health.

Product Development Risk ^

Venturing into uncharted territories and introducing new products where the Companys knowledge and expertise are limited could pose a potential risk to its business performance and hinder successful implementation.

Likelihood of occurrence: Low

PCBL takes pride in its proactive approach to identify potential gaps in its product portfolio by conducting rigorous evaluations of its R&D capabilities. The Company invests in a product development project only after carefully weighing the risks and benefits.

Its approach towards product development includes regular testing at customer sites to ensure that the product is a perfect match for their needs and surpasses their expectations. Before initiating product development, the Company conducts informal market research to gauge customer demand and ensure that its efforts align with their needs.

Downstream Risk

The Companys growth is contingent on the health of downstream industries, and any deceleration in these sectors may pose a threat to its progress.

Likelihood of occurrence: Medium

The Company safeguards itself from the impact of downstream industry slowdown by expanding its range of products, reaching out to a wide network of customers across different regions and countries.




IT Risk and Cyber Security Risk

The evolving nature of the Information Technology industry and Cyber Security threats pose risk to the Confidentiality, Integrity and Availability of the IT-enabled Systems & related Business Processes of the Organisation.

Likelihood of occurrence: Low/Medium

The Company proactively manages the Information Technology Security risks by ensuring continuous enhancements in the ICT infrastructure & governance, benchmarking with reputed partners and best-in-class platforms.

A structured risk identification and mitigation process exists in the Organisation for the Enterprise IT systems and platforms. Annual IT General Computer Controls (GCC) & Business Cycle Control (BCC) audit by Statutory Auditor ensures risk mitigation of the core ERP system. Periodic security audits by external Auditor on the Cloud Infrastructure and Internet Gateway mitigates the identified risks.

Managed Security Services (MSS) of Firewalls, Advance Threat Protection (ATP) Software for End-User Devices, remote Disaster Recovery setup for ERP & Internet, tool-based automated Data backup of Servers & End-User Devices,

IT governance framework through ITSM tool, centralised deployment of Software, Policies & Patches through Active Directory are some of the key initiatives to mitigate the known ICT and Cyber-related risks. Cyber Security Insurance exists in the Organisation to handle any impact of residual risks.

The Company has a designated CISO and is embarking on the journey of adopting the latest version of ISMS: ISO27001.

Substitute Risk

The shift towards eco-friendly products like silica as a substitute for carbon poses a risk to the Companys profitability. Currently, the cost- effective use of crude to derive CBFS provides it with a competitive advantage. However, if crude prices escalate, and alternatives like CBFS derived from coal tar become more cost- effective, it could adversely affect the Companys operations and profitability.

Likelihood of occurrence: Low

The Companys research team conducts a thorough market analysis, feasibility study, and gap analysis to identify the demands and requirements of its customers before proceeding with the production of any particular carbon black grade.

In the event of a shift towards a coal tar-based CBFS, the Company would undertake rigorous testing to ensure the reliability of the new input material. It would also modify its production process, as and when necessary, to ensure optimal efficiency and quality.




Regulatory Risk

Non-compliance with regulatory requirements can cause disruptions in operations, leading to reputational and financial losses. Legal proceedings can also disrupt plant operations and harm business continuity. Moreover, changes in environmental regulations may necessitate the installation of Flue Gas Desulphurisation (FGD) equipment, resulting in additional capital expenditure and recurring operating costs.

Likelihood of occurrence: Low

PCBL takes regulatory compliance seriously, and uses advanced MIs tools to ensure that it is always up-to-date with the latest regulations. The Company also conducts regular audits to identify any gaps in its compliance and takes corrective actions promptly.

Its team of experts stays up-to-date with the latest regulations, and ensures compliance with all applicable acts, directives, and regulatory requirements. the Companys employees are also trained regularly to ensure that they are aware of the latest regulations and clear about their roles to comply with them.

To mitigate legal risks, PCBL has a dedicated

team that monitors legal proceedings and identifies potential risks to its operations. The Company takes proactive measures to mitigate these risks, and has contingency plans in place to ensure continuity of its operations.

If environmental norms change and the Company is required to implement FGD, it will conduct a thorough impact assessment study to understand the implications of the changes. Next, it will take the necessary steps to implement FGD smoothly, ensuring minimal disruption to its operations.

Environment Impact Risk

Environmental impact can threaten operational sustainability, while evolving green regulations may have adverse effects.

The Company generates power by utilising process emissions, reducing the environmental impact.

Likelihood of occurrence: Low

It takes proactive steps to prevent leaks, mitigating potential harm to the environment. PCBLs compliance with IS014001:2015 ensures that it meets rigorous environmental management standards.

The Company prioritises regular training to promote environmental awareness and responsibility among its employees.

Lost Opportunity Risk

Constant monitoring of market trends and consumer preferences are critical to keep up with evolving demands, in order to avoid any negative impact on offtake.

Likelihood of occurrence: Low

PCBL is continuously innovating to offer cutting- edge products that meet the demands of the modern market.

The Company is serving a diverse and global customer base with excellence.




Health Risk

The Companys operations may get affected by the disruptions caused by any health-related hazards.

Likelihood of occurrence: Low

PCBL has implemented stringent Standard Operating Procedures (SOPs) across its manufacturing units, regional offices, and corporate office to ensure the highest level of health and hygiene is maintained, and to protect against any potential health hazards.

Safety Risk

The continuity of the Companys operations is closely tied to the safety and security of its plant premises, making it crucial to prevent any potential incidents.

Likelihood of occurrence: Low

PCBL attaches highest priority to the safety of its employees and the continuity of its operations. The Company has implemented a range of safety measures, such as hazard identification and risk analysis, fire hydrant systems, smoke detectors, and CCTV surveillance.

It also regularly conducts safety awareness events to keep its employees informed and prepared. Additionally, it has comprehensive insurance coverage for potential incidents like fire, theft, and transit accidents.

Human Resource Risk

Losing top talent or facing labour disruptions could impact the Companys operations negatively. Also, unplanned outages can adversely affect its performance. Additionally, engaging contractors for the recruitment of contractual labourers may impose legal liabilities under Indian laws.

Likelihood of occurrence: Low

PCBL Limited believes that attracting and retaining top talent is crucial to its success. The Companys recruitment process is rigorous, transparent, and fair, allowing it to hire the best candidate for each job.

To ensure that its employees are well- compensated, it conducts regular salary benchmarking and provides incentives to align their goals with the Companys. PCBL also has a non-compete agreement ensuring higher retention.

Regular talent reviews and succession planning keep its employees motivated and engaged, reducing the likelihood of planned outages or labour disruptions. It also has proper agreements in place to outline its rights and obligations.




Compliance Risk

Failure to keep up with rapidly changing laws and regulations can impede business operations.

staying up-to-date with the ever-changing laws and regulations is crucial for seamless business operations.

Likelihood of occurrence: Low

PCBL ensures compliance with international regulations and norms, while also capturing the regulatory requirements of different countries. To ensure that its export of carbon black to European countries is compliant with REACH registration and regulatory requirements, the Company has engaged an expert agency as its ‘ONLY REPREsENTATIVE.

The Company prioritises continuous learning and development to stay ahead of the compliance curve, regularly updating its domain knowledge and analysing potential implications.


FY 2022-23 will go down in history as one of the most significant ones in PCBLs history. The initiatives undertaken during FY 2022-23 are in alignment with the business themes of PCBL, which serve as a guiding light in its future journey.

PCBL, with Capability building as one of the key business themes, has implemented several initiatives to enhance the knowledge and build capability of PCBLites. These initiatives include the launch of a Market Excellence Capability building Programme for R&D and sales & Marketing teams, which helps build knowledge in different segments of application.

the Company has also strategically introduced e-learning modules, including critical conversation modules for managers to guide performance discussions, sAP e-learning content on MM, QM, and FM, and revised Embark PCBLites modules as per new brand identity, business strategy, and organisational approach, enabling employees to learn at their own pace and convenience. It also has implemented Nirantar Gyan Vardhan Programme (NGVP) technical e-modules to enhance the technical knowledge of PCBLites.

To provide employees with specific skills and knowledge required for their roles and responsibilities, PCBL has launched corporate training calendars based on corporate functions such as Process technology, R&D, Manufacturing Excellence, sHE, CRE, and sustainability. PCBL has also provided capability building at different units with on-the-job training (ojT) as well as classroom training.

It has also restructured the get and DET academy, providing employees with a comprehensive training programme. This includes one month of generic training, one month of functional training, five months of OJT, and a business value-added project. GETs also prepare EsG and CFT projects, enabling them to gain valuable experience and knowledge.

another manifestation of this People Philosophy is the Companys collaboration with the International Management Institute (IMI), Kolkata for a Certified General Management Programme (CGMP). The objective of CGMP is to enhance leadership skills, sharpen business acumen, and help develop programme participants into tomorrows business leaders. Under the guidance of the Leadership Team at PCBL, academicians at IMI-Kolkata and professionals from the industry, the participants

classroom lectures, case study analysis, discussions and simulations, assignments through digital platforms, projects, quizzes, and end-term examinations. This 400-hour course, comprising 15 subjects, is spread over five quarters. After the successful completion of the first batch, the second batch has graduated in 2023.

One of the key business themes is digital transformation and various initiatives have been executed with this orientation. Using Leena AI chatbot, the Company has been keeping track of employee emotions and moods. A corresponding score-based system maps manager behaviour, work team behaviour, workplace safety, career growth and employee development. Based on the chats received, employees are assessed by their leaders by analysing their sentiments and checking their engagement levels.

Further, in line with the digital transformation business theme, an integrated human capital management platform People Connect, powered by success Factors, takes care of all the HR related services that a PCBLite needs. PCBL has launched two new modules on People Connect in FY 2022-23.

The new Onboarding Module has been designed to make the onboarding process for new joinees completely digital, providing a seamless experience and maintaining data sanity. The module will streamline the onboarding process by automating many of the manual tasks associated with it. With this, new joinees will be able to complete all their onboarding tasks online.

It also launched a new Offboarding Module on People Connect which will ensure that all processes and procedures during the offboarding period are

conducted digitally, to deliver an error-free and hassle-free experience. These modules will make the process faster and more efficient, eliminate the need for physical paperwork, and reinforce PCBLs commitment to sustainability.

The Company has also introduced three digital platforms to improve the overall employee experience. The first platform is called XoXoDay, which is an online rewards and recognition platform. This platform enables us, at PCBL, PCBL to reward PCBLites with points which can be redeemed to procure various vouchers. The second platform is Refyne, which offers employees 24x7 access to salary advance. This digital tool helps employees manage their finances effectively and gives them greater financial flexibility. The third platform is Mfine, which has been introduced to enhance the experience of prospective employees during their pre-joining medical check-up. This platform enables employees to complete their medical check-up digitally, thus saving them time and effort.

Additionally, to ensure regular communication between the leadership team and the employees, sampark, a digital townhall was organised, where all the internal stakeholders of the organisation connected, shared information, recognised efforts, and addressed challenges, for all quarters.

The Companys industrial relations continued to be harmonious; not a single person-day was lost during this financial year on account of disrupted industrial relations.

On 31 March, 2023, there were 1,178 permanent employees on the Companys payroll.


PCBL has adequate internal financial control systems in all areas of its operations. The Board of Directors has adopted policies and procedures for ensuring the orderly and efficient conduct of business. These include adherence to the Companys policies, safeguarding its assets, prevention and detection of frauds and errors, ensuring accuracy and completeness of the accounting records and timely preparation of reliable financial information. From time to time, PCBL employs both internal and external auditors to supplement its in-house expertise and resources. the Company continuously upgrades its systems in line with the best practices in the industry. Reports and deviations are regularly discussed with the Management Committee members, and action is taken whenever necessary. An Independent Audit Committee of the board reviews the adequacy of the internal financial control.


The financial statements appearing above are in conformity with the accounting principles generally accepted in India. the statements in the Management discussion and analysis Report, which may be considered forward-looking statements, within the meaning of applicable laws and regulations, have been based on current expectations and projections about future events. the actual results could differ from those expressed or implied. Important factors that could influence the Companys operations include global geopolitical shifts, economic developments within the country, demand and supply conditions in the industry, input prices, changes in Government regulations, tax laws and other factors, such as industrial relations. the Management cannot, however, guarantee that these forward-looking statements will be realised or achieved.