Rite Zone Chemcon India Ltd Management Discussions

The Management of Rite Zone Chemcon India Limited presents the Management Discussion and
Analysis (MD&A) of the Company for the year ended on March 31, 2026 and its outlook for the
future. This outlook is based on assessment of current business environment. It may vary due to
future economic and other developments both in India and Abroad.

It contains financial highlights but does not contain the complete financial statements of the
Company. It should be read in conjunction with the Companys Audited Financial Statements for
the year ended on March 31, 2026.

The India Construction Chemicals Market size is expected to grow from USD 2.25 billion in 2025
to USD 2.53 billion in 2026 and is forecast to reach USD 4.47 billion by 2031 at 12.06% CAGR over
2026-2031. Government capital-expenditure outlays, most notably the INR 11.1 trillion National
Infrastructure Pipeline, anchor the long-range demand outlook as metros, highways, and smart-
city projects scale nationwide. Ready-mixed concrete (RMC) adoption is accelerating beyond
Tier-1 cities, creating a sustained demand for high-performance admixtures and dosing
technologies that deliver the workability and durability parameters specified in large
infrastructure packages. Simultaneously, the rapid rise of green-label construction drives shifts
in formulation toward low-VOC sealants, bio-based membranes, and recycled-content additives
as builders target IGBC or EDGE certifications

> By product category, waterproofing solutions held 35.15% of India construction
chemicals market share in 2025, and waterproofing solutions are forecast to expand at an
13.43% CAGR through 2031.

> By end-use sector, the infrastructure segment accounted for 30.01% of the India
construction chemicals market size in 2025, and infrastructure applications are
advancing at 12.51% CAGR to 2031.

National Infrastructure Pipeline allocations channel steady large-volume orders toward high-
range water reducers, corrosion inhibitors, and shrinkage-reducing admixtures needed for metro
tunneling, coastal bridges, and seismic-zone viaducts. High-specification concrete for the Mumbai
Metro Line 3 and Delhi-Meerut RRTS requires elevated early strength and low permeability,
thereby heightening demand for premium polycarboxylate-ether chemistries. Highway packages
under the Bharatmala Pariyojana are increasingly mandating performance-based mixes, which
embed superplasticizer and air-entrainment dosages in tender documents. Suppliers therefore
align research and development pipelines to resilient-infrastructure guidelines, releasing fiber-
reinforced polymer systems and crystalline waterproofing lines for cut-and-cover segments
exposed to groundwater ingress. These dynamics keep the India construction chemicals market
closely tethered to public-sector rollout timetables, with regional stocking hubs springing up near
project clusters to minimize lead times. Consequently, integrated producers with backward
linkages to key monomers secure a competitive cost advantage as specialty-grade resin inputs
become increasingly scarce globally.

RMC penetration is increasing, reshaping reagent ordering cycles toward bulk-supply contracts
with batching plant operators. Consistent slump retention across long haul times pushes demand
for retarding admixtures, viscosity-modifying agents, and pumping aids that small on-site mixers
seldom use. Automated dosing systems now integrate directly with ERP platforms, enabling
suppliers to monitor real-time consumption and remotely optimize formulation tweaks. Metro
contractors in land-scarce downtown cores favor RMC to curtail traffic disruptions, strengthening
the captive pull for additive packages bundled under multi-year framework agreements. As
regional players invest in inline moisture sensors and rheology controllers, the India construction
chemicals market deepens its shift from commodity bulk powders toward service-wrapped
chemistry solutions that embed technical advisory fees within product invoices. This
transformation raises entry barriers for unorganized formulators lacking application engineering
bandwidth.

The IGBC-registered floor area expanded by 40% year-on-year in 2024, making eco-friendly
sealants, membranes, and low-carbon admixtures mainstream in metro office and premium
residential buildings. State procurement norms now stipulate the use of low-VOC coatings for
public buildings, while corporate occupiers integrate scope 3 emissions targets into vendor
scorecards, rewarding suppliers who can provide full material health disclosures. Product
stewardship drives the adoption of bio-based polyurethane membranes and recycled microsilica
blends, which reduce embodied carbon without compromising performance. Chemical
manufacturers respond by overhauling their feedstock portfolios toward lignin-based polyols
and plant-derived plasticizers, investing in life-cycle assessment labs and obtaining third-party
EPD certifications. The India construction chemicals market, therefore, witnesses a parallel race:
scaling domestic resin capacity to lower import dependence and switching toward circular-
economy inputs to meet certification pathways. Market messaging has shifted from price-per-
kilogram to kilogram-of-CO₂-saved, opening premium pockets even in cost-sensitive sub-
segments.

Roughly 60% of metropolitan commercial stock now exceeds 20 years of age, generating steady
demand for rehabilitation orders, including crack-injection epoxies, carbon-fiber wraps, and

polymer-modified repair mortars. Smart Cities Mission funding favors adaptive-reuse blueprints
that integrate seismic upgrades and energy retrofits, requiring high-bond-strength grouts and
elastomeric coatings compatible with mixed substrates. Heritage structures under ASI oversight
require breathable, low-sodium materials that preserve their visual character, steering demand
toward micro-lime-based crystalline additives. Contractors specializing in structural
strengthening enter into long-term supply agreements with niche formulators, enhancing margin
visibility for value-added chemistries. Energy-efficiency retrofits spur interest in reflective roof
coatings and spray-applied polyurethane foams, broadening the portfolio penetration of
construction chemical houses. Renovation spending thus offers a counter-cyclical cushion that
stabilizes revenue flows when new-build cycles moderate, underscoring its increasing weight
within the India construction chemicals market.

Waterproofing solutions captured 35.15% of Indias construction chemicals market share in
2025 as monsoon-exposed cities and rising basement construction heightened the need for
robust hydrostatic protection. The segment benefits from mandated roof-treatment warranties
in Mumbai, Chennai, and Kochi, where saline spray accelerates corrosion. Bitumen-based sheets
are gradually being replaced by crystalline admixtures and modified polyurethane membranes,
which offer longer life-cycle value with thinner profiles. Suppliers bundle site diagnostics and IR-
thermography services into product packages, leveraging value engineering to upsell solvent-free
primers and moisture-curing topcoats. Across Western India, tunnel waterproofing for metro
extensions sustains a steady volume of PVC membrane sales, injecting scale efficiencies into
domestic extrusion lines. Complementary growth arises from balcony, podium, and water tank
applications within the mid-income housing boom, broadening SKU rotation beyond big-ticket
infrastructure projects.

Concrete admixtures are driven by the uptake of RMC plants and performance-based tender
norms. Early-strength superplasticizers secure night concreting windows for metro contractors,
while slump-retention retarding blends support 60-minute haul distances in congested metros.
As value-added grades grow, the India construction chemicals market size for admixtures is
projected to outpace that of commodity grey powders. Adhesives, anchors, and grouts gain
traction from precast modules and facade panels, with rapid-curing polyester resins supporting
vertical construction speed targets. Protective coatings line sewage lift stations, desalination
plants, and chemical storage yards where high acid resistance is critical. Flooring resins, led by
epoxy terrazzo and polyurethane cement, are gaining traction in pharmaceutical and food and
beverage plants to meet HACCP and cleanroom standards. Repair chemicals unlock premium
price points through specialty carbon-fiber wraps for bridge girders and chimney stack
rehabilitation, adding resilience to revenue mixes during new-build pauses.

Residential construction is driven by the 10 million-unit housing shortage and ongoing rollouts
of the Pradhan Mantri Awas Yojana. Waterproofing primers, tile adhesives, and elastomeric wall
coatings experience high repeat purchase rates in this segment, thanks to aspirational
homeowners seeking premium finishes. Affordable housing clusters are increasingly specifying
factory-blended plasters and grouts to shorten project cycles, thereby increasing the chemical
content per square meter. Developers differentiate via green-certified envelope systems, creating
extra pull for low-VOC sealants and reflective coatings in climate-responsive building codes.

Maharashtra led regional consumption, supported by Mumbais metro expansion, Navi Mumbai
International Airport, and RMC penetration, which institutionalized demand for admixture. The
coastal climate necessitates the use of mandatory podium waterproofing and marine-grade
protective coatings, thereby bolstering demand for polyurethane and polyurea membranes. In
Pune, integrated township developments continue to sustain a steady demand for tile adhesives
and repair mortars as developers refurbish legacy stock to attract IT tenants. Tier-2 cities such as
Nagpur and Nashik follow suit, propelled by state-level infrastructure nodes that embed chemical
standards in EPC contracts.

Gujarat is leveraging petrochemical parks at Dahej and Hazira, where industrial flooring and
chemical-resistant linings account for a sizable slice of the India construction chemicals market.
Port modernization under the Sagarmala initiative accelerates the use of specialty grouts for
breakwater blocks and epoxy coatings for cargo terminals, while the states proactive industrial
policy eases land acquisition for new resin plants, thereby tightening supply loops. Ahmedabad
metro builds and high-speed rail packages further expand admixture uptake, reinforcing regional
demand resilience. Meanwhile, Karnataka and Tamil Nadu maintain brisk growth curves:
Bangalores aerospace park specifies high-strength anchoring systems, and Chennais automotive
OEMs seek anti-vibration grouts and low-shrinkage repair mortars. The southern climates heavy
rainfall fosters robust sales of breathable masonry coatings and balcony waterproofing
compounds.

The National Capital Region (NCR) exhibits a diversified demand as metro corridor extensions,
Grade-A offices, and central government complexes coexist. Strict environmental norms
encourage the adoption of water-borne sealants, while seismic requirements drive the use of
fiber-reinforced polymers for retrofit programs. Emerging corridors, such as Telanganas
Hyderabad-Warangal industrial belt and Haryanas Gurugram-Manesar logistics spine, reflect a
rising uptake in Tier-2 clusters. Northern and eastern states provide frontier opportunities: Uttar
Pradeshs expressways create continuous demand for pavement joint sealants; West Bengals
riverine bridges specify corrosion inhibitors for high-humidity exposure; and Northeast hill
projects use low-temperature accelerators for remote concreting. Although base volumes remain
smaller, strategic infrastructure under the Act East Policy unlocks repeat orders for niche cold-
weather admixtures. As a result, the geographic mosaic sustains balanced growth across all zones
despite the clear dominance of western and southern states in the overall India construction
chemicals market value.

Incorporated in 2015, Rite Zone Chemcon India Limited is ISO 9001:2015 certified company and
deal in range of construction chemicals and concrete products. We offer complete construction
solution by supplying a complete range of various chemical products related to civil construction,
infrastructure, building & structure including pre-construction or post construction as well
supplying all types of concrete required for construction and infrastructure developments. The
construction chemicals are chemical compounds used in construction works. They are used to
speed up the process or add more sustainability and strength to the structures. The addition of
construction chemicals to various building materials during the construction work improves
performance, workability, adds functionality, and protects the basic or customized elements of a
structure.

Our range of products includes Concrete Admixture, Water Proofing Systems, Concrete
Lubricator, Engineering Grouts, Industrial Flooring, Concrete Repairs, Curing Compound & Mould
Release Agent, Surface Treatment, Tiling & Block Products. Our Company also deal in range of
concrete products such as slump concrete, flowable concrete, self-compaction concrete (SCC),
Light Weight Concrete, Stamp Concrete, Color Concrete, PQC Concrete, Early Strength Concrete,
Reinforce Concrete, Shotcrete Concrete, Precast Concrete, Pile Concrete, Air Entrench Concrete,
Prestressed Concrete, High Strength Concrete Etc.

SEGMENT WISE PERFORMANCE:

Your company has only one segment that is Supply of Construction Chemicals.

Our performance and the growth of our business are necessarily dependent on the health of the
overall Indian economy. As a result, any slowdown in the Indian economy could adversely affect
our business.

Our results of operations and financial conditions are affected by numerous factors including the
following:

-Our reliance on third party for our business, including our products exposes us to certain
risks.

-We typically do not enter into long-term agreements with majority of our customers, and
an inability to continue to engage with them would have a material adverse effect on our
business, results of operations and financial condition.

-The Company is dependent on few numbers of customers and suppliers for sales and
purchase and loss of any of these large customer and supplier will significantly affect our
revenues and profitability.

-We plan to expand into new geographies and may be exposed to significant liability and
could lose some or all of our investment in such regions.

-We have incurred borrowings from commercial banks and an inability to comply with
repayment and other covenants in our financing agreements could adversely affect our
business and financial condition.

At Rite Zone Chemcon India Limited, risk management is an ongoing procedure that entails
identifying, evaluating, and prioritising risks, as well as applying resources in a coordinated and
economical way to lessen, monitor and control the likelihood and/or impact of uncertain events
or to maximise the realisation of opportunities. Additionally, risk management seeks to detect
and control any potential dangers that could have severe consequences. The Board of Directors
oversee the Companys risk management framework.

We have been focusing on the increasing network. With large population, increasing urbanization
and disposable income, the industries in which we operate provide sustainable growth on a
longer-term basis. Robust growth of emerging economies provides large opportunities to the
Company. We are a well-established Company in these economies and will continue to focus on
the growth, new launches and increasing network strength. In other mature economies, the
market trend is changing favorably. The strategy of the company is to get higher profitability and
stable cash flow generations in these markets.

The internal control system is intended to increase transparency and accountability in an
organizations process of designing and implementing a system of internal control. They have
been designed to provide reasonable assurance with regard to recording and providing reliable

financial and operational information, complying with applicable statutes, safeguarding assets
from unauthorized use, executing transaction with proper authorization and ensuring
compliance of corporate policies.

During the financial year under review, Gross Income of ^2,581.84 lakhs was recorded as against
^2,642.19 lakhs in the previous financial year, reflecting a decrease of approximately 2.28%. The
total expenditure incurred during the year amounted to ^2,525.14 lakhs, as compared to
^2,528.93 lakhs in the previous financial year, reflecting a marginal decrease of approximately

0.15%. Profit Before Tax (PBT) was recorded at ^56.69 lakhs during the year under review as
against ^113.25 lakhs in the previous year, representing a decrease of approximately 49.94%.
After provision for current and deferred tax, Profit After Tax (PAT) stood at ^34.13 lakhs as
against ^89.32 lakhs in the previous financial year, representing a decrease of approximately
61.79%. The Earnings Per Share (EPS) was recorded at ^0.81 for the financial year ended March
31, 2026, as compared to ^2.11 in the previous financial year.

The decrease in profitability during the year under review was attributable to the changes in the
income and expenditure levels during the year. Continued focus is being placed on operational
efficiency, cost optimisation and improvement in overall business performance.