Industry Structure, Developments, Opportunities and Threats
The Indian market for stearic acid and fatty acids is a dynamic and growing sector, integral to a wide range of industries. It is largely driven by the countrys robust manufacturing base, particularly in oleochemicals, and increasing domestic and international demand for various end-use products. The Rubber and PVC industry is growing at a faster pace. Our product range includes Stearic acid, Fatty Acids; the ultimate users of our products are Rubber and PVC industries. Since our inception, we are providing superb quality products to our valued customers at national level. The raw materials are procured from reliable vendors and each product is tested on several parameters to ensure optimum quality Therefore the demand of our products is set to grow at much faster rate. Your company is trying its best to increase the market share of its products and to economize its production.
Further, the Company is now actively taking steps to improve the Oil division business. The Company has made sales of Rs. 11917.30 lakh from stearic acids & other non-edible oils (Previous year Rs. 7255.62 lakh) and sale of garments Rs. 980.76 lakh (Previous year Rs. 1110.28 lakh). Company is in process to increase the market for stearic division now.
OPPORTUNITIES AND THREATS
OPPORTUNITIES
Growing End-User Industries: The rapid growth of sectors like personal care, cosmetics, and the automotive industry in India presents a significant opportunity. As disposable incomes rise and consumer habits evolve, the demand for products that use stearic acid and fatty acids will continue to increase.
Rising Demand for Biodegradable and Bio-based Products: The global and domestic push for sustainable products creates a strong opportunity for producers of vegetable-based fatty acids. Stearic acid is a key ingredient in the production of biodegradable plastics and eco-friendly surfactants, aligning with the shift away from synthetic chemicals. Favourable Government Policies: Government initiatives and policies supporting domestic manufacturing and sustainable practices can create a conducive environment for the industrys growth. Export Potential: India is a major exporter of stearic acid, with a strong presence in the global market. Continued growth in exports to key markets like the U.S., Germany, and the Netherlands provides a significant avenue for revenue and expansion.
THREATS
Raw Material Price Volatility: The prices of raw materials are subject to significant fluctuations due to climate conditions, geopolitical tensions, and supply chain disruptions. This price volatility directly impacts production costs and profit margins, posing a major threat to the industry. Environmental and Sustainability Concerns: While the shift to plant-based sources is an opportunity, it also presents a threat. The sourcing of palm oil, in particular, faces increasing scrutiny from regulators and environmental groups due to concerns over deforestation and sustainability. This can lead to supply chain challenges and consumer backlash. Competition from Substitutes: In some industrial applications, stearic acid may face competition from synthetic chemicals. Manufacturers must continuously innovate and highlight the benefits of their products to maintain market share. Economic Headwinds: Broader economic challenges, such as high-interest rates or muted consumer spending, could affect the growth of end-user industries like rubber and detergents, thereby impacting the demand for stearic acid and fatty acids.
Segment Wise performance
As the Companys business activities fall within a single primary business segment, Hence, the reporting on Segment wise Performance of the Company as per the provisions is not applicable / required. However, the Company has made sales of Rs. Lakh 11917.30 lakh (Previous year Rs. 7255.62 lakh) of Oil Division.
Financial Performance of the Company
The companys overall operational performance has been good during the financial year 2024-25. Revenue of the Company is generated mainly from sale of Stearic Acids and Other Non-edible Oils. Companys achieved sales The Company has made sale of Rs. 11917.30 lakhs from stearic acids & other non-edible oils (Previous year Rs. 7255.62 lakh) and sale of garments Rs. 980.76 lakh (Previous year Rs. 1110.28 lakh). The Company has earned profit of Rs. 329.95 lakh during the Financial Year.
Risk and Management Perception
The operations of your company are subject to general business risks and competition in the industry, which can affect the growth of the company. Your company continuously updates its systems and procedures to reduce uncertainties and risks and explore new market to cope with the competition.
Internal Control and their adequacy
The Company has adequate system of internal control and internal audit system and management has access of all its assets and proper procedure is adopted for disposal of any assets of the company.
The Company has appointed an Independent Auditor to ensure compliance and effectiveness of the Internal Control Systems in place.
The Audit Committee is regularly reviewing the Internal Audit Reports for the auditing carried out in all the key areas of the operations. Additionally, the Audit Committee approves all the audit plans and reports for significant issues raised by the Internal and External Auditors. The Scope of the Internal audit is not limited to accounts only but also includes operations, inventories, costing records, physical verifications of immovable and movable assets etc. on regular basis. Regular reports on the business development, future plans and projections are given to the Board of Directors.
Material development in human resources and industrial relation front, including No. of people employed
Human Resources Development, in all its aspects like training in safety and social values is under constant focus of the management. Relations between the management & the employees at all levels remained healthy & cordial throughout the year. The Management and the employees are dedicated to achieve the corporate objectives and the targets set before the company. Industrial relations remained cordial and harmonious during the year under review and there was no working day loss due to any adverse activities. The company had employed 137 persons during the financial year 2024-25.
Cautionary Statement
The Annual Report including those which relate to the Directors Report, Management Discussion and Analysis Report may contain certain statements on the Companys intent expectations or forecasts that appear to be forward looking within the meaning of applicable securities laws and regulations while actual outcomes may differ materially from what is expressed herein. The Company bears no obligations to update any such forward looking statements.
Declaration by Chief Executive Officer (CEO) under Regulation 34(3) of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015
I, Ritesh Arora, Chairman-cum-Managing Director of the Company hereby declare that members of Board of Directors and senior management personnel have affirmed compliance with the code of conduct of board of directors and senior management for the financial year ended 31st March 2025.
By Order of the Board
For RITESH INTERNATIONAL LIMITED
Sd/-
(RITESH ARORA)
Place: Ahmedgarh Chairman-cum-Managing Director
Date: 23.08.2025 DIN: 00080156
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