Shree Hari Chemicals Export Ltd Management Discussions.


The chemical industry is one of the most important sectors for the economic development of any country. Dyestuff sector is one of the core chemical industries in India.

The industry s higher installed capacity is a source of strength for exports. With the entry of small units in a big way and the availability of the basic organic intermediates, Indian dyestuff industry has now gained a firm footing in the export markets. The Indian dyestuff industry accounts for 6.5% of world production. This shows that India is a competent player in the world market.

Globally the dyestuffs industry has seen an impressive growth. Initially the industrys production bases were mostly in the west, but in the last few years, they have been shifting to the East.


The world market for textile is growing and therefore the demand for dyes will continue to grow in future. The raw material and intermediates are easily available and most of the manufacturers located in Gujarat and Maharashtra are very close to the source of the raw material.

Most of the plants in the world today are large, but India has developed technology for small size plant too. Indigenously developed technology is capable of producing dyes with full efficiency which results in reduction of cost.

Almost a 100 dyestuff manufacturer from India are exporting various product to US, UK, Singapore, the Middle East, Japan etc which shows our products are well accepted in international market.


The demand for most of the dyes depends largely on the textile and the garment industry, any change in the production pattern of textile industry has an influence on the demand pattern of the individual categories of dyestuff.

The small scale manufacturers forced the organized manufacturers to scale down their price of H-Acid. Indiscriminate production of H-Acid led to its being sold at a lower price in the international market.

The factors restraining the growth of colorants market are raw material price volatility, its global over-capacity, and environmental concerns.


Since the company operates mainly in single product which is DYE Intermediate - H-Acid (1-Amino, 8-Napthol, 3-6 Disulphonic acid), therefore the financial performance is related to that product.


The product of the company is an Intermediate for the dyestuff which is used in Reactive Dyes, Acid Dyes and Direct Dyes. India is competent enough to manufacture all types of dyes which are in good demand in the world today.


The industry also faces several challenges on the environmental front, as the company is falling under red category, any stringent norms fixed by the regulators may affect the working of the company.


The company has appropriate and adequate internal control system for its business processes at all sites with regards to efficiency of operation, accurate and prompt financial reporting, compliance with applicable law and regulations etc. The company continues to regularly evaluate and strengthen its Internal Control Systems to commensurate with its size and the nature of the business.


(Rs in Lakhs)

Particulars 2016-2017 2017-2018 % Changes
Total quantity of sales (MT) 3249.924 1602.59 (50.68)
Income from operations (Rs.) 11470.33 5463.73 (52.36)
Profit before interest, Depreciation 134.84 (827.02) (713.33)
and Tax (Rs.)
Interest Expenditure (Rs.) 22.31 10.27 (53.97)
Depreciation (Rs.) 276.70 365.55 32.11
Net Profit (Rs.) (183.29) (873.48) (376.56)


The human resource plays a vital role in the growth and success of an organization. The Company has maintained cordial and harmonious relations with employees. Your company s Humans Resources Policies are directed towards attaining, motivating, rewarding and retaining talent at all levels in the organizations. Human Resources Development Department is being strengthened to meet the ever-growing challenges in motivating and retaining the talents by streamlining the rules, policies and procedures. The Company has built a competent team to handle challenging assignments. The Company presently has 93 employees.


Certain statement in the management discussion and analysis may be forward looking within the meaning of applicable securities law and regulations and actual results may differ materially from those expressed or implied. Factors that would make differences to Company s operations include competition, price realisation, currency fluctuations, regulatory issues, changes in government policies and regulations, tax regimes, economic development within India and the countries in which the Company conducts business and other incidental factors.