standard surfactants ltd share price Management discussions

REPORT FOR THE YEAR 2022-23

(i) Industry structure and developments:

Your company is primarily engaged in the business of manufacturing of Surface-Active Agents and Consignment Stockiest of Indian Oil Corporation Limited. In recent years, the surfactants market has witnessed significant growth. The global surfactants market, valued at USD 46.67 billion in 2022, is projected to reach USD 67.92 billion by 2030, exhibiting a CAGR of 4.80% during the period 2022-30. Several factors are driving the expansion of the market. The Indian chemical industry has numerous opportunities, considering the supply chain disruption in China and the trade conflict among the US, Europe and China. Anti-pollution measures in China will also create opportunities for the Indian chemical industry in specific segments.

(ii) Vision

Our Company aims to be recognized as the best Organisation, measured by customer satisfaction, employee pride and shareholders value.

Our aim is to be a dependable source of quality surfactants for home care, personal care, oral care, oil & gas, agro, and other industries. We strive to develop trustworthy relationships with our customers, employees, and stakeholders for sustainable growth in the global market. We also strive to be ahead in the market by providing competitive prices with consistent quality and timely deliveries.

(iii) Opportunities and Threats:

In India, with increasing demand, defending the Companys market position is a prime focus area. The Company is pursuing the execution of its capacity addition plans for key products. The Companys value- driven growth opportunity in the specialty segments will ensure scale and consolidation. The company has proposed to expand through diversification in the existing Business line and including new products and expand its market presence. On the other side, logistics, market coverage, sales monitoring, and channel management becomes challenging and will play crucial role for the sustained viability and continuing success of the Companys businesses.

(iv) Segment wise or product wise performance:

The Company operates in two primary business segments viz. Manufacturing of Surface Active Agents and Consignment Stockiest of Indian Oil Corporation Limited, for High Density Polyethylene, Linear Low Density Polyethylene, Poly Propylene, Paraffin wax and other petroleum products. Further, Segment wise or product wise performance are self explanatory under the Financial Statements which forms a part of the Annual Report and need no further comments.

(v) Outlook:

The global surface active market is expected to grow considerably owing to its vast applications in sectors such as home care, Agro industries and other connected fields. Surfactants reduce the surface tension of the liquid and remain stable in solutions containing relatively high concentration of electrolytes. Owing to these characteristics, the surface active agents are being used as hard surface cleaners, in textile scouring, and as metal cleansers. Further, in developing countries such as India demand for personal care products is increasing due to expanding middle-class consumer base and rising disposable income of general populace, which in turn is driving the market.

(v) Risk and concerns:

The risks that may affect the functioning of the Company include, but are not limited to :

• Economic conditions;

• Increasing cost of raw materials and logistics;

• Volatile forex fluctuations;

• Competitive market conditions;

Your Company has a defined risk management strategy with senior management identifying potential risk, evolving mitigation responses and monitoring the occurrence of risk. The risks are identified on a regular basis, across functions and business segments and the Company strives to link each risk with mitigation step to ensure business continuity.

(vi) Internal Control System:

The Companys Internal Financial Control framework is commensurate with the size and the nature of its operations. These have been designed to provide reasonable assurance about recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use, executing transactions with proper authorization and ensuring compliance of Corporate Policies.

(vii) Financial and Operational Performance:

The Directors Report has specifically dealt with subject matter the headings Operational Review.

(v) Human Resources:

Human capital is pivotal for the growth and success of the Organisation. Your Company strives to foster a safe, congenial, and inclusive work environment and promotes trust, transparency, and a sense of teamwork through comprehensive and well-documented HR policies. During the year, your Company maintained a harmonious relationship with its worker.

(vi) Significant changes in Key Financial Ratios:

There was change of more than 25% in the following ratios during the year under review:

• Debt service coverage ratio: Due to decrease in term loans

• Net profit margin: Due to decrease in profit

• Return on equity ratio: Due to decrease in profit

• Return on capital employed: Due to decrease in profit

• Return on investment: Due to decrease in profit

(vii) Cautionary Statement:

The statements made in this report describe the companys objectives and projections that may be forward looking statement within the meaning of applicable laws and regulations. The actual result might differ materially from those expressed or implied depending on the economic conditions, government policies, tax regime and other incidental factors, price conditions, domestic and international markets which are beyond the control of the company.

Finally, we would like to express our deepest gratitude to our shareholders, business partners, bankers, suppliers, customers, and, most importantly, our talented employees for their unstinted trust and support. With enhanced strengths and capabilities, we are quite confident of rising to the challenges and driving a stronger and prosperous future.

For Standard Surfactants Limited
(Pawan Kumar Garg)	(Ankur Garg)
Chairman & Managing Director	Whole Time Director
DIN:00250836	DIN: 00616599
Place: Kanpur
Date: 06.09.2023