Standard Surfactants Ltd Management Discussions

KEY MA RKET INSIGHTS

The global surfactants market size was USD 49.71 billion in 2025. The market is projected to grow from USD 52.19 billion in 2026 to USD 77.25 billion by 2034 at a CAGR of 4.90% during the forecast period. Asia Pacific dominated the surfactants market with a market share of 40.50% in 2025. Moreover, the surfactants market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 12.82 billion by 2032, driven by increasing demand from the personal care, household cleaning, and industrial sectors for efficient and eco-friendly products.

Surfactants are termed as chemical compounds with low surface tension, gas and liquid, liquid and solid, or two particles liquid. Surging usage in home as well as personal care, textile, and food & beverage industries are probable to have an affirmative effect on the market growth. Nonstop development within these sectors is anticipated to optimistically impact the market during the forecast period. It plays a vital role in cleaning applications. It is further added to cleaning agents, such as detergent, owing to particular properties permitting them as dispersing agents, wetting, washing, and emulsifying. They are also utilized as an ingredient in lubricants such as shaving creams for the effortless eradication of hair. Moreover, growing consciousness in terms of personal hygiene and living style is progressively developing the products demand, thereby, driving the surfactants market growth.

SURFACTANTS MARKET TRENDS

Increasing Demand for Green and Bio-based Surfactant Products to Favor Market Growth

The growing demand for sustainable technologies has led to the adoption of substitutes in petroleum- based synthetic products. Bio-surfactants have several potential applications across the products, such as emulsifying agents, biocides for sulfate-reducing bacteria, anticorrosive, and many other innovative applications. Due to versatility and efficiency, they are used in the industries such as home care, industrial cleaning, food & beverages, and others.

Bio-based agents are expected to become known as multifunctional materials derived from microorganism substrates miscible hydrophilic and oily/hydrocarbon type carbon sources in the culture medium. Biotechnology serves as a significant factor in developing bio-based products that can substitute petroleum-based products and are also environmentally-friendly. Rising concerns over the environment and resource preservation are further propelling product demand.

SURFACTANTS MARKET GROWTH FACTORS

Increasing Demand for Various Applications to Aid Market Growth

The escalating demand for surfactants across diverse sectors, including home care, personal care, textiles, food & beverages, industrial & institutional cleaning, and plastics, catalyzes market growth due to their versatile properties and applications. Surfactants serve as a key ingredient in home care products, such as detergents and cleaners, facilitating the removal of dirt and grease from various surfaces. Their ability to reduce surface tension enables effective wetting and emulsification, enhancing cleaning efficacy.

In personal care products, the product acts as foaming agents, emulsifiers, and solubilizers, contributing to the formulation of shampoos, body washes, and skincare products. Their ability to

stabilize formulations and enhance product performance drives their widespread use in the personal care industry. Textile manufacturing relies on the product for processes such as dying, finishing, and fabric softening.

In the food and beverages industry, the product finds applications as emulsifiers, dispersants, and foaming agents in food processing, beverage production, and packaging. They enable the creation of stable emulsions, uniform dispersions, and desirable foam characteristics in various food products.

Industrial and institutional cleaning operations utilize products for degreasing, sanitizing, and disinfecting surfaces in commercial settings. Their ability to lower surface tension enhances soil penetration and removal, ensuring thorough cleaning and hygiene. Furthermore, the product plays a crucial role in the plastics industry, serving as dispersants, lubricants, and anti-static agents during polymer processing and compounding. They improve the flow properties of the molten polymers, enhance filler dispersion, and mitigate surface defects in plastic products.

The increasing product demand across these diverse sectors reflects their indispensable role in facilitating numerous manufacturing processes, enhancing product performance, and meeting evolving consumer preferences, thereby driving market growth.

In personal care products, the product acts as foaming agents, emulsifiers, and solubilizers, contributing to the formulation of shampoos, body washes, and skincare products. Their ability to stabilize formulations and enhance product performance drives their widespread use in the personal care industry. Textile manufacturing relies on the product for processes such as dying, finishing, and fabric softening.

Industrial and institutional cleaning operations utilize products for degreasing, sanitizing, and disinfecting surfaces in commercial settings. Their ability to lower surface tension enhances soil penetration and removal, ensuring thorough cleaning and hygiene. Furthermore, the product plays a crucial role in the plastics industry, serving as dispersants, lubricants, and anti-static agents during polymer processing and compounding. They improve the flow properties of the molten polymers, enhance filler dispersion, and mitigate surface defects in plastic products.

Further, the increasing product demand across these diverse sectors reflects their indispensable role in facilitating numerous manufacturing processes, enhancing product performance, and meeting evolving consumer preferences, thereby driving market growth.

Effect of US-Iran War on Surfactants Market in India

The conflict involving Israel, the US, and Iran has placed the Indian chemical industry at t at the "eye of the storm". The sector faces a "double whammy" of skyrocketing input costs and severe logistical bottlenecks due to its deep integration with Middle Eastern supply chains.

The industry is heavily dependent on the Middle East for primary energy and chemical feedstocks, with 50-55% of Indias crude oil and LNG passing through the now-disrupted Strait of Hormuz.

Price surges: put costs for commodity chemicals—including naphtha, ethylene, and benzene—have surged as they are directly linked to Brent crude benchmarks, which recently jumped toward $80-$90 per barrel.

Logistics Challenges: Logistical disruptions are significantly inflating the final cost of chemical goods. Rerouting ships around the Cape of Good Hope adds 25-30 days to journeys, increasing working capital requirements and delaying critical API deliveries.

Impact on Manufacturing Clusters:

Gas Clashes: In industrial hubs like Gujarat, gas supplies have been slashed by up to 50% following production halts in Qatar, directly stalling production in several chemical units.

Margin Compression: While firms holding existing inventory may see short-term gains from rising spot prices, most players face margin compression as they cannot immediately pass on the 10-20% rise in production costs to global consumers.

Paraffin wax, Sulfur and Polymer:

Paraffin Wax:

The India Paraffin Wax Market size was valued at USD 741.85 million in FY2024 and is estimated to reach USD 1352.90 million by FY2032. The market is growing at a CAGR of 7.80% for the forecast ^period between FY 2025 and FY 2032, owing to increasing usage in the manufacturing of industrial coatings, hot melt adhesives, plastic & rubber processing aids, body care products, metal casting, medicines, and electrical insulations.

Additionally, the demand for aromatherapy is rising as people have become more conscious about the home environment which further fueled the market growth. Urbanization, increase in purchasing power and change in the lifestyles of consumers have driven the India paraffin wax market significantly. In December 2022, Dolly Singh, an Indian artist and actress launched her signature range of scented candles made from Paraffin Wax with Rad Living, an India based premium scented candles manufacturer.

Polymer:

The India polymer market is poised for significant growth driven by robust demand across various sectors, including automotive, construction, and consumer goods. The projected CAGR of 36.41% from 2025 to 2031 reflects a strong trajectory influenced by increasing urbanization and industrialization, which will elevate the need for polymer-based products. Supply chain dynamics will play a crucial role; as global supply chains stabilize post-pandemic disruptions, input costs are expected to fluctuate due to raw material availability and geopolitical factors affecting imports. Additionally, advancements in recycling technologies may enhance the sustainability of polymer production, potentially impacting cost structures favorably. The cyclical nature of demand in key industries will further contribute to

this growth trend, with annual growth rates remaining consistently above 35%, indicating a resilient market poised to capitalize on both domestic consumption and export opportunities.

The Polymer industry in India is growing rapidly, largely due to the expanding range of industrial uses and strong demand from major sectors. The countrys ongoing urbanization and industrial growth have created a strong need for innovative polymer materials. Contributing factors include the countrys improved manufacturing technologies and a more conscious consumer market, which is playing a vital role in driving this upward trend.

According to 6Wresearch, the India Polymers Market size is anticipated to grow at a CAGR of 6.5% during the forecast period 2025-2031. A major factor behind the growth of Indias polymer market is the strong expansion of industries like construction, automotive, and packaging. The need for materials that are both lightweight and long-lasting has led to greater reliance on polymers nationwide. As urbanization and industrialization continue to reshape the countrys landscape, theres a growing need for advanced polymer-based solutions to cater to increasingly diverse and specialized needs.

Indias fast-paced Urbanization and industrial development have heightened the need for advanced polymer solutions, playing a key role in India polymers market growth. Complementing this trend, government efforts to promote local production through initiatives like "Make in India" Are boosting industry prospects.

2. VISION:

Our Company aims to be recognized as the best organization, 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.

3. 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.

4. SEGMENT WISE OR PRODUCT WISE INFORMATION:

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.

5. 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.

6. 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.

7. 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.

8. FINANCIAL AND OPERATIONAL PERFORMANCE:

The Directors report has specifically dealt with subject matter in heading Operational Review.

9. HUMAN RESOURCES:

Human capital is pivotal for the growth and success of the Organization. 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.

10. Significant changes in Key Financial Ratios:

11. 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.