Economic Overview
Global Economy
In 2024, the global economy stabilized but experienced a subdued growth rate of 3.2%. The year commenced with major central banks maintaining a tight monetary policy to curb inflation. However, as inflationary pressures eased and concerns over economic momentum grew, many central banks pivoted towards cutting interest rates. Notably, the inflation and the growth trajectories remained divergent across economies.
Advanced economies expanded at a growth rate of 1.7%, driven primarily by the United States registering a robust 2.8% expansion fuelled by strong consumer spending and Federal government outlays. In contrast, the Euro area grew a tepid 0.8% with Germany underperforming compared to other Eurozone countries. Emerging markets and developing economies sustained a stronger growth trajectory of 4.2%. Indias growth moderated from previous highs to 6.5% and China grew 4.8%.
On a positive note, global headline inflation continued its downward trajectory, declining from 6.8% in 2023 to an estimated 5.8% in 2024, with projections suggesting a further reduction to 4.2% in 2025. The IMF forecasts the global growth for 2025 at 3.3%, slightly higher than that for 2024. However, this is still under the long-term historical average of 3.7% (2000-2019).
Despite these developments, several downward risks persist. Geopolitical conflicts, policy shifts following the recent U.S. presidential transition, and consequent escalating tariff wars pose significant headwinds. Additionally, the ongoing energy crisis in Europe and continued distress in Chinese real estate sector pose further risks for the global economy.
Global Growth Projections (%)
Growth Projections
Indian Economy
India remains on a steady trajectory towards becoming the third largest economy in 2030. It remains the fastest growing large economy in the world for the 5th consecutive year, though the
growth is expected to moderate to 6.5% in FY 2024-25 on a large base of 8.2% in the previous year. This deceleration is attributed to slowdown in investment and weak manufacturing growth. However, services sector has remained stable, while growth in the agricultural sector has recovered. Private consumption has demonstrated resilience, primarily driven by improved rural incomes and a rebound in agricultural output.
Inflation remained well within RBIs comfort range throughout the year. As a result, RBI cut REPO rates for the first time in five years in February 2025, while maintaining a neutral stance.
Indias export performance strengthened during the year. The cumulative exports during April-December 2024 are estimated at USD 602.64 Billion, a 6.03% increase from USD 568.36 Billion in the same period of 2023. Supported by strategic policy measures, enhanced competitiveness, and expanded market access, Indias export ecosystem has become more resilient and deeply integrated into the global economy.
The RBI projects Indias economic growth to improve to 6.7% in FY 2025-26. Key drivers include reduced income tax rates announced in the budget, which are expected to boost both consumption and investment, alongside buoyant agricultural production supporting robust rural growth. Inflation is projected to remain stable at 4.2% for FY 2025-26, compared to 4.8% in FY 2024-25.
Industry Overview Global Chemical Industry
As per the Global Chemical Industry Outlook 2025, the global chemical industry is projected to grow 2.3% from USD 6,182 Billion in 2024 to USD 6,324 Billion by 2025. In 2023, the industry navigated significant challenges like increasing energy prices energy prices, rising feedstock costs, and geopolitical tensions such as the Russia-Ukraine conflict. However, 2024 marked a recovery led by lower energy prices and renewed demand from vital sectors like semiconductors and automotive production.
The Asia-Pacific region continues to lead the industry growth, expanding by 5.6%, with China driving the momentum. The Chinese chemical industry grew 6.8%, accounting for 86% of global chemical industry growth. India returned to positive growth at 1.8% after previous period of stagnation. Most countries in the region reported positive performance, with the exception of Japan, which saw a decline of 2.9%.
In the Middle East, the chemical industry grew by 2.5%, with Iran and Saudi Arabia outperforming the regional average. However, Israel experienced a production decline. Chemical production in the EU increased by 1.6% in 2024. Early growth in the first half of the year was supported by Red Sea trade disruptions and nonEuropean production constraints, before declining due to weak European demand. Germany recorded a stronger recovery, growing by 3.1%, after a significant contraction of 12.1% in 2023, while the United Kingdom continued to decline at 1.7%.
The United States chemical industry remained stagnant for the second consecutive year amid weak industrial demand.
Speciality Chemicals
Speciality chemicals represent a vital segment of the chemical industry that focuses on producing a wide range of chemicals and chemical products tailored for specific industrial applications. These chemicals play a critical role in a variety of industries like pharmaceuticals, agrochemicals, automotive, electronics, construction, textiles and more. They provide unique properties and enhance the performance and quality of end products. The global specialty chemicals market was valued at USD 285.4 Billion in 2023 and is projected to reach USD 364.8 Billion by 2028, growing at 5.0% CAGR from 2023 to 2028.
Key industry trends
As we move into 2025, several transformative trends will drive industry growth, with a strong emphasis on digital innovation, sustainability, and operational resilience.
Shift Towards Specialty Chemicals: Demand for specialty chemicals tailored for specific applications will continue to rise, offering higher profit margins and competitive advantages. Companies will need to balance cost efficiency with high-quality, customer-centric solutions to meet market expectations.
Digital Transformation & Efficiency Gains: Artificial intelligence (AI) and predictive analytics will enhance operational efficiency, minimize waste, and accelerate innovation in sustainable product development. The integration of automation and digitalization across production processes will reduce downtime, optimize resource utilization, and improve overall productivity.
Sustainability & Green Chemistry Innovations: Leading industry players will increasingly adopt green solutions to minimize environmental impact and enhance process efficiency. Sustainable product development will be a key focus, driven by regulatory demands and evolving consumer preferences.
Resilient Supply Chains & Market Adaptability: The evolving political and economic landscape will impact global supply chains,
requiring companies to build greater flexibility in sourcing and distribution strategies.
Indian Chemical Industry
India is the sixth largest producer of chemicals globally and the third largest in Asia, contributing 7% to the nations GDP. The chemical industry is also critical from an international trade perspective. Exports of Organic and Inorganic Chemicals reached USD 14.09 Billion in April-September 2024. The Indian chemical industry is currently valued at USD 220 Billion and is expected to reach USD 300 Billion by 2030 and USD 1 Trillion by 2040, driven by demand and strategic policy initiatives and investments.
India specialty chemicals
The Indian specialty chemicals industry has experienced significant growth over the past five years, reaching market size of nearly USD 40 Billion by 2023. The expansion has been driven by rising export demand, domestic consumption, and government initiatives like Make in India. With the focus on innovation, sustainability, and value addition, the industry has expanded at a compounded annual growth rate (CAGR) exceeding 11%, with projections pointing towards continued momentum.
Growth drivers India Demographics
India, with a population of 1.5 Billion and a median age of 28.6 years, is the worlds most populous nation. Rising disposable incomes, increasing urbanization, and the aspirations of its youth population are driving demand across key sectors such as housing, automotive, textiles, and paints, etc. The real estate sector is projected to grow at a compound annual growth rate (CAGR) of 9.2% from 2023 to 2028. Similarly, the Indian automotive market, encompassing passenger and commercial vehicles, is expected to expand from 5.1 Million units in 2023 to 7.5 Million units by 2030, with the passenger vehicle segment reaching 6.0 Million units. This growing demand across end-use industries, including automotive, pharmaceuticals, agrochemicals, and construction, is a key driver of growth for the chemical industry. Chemicals play a critical role in enhancing the performance and functionality of products in these sectors, further fueling their adoption.
Lower per capital chemical consumption
Indias per capita consumption of chemical and petrochemicals products remains significantly lower than that of developed countries, indicating substantial growth potential. The chemical industry, currently valued at USD 220 Billion, aims to reach USD 300 Billion by 2030, doubling its global market share to 6%. By 2040, the sector targets a market size of USD 1 Trillion, supported by a CAGR of 9.3%. This growth is closely aligned with the nations economic expansion, leveraging cross-industry linkages, a skilled workforce, and a strong focus on research and development (R&D) and innovation.
Policy reforms
Indias policy reforms and incentive schemes are enhancing its attractiveness as a global manufacturing hub for chemicals. Key initiatives over the years include the Production Linked Incentive (PLI) scheme for the petrochemical industry, the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme,
Make in India, Aatmanirbhar Bharat, and specialized programs such as Petroleum, Chemicals, and Petrochemical Investment Regions (PCPIRs) and Plastic Parks. This year the budget announced various measures like setting up of a urea plant, National Manufacturing Mission, National Action Plan for Toys among others. These efforts are complemented by significant investments in infrastructure, including road, rail, and port connectivity, as well as the availability of green energy.
Research and innovation
Continuous investment in R&D is driving the development of advanced, high-value chemical products. Indian companies are focusing on innovation to create tailored solutions that meet the specific needs of domestic and international customers. This is enhancing the industrys competitiveness and supporting its growth trajectory.
Export opportunities
The growing global demand for specialty chemicals presents significant export opportunities for Indian manufacturers. Indias competitive advantages, including cost-effectiveness, a skilled workforce, and adherence to regulatory standards, are driving the export of specialty chemicals to various international markets, further strengthening the industrys global presence.
Focus on sustainable solutions
Increasing awareness of environmental sustainability and stringent regulatory requirements are driving demand for eco-friendly and sustainable specialty chemicals. Indian companies are investing in green chemistry and sustainable manufacturing practices to align with evolving customer needs and regulatory standards, positioning the industry as a leader in sustainable solutions.
Government measures through Budget 2025-26
The Indian chemical industry has demonstrated resilience amid challenges such as global economic volatility, geopolitical tensions, and intense competition from low-cost Chinese exports. Recognizing the sectors strategic importance, the Union Budget 2025 introduces several measures to strengthen the manufacturing and energy sectors, with direct and indirect benefits for the chemical industry. These initiatives aim to boost domestic consumption-led growth, enhance manufacturing capabilities, promote exports, and foster innovation, driving demand for a wide range of chemical products, from basic commodities to specialty chemicals.
Boost to Manufacturing sector
• Expansion of Urea Production: Establishment of an additional urea plant in Namrup, Assam, with an annual capacity of 12.7 lakh metric tons will enhance domestic fertilizer production and support the chemical industrys supply chain
• National Manufacturing Mission: Launch of the National Manufacturing Mission to advance the Make in India initiative, with a focus on clean tech manufacturing. This mission will develop ecosystems for solar PV cells, EV batteries, motors and controllers, electrolyzers, wind turbines, very high voltage transmission equipment, and grid-scale batteries
• National Action Plan for Toys: Implementation of a scheme under the National Action Plan for Toys to promote the Make in India brand, benefiting specialty chemicals
• Infrastructure Development: Announcement of a three-year pipeline of infrastructure projects under the Public-Private Partnership (PPP) mode, expected to positively impact the demand for construction chemicals
Impetus to MSMEs (Indirect Impact on the Chemical Sector)
The budget introduces several measures to support Micro, Small, and Medium Enterprises (MSMEs), which indirectly benefit the chemical sector by enhancing manufacturing and consumption:
• Enhanced MSME Classification Limits: Investment and turnover thresholds for MSME classification increased by 2.5 and 2 times, respectively, enabling more enterprises to access benefits
• Export Promotion Mission: Establishment of an Export Promotion Mission to facilitate easy access to export credit, cross-border factoring support, and address non-tariff barriers in overseas markets, boosting chemical exports
• Credit Guarantee Scheme: Enhancement of the Credit Guarantee Scheme for MSMEs in the manufacturing sector, improving access to financing
• Customized Financial Support: Introduction of customized credit cards with a 5 Lakhs limit for micro-enterprises, supporting small-scale chemical manufacturers
Category Review
Phase Transfer Catalysts (PTC) market
A Phase Transfer Catalysts (PTC) serves to promote the movement of reactants between two phases that do not naturally mix. These catalysts are extensively used in organic chemistry to speed up reactions and boost product yields, especially in processes that would be inefficient or difficult without catalytic help. PTCs also remove the requirement for expensive or toxic solvents that can dissolve all substances into one phase, and help cut down on the use of additional costly raw materials, ultimately minimizing waste generation.
As per Mordor intelligence the Phase Transfer Catalyst Market size is estimated at USD 1.07 Billion in 2024, and is expected to reach USD 1.41 Billion by 2029, growing at a CAGR of 5.79% during the forecast period (2024-2029).
Key industries highlight driving the demand for PTC:
Pharmaceuticals and APIs
• Increasing global demand for generic drugs
• Strong position as the largest provider of generic drugs
• Economic growth and government initiatives are boosting the sector
• Enhanced R&D, mergers and acquisitions driving innovation and expansion
Agrochemicals, Pesticides, and Fertilizers
• A high proportion of agricultural land and diverse agroclimatic conditions
• Rising investments in crop production
• Increasing global demand for organic products and agricultural commodities
• Technological advancements and improved rural incomes due to government schemes
• The necessity to improve agricultural yields to meet food sufficiency targets
Personal Care and Disinfectants
• Rising disposable incomes and demand for enhanced beauty products
• Surge in demand for sanitization and disinfectants postpandemic
• WHO guidelines on disinfecting food materials boosting demand
• Improved health and hygiene awareness among consumers Benefits
• Offers faster reactions
• Higher conversion or yields
• Enables lesser energy consumption, at times eliminates the need for expensive or dangerous solvents
• Minimizes waste and saves time
Downstream application
• Pharmaceuticals APIs
• Agrochemicals
• Flavors and fragrances
• Environmental control processes
Demand drivers
• Rising demand for technologically advanced environment- friendly catalyst
• Push for greener chemistry in organic synthesis
• PTCs have evolved as a very useful catalyst that has varied advantages and these are non-regenerative type of catalyst which generates recurring demands
Tatva Chintans Market Position and Key Strengths
Tatva Chintan is a leading global producer of Phase Transfer Catalysts (PTCs) in India and a key player worldwide. The PTCs produced by Tatva Chintan are used as essential catalysts in the manufacturing of pharmaceutical APIs, personal care products, disinfectants, agrochemicals, and more. These catalysts play a critical role in enhancing reaction rates and yields in various organic reactions, leading to reduced production costs, lower energy consumption, and minimized waste generation.
Tatva Chintans key products, such as Tetra Butyl Ammonium Bromide, widely used in chemical research and various organic transformations. These PTCs are environment friendly, operationally efficient, and non-corrosive, making them highly valuable in the pharmaceutical and agrochemical industries. Tatva l Chintans focus on high-demand, sustainable products position the company to capture a larger market share and support market expansion, driven by stringent government regulations promoting the use of environmentally safe chemicals.
I Performance and Outlook
The PTC segment continues to demonstrate steady growth and stability. In 2024-25, PTCs contributed to 32.79% of the Companys revenues, maintaining its market leadership. The PTC segment t showcased a growth of approximately 17.60%, reaching a revenue of 1,254.98 Million.
Tatva Chintan anticipates a ramp-up in volumes in FY 2025-26. This expansion into high-volume applications is expected to bolster revenue significantly in FY 2025-26. With pricing stabilizing and demand outlook improving, the company foresees sustained growth and enhanced market penetration in this segment.
Structure Directing Agents (SDA) market
SDAs are specially designed organic templates used in chemical synthesis and formation of zeolites and porous materials. This helps achieve the required crystalline form, which makes zeolites highly useful across a range of sectors such as petrochemicals, : detergents, and catalytic processes. In the automotive industry,zeolites play a key role in emission reduction technologies. When infused with transition metals like copper or iron, they enable selective catalytic reduction (SCR), making them a go-to solution for controlling emissions. Growing investments in research and development are fuelling the discovery of new and advanced uses for zeolites, thereby propelling the expansion of the Structure Directing Agents (SDA) market.
The global industry size of SDA market stood at USD 600 Million in 2023. Driven by incremental demand in automotive sector and rise in sustainability awareness, the SDA market is projected to reach USD 1.6 Billion by 2036, growing at a CAGR of 8% between 2024 and 2036.
Key industries highlight driving the demand for SDA:
I Benefits
t
• Serves as an essential component in emission control systems for NOx reduction• Facilitates cracking crude to acquire various desired outputs
. • Important part of the continuous flow chemistry process
Downstream application
• Automotive (Catalytic Converter - Emission Control)
• Petrochemicals (Cracking Crude)
• Catalyst (Continuous Flow Chemistry)
• Catalyst (Conventional Chemistry)
Demand drivers
• With the increasing global awareness of sustainability and emission control, the Companys extensive expertise in the SDA for zeolites market has been instrumental in continually strengthening its market position
• The versatile applications and non-regenerative nature of SDAs help create recurring demand for these agents
• Stricter emission norms and the growing shift towards a green environment have been driving demand
• Being a niche sector, the Company faces limited global competition
Tatva Chintans market position and key strengths
Tatva Chintan Pharma Chem Limited is the largest and only commercial manufacturer of SDAs for zeolites in India and ranks as the second-largest producer globally. SDAs are essential for producing high-precision zeolites, which are critical for downstream applications in automotive emission control, auto chemicals, continuous flow chemistries, and other specialized industries. The companys advanced chemistries and technical expertise create high entry barriers for new competitors, reinforcing its leadership in this niche segment.
Tatva Chintan leverages its robust distribution networks and strategic collaborations to expand its global presence, effectively addressing challenges such as raw material price volatility. Its comprehensive value chain management and deep expertise in niche chemistries ensure consistent product quality, customer satisfaction, and repeat business. The growing demand for green technologies and innovative applications further drives growth, solidifying Tatva Chintans position as a market leader in the specialty chemicals industry.
Performance and Outlook
In the fiscal year 2024-25, the SDA segment contributed 31.28% to the Companys revenue. During the year under review, the Company experienced a year-on-year de-growth of approximately 27.66% in its revenue, resulting in SDA revenues of 1,197.21 Million. The SDA segment faced challenging times primarily due to weak market conditions in Chinas heavy-duty commercial vehicle sector.
However, early signs of recovery are emerging, with key customers signaling an uptick in demand for internal combustion and hybrid engine applications. Customers who signed up in the previous year have started regular uptake, while some additional large clients are poised to initiate commercial supplies in FY 2025-26. The anticipated implementation of EURO 7 norms within the next few quarters is expected to further drive demand. While cyclicality remains a factor, the company is diversifying SDA applications - such as of fuel and plastic recycling - to mitigate volatility. For FY 2025-26, Tatva Chintan expects a gradual recovery in volumes, supported by stabilized raw material prices and strategic inventory readiness.
Pharmaceuticals and Agrochemicals Pharmaceuticals and Agrochemicals Intermediates and other Specialty Chemicals (PASC)
PASC encompasses a range of pharmaceutical and agrochemical intermediates, disinfectants, catalysts, and solvents, all classified under the broader umbrella of speciality chemicals.
Key industries highlight driving the demand for PASC: Agrochemicals
• Investment in developing nanochemicals to meet industry- specific requirements
• Controlled synthesis of crystalline forms in Agro actives
• Encapsulation and controlled release in agro chemicals
• Reduction of usage of toxic solvents and thereby driving towards greener chemistry
Personal Care Ingredients
• Shift towards environment-friendly and green products
• Natural active ingredients market share is expected to double to 50-55% by 2030
• Collaboration with manufacturers for product development, research, and market tracking
• Growth in surfactants and cleaning products like soaps Paints & Coatings:
An increase in the usage of nanotechnology, novel ingredients, speciality solvents, high-performance additives, and polymers is driving the growth of the paint and coating industry
Pharmaceuticals:
• The emergence of speciality segments like biologics to enhance efficacy at lower dosages
• Fierce competition driving exploration of biosimilars and other speciality segments
Benefits
• Increased agricultural commodity output
• Eliminates waste and protects crops
Downstream industry application
• Pharmaceutical APIs
• Agro actives
• Painting and coating products
• Detergents and personal care products
Demand drivers
• India, with the worlds largest population, has a significant demand for food and pharmaceutical products
• The "China plus one" strategy is being implemented by several large MNCs, opening up greater opportunities for India
• The increasing per capita income and improving standards of living have been fuelling the demand for pharmaceutical and food products
• Indias relatively low production costs, combined with its ability to deliver consistent quality products and ensure timely delivery, have been driving demand in the country
• The expansive cultivated area in India provides growing opportunities
Tatva Chintans market position and key strengths
Tatva Chintan is a leading player in the speciality chemicals segment. The companys technical expertise and innovative processes create strong entry barriers for competitors. In India, Tatva Chintan is the top producer of Glymes and ranks as the third-largest globally.
Tatva Chintan has collaborated with Ecovadis and Together for Sustainability, demonstrating its commitment to sustainability. Its production of glymes and other speciality intermediates, along with ISO-certified sites and expanded reach, positions it to benefit from government incentives in the agrochemicals and pharmaceutical industries. This strategic focus solidifies its market leadership and growth potential.
Performance and outlook
The PASC category contributed 33.62% to the Companys total revenues during the year, amounting to 1,286.61 Million in 2024-25, reflecting a year-on-year growth of 13.61%.
The Company is dedicated to developing pharmaceutical and agrochemical intermediates through green chemistry practices. Tatva Chintan is actively engaged in creating various products using continuous flow chemistry, electrochemistry, and PTC (Phase-Transfer Catalysis) technology. With the "China plus one" policy driving diversification and our ability to provide sustainable solutions, Tatva Chintan has witnessed a surge in new opportunities to collaborate on potential products for numerous customers.
Tatva Chintan anticipates significant advancements with the commercialization of new agro-intermediates, some of which are already in production with regular shipments for the largest products expected to commence by Q3 FY 2025-26. The approval process for plant-scale agro-intermediates is nearing completion, with a new production facility at Dahej expected to be operational by Q4 FY 2025-26 to meet forecasted demand. Additionally, additional pharma intermediates have received formal approval, with gradual commercialization slated for late 2025 or early 2026. Innovations such as backward-integrated agro intermediates and high-potential domestic products, alongside the operationalization of a new distillation plant in January 2025, will enhance capacity and efficiency. We project PASC to significantly contribute to revenue in FY 2025-26, with commensurate EBITDA margins as volumes scale.
Electrolytes Salts and Solutions (ESS) market
Electrolyte salt solutions play a critical role in the performance and efficiency of supercapacitors and various energy storage devices. These solutions serve as the ion-conducting medium that enables the transport of charge between electrodes during charge and discharge cycles. The choice and design of electrolytes directly influence key performance parameters such as energy density, power density, cycle life, and operating voltage window.
In supercapacitors, which store energy via electrostatic charge accumulation rather than chemical reactions (as in batteries), the electrolyte determines the ionic conductivity and electrochemical stability of the system.
Advancements in salt chemistry and the development of novel electrolyte formulations are key areas of innovation in the quest for next-generation energy storage systems that are not only high- performing but also safe, sustainable, and cost-effective. Tailoring the properties of electrolyte salts - such as ion size, mobility, and interaction with electrode materials - can significantly enhance device performance across a wide range of applications including electric vehicles, grid storage, and portable electronics.
Key industries highlight driving the demand for Electrolyte salts and solutions:
Automotive
• Many automobile manufacturers are exploring supercapacitors as alternative energy storage options for EVs
• National Electric Mobility Mission Plan (NEMMP) 2020 projects over 40% growth for EVs, with super-capacitors having strong potential in this sector
• India is the fourth-largest automotive manufacturer, with the EV market expected to reach 10 Million units by 2030, up from 1.3 Million units in 2022
Transport and Infrastructure
• Indian Railways is one of the worlds largest rail networks, with rapid metro expansion in urban areas
• Major focus on safety, efficiency, energy conservation, power quality, and freight wagon tracking
Renewable Energy
• I ndia is 4th globally in renewable energy installed capacity, wind power capacity, and solar power capacity
• The country aims for 500 GW of non-fossil fuel-based energy by 2030 (COP26 target)
Consumer Electronics
• Potential for super-capacitors in fast-charging power banks and high-power-density applications
• Optimistic prediction of 20% penetration in the next 2-3 years, translating to over 37 Million units of super-capacitors
Grid Balancing
• Essential for smart cities, enabling real-time response to market dynamics
• High demand expected with the Indian governments smart cities initiative
Benefits
• Because of their fast-charging ability, superior performance at low temperatures, long service and cycle life, and reliability, supercapacitors have the potential to replace or complement traditional batteries in various applications
• The use of supercapacitors greatly enhances battery runtime and operational life
Downstream application
• Automotive
• Transport and infrastructure
• Renewable energy
• Consumer electronics
• Grid balancing
• Electric vehicles
Demand drivers
• Electrolyte salts are utilized in conjunction with lithium batteries in EV applications
• Solar energy storage systems are employed to absorb high voltage currents during peak energy generation periods
• Electric vehicles utilize super capacitors to meet the sudden burst of energy required during start-up and acceleration
• Super capacitors find applications in various electronic devices where the discharge or storage of high bursts of energy is required
Tatva Chintans market position and key strengths
Tatva Chintan is a leading player in the battery electrolyte segment, leveraging its expertise in organic battery electrolytes to achieve impressive growth. The Company produces electrolyte salts and solution used in super capacitor batteries, which are employed in automobiles, electric vehicles (EVs), electronics, and hybrid energy storage devices. Tatva Chintans technical know-how and expertise in producing electrolyte salts for super capacitor batteries have established it as the largest producer in India. This technical proficiency, developed through innovative processes and complex chemistries, creates a significant entry barrier for new competitors.
In response to growing environmental concerns, the companys focus on sustainable supply chain solutions and superior sustainability performance, as audited by Ecovadis. Additionally, Tatva Chintans partnership with TFS underscores its commitment
to maintaining sustainable supply chains, further solidifying its market position and reputation for sustainability.
Performance and Outlook
The India Super-Capacitor Market is set for robust growth, driven by advancements in automotive technology, expanding infrastructure projects, and a strong push for renewable energy. Key drivers include the rise of electric vehicles, modernization of Indian Railways, and ambitious renewable energy targets. While consumer electronics integration faces challenges, opportunities in power banks and smart grid applications are promising. With a focus on innovation and sustainability, the market is poised for significant expansion across industrial and consumer sectors. Due to their properties like fast charging ability, superior low temperature performance, long service and cycle life and reliability. Super-Capacitors hold the potential to replace or complement traditional batteries in several applications.
The Electrolyte Salts segment exhibited a growth in FY 2024-25, with a 19.60% year-on-year revenue surge, driven by increasing demand for energy storage solutions. This momentum is expected to strengthen in FY 2025-26 as customer production lines stabilize, enabling consistent dispatches in FY 2025-26.
Company Overview
Incorporated in 1996, Tatva Chintan Pharma Chem Limited (referred to as the Company or Tatva Chintan) has established itself as a leading player in the integrated speciality chemicals manufacturing sector, offering a diversified and extensive product suite. The Companys diversified product portfolio includes structure directing agents (SDAs), phase transfer catalysts (PTCs), electrolyte salts for super capacitor batteries, pharmaceutical and agrochemical intermediates, and other specialty chemicals (PASC). These products have downstream applications across various sectors, including automotive, refinery, pharmaceutical, agrochemicals, paints and coatings, dyes and pigments, personal care, and flavors and fragrances.
Tatva Chintan has established a strong global presence in over 30 countries, including the United States, China, Germany, Japan, South Africa, and the UK. This success is driven by its customercentric approach, superior product quality, cost leadership, and timely delivery. Additionally, the Company operates two wholly- owned subsidiaries in the US and the Netherlands to better serve its international clients.
Manufacturing Facilities
Tatva Chintan boasts of two state-of-the-art manufacturing facilities located in Dahej and Ankleshwar, Gujarat, with a combined installed capacity of 552 KL across 39 assembly lines. Both the plants are in close proximity of the Hazira port. As a leading manufacturer of integrated speciality chemicals, the Company leverages superior R&D capabilities and operational efficiencies to drive growth. Tatva Chintan has consistently expanded its production capacities while simultaneously improving capacity utilization.
Facilities are designed to allow a level of flexibility enabling to manufacture a diverse range of products and provide with the ability to modify and customize product portfolio to address the changing requirements of customers.
| Manufacturing Capacity | |||||||
| Manufacturing | Capacity | 2024-25 | 2023-24 | 2022-23 | |||
| Reactors | Assembly Lines | Reactors | Assembly Lines | Reactors | Assembly Lines | ||
| Ankleshwar | Installed | 91 KL | 3 | 90 KL | 3 | 90 KL | 3 |
| Utilized | 76.96% | 62.94% | 71.05% | 66.9% | 76.58% | 65.10% | |
| Dahej | Installed | 461 KL | 36 | 410 KL | 36 | 204 KL | 24 |
| Utilized | 61.58% | 27.84% | 69.48% | 34% | 78.06% | 24.80% | |
| Total | Installed | 552 KL | 39 | 500 KL | 39 | 294 KL | 27 |
| Utilized | 64.11% | 30.54% | 69.76% | 36.53% | 77.61% | 29.28% |
Strengths
• Leading manufacturer of SDA and PTC
• Preferred supplier for PASC
• Consistent quality
• De-risk Business Model
• Significant global presence with a vast customer base
• Diverse and comprehensive product portfolio
• Integrated and fungible manufacturing facility
• Proven track record of promoters
• Inhouse R&D capabilities
Financial Review (Consolidated)
Revenue
In the fiscal year 2024-25, total revenue amounted to 3,850.29 Million, compared to 4,010.13 Million in the previous financial year, reflecting a decline of 3.99%.
Revenue from operations
In 2024-25, Tatva Chintans revenue from operations amounted to 3,827.14 Million, reflecting a 2.74% year-on-year decline from 3,935.04 Million in 2023-24. Export revenues were 2,354.74 Million in 2024-25, down from 2,768.62 Million in the previous year. Conversely, domestic sales increased from 1,136.33 Million in 2023-24 to 1,444.27 Million in 2024-25. Exports accounted for approximately 61.53% of revenue in 2024-25 and about 70.36% in 2023-24.
Sales of SDAs were 1,197.21 Million in 2024-25, compared to 1,655 Million in 2023-24, while sales of PASCs were 1,286.61 Million in 2024-25, compared to 1,132 Million in 2023-24. The SDA segment contributed 31.28% of revenue in 2024-25 and 42.06% in 2023-24, whereas the PASC segment contributed 33.62% in 2024-25 and 28.78% in 2023-24.
PTC sales reached 1,254.98 Million in 2024-25, while in 2023-24 the sale amounted to 1,067 Million, contributing 32.79% and 27.12% to sales, respectively. Sales of electrolyte salts and solution for supercapacitor batteries were 60.21 Million in 2024-25 and showcased a decline from 50 Million in 2023-24, accounting for 1.57% and 1.28% of total revenue from operations, respectively.
Other income
In the fiscal year 2024-25, the Company generated 23.15 Million in other income, representing a de-growth of 69.17% compared to 75.09 Million in the previous financial year.
Expenses
The Companys total expenses were 3,774.50 Million in 2024-25, compared to 3,574.45 Million in 2023-24, marking a increase of 5.60%. This increase was primarily due to increases in the cost of materials consumed and depreciation and partly offset by employee benefit expense and finance cost.
Cost of materials consumed
The Companys cost of materials consumed was 1,734.64 Million in 2024-25, compared to 1,787.61 Million in 2023-24.
Purchases of stock-in-trade
Purchases of stock-in-trade declined during the year and stood at 29.80 Million in 2024-25 compared to 36.03 Million in 2023-24.
Changes in inventories of work-in-progress and finished goods
Changes in inventories of work-in-progress and finished goods stood at 221.97 Million in 2024-25 compared to (81.82) Million in 2023-24.
Employee benefits expense
The Companys employee benefits expense decreased to 529.16 Million in 2024-25, down from 547.61 Million in 2023-24. This reduction was possible to various cost optimization initiatives taken during the year.
Finance costs
Tatva Chintans finance costs stood at 12.90 Million in 2024-25 compared to 65.32 Million in 2023-24, due to less utilization of financial facility.
Depreciation and amortization expense
The Companys depreciation and amortization expense increased to 276.59 Million in 2024-25 compared to 256.05 Million in 2023-24. The net addition in fixed assets during the year is 761.33 Million.
Other expenses
The other expenses of the Company stood at 966.44 Million in 2024-25 compared to 963.65 Million in 2023-24.
Profit before tax
Tatva Chintan has reported 75.79 Million of profit before tax while in the previous financial year, the profit before tax stood at 435.68 Million.
Tax expenses
During 2024-25, the Companys total tax expenses amounted to 18.66 Million, as against 132.14 Million in 2023-24.
Profit after tax
The Companys profit after tax stood at 57.13 Million in 2024-25 compared to 303.54 Million in 2023-24.
Total comprehensive income
During the year of reporting, Tatva Chintan recorded a total comprehensive income of 64.20 Million in 2024-25, while in 2023-24, the total comprehensive income was 303.75 Million.
Key Significant Ratios
| Key Ratios | 2024-25 | 2023-24 | Explanations |
| Debtors Turnover Ratio | 4.60 | 5.59 | Debtors turnover ratio has declined as compared to previous year, primarily due to higher sale in Q4 FY25, resulting in higher Debtors at year end. |
| Inventory Turnover Ratio | 1.54 | 1.30 | Inventory turnover ratio has improved due to lower sale and high RMC in current year, however the average inventory was almost at the previous year level. |
| Interest Coverage Ratio | 26.52 | 10.44 | Interest Coverage ratio has improved due to decrease in finance cost, but partly offset by decrease in EBITDA. |
| Current Ratio | 2.76 | 3.74 | Current ratio has decreased primarily due to increase in current liabilities (Bank Borrowings) and decrease in current assets, mainly inventory, cash and cash equivalent partly offset by increase in trade receivables. |
| Debt Equity Ratio | 0.05 | 0.02 | Debt equity ratio has decreased primarily due to increase in working capital facilities (Bank Borrowings). |
| Operating Margin Ratio (%) | 1.73% | 10.91% | Operating Margin Ratio has decreased due to decrease in profitability pursuant to prevailing geopolitical conditions, slowdowns and high inflationary situation across economies. |
| Net Profit/(Loss) Margin (%) | 1.50% | 7.77% | Net Profit Margin has decreased due to decrease in profitability pursuant to prevailing geo-political conditions, slow-downs and high inflationary situation across economies. |
| Return on Net Worth (%) | 0.77% | 4.12% | Return on net worth has decreased due to decrease in profitability pursuant to prevailing geopolitical conditions, slow-downs and high inflationary situation across economies. |
Research and Development
Research and development play an instrumental role in the chemical sector, and helps the Company reinforce its position as one of the leading players in integrated specialty chemical manufacturers not only in India but also across the world. The Company has a dedicated R&D center located at Vadodara, recognized by the Department of Scientific and Industrial Research (DSIR), Government of India, is equipped with modern and latest technology and equipment and spearheaded by a very capable R&D team. Over the years, we have been constantly strengthening our R&D finesse by making proactive investments and constantly strengthening our R&D teams abilities. Strong R&D has helpedus strengthen our process and cost efficiencies on one hand, and develop improved products on the other.
Our Competitive Strengths
Tatva Chintan Pharma Chem Limited leverages its leadership in niche specialty chemicals, diversified product portfolio, and global presence to maintain a competitive edge. Its strategic focus on innovation, sustainability, and operational excellence, combined with high industry entry barriers, positions it for sustained growth and profitability.
Diversified and Specialized Product Portfolio: The company offers a diverse portfolio, including SDAs, Phase Transfer Catalysts (PTCs), electrolyte salts for supercapacitor batteries, and other specialty
chemicals, serving industries such as automotive, petroleum, pharmaceuticals, agrochemicals, and electronics. This wide product range across varied sectors reduces dependence on a single industry, providing revenue stability.
Market Leadership in Niche Segments: Tatva Chintan is the largest and only commercial manufacturer of Structure Directing Agents (SDAs) for zeolites in India and the second-largest globally, reinforcing its dominance in this specialized segment. Operating in the specialty chemicals space with limited competitors, the company benefits from high entry barriers due to complex chemistries and stringent product approval processes.
Global Presence and Export Capabilities: Tatva Chintan exports to over 30 countries, supported by subsidiaries in the USA and Europe. Its ability to expand into diverse geographies, backed by technical expertise and high-quality offerings, strengthens its global presence and diversifies revenue streams.
Advanced Manufacturing and Sustainability Focus: The company operates state-of-the-art manufacturing facilities with advanced technologies, enabling high-quality production and operational efficiency. A focus on green chemistry ensures environmentally sustainable production, aligning with global regulatory standards. Ongoing capital expenditure initiatives will lead to boost in production capacities, supporting higher revenues and future growth.
Strong R&D and Innovation Capabilities: Tatva Chintans DSIR- approved R&D center in Vadodara, equipped with cutting-edge technology and staffed by a skilled team, drives continuous innovation and product development. Continuous R&D investment has resulted in a robust pipeline of high-value products, positioning Tatva Chintan to capitalize on emerging opportunities.
Experienced Management and Strategic Growth: Led by promoters and a senior management team with extensive industry experience, Tatva Chintan has built strong business relationships to drives strategic growth. The company has demonstrated consistent financial performance, with significant revenue and profits supported by investments in infrastructure and technology, ensuring a strong foundation for future growth.
Robust Financial Performance
Strong Financials: Tatva Chintan demonstrates consistent financial performance, with significant revenue from operations and net worth, supported by continuous investment in infrastructure and technology.
Tatva Chintans leadership in niche markets, diversified portfolio, global reach, and focus on innovation and sustainability enable it to navigate market challenges and seize growth opportunities. High entry barriers, continuous capacity expansion, and a robust financial foundation ensure its ability to sustain competitive advantages and deliver long-term value to stakeholders.
Quality Control and Services
Tatva Chintan is dedicated to maintaining the highest standards of quality control, supported by an advanced QC laboratory equipped with state-of-the-art technology to meet the rigorous industry
benchmarks. Understanding that any compromise on quality could impact its reputation for excellence, the Company has established a robust quality team. This team comprises 92 members, with 25 dedicated to quality assurance and 67 focused on quality control. This skilled team diligently oversees through pre-manufacturing inspections and implements stringent quality protocols at every stage of the production process - from the initial assessment of raw materials to the final verification of packaging. Tatva Chintans steadfast commitment to quality excellence is reinforced by its ISO 9001:2015 certification, underscoring its position as a leading practitioner of quality management practices.
Information and Technology
In recent years, IT has become vital for the Companys operations. Recognizing the importance of robust IT infrastructure, Tatva Chintan has integrated a comprehensive suite of IT solutions and enterprise resource planning (ERP) software across its operations. Technology is seamlessly embedded into all stages of the manufacturing process, including customer order management, dispatches, production planning, reporting, financial accounting, and raw material purchasing. Dedicated to leveraging IT to drive operational efficiency, elevate customer service, and enable data-driven decision-making, Tatva Chintan continues to invest strategically in technology to strengthen its capabilities.
Health, Safety and Environment
As a specialty chemical manufacturer, Tatva Chintan focuses on environmental responsibility through targeted initiatives that reduce emissions, optimize energy usage, minimize waste, and enhance operational sustainability. The Ankleshwar facility operates with zero liquid discharge (ZLD) capability, reinforced by ISO 14001:2015 certification. Participation in EcoVadis and the Together for Sustainability (TfS) initiative demonstrates the Companys commitment to promoting sustainable practices across its workforce and supply chain partners.
Employee health and safety are key priorities for Tatva Chintan, addressed through comprehensive safety training programs, regular emergency response drills, advanced safety systems and equipment, and thorough on-the-job training protocols - creating a protective working environment that safeguards personnel while maintaining operational excellence.
Human Resources
Tatva Chintan Pharma Chem Limited values its employees and is committed to creating a workplace that supports both company growth and professional development. The companys human resources team focuses on employee-centric policies designed to attract skilled talent, provide comprehensive training, maintain engagement, and achieve strong retention rates. To strengthen talent management, capability development, and employee performance, Tatva Chintan regularly implements targeted programs and initiatives. As of 31 March 2025, the company employs 679 permanent employees/workers and 260 nonpermanent employees/workers, reflecting its investment in building a skilled and capable team.
Risk Management
| Risk | Impact | Mitigation |
| Regulatory risk | Widespread geographical presence leads to exposure to different prevailing rules and regulations. Non-compliance to any new/change in policies may impact normal business functioning | The Companys commitment to stringent compliance and regulations is validated by its ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications. These certifications highlight the Companys dedication to quality management, environmental management, and employee health and safety. Furthermore, a proficient team is responsible for keeping a check on adherence to all applicable laws and statutes. |
| Supply chain risk | Fluctuations in raw material prices and inadequate supply can impact the Companys business operations and profitability. | Tatva Chintan ensures a steady supply of raw materials and finished products by leveraging its longstanding relationships with suppliers and maintaining diverse sourcing across geographies. Additionally, the Company has implemented a robust inventory management process to ensure raw material availability whenever required. |
| Forex risk | Tatva Chintan is exposed to foreign currency/ies due to widespread business operations in over 30 countries. Fluctuation in forex rate may thus impact earnings. | The Company mitigates forex risk through continuous and efficient monitoring of forex exposure and currency movements. It further de-risks by entering into forward contracts. |
| Product risk | Inadequate investment in R&D and delays in obtaining regulatory approvals can hinder the Companys operations by preventing the conceptualization and development of new products. | To cater to evolving customer preferences and needs, Tatva Chintan has consistently invested in its R&D to strengthen its product pipeline. During the fiscal year, the Company allocated 84.27 Million towards CAPEX and 44 Million towards OPEX to ensure sustained progress. |
| Economic Slowdown | An economic slowdown can plummet revenues for the Company, which may lead to decreased profitability. | Tatva Chintan sells its products to various sectors of the economy which includes Pharma, Agrochemicals, Dyes, Paints, and many others. Furthermore, the Company has a wide geographical presence, which minimizes the risk. |
Outlook
Looking ahead, Tatva Chintan is poised for transformative growth in FY 2025-26 driven by innovation, operational excellence and market expansion. Our robust R&D pipeline with high-value products nearing commercial launch, particularly in semiconductors, will strengthen our market leadership. Supported by experienced leadership and a diversified portfolio, we are ready to navigate challenges like geopolitical uncertainties and logistical constraints. With improving market conditions and strategic investments in semiconductor grade chemicals and flame retardants, we are looking at sustainable long-term growth.
Internal Control Systems
Tatva Chintan maintains a robust internal control system to ensure the reliability of financial information through the timely and accurate recording of all financial, commercial, and operational transactions. This system also safeguards assets from unauthorized use or disposition and ensures strict adherence to applicable regulations. Moreover, the Companys Audit Committee conducts periodic reviews to assess the adequacy and effectiveness of these internal controls, reporting key findings to the Board for necessary corrective actions.
Cautionary Statement
Statements in this report describing the Companys objectives, projections, estimates and expectations may constitute forwardlooking statements within the meaning of applicable laws and regulations that involve risks and uncertainties. Such statements represent the intention of the management and the efforts being put in place by them to achieve certain goals. Actual results might differ materially from those either expressed or implied in the statement depending on the circumstances. Therefore, the investors are requested to make their own independent assessments and judgments by considering all relevant factors before making any investment decision.
Managing Director (MD) and Chief Financial Officer (CFO) Certification
To,
The Board of Directors,
Tatva Chintan Pharma Chem Limited
In pursuance to Regulation 17(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, We, Chintan N. Shah, Managing Director (MD) and Ashok Bothra, Chief Financial Officer (CFO) to the best of our knowledge and belief, certify that:
A. We have reviewed financial statements and the cash flow statement for the year ended 31 March 2025 and that to the best of our knowledge and belief:
(1) These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;
(2) These statements together present a true and fair view of the Companys affairs and are in compliance with existing accounting standards, applicable laws and regulations.
B. To the best of our knowledge and belief, there were no transactions entered into by the Company during the year which are fraudulent, illegal or violative of the Companys Code of Conduct.
C. We are responsible for establishing and maintaining internal controls for financial reporting and we have:
(1) Evaluated the effectiveness of the internal control systems of the Company pertaining to financial reporting;
(2) Not found any deficiencies in the design or operation of internal controls.
D. We have indicated to the Companys Auditors and the Audit Committee of the Board of Directors that:
(1) There have been no significant changes in the internal control over financial reporting during the year;
There have been no significant changes in accounting polices during the year;
(2) There have been no instances of significant fraud nor there was any involvement of the management or an employee having a significant role in the Companys internal control system over financial reporting; and
(3) There were no deficiencies in the design or operation of internal controls, which could adversely affect the Companys ability to record, process, summarize and report financial data nor there were any material weaknesses in internal controls over financial reporting nor any corrective actions with regards to deficiencies, as there were none.
E. We declare that all Board members and Senior Managerial Personnel have affirmed compliance with the Code of Conduct for the current year.
| Chintan N. Shah | Ashok Bothra | |
| Date: 02 May 2025 | Chairman and Managing Director | Chief Financial Officer |
| Place: Vadodara | DIN: 00183618 |
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