Unilex Colour & Chemical Ltd Management Discussions

OVERVIEW OF BUSINESS:

Our company is engaged in the business of manufacturing of Pigment, and the trading of chemicals and food colours. The pigments manufactured by us find diverse applications across various industries such as plastic, rubber, textiles, paper, printing inks, paints and coating.

Within Pigments, we specialize in Pigment Blue 15:3 and 15:4, with an annual production capacity of 1878 mtpa. Our products are marketed under the registered brand name "Unilex." We cater to both domestic and international markets, providing a wide range of pigment solutions for various industries. Our manufacturing facility is situated at MIDC – Tarapur, Palghar, Maharashtra is spread across approximately 1275 sq. meter and is equipped with various machines such as Ball Mill Machine, Root Blower, Silo, Reaction Steel Vessel, Brick Linned Vessel, Rubber Linned Vessel, Drowning Vessel, Spin Flash Dryer, Ribbon Blender, Air Classifier Mill Machine, Air Blender, Filter Press Machine etc. Our products are manufactured from raw materials such as BM CPC, Caustic Soda Flakes, Gum Rosin, Hydrochloric Acid, Mix Xylene, Additive Monosulphonaled CPC Blue and Unisol SI-20 etc. Our products undergo through examination, testing and evaluation to ensure compliance with specified requirements. Our manufacturing facility holds ISO 9001:2015 certification for quality management in the manufacturing of pigments, food dyes, and drug intermediates.

Furthermore, we have been recognized as a Three Star Export House by the Ministry of Commerce, Government of India. To ensure global product compliance (Europe) AB Sweden, we have received a Certificate of REACH Registration, issued under the REACH Regulation (Registration, Evaluation, Authorisation, and Restriction of Chemicals), a regulation of the European Union (EU). Our laboratories allow for thorough experimentation, analysis and optimization of processes, as well as testing and refinement of product applications. Our dedicated engineers constantly keeps abreast of the latest technology and trends as industry requirements. Our revenue from manufacturing business for fiscal 2024, fiscal 2023 and fiscal 2022 were _6,652.17 lakhs, _7,455.21 lakhs and _ 8,487.51 lakhs which contributed 46.24%, 53.48 %, and 58.42% of revenue from operations effectively.

We trade various pigments and food colours such as Pigment Green 7, Middle Chrome, Lemon Chrome, Pigment Violet 3, 23, and 27, Ultramarine Blue, and other Azo pigments like Red 57:1, 53:1, Orange 5, 13, and Yellow 12, 13, 14 as well as food colours such as Tartrazine, Sunset Yellow, Allura Red, Ponceau 4R, Carmoisine, and Brilliant Blue etc., which are sourced from third-party manufacturers to meet our clients specific needs and standards. While we produce and sell a comprehensive range of pigments, we have noticed that some of our customers have needs that extend beyond our in-house offerings. To address these needs and ensure complete customer satisfaction, we source a wide range of pigments from other manufacturers. This approach allows us to provide a broad spectrum of high-quality pigments, ensuring that we can fully cater to the unique and varied demands of our clientele. We ensure high quality by working closely with manufacturers and conducting thorough quality checks, meeting industry standards and serving clients in various sectors such as automotive, textiles, plastics, and consumer goods.

We are exporting our products to countries including Vietnam, Brazil, Mexico, Nigeria, Russia, Turkey, Netherlands, Poland, China, Spain, Malaysia, Thailand, United Arab Emirates and Uzbekistan. We market our products through direct marketing, which allow us to connect with potential customers on a personal level and tailor our messaging to their specific needs. Further, we also participate in exhibitions and conferences, providing us to showcase our products.

We provide flexible packing options such as Multi-Layer Paper Bags, Corrugated Boxes, HDPE and HDPE Coated Bags, MultiLayer Abetted Liners and HM Covers, Wooden Pallets and Jumbo Bags among others.

We are led by our Promoters, who have significant experience in the Pigment & Dyes industry. Our Promoters include Purushottam Brijlal Sharma, Chairman & Whole-time Director; Aditya Sharma, Managing Director; Narendra Parameswarappa Kotehall, Whole-time Director; and Manojkumar Shyamsunder Sharma, Executive Director, all of whom have more than 30 years of experience in the Pigment and Dyes industry. Kabir Radheyshyam Sharma and Rohit Krishnakumar Sharma, both Executive Directors, have 9 years of experience each. The extensive experience of our Promoters has been instrumental in shaping the vision and growth strategies of our company. We believe that our ability to market our products effectively is a result of adhering to the vision set by our Promoters and senior management, combined with their expertise and knowledge of the industry. On April 15, 2023, we received a Certificate of Merit from Basic Chemicals, Cosmetics & Dyes Export Promotion Council (CHEMEXCIL), recognizing our outstanding performance in the Basic Chemical, Organic & Inorganic Chemical, including Agro Chemicals panel.

OVERVIEW OF THE INDUSTRY:

Covering more than 80,000 commercial products, Indias chemical industry is extremely diversified and can be broadly classified into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilizers India is the 6th largest producer of chemicals in the world and 3rd in Asia, contributing 7% to Indias GDP. Indias chemical sector, which is currently estimated to be worth US$ 220 billion in 2022 and is anticipated to grow to US$ 300 billion by 2025 and US$ 1 trillion by 2040.

Globally, India is the fourth-largest producer of agrochemicals after the United States, Japan and China. India accounts for 16-18%of the world production of dyestuffs and dye intermediates. Indian colorants industry has emerged as a key player with a global market share of ~15%. The countrys chemicals industry is de-licensed, except for few hazardous chemicals. India holds a strong position in exports and imports of chemicals at a global level and ranks 14th in exports and 8th in imports at global level (excluding pharmaceuticals).

The domestic chemicals sectors small and medium enterprises are expected to showcase 18-23% revenue growth in FY22, owing to an improvement in domestic demand and higher realisation due to high prices of chemicals. Domestic demand is expected to rise from US$ 170 billion-US$ 180 billion in 2021 to US$ 850 billion-US$ 1,000 billion by 2040. Indias proximity to the Middle East, the worlds source of petrochemicals feedstock, enables it to benefit on economies of scale.

OPERATING RESULTS OF THE COMPANY

The revenue from operations of your Company for the year ended March 31, 2026, stood at Rs. 13,295.72 lakhs as against Rs. 15,781.18 lakhs for the year ended March 31, 2025. The Company has incurred a profit of Rs. 693.90 lakhs for the Year ended March 31, 2026, as compared to Rs. 641.20 lakhs for the year ended March 31, 2025.

STRENGTH

• Long standing relationships with diversified customers across geographics

• We offer a diversified range of products.

• Catering to wide range of industries.

• Experienced Promoters and Directors with strong management team having domain knowledge.

• Research and development capabilities allowing product innovation and customization.

COMPETITION

Our competition varies by market, geographic areas and type of product. As a result, to remain competitive in our markets, we must continuously strive to reduce our costs of production, transportation and distribution and improve our operating efficiencies. There are various large and small manufactures that develop similar products that we sell. These players in the industry may have greater financial resources, technology, greater market penetration and operations in diversified geographies and product portfolios, which may allow them to better respond to market and technological trends. Some of the listed companies that are in the business similar to ours are: Kesar Petroproducts Limited and Sudarshan Chemical Industries Limited.

PROSPECT & OUTLOOK

The management is of the view that the future prospects of your Company are bright and the performance in the current year is expected to be very well. The committed customers of the Company are expected to place more orders, which ultimately affect the top line of the Company, positively.

RISKS AND CONCERNS

The Company has taken adequate preventive and precautionary measures to overcome all negative factors responsible for low trend to ensure steady growth.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

There are well-established procedures for Internal Controls for operations of the Company. The finance & audit functions are well equipped with professionally experienced qualified personnel & play important roles in implementing the statutory obligations. The Company has constituted Audit Committee for guidance and proper control of affairs of the Company.

HUMAN RESOURCES

We believe that our employees are key contributors to our business success. Our senior management team consists of experienced individuals with diverse skills in manufacturing, engineering, sales & marketing, administration, and finance. In addition to the 32 contract labours engaged by us at our manufacturing unit, as on March 31, 2026, we have 60 Employees on payroll basis.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objectives, expectations, predictions and assumptions may be "FORWARD LOOKING" within the meaning of applicable Laws and Regulations. Actual results may differ materially from those expressed herein, important factors that could influence the Companys operations include domestic economic Conditions affecting demand, supply, price conditions, and change in Governments regulations, tax regimes, other statutes and other factors such as industrial relations.

For and on behalf of the Board of Directors of
Unilex Colours And Chemicals Limited
Aditya Sharma	Purushottam Brijlal Sharma
Managing Director	Chairman & Whole-time Director
DIN: 00583133	DIN: 01416956