Yasons Chemex Care Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENT

INDUSTRY TRENDS:

The market for dyes and pigments was valued at USD $39.0 billion in 2024 and is projected to grow to

$52.0% billion by 2033, with a compound annual growth rate (CAGR) of 3.26% from 2025 to 2033. The demand for these products is expected to rise across a number of application industries, including plastics, paints and coatings, textiles, and construction.

With a market share of over 65.6 in terms of revenue in 2024, the textiles segment dominated. The industry segment for printing ink is anticipated to experience the fastest CAGR between 2025 and 2033. India and China, two major producers of dyes, are likely to other favourable opportunities throughout the Asia Pacific region. In terms of colour and density per unit of mass, dyes are superior to pigments. The dye-based inks may react chemically with other ingredients. In conjunction with optical brighteners and other additives, they produce prints that are superior to pigment-based inks. The demand for products in the printing ink application segment is expected to increase as a result of these factors.

OUTLOOK:

An integration of micro and macro factors appear to be cruising the Yasons Chemex Care Limited outlook in a positive direction. The Companys multi-site prowess, manufacturing emphasis, procurement strategies, and balanced approach to enhancing profitability are all contributing to its growing market share. Your company is developing cutting-edge, environmentally responsible products. These ground breaking goods are anticipated to draw in a larger customer base and support the companys overall expansion. Further More, Yasons Chemex Care Limited has recently successfully completed the process Initial Public offer and as stated in the offer documents, from the receipt of that fund the Company is planning to expand its business.

COMPANY OVERVIEW:

Yasons Chemex Care Limited is a leading domestic dyestuff manufacturer in Gujarat, with production facilities strategically located in the chemical industrial zone. This strategic location offers easy access to the Common Effluent Treatment Plant, fostering innovation and knowledge sharing. The companys proximity to the treatment plant allows for efficient disposal of waste and adherence to environmental regulations. Additionally, being in close proximity to other chemical manufacturers promotes collaboration and the exchange of ideas within the industry.

Aside from lowering costs and improving supply chain management, the company9s extensive industry knowledge and expertise enable its efficient transportation of raw materials and finished goods. Your Company is renowned for producing premium dyestuffs, FMCG products, IMCG Products and seeks to improve its position in the market. We promote initiatives for waste management and environmentally friendly manufacturing techniques and place a high priority on quality control measures, customer satisfaction, and sustainability. We make investments in new product development, R&D, and partnerships with our important stakeholders.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

We ended the financial year with a stable performance despite the setbacks we experienced because of various macro events, such as the geopolitical situation, inflation across economies, and restrictive monetary policies. In light of the challenging external environment.

The goal to boost the companys stance in the specialty chemicals sector, Production of FMCG PRODUCTS and IMCG Products and broaden its product line. Through the company would gain access to new markets and technological know-how, spurring further growth and innovation.

The Companys Revenue from operations increased to 4583.91 Lakhs from 4767.47 Lakhs of the previous year.

EBITDA, for FY 2024-25 was 217.2 Lakhs compared to 467.30 Lakhs for the same period in the previous year.

The Profit after Tax (PAT) attributable to the shareholders was 161.18 lakhs for FY 2024-25 against 124.1 lakhs in FY 2023-24.

OPPORTUNITIES AND STRENGTH

Considering the products, Business, industry segment in which your Company is operating, the Company has following strength, Weakness, Opportunities, and threats.

Strength

Opportunities

Extensive focus on customized products across the board. Further research investments to boost product range to cater to unique client demands. Efficient management of critical resources to minimize energy consumption. Dedicated focus on environmental responsibility through minimized effluents discharge. An innate culture of excellence within the venture with all \u2212 embracing safety provisions and Proficiency in engaging the local community around the manufacturing plants and plots and Well \u2212 established infrastructure and

Increasing demand for dyes and dyestuffs in textile, printing, and packaging industries. Growing preference for eco \u2212 friendly and sustainable dyes, creating a niche market. Expansion of the Indian textile industry, which is a major consumer of dyes. Potential to tap into the global demand for Indian traditional textiles and dyes. Collaborations with international companies for technology transfer and joint ventures. Investment in research and development to create innovative and high \u2212 performance dyes. Strong expertise and technological advancements in dye manufacturing.

RISKS AND CONCERNS

RISKS

CONCERN/CHALLENGES

Intense competition from established global players in the dyes and dyestuff market. Fluctuating raw material prices, which may impact the cost of production. Dependency on third party for our transportation of raw materials. Potential disruptions in global trade and supply chain due to political or economic factors. Quality of product is very important in our industry and the success of our company is dependent on the quality of our product and any failure to maintain the quality of our products may have an adverse effect on our reputation and business.

Environmental concerns related to the disposal of chemical waste from dye manufacturing. Lack of stringent regulations and monitoring mechanisms regarding pollution control. Dependence on imported raw materials for certain specialized dyes. Limited research and development efforts compared to global competitors. Need for continuous investments in technology to keep up with changing market demands. Disruptions in the supply chain due to transportation issues or geopolitical tensions.

PRODUCT WISE PERFORMANCE AND OUTLOOK

Yasons Chemex Care Limited specializes in a diversify-ed range starting with Hair Re-Growth Oil, Perfume- deodorants, sanitizers and Hand Made Shop. The ventures have also expanded to manufacturing bespoke products, including FMCG Products and diversified range of dyestuff, pigments pastes, and skincare essentials. With just 3% contribution from the Indian chemical industry to global production.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company possesses robust internal control systems and top tier processes that align with its size and operational scope. Our internal control procedures, which include internal financial controls, ensure compliance with various policies, practices and statutes in keeping with the organizations pace of growth and increasing complexity of operations. We have set up a statutory compliance management system to ensure compliance with various applicable laws.

The internal control systems are built on a solid foundation of good governance, clearly defined systems, processes, and policies, risk assessment, a watchful control function, communication and monitoring, and an independent internal audit function. The internal control is supplemented by effective internal audit being carried out by an external firm of chartered accountants. The Internal Auditors team carries out extensive audits throughout the year in all areas. The Internal Risk and Control function also evaluates organizational risk along with controls required for mitigating those risks. The control activities continue to incorporate, among others, continuous monitoring, routine reporting, checks and balances, purchase policies, authorization and delegation procedures, audits including compliance audits, which are periodically reviewed by the Audit Committee.

The Audit Committee of Directors regularly reviews the findings of the Internal Auditors and effective steps to implement the suggestions/observations of the Auditors are taken and monitored regularly. The performance of the Internal Audit department is also reviewed by the Board and improvements advised. Your Company is fully geared to implement any statutory recommendation, which may be made in this regard.

MATERIAL DEVELOPMENT IN HUMAN RESOURCE/ INDUSTRIAL RLEATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

Your Company values its human resources highly and treats its employees with respect and dignity at all times, viewing them as its most important asset. The business has been successful in imbuing a healthy balance of youth and experience in its team, enabling a comprehensive approach to a variety of situations. We focus on employee fulfilment, stretch, and development has translated into a highly motivated and skilled workforce that consistently delivers exceptional results. To ensure that they can continue to satisfy our customers Shifting needs and preferences, we will support our staff in helping them understand our customer-focused corporate culture and service quality standards.

SIGNIFICANT CHANGE:

There is no significant or material change in the business of the Company.

CAUTIONARY STATEMENT:

The Companys goals, forecasts, expectations, and other information are included in the Management Discussion and Analysis sections, some of which may be deemed forward- looking statements under relevant laws and regulations. The statements made in this management discussion and analysis report may not be exactly what is implied or expressed. Numerous uncontrollable internal and external factors have an impact on the companys operations. Consequently, even though the expectations are supported by reasonable hypotheses, the actual outcomes could significantly diverge from what was predicted or indicated. The Company disclaims any duty to revise any publicly available forward-looking statements to reflect any new knowledge, unanticipated events, or other circumstances.

Place: Ahmedabad Date: 25 th August 2025

By the Order of Board of Directors Yasons Chemex Care Limited

SD/-

Pritesh Y. Shah Managing Director DIN: 00239665