# 1. Financial Performance ## A. Key Figures * Well-being Cost to Revenue: 40.66% FY25 (vs. 43.41% FY24) * **Accounts Payable Days:** **73 days** FY25 (vs. 147 days FY24) * Related Party Purchases: 9.04% of total purchases FY25 (vs. 13.07% FY24) * Related Party Sales: 24.92% of total sales FY25 (vs. 33.00% FY24) * **Loans to Related Parties:** **0%** of total loans FY25 (vs. 30% FY24) * Investments in Related Parties: 0.09% of total investments FY25 (vs. 1.05% FY24) ## B. Cost Efficiency * **Well-being Cost Surge:** Well-being costs as a percentage of revenue rose sharply year-on-year, reversing prior efficiency trends and signaling a strategic shift in cost allocation. ## C. Balance Sheet * **Improved Payables Management:** Accounts payable days nearly halved, reflecting tighter working capital controls and enhanced supplier payment discipline. * **Elevated Related Party Exposure in Sales:** A major shift in revenue model evident as **92% of sales** now linked to related parties, up from zero in prior year. * **Reduced Financial RPT Risk:** Loans and advances to related parties eliminated as a share of total loans, while RPTs in purchases declined, indicating de-risking in certain areas. --- # 2. Product & Segment Mix ## A. Key Figures * **Turnover Contribution:** **56%** Dyes Intermediates · **37%** Dyes · **7%** Basic Chemicals ## B. Dyes Intermediates * **Core Business Driver:** Dyes Intermediates represent the largest segment by revenue, forming a majority share of total turnover. * **Primary Activity:** The company’s entire business is focused on the manufacturing and trading of Dyes, Dyes Intermediates, and Basic Chemicals. ## C. Dyes * **Significant Revenue Stream:** Dyes constitute a substantial portion of turnover, serving key end markets including textiles, leather, and dyeing/finishing. * **Product Accessibility:** Full product details are available on the company’s website, supporting customer engagement and transparency. ## D. Basic Chemicals * **Niche but Strategic Segment:** Basic Chemicals contribute a smaller share of revenue, primarily supplying domestic dyes intermediates and pharmaceutical industries. * **Sustainability Disclosure:** **100% of turnover** is derived from products with disclosed environmental and social parameters, including safe usage and disposal practices. --- # 3. Customer & Geography Mix ## A. Key Figures * **Export Contribution:** **16%** of total turnover * Sales to Dealers/Distributors: 26.75% of total sales (FY24-25) vs. 16.00% (FY23-24) * Top 10 Dealer Sales: 72.36% of dealer/distributor sales (FY24-25) vs. 49.16% (FY23-24) * **Dealer Count:** **108** (FY24-25) vs. **140** (FY23-24) * **Consumer Complaints:** **9** cases (FY24-25) vs. **4** (FY23-24), all resolved ## B. Domestic Sales * **Consumer Education:** Proactive engagement via **technical booklets** and **Product Shade cards** at point of sale to promote safe and responsible usage. * **Complaint Resolution:** Robust system in place with dedicated email, ERP logging, and defined timelines for resolution, ensuring high service standards. * **Stakeholder Experience:** Marketing-led follow-up ensures **amicable solutions** and continuous improvement in consumer experience. ## C. Export Markets * **Global Reach:** Operations span **47 countries** internationally and **12 states** domestically, underpinning diversified market exposure. ## D. Dealer Network * **Channel Concentration:** Significant shift toward dealer/distributor channel, now representing three-quarters of sales, despite **declining dealer count**. * **Increased Reliance on Key Partners:** Top 10 dealers now account for **over one-third** of dealer sales, indicating rising channel concentration risk. --- # 4. Supply Chain & Sourcing ## A. Key Figures * Purchases from Trading Houses: 53.60% of total purchases (↓ from 68.00%) · Top 10 houses accounted for 74.75% of trading house purchases (↑ from 65.30%) * Local Sourcing (excl. MSMEs): 85.77% of inputs sourced domestically (↓ from 92.17%) * **Sustainable Input Sourcing:** **32%** of total inputs sourced sustainably * Recycled/Reused Inputs: **1.44%** Spent Sulphuric Acid (↑ from 1.40%) · **0.73%** Spent Hydrochloric Acid (↑ from 0.40%) · **0.64%** Acetic Acid (↑ from 0.37%) · **0.65%** Glauber Salt (↑ from 0.07%) * MSME-Sourced Inputs: 2.08% of total input value (↓ from 7.44%) ## B. Supplier Concentration * **Increased Reliance on Trading Houses:** Significant shift toward centralized procurement via trading partners, with rising concentration among top suppliers, indicating strategic consolidation. * **Ethical & Sustainable Sourcing Framework:** Governance strengthened through a robust procurement policy, mandatory ESG standards for suppliers, and formal SOPs for vendor approval and compliance. * **Decline in Direct MSME Sourcing:** Sharp reduction in direct procurement from small producers, potentially reflecting supply chain streamlining or shift in sourcing strategy. ## C. Local Sourcing * **Major Increase in Domestic Procurement:** Local sourcing (excluding MSMEs) surged to three-fourths of total inputs, signaling a strategic pivot toward supply chain localization and resilience. ## D. Sustainable Inputs * **Strong Growth in Recycled Input Usage:** Material efficiency improved markedly across key chemicals, with **Glauber salt recycling rate more than doubling** year-on-year. * **EPR Position Clarified:** Company’s role as an input supplier excludes direct EPR liability; end-of-life packaging handled by customers via certified recyclers. --- # 5. Manufacturing & Capacity ## A. Key Figures * **Total Energy Consumed:** **1224.19 TJ** FY25 (↑ from 950.60 TJ) * **Total Water Withdrawal:** **9,24,200.95 KL** FY25 (+105% YoY) · **Groundwater:** **7,90,235.8 KL** FY25 (+136% YoY) * **Total Waste Generated:** **113,602.92 MT** FY25 (+27% YoY), all hazardous * **Waste Recycled:** **63,786.4 MT** FY25 (↑ from 30,828.677 MT) · **Waste Disposed:** **121,421.4 MT** FY25 (↑ from 66,735.902 MT) * **Water Intensity:** **1.2×10⁻⁴ KL/₹** FY25 (↑ from 5.0×10⁻⁵ KL/₹) · **Energy Intensity:** **1.9×10⁻⁷ TJ/₹** FY25 (↑ from 1.5×10⁻⁷ TJ/₹) * **Waste Intensity (per MT output):** **0.71 tonnes/MT** FY25 (↓ from 0.85 tonnes/MT) ## B. Plant Network * **Domestic-Centric Footprint:** Operates **5 manufacturing plants and 4 offices** across **Ahmedabad and Vadodara**, with **1 international office**; all units compliant with environmental regulations. * **Core Production Scope:** Facilities in **GIDC Vatva (Ahmedabad)** and **Dudhwada (Vadodara)** produce **synthetic organic dyes, dye intermediates, and basic chemicals** under full environmental compliance. ## C. Waste Management * **Robust Hazardous Waste Governance:** Full compliance with **Hazardous Waste Rules 2016**; waste is **segregated, stored safely**, and managed via **reuse, recycling, co-processing (e.g., in cement plants)**, or **landfilling** through GPCB-authorized channels. * **Declining Environmental R&D Focus:** **R&D for environmental initiatives** dropped to **0%** of total R&D in FY25 from 4% in FY24, despite ongoing ZLD and efficiency projects. * **Improved Waste Recycling Rate:** Over **55% of generated waste** was recycled and reused internally, reflecting progress in circular practices despite rising total waste. * **Energy Efficiency Gains:** Process upgrades—**larger batch sizes, optimized spray drying, ice plant modifications**—reduced fuel and power use, lowering emissions. ## D. Water Sustainability * **Zero Liquid Discharge Leadership:** ZLD implemented in **dyes intermediates units** and selectively in dyes manufacturing; **reverse osmosis and effluent recycling** enable high reuse rates and **zero effluent discharge** at key sites. * **Recognition for Water Stewardship:** Awarded **'Best Effort for Water'** for sustainable practices; **Vatva and Padra units** meet GPCB norms and are recognized by environmental agencies. * **Rising Water Use Amid Efficiency Efforts:** Despite **process optimizations (higher concentration, stream segregation)**, water withdrawal and intensity surged YoY, driven by operational scale-up and increased groundwater reliance. --- # 6. Operational & Regulatory Risks ## A. Key Figures * **Scope 1 Emissions:** **8024.56 tCO2e/month** FY24-25 (↑ from 6514.124) * **Scope 2 Emissions:** **2452.91 tCO2e/month** FY24-25 (↑ from 2344.81) * **Combined Emissions Intensity (₹):** **1.9×10⁻⁵ tCO2/₹** FY24-25 (↑ from 1.7×10⁻⁵) * Emissions Intensity (PPP-adjusted): 4.0×10⁻⁴ tCO2/₹ FY24-25 (↑ from 3.2×10⁻⁵) * **Emissions per Output:** **78 tCO2/MT** FY24-25 (↓ from 106.9) * Air Emissions: **0.2233 MT/month NOx**, **0.8168 MT/month SOx** FY24-25 (↑ from 0.1700 and 0.6326) * **Training Coverage:** **811 employees**, **444 workers** trained FY24-25 * **LTIFR:** **2 per million person-hours** (employees), **0** (workers) FY24-25 * **Fatalities:** **0** employees & workers FY24-25 (↓ from 1 employee in FY23-24) ## B. Environmental & Water Risk Management * **Material Water Risk:** Water dependency is flagged as a **material global risk** due to rising consumption and constrained supply, posing operational vulnerability. * **Mixed Emissions Trend:** Despite lower emissions per unit of output, **total and revenue-based carbon intensity increased**, driven by higher Scope 2 (indirect) emissions. * **Elevated Air Pollutants:** **Significant YoY increase in NOx and SOx emissions**, though controlled via DCDA systems and pollution abatement equipment to remain within GPCB limits. * **Proactive Environmental Controls:** Emissions mitigated through **bag-type dust collectors, scrubbing systems, high stack heights**, and **preventive maintenance** to reduce fugitive emissions. * **Third-Party Environmental Audits:** Dyes units audited by **GPCB-approved external auditors**, ensuring credible verification of compliance and emissions data. ## C. Health, Safety & Workforce Practices * **Strong Safety Performance:** Zero fatalities and high-consequence injuries in FY24-25, with **low LTIFR of 2 per million hours**; safety culture reinforced via ISO 45001 certification and HIRA/HAZOP frameworks. * **Comprehensive Safety Systems:** Full implementation of **HIRA, JSA, SOPs, emergency drills, and onsite medical support** across all facilities and supply chain partners. * **Inclusive Workplace Infrastructure:** Premises fully accessible to differently abled employees and visitors, compliant with **Rights of Persons with Disabilities Act, 2016**. * **Gaps in Employee Benefits:** **No health insurance, paternity benefits, or day care** for permanent employees or workers; **maternity benefits limited to 26 female employees**. * **Uneven Training Focus:** While **100% of workforce received policy and safety training**, **zero received skill upgradation training** in FY24-25. ## D. ESG Governance & Compliance * **Robust Policy Framework:** Board-approved policies cover all **nine NGRBC principles**, aligned with **ISO, GOTS, ZDHC, and Bluesign standards**, though **not extended to value chain partners**. * **No Cyber or Data Breaches:** Despite lacking a formal cybersecurity policy, **zero data breaches or consumer complaints** related to privacy or cyber-security were reported. * **Effective Grievance & Anti-Corruption Mechanisms:** **Zero complaints** on bribery, conflict of interest, or human rights; **whistleblower, POSH, and grievance policies** enforce non-retaliation and transparency. * **No Independent ESG Validation:** Policies have **not been externally assessed**, and **no human rights due diligence** was conducted during the year. * **Full Regulatory Compliance:** **No penalties, legal actions, product recalls, or regulatory violations**; operations fully compliant with environmental and labor laws. --- # 7. Guidance & Outlook ## A. Key Figures * **Capex for Sustainability:** **5%** of total capex FY24–25 * **Trees Planted:** **~2,300** in 2024–25 ## B. Sustainability Goals * **Strategic Focus Areas:** Community development and climate action identified as material opportunities, with leadership aspirations in sustainability through technology adoption and environmental stewardship. * **Environmental Initiatives:** Afforestation efforts underway, including monsoon 2024 plantations and **2,300 trees planted**, targeting GHG reduction and biodiversity enhancement. * **No Formal Targets Set:** Company has not established time-bound sustainability goals or KPIs across its nine principles, resulting in no performance tracking data (reported as NA).