Indian Emulsifiers Ltd Management Discussions

Global Economic Overview

The global macroeconomic environment in 2025 continues to navigate a landscape marked by persistent uncertainty, yet displays a degree of resilience in the face of geopolitical, trade, and fiscal challenges. According to the July 2025 update of the International Monetary Funds (IMF) World Economic Outlook (WEO), global economic activity is holding firm in the short term, supported by tactical trade behavior and responsive fiscal and monetary policy actions.

Global Growth Forecasts and Trends

The IMF projects global GDP growth at 3.0% in 2025 and 3.1% in 2026, representing an upward revision of 20 and 10 basis points respectively from the April 2025 forecast. The improvement primarily stems from:

• Front-loading of trade and investment ahead of anticipated tariff hikes, particularly in the United States and China,

• Lower effective U.S. tariff rates than previously announced,

• Easing of global financial conditions, including a depreciation of the U.S. dollar, and

• Fiscal expansion in key advanced and emerging economies, notably the U.S., Germany, and China.

However, despite this modest recovery, global growth remains below the pre-pandemic average of approximately 3.7%, reflecting the lingering structural headwinds in global trade and productivity.

Regional and Country-Level Outlook Advanced Economies

Growth in advanced economies is expected to moderate to 1.5% in 2025 and marginally increase to 1.6% in 2026.

• United States: Real GDP growth is forecast at 1.9% in 2025 (revised upward) and 2.0% in 2026, benefiting from improved trade terms, expansionary fiscal policy under the OBBBA Act, and investment incentives.

• Euro Area: The bloc is expected to grow at 1.0% in 2025 and 1.2% in 2026, with growth concentrated in investment and export activity. However, consumption remains muted.

• Japan and the UK: Japan is forecast to grow at 0.7%, reflecting subdued consumption and net exports. The UK is expected to post modest gains at 1.2% in 2025.

Emerging and Developing Economies (EMDEs)

EMDEs are projected to grow 4.1% in 2025 and 4.0% in 2026.

• India is projected to retain its status as the fastest-growing major economy, with growth forecast at 6.4% in both 2025 and 2026, aided by a stable domestic environment and a more benign external trade backdrop.

• Chinas growth has been revised upward to 4.8% in 2025, primarily driven by resilient export performance, currency depreciation, and fiscal support measures.

• Other regions, such as Latin America, Sub-Saharan Africa, and the Middle East and Central Asia, are expected to see steady but uneven growth depending on commodity cycles, domestic reforms, and external vulnerabilities.

Trade and Financial Conditions

World trade volume is forecast to grow by 2.6% in 2025, with a sharp increase in the first half of the year due to anticipatory import demand. However, this momentum is expected to normalize in the latter half as inventories stabilize and trade flows revert to trend levels. The trade outlook for 2026 has been revised slightly downward to reflect this anticipated correction.

Global financial markets have stabilized, with easing monetary conditions, rebounding equity markets, and tightened corporate credit spreads. The U.S. dollars depreciation since April has improved trade competitiveness for emerging markets, leading to stronger capital inflows and reduced external vulnerabilities in several EMDEs.

Inflation Outlook

Inflation is on a declining trajectory globally:

• Headline inflation is forecast to fall to 4.2% in 2025 and 3.6% in 2026.

• Advanced economies are seeing inflation return toward target, with the exception of the United States, where tariff pass-through and fiscal stimulus are expected to keep inflation elevated into 2026.

• Emerging markets, including India and China, are witnessing more stable inflation profiles, with inflation in China projected to remain subdued and in India largely in line with target bands.

Source:https://www.imf.org/en/Publications/WEO/ Issues/2025/07/29/world-economic-outlook-update-july-2025

Indian Economy Outlook:

Indian Economic Outlook – IMF World Economic Outlook (July 2025 Update)

The global macroeconomic environment in 2025 continues to navigate a landscape marked by persistent uncertainty, yet displays a degree of resilience in the face of geopolitical, trade, and fiscal challenges. According to the July 2025 update of the International Monetary Funds (IMF) World Economic Outlook (WEO), global economic activity is holding firm in the short term, supported by tactical trade behavior and responsive fiscal and monetary policy actions.

Global Growth Forecasts and Trends

The IMF projects global GDP growth at 3.0% in 2025 and 3.1% in 2026, representing an upward revision of 20 and 10 basis points respectively from the April 2025 forecast. The improvement primarily stems from:

• Front-loading of trade and investment ahead of anticipated tariff hikes, particularly in the United States and China,

• Lower effective U.S. tariff rates than previously announced,

• Easing of global financial conditions, including a depreciation of the U.S. dollar, and

• Fiscal expansion in key advanced and emerging economies, notably the U.S., Germany, and China.

However, despite this modest recovery, global growth remains below the pre-pandemic average of approximately 3.7%, reflecting the lingering structural headwinds in global trade and productivity.

Regional and Country-Level Outlook Advanced Economies

Growth in advanced economies is expected to moderate to 1.5% in 2025 and marginally increase to 1.6% in 2026.

• United States: Real GDP growth is forecast at 1.9% in 2025 (revised upward) and 2.0% in 2026, benefiting from improved trade terms, expansionary fiscal policy under the OBBBA Act, and investment incentives.

• Euro Area: The bloc is expected to grow at 1.0% in 2025 and 1.2% in 2026, with growth concentrated in investment and export activity. However, consumption remains muted.

• Japan and the UK: Japan is forecast to grow at 0.7%, reflecting subdued consumption and net exports. The UK is expected to post modest gains at 1.2% in 2025.

Emerging and Developing Economies (EMDEs)

EMDEs are projected to grow 4.1% in 2025 and 4.0% in

2026.

• India is projected to retain its status as the fastest-growing major economy, with growth forecast at 6.4% in both 2025 and 2026, aided by a stable domestic environment and a more benign external trade backdrop.

• Chinas growth has been revised upward to 4.8% in 2025, primarily driven by resilient export performance, currency depreciation, and fiscal support measures.

• Other regions, such as Latin America, Sub-Saharan Africa, and the Middle East and Central Asia, are expected to see steady but uneven growth depending on commodity cycles, domestic reforms, and external vulnerabilities.

Trade and Financial Conditions

World trade volume is forecast to grow by 2.6% in 2025, with a sharp increase in the first half of the year due to anticipatory import demand. However, this momentum is expected to normalize in the latter half as inventories stabilize and trade flows revert to trend levels. The trade outlook for 2026 has been revised slightly downward to reflect this anticipated correction.

Global financial markets have stabilized, with easing monetary conditions, rebounding equity markets, and tightened corporate credit spreads. The U.S. dollars depreciation since April has improved trade competitiveness for emerging markets, leading to stronger capital inflows and reduced external vulnerabilities in several EMDEs.

Inflation Outlook

Inflation is on a declining trajectory globally:

• Headline inflation is forecast to fall to 4.2% in 2025 and 3.6% in 2026.

• Advanced economies are seeing inflation return toward target, with the exception of the United States, where tariff pass-through and fiscal stimulus are expected to keep inflation elevated into 2026.

• Emerging markets, including India and China, are witnessing more stable inflation profiles, with inflation in China projected to remain subdued and in India largely in line with target bands.

Source:https://www.imf.org/en/Publications/WEO/ Issues/2025/07/29/world-economic-outlook-update-july-2025

Indian Economy Outlook:

Indian Economic Outlook – IMF World Economic

Outlook (July 2025 Update)

India remains a standout performer in the global economic landscape, continuing to exhibit strong macroeconomic fundamentals and robust growth momentum, even as global uncertainty persists. The International Monetary Fund (IMF), in its July 2025 World Economic Outlook (WEO), has revised Indias GDP growth forecast upward to 6.4% for both 2025 and 2026, rea_rming Indias position as the fastest-growing major economy in the world.

Economic Growth Trajectory

The IMFs revised estimates reflect stronger-than-expected macroeconomic performance, with growth underpinned by a resilient domestic economy and improving external conditions. On a calendar year basis, Indias real GDP is expected to grow by 6.7% in 2025, marginally moderating to 6.4% in 2026. These projections are notably higher than the global average of 3.0% and even outperform other major emerging markets.

This upward revision is attributed to:

• Better global trade conditions following the de-escalation of trade tensions and stabilization of key export markets.

• Benign financial conditions globally, which have enabled more accommodative policy environments and capital inflows into emerging markets such as India.

• A slightly weaker U.S. dollar, improving export competitiveness.

Key Domestic Growth Drivers

1. Private Consumption:

The principal engine of growth continues to be domestic consumption, particularly in rural and semi-urban regions, driven by demographic dividend, improved disposable incomes, and favorable monsoon conditions. The rising penetration of formal employment and financial inclusion has further supported broad-based consumer demand.

2. Government Capital Expenditure:

Indias growth strategy remains heavily reliant on public investment in infrastructure, including roads, railways, ports, green energy, and digital infrastructure. The government has maintained a sharp focus on capital expenditure-led growth with multiplier effects across sectors.

3. Structural Reforms & Policy Continuity:

The policy landscape remains supportive of long-term productivity improvements, with continued emphasis on ease of doing business, Make-in-India, PLI schemes, formalization of the economy, and labor code reforms.

4. Export Performance:

Exports have remained resilient, benefiting from currency competitiveness and strong demand in key trading blocs. Indias service exports, especially in IT and digital services, remain robust despite global tech moderation.

Inflation and Monetary Policy Outlook

Headline inflation has moderated and remains within the Reserve Bank of Indias (RBI) target band of 2–6%, enabling policy space for future monetary support if needed. The RBI continues to adopt a data-dependent stance, balancing inflation control with the need to support growth.

• The decline in global commodity prices and government measures on food supply chains have helped ease inflationary pressures.

• Core inflation remains stable, though some risks persist in the form of oil price volatility and imported inflation due to global supply chain adjustments.

External Sector and Balance of Payments

• The current account deficit (CAD) is projected to remain manageable at ~1.3% of GDP, reflecting stable trade flows and remittance inflows.

• Indias foreign exchange reserves remain healthy, providing a strong bu_er against external shocks.

• The Indian rupee has seen relative stability, with the IMF continuing to classify Indias exchange rate arrangement as "stabilised." This reflects prudent currency management and foreign capital flow dynamics.

Sectoral Highlights:

• Manufacturing and Infrastructure: Government incentives through the PLI scheme and large-scale infrastructure push are likely to boost industrial capacity in electronics, renewables, defense, and automotive sectors.

• Services: The IT and digital services sector continues to contribute significantly to exports and employment.

• Agriculture: A favorable monsoon outlook and increasing productivity are expected to support rural incomes and consumption.

The global macroeconomic environment in 2025 continues to navigate a landscape marked by persistent uncertainty, yet displays a degree of resilience in the face of geopolitical, trade, and fiscal challenges. According to the July 2025 update of the International Monetary Funds (IMF) World Economic Outlook (WEO), global economic activity is holding firm in the short term, supported by tactical trade behavior and responsive fiscal and monetary policy actions.

Global Growth Forecasts and Trends

The IMF projects global GDP growth at 3.0% in 2025 and 3.1% in 2026, representing an upward revision of 20 and 10 basis points respectively from the April 2025 forecast. The improvement primarily stems from:

• Front-loading of trade and investment ahead of anticipated tariff hikes, particularly in the United States and China,

• Lower effective U.S. tariff rates than previously announced,

• Easing of global financial conditions, including a depreciation of the U.S. dollar, and

• Fiscal expansion in key advanced and emerging economies, notably the U.S., Germany, and China.

However, despite this modest recovery, global growth remains below the pre-pandemic average of approximately 3.7%, reflecting the lingering structural headwinds in global trade and productivity.

Regional and Country-Level Outlook Advanced Economies

Growth in advanced economies is expected to moderate to 1.5% in 2025 and marginally increase to 1.6% in 2026.

• United States: Real GDP growth is forecast at 1.9% in 2025 (revised upward) and 2.0% in 2026, benefiting from improved trade terms, expansionary fiscal policy under the OBBBA Act, and investment incentives.

• Euro Area: The bloc is expected to grow at 1.0% in 2025 and 1.2% in 2026, with growth concentrated in investment and export activity. However, consumption remains muted.

• Japan and the UK: Japan is forecast to grow at 0.7%, reflecting subdued consumption and net exports. The UK is expected to post modest gains at 1.2% in 2025.

Emerging and Developing Economies (EMDEs)

EMDEs are projected to grow 4.1% in 2025 and 4.0% in 2026.

• India is projected to retain its status as the fastest-growing major economy, with growth forecast at 6.4% in both 2025 and 2026, aided by a stable domestic environment and a more benign external trade backdrop.

• Chinas growth has been revised upward to 4.8% in 2025, primarily driven by resilient export performance, currency depreciation, and fiscal support measures.

• Other regions, such as Latin America, Sub-Saharan Africa, and the Middle East and Central Asia, are expected to see steady but uneven growth depending on commodity cycles, domestic reforms, and external vulnerabilities.

Trade and Financial Conditions

World trade volume is forecast to grow by 2.6% in 2025, with a sharp increase in the first half of the year due to anticipatory import demand. However, this momentum is expected to normalize in the latter half as inventories stabilize and trade flows revert to trend levels. The trade outlook for 2026 has been revised slightly downward to reflect this anticipated correction.

Global financial markets have stabilized, with easing monetary conditions, rebounding equity markets, and tightened corporate credit spreads. The U.S. dollars depreciation since April has improved trade competitiveness for emerging markets, leading to stronger capital inflows and reduced external vulnerabilities in several EMDEs.

Inflation Outlook

Inflation is on a declining trajectory globally:

• Headline inflation is forecast to fall to 4.2% in 2025 and 3.6% in 2026.

• Advanced economies are seeing inflation return toward target, with the exception of the United States, where tariff pass-through and fiscal stimulus are expected to keep inflation elevated into 2026.

• Emerging markets, including India and China, are witnessing more stable inflation profiles, with inflation in China projected to remain subdued and in India largely in line with target bands.

Source:https://www.imf.org/en/Publications/WEO/ Issues/2025/07/29/world-economic-outlook-update-july-2025

Indian Economy Outlook:

Indian Economic Outlook – IMF World Economic Outlook (July 2025 Update) India remains a standout performer in the global economic landscape, continuing to exhibit strong macroeconomic fundamentals and robust growth momentum, even as global uncertainty persists. The International Monetary Fund (IMF), in its July 2025 World Economic Outlook (WEO), has revised Indias GDP growth forecast upward to 6.4% for both 2025 and 2026, rea_rming Indias position as the fastest-growing major economy in the world.

Economic Growth Trajectory

The IMFs revised estimates reflect stronger-than-expected macroeconomic performance, with growth underpinned by a resilient domestic economy and improving external conditions. On a calendar year basis, Indias real GDP is expected to grow by 6.7% in 2025, marginally moderating to 6.4% in 2026. These projections are notably higher than the global average of 3.0% and even outperform other major emerging markets.

This upward revision is attributed to:

• Better global trade conditions following the de-escalation of trade tensions and stabilization of key export markets.

• Benign financial conditions globally, which have enabled more accommodative policy environments and capital inflows into emerging markets such as India.

• A slightly weaker U.S. dollar, improving export competitiveness.

Key Domestic Growth Drivers

1. Private Consumption:

The principal engine of growth continues to be domestic consumption, particularly in rural and semi-urban regions, driven by demographic dividend, improved disposable incomes, and favorable monsoon conditions. The rising penetration of formal employment and financial inclusion has further supported broad-based consumer demand.

2. Government Capital Expenditure:

Indias growth strategy remains heavily reliant on public investment in infrastructure, including roads, railways, ports, green energy, and digital infrastructure. The government has maintained a sharp focus on capital expenditure-led growth with multiplier effects across sectors.

The global macroeconomic environment in 2025 continues to navigate a landscape marked by persistent uncertainty, yet displays a degree of resilience in the face of geopolitical, trade, and fiscal challenges. According to the July 2025 update of the International Monetary Funds (IMF) World Economic Outlook (WEO), global economic activity is holding firm in the short term, supported by tactical trade behavior and responsive fiscal and monetary policy actions.

Global Growth Forecasts and Trends

The IMF projects global GDP growth at 3.0% in 2025 and 3.1% in 2026, representing an upward revision of 20 and 10 basis points respectively from the April 2025 forecast. The improvement primarily stems from:

• Front-loading of trade and investment ahead of anticipated tariff hikes, particularly in the United States and China,

• Lower effective U.S. tariff rates than previously announced,

• Easing of global financial conditions, including a depreciation of the U.S. dollar, and

• Fiscal expansion in key advanced and emerging economies, notably the U.S., Germany, and China.

However, despite this modest recovery, global growth remains below the pre-pandemic average of approximately 3.7%, reflecting the lingering structural headwinds in global trade and productivity.

Regional and Country-Level Outlook Advanced Economies

Growth in advanced economies is expected to moderate to 1.5% in 2025 and marginally increase to 1.6% in 2026.

• United States: Real GDP growth is forecast at 1.9% in 2025 (revised upward) and 2.0% in 2026, benefiting from improved trade terms, expansionary fiscal policy under the OBBBA Act, and investment incentives.

• Euro Area: The bloc is expected to grow at 1.0% in 2025 and 1.2% in 2026, with growth concentrated in investment and export activity. However, consumption remains muted.

• Japan and the UK: Japan is forecast to grow at 0.7%, reflecting subdued consumption and net exports. The UK is expected to post modest gains at 1.2% in 2025.

Emerging and Developing Economies (EMDEs)

The global macroeconomic environment in 2025 continues to navigate a landscape marked by persistent uncertainty, yet displays a degree of resilience in the face of geopolitical, trade, and fiscal challenges. According to the July 2025 update of the International Monetary Funds (IMF) World Economic Outlook (WEO), global economic activity is holding firm in the short term, supported by tactical trade behavior and responsive fiscal and monetary policy actions.

Global Growth Forecasts and Trends

The IMF projects global GDP growth at 3.0% in 2025 and 3.1% in 2026, representing an upward revision of 20 and 10 basis points respectively from the April 2025 forecast. The improvement primarily stems from:

• Front-loading of trade and investment ahead of anticipated tariff hikes, particularly in the United States and China,

• Lower effective U.S. tariff rates than previously announced,

• Easing of global financial conditions, including a depreciation of the U.S. dollar, and

• Fiscal expansion in key advanced and emerging economies, notably the U.S., Germany, and China.

However, despite this modest recovery, global growth remains below the pre-pandemic average of approximately 3.7%, reflecting the lingering structural headwinds in global trade and productivity.

Regional and Country-Level Outlook Advanced Economies

Growth in advanced economies is expected to moderate to 1.5% in 2025 and marginally increase to 1.6% in 2026.

• United States: Real GDP growth is forecast at 1.9% in 2025 (revised upward) and 2.0% in 2026, benefiting from improved trade terms, expansionary fiscal policy under the OBBBA Act, and investment incentives.

• Euro Area: The bloc is expected to grow at 1.0% in 2025 and 1.2% in 2026, with growth concentrated in investment and export activity. However, consumption remains muted.

• Japan and the UK: Japan is forecast to grow at 0.7%, reflecting subdued consumption and net exports. The UK is expected to post modest gains at 1.2% in 2025.

Emerging and Developing Economies (EMDEs)

EMDEs are projected to grow 4.1% in 2025 and 4.0% in

2026.

• India is projected to retain its status as the fastest-growing major economy, with growth forecast at 6.4% in both 2025 and 2026, aided by a stable domestic environment and a more benign external trade backdrop.

• Chinas growth has been revised upward to 4.8% in 2025, primarily driven by resilient export performance, currency depreciation, and fiscal support measures.

• Other regions, such as Latin America, Sub-Saharan Africa, and the Middle East and Central Asia, are expected to see steady but uneven growth depending on commodity cycles, domestic reforms, and external vulnerabilities.

Trade and Financial Conditions

World trade volume is forecast to grow by 2.6% in 2025, with a sharp increase in the first half of the year due to anticipatory import demand. However, this momentum is expected to normalize in the latter half as inventories stabilize and trade flows revert to trend levels. The trade outlook for 2026 has been revised slightly downward to reflect this anticipated correction.

Global financial markets have stabilized, with easing monetary conditions, rebounding equity markets, and tightened corporate credit spreads. The U.S. dollars depreciation since April has improved trade competitiveness for emerging markets, leading to stronger capital inflows and reduced external vulnerabilities in several EMDEs.

Inflation Outlook

Inflation is on a declining trajectory globally:

• Headline inflation is forecast to fall to 4.2% in 2025 and 3.6% in 2026.

• Advanced economies are seeing inflation return toward target, with the exception of the United States, where tariff pass-through and fiscal stimulus are expected to keep inflation elevated into 2026.

• Emerging markets, including India and China, are witnessing more stable inflation profiles, with inflation in China projected to remain subdued and in India largely in line with target bands.

Source:https://www.imf.org/en/Publications/WEO/ Issues/2025/07/29/world-economic-outlook-update-july-2025

Indian Economy Outlook:

Indian Economic Outlook – IMF World Economic

Outlook (July 2025 Update)

India remains a standout performer in the global economic landscape, continuing to exhibit strong macroeconomic fundamentals and robust growth momentum, even as global uncertainty persists. The International Monetary Fund (IMF), in its July 2025 World Economic Outlook (WEO), has revised Indias GDP growth forecast upward to 6.4% for both 2025 and 2026, reaffirming Indias position as the fastest-growing major economy in the world.

Economic Growth Trajectory

The IMFs revised estimates reflect stronger-than-expected macroeconomic performance, with growth underpinned by a resilient domestic economy and improving external conditions. On a calendar year basis, Indias real GDP is expected to grow by 6.7% in 2025, marginally moderating to 6.4% in 2026. These projections are notably higher than the global average of 3.0% and even outperform other major emerging markets.

This upward revision is attributed to:

• Better global trade conditions following the de-escalation of trade tensions and stabilization of key export markets.

• Benign financial conditions globally, which have enabled more accommodative policy environments and capital inflows into emerging markets such as India.

• A slightly weaker U.S. dollar, improving export competitiveness.

Key Domestic Growth Drivers

1. Private Consumption:

The principal engine of growth continues to be domestic consumption, particularly in rural and semi-urban regions, driven by demographic dividend, improved disposable incomes, and favorable monsoon conditions. The rising penetration of formal employment and financial inclusion has further supported broad-based consumer demand.

2. Government Capital Expenditure:

Indias growth strategy remains heavily reliant on public investment in infrastructure, including roads, railways, ports, green energy, and digital infrastructure. The government has maintained a sharp focus on capital expenditure-led growth with multiplier effects across sectors.

3. Structural Reforms & Policy Continuity:

The policy landscape remains supportive of long-term productivity improvements, with continued emphasis on ease of doing business, Make-in-India, PLI schemes, formalization of the economy, and labor code reforms.

4. Export Performance:

Exports have remained resilient, benefiting from currency competitiveness and strong demand in key trading blocs. Indias service exports, especially in IT and digital services, remain robust despite global tech moderation.

Inflation and Monetary Policy Outlook

Headline inflation has moderated and remains within the Reserve Bank of Indias (RBI) target band of 2–6%, enabling policy space for future monetary support if needed. The RBI continues to adopt a data-dependent stance, balancing inflation control with the need to support growth.

• The decline in global commodity prices and government measures on food supply chains have helped ease inflationary pressures.

• Core inflation remains stable, though some risks persist in the form of oil price volatility and imported inflation due to global supply chain adjustments.

External Sector and Balance of Payments

• The current account deficit (CAD) is projected to remain manageable at ~1.3% of GDP, reflecting stable trade flows and remittance inflows.

• Indias foreign exchange reserves remain healthy, providing a strong bu_er against external shocks.

• The Indian rupee has seen relative stability, with the IMF continuing to classify Indias exchange rate arrangement as "stabilised." This reflects prudent currency management and foreign capital flow dynamics.

Sectoral Highlights:

• Manufacturing and Infrastructure: Government incentives through the PLI scheme and large-scale infrastructure push are likely to boost industrial capacity in electronics, renewables, defense, and automotive sectors.

• Services: The IT and digital services sector continues to contribute significantly to exports and employment.

• Agriculture: A favorable monsoon outlook and increasing productivity are expected to support rural incomes and consumption.

• Brand IP still maturing: Ongoing trademark process (one objected, one accepted & advertised) underscores early stage of brand protection.

• SME-stage systems scale: Rapid capacity additions and inventory optimization ambitions imply execution demands on processes, working capital and talent depth (management acknowledges focus on operational e_ciency and inventory days reduction).

Opportunities

• Structural growth in specialty chemicals: Indias specialty chemicals market expected to outpace broader chemicals, driven by innovation, import substitution and export opportunities; sector policies (e.g., redesigned PCPIR) and sustained end-market growth provide tailwinds.

• Deeper penetration in mining explosives and industrials: Australia entry (low competition, logistics advantages, customer proximity) with field trials and initial orders expected—creates pathway to global relationships and customized emulsifier solutions.

• Portfolio expansion and contract/exclusive manufacturing: Strategy to expand SKUs/capacity, value engineer, and co-develop new molecules with customers can unlock cross-selling and higher-margin, stickier accounts.

• Leverage integrated R&D to accelerate new product commercialization: Established processes (esterification, quaternisation, phosphorylation, polymerization, etc.) and application labs enable faster customization and qualification for diverse industries.

Threats

• Competitive intensity and pricing pressure: Competition from domestic and multinational players on price, customization and innovation could compress margins and slow share gains.

• Raw-material supply shocks: Shortages, delays or quality issues in third-party sourced inputs can disrupt production schedules, inflate costs, and a_ect customer commitments.

• Regulatory and compliance risk: Changes in Indian or export-market regulations (including environmental, taxes, anti-dumping, product norms) could require process changes, capex, or lead to approval delays and potential shutdowns if non-compliant.

• Operational risk from site events: Any extended outage or safety incident at the sole plant could materially impact deliveries and financials; insurance shortfalls would exacerbate impacts.

Financial Highlights – FY25

During FY25, Indian Emulsifiers Limited delivered a strong financial performance, marked by robust topline and bottom-line growth. Total income increased by 53.9% to 102.66 crore as compared to 66.71 crore in FY24, driven by higher volumes, an expanded product portfolio, and incremental contributions from international markets. EBITDA grew by ~42.0% year-on-year to 21.05 crore, with margins at a healthy 20.5%. Net profit rose by 50.7% to 13.30 crore, reflecting operational e_ciencies and disciplined cost management, even as raw material prices remained volatile. The companys net worth strengthened significantly to 82.03 crore in FY25 from 28.44 crore in FY24, supported by strong internal accruals and improved profitability. Overall, FY25 showcased the companys ability to scale its operations efficiently while maintaining margin resilience, laying a solid foundation for sustained growth.

ANNEXURE –D

Details of Remuneration under Section 197(12)

Details pertaining to remuneration as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

1. The ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year 2023-24:

Sr. No.	Name of the Director / Key Managerial	% increase/ (decrease) in	Ratio of remuneration of each
	Person (KMP) and Designation	remuneration in the financial	Director to median remunera-
		year 2024-25	tion of employees
1	YASH SUNIL TIKEKAR	100	20.41
2	ABHAY TIKEKAR	NA*	15.65
3	VAISHALI DIPEN TARSARIYA	NA#	0.68
4	RAJESH MADHUKAR JOSHI	NA#	0.74
5	RAJARAM GORDHANLAL AGARWAL	NA#	0.91
6	MANDEEP BRIJKISHORE PANDEY	46	4.42
7	RAMRAJ SINGH THAKUR	NA#	1.36

2. The percentage increase in the median remuneration of employees of the Company in the financial year:

During the financial year 2024-25, the median remuneration of employees of the Company was increased by 1.73%

3. The number of permanent employees on the rolls of Company:

As on March 31, 2025, there were 46 permanent employees on the rolls of the Company.

4. Average percentile decrease made in the salaries of employees other than managerial personnel in the last financial year i.e. 2024-25 was 37.75%. 5. It is a_rmed that the remuneration paid is as per the remuneration policy of the Company.

ANNEXURE_– E

ANNUAL REPORT ON CSR ACTIVITIES

1. Brief outline on CSR_Policy_of_the_Company: The Company has set high ethical standards for all its dealings and believes in inspiring trust and confidence. We strongly believe that, we exist not only for doing good business, but equally for the betterment of the Society. The Company has implemented its CSR policy / charter to focus inter-alia on the following areas:

2. Composition_of_CSR_Committee:

Sl. Name of Director No	Designation/ Nature of Directorship	Number_of_meetings of CSR Committee held during the year	Number_of_meetings_of CSR Committee attended during the year
1 Vaishali Dipen Tarsariya	Chairman	1	1
_2 Yash Tikekar	Member	1	1
_3 Rajaram Gordhanlal Agarwal	Member	1	1

3. Provide the web-link(s) where Composition of CSR Committee, CSR Policy and CSR Projects approved by the board are disclosed on the website of the company https://indianemulsifiers.com/

4. Provide the executive summary along with web-link(s) of Impact Assessment of CSR Projects carried out in pursuance of sub-rule (3) of rule 8, if applicable.

5. (a) Average net profit of the company as per sub-section (5) of section 135: Rs. 5,19,68,566/-

(b) Two percent of average net profit of the company as per sub-section (5) of section 135: Rs. 10,39,371.32/-(c) Surplus arising out of the CSR Projects or programmes or activities of the previous financial years: N. A (d) Amount required to be set-o_ for the financial year, if any: N. A

(e) Total CSR obligation for the financial year [(b)+(c)-(d)]: Rs. 10,39,371.32/-

6. (a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project): Rs. 7,00,000/- (b) Amount spent in Administrative Overheads: Rs. 0/- (c) Amount spent on Impact Assessment, if applicable: Rs. 0/- (d) Total amount spent for the Financial Year [(a)+(b)+(c)]: Rs. 7,00,000/- (e) CSR amount spent or unspent for the Financial Year: Unspent Rs. 3,39,371.32/-

Total_Amount_Spent for_the Financial	Amount_Unspent_(in_Rs.)
Year._(in_Rs.)	Total Amount transferred to Unspent CSR Account as_per sub-section_(6)_of_section_135.		Amount transferred to any fund specified under Schedule VII_as_per_second proviso_to sub-section_(5) of_section_135.
	Amount.	Date_of transfer.	Name_of_the_Fund	Amount.	Date_of_transfer.
Rs. 7,00,000/-	_N. A	_N. A	_N. A	_N. A	_N. A

(f) Excess amount for set-o_, if any:

Sl._No. Particular	Amount (in_Rs.)
(1) (2)	(3)
(i) Two_percent_of_average_net_profit_of_the_company_as_per_sub-section_(5)_of_section_135	10,39,371.32
(ii) Total_amount_spent for_the_Financial_Year	7,00,000
(iii) Excess_amount spent_for_the_Financial_Year_[(ii)-(i)]	N. A
(iv) Surplus_arising_out_of_the_CSR_projects_or_programmes_or_activities_of_the_previous_Financial_Years, if_any	N. A
(v) Amount_available_for_setoff__in_succeeding_Financial_Years [(iii)-(iv)]	N. A

7. Details of Unspent Corporate Social Responsibility amount for the preceding three Financial Years:

2	3	4	5	6		7	8
Preceding Financial Year(s)	Amount_transferred to Unspent CSR Account under sub-section (6) o section 135 (in_Rs.)	Balance_Amount in Unspent_CSR Account under sub- section_(6) of section_135 (in_Rs.)	Amount Spent in the Financial Year (in_Rs)	Amount transferred to a Fund as specified under Schedule VII as per_second proviso to sub-section (5) of section 135, if an		Amount remaining to be_spent in succeeding Financial Years_(in_Rs)	Deficiency, if_any
				Amount (in_Rs)	Date of Trans- fer
2022-23	N. A	N. A	N. A	N. A	N. A	N. A	N. A
2023-24	N. A	N. A	N. A	N. A	N. A	N. A	N. A
2024-25	N. A	N. A	7,00,000	N. A	N. A	3,39,371.32	N. A

8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial Year: No If_yes,_enter the_number_of_Capital_assets_created/_acquired__ Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in the Financial Year:

Sl. No. Short_particulars of the property or asset(s) [including complete_address and location of the property]	Pincode_of_the property or asset(s)	Date of creation	Amount_of CSR amount_spent	Details of entity/ Authority/ beneficiary of the registered owner
(1) (2)	(3)	(4)	(5)	(6)
N. A	N. A	N. A	N. A	CSR Registration Number, if applicable	Name	Registered address
N. A	N. A	N. A	N. A	N. A	N. A	N. A

(All the fields should be captured as appearing in the revenue record, flat no, house no, Municipal Office/Municipal Corporation/ Gram panchayat are to be specified and the area of the immovable property as well as boundaries)

9. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per subsection (5) of section 135 – Out of the prescribed CSR expenditure of Rs.10.39 lacs for FY 2024-25, Rs. 7 lacs was utilised due to limited availability of the sustainable programs of projects which meet the vision of the Company. The company has been continuously and persistently exploring novel opportunities and possibilities in the form of sustainable programs or projects for CSR activities to create larger social impact and positive changes in the lives of the community.