Yasons Chemex Care Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS

1. INDUSTRY STRUCTURE AND DEVELOPMENT

INDUSTRY TRENDS:

The market for dyes and pigments was valued at USD 38.2 billion in 2022, and from 2023 to 2030, it is an ?cipated to grow at a CAGR of 5.3%. The demand for these products is expected to rise across a number of applica ?on industries, including plas ?cs, paints andoa c ?ngs, tex ?les, and construc ?on. With a market share of over 62% in terms of revenue in 2022, the tex ?les segment dominated. The industry segment for prin ?ng ink is an ?cipated to experience thefastest CAGR between 2023 and 2030. India and China, two major producers of dyes, are likely to o??er favorable opportuni ?es throughout the Asia Paci??c region. per unit of In terms of color mass, dyes are superior to pigments. The dye-based inks may react chemically with other ingredients. In conjunc ?on with op ?cal brighteners and other addi ?ves, they produce prints that are superior to pigment-based inks. The demand for products in the prin ?ng ink applica ?on segment is expected to increase as a result of these factors.

OUTLOOK:

An integra ?on of micro and macro factors appear to be cruising the Yasons Chemex Care Limited outlook in a posi ?ve direc ?on. The Company9s mul ring ?-site emphasis, procurement strategies, and balanced approach to enhancing pro??tability are all contribu ?ng to its growing market share. Your company is developing cu ng-edge, environmentally responsible products. These groundbreaking goods are an ?cipated to draw in a larger customer base and support the company9s overall expansion. Further More, Yasons Chemex Care Limited has recently successfully completed the process Ini ?al Public o??er and as stated in the o??er 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 company9s 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 of to boost the company9s stance in the specialty chemicals sector, Produc ?on 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 innova The Company9s Revenue from operations increased to 3677.27 Lakhs from 2505.19 Lakhs of the previous year. EBITDA, which was 467.30 Lakhs compared to 294.98 Lakhs for the same period in the previous year. The Profit After Tax (PAT) attributable to the shareholders was 342.77 lakhs against 195.61 lakhs in last year.

2. OPPORTUNITIES AND STRENGTHS

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.	Increasing demand for dyes and dyestuffs in textile, printing, and packaging industries.
Further research investments to boost product range to cater to unique client demands.	Growing preference for eco-friendly and sustainable dyes, creating a niche market.
Efficient management of critical resources to minimize energy consumption.	Expansion of the Indian textile industry, which is a major consumer of dyes.
Dedicated focus on environmental responsibility through minimized effluents discharge.	Potential to tap into the global demand for Indian traditional textiles and dyes. Collaborations with international companies for technology transfer and joint ventures.
An innate culture of excellence within the venture with all-embracing safety provisions and Proficiency in engaging the local community around the manufacturing plants and plots and Well- established infrastructure and transportation networks.	Investment in research and development to create innovative and high- performance dyes. Strong expertise and technological advancements in dye manufacturing.

3. RISKS AND CONCERNS

RISKS	CONCERN/CHALLENGES
Intense competition from established global players in the dyes and dyestuff market.	Environmental concerns related to the disposal of chemical waste from dye manufacturing.
Fluctuating raw material prices, which may impact the cost of production.	Lack of stringent regulations and monitoring mechanisms regarding pollution control.
Dependency on third party for our transportation of raw materials.	Dependence on imported raw materials for certain specialized dyes.
Potential disruptions in global trade and supply chain due to political or economic factors.	Limited research and development efforts compared to global competitors.
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.	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.

4. PRODUCT WISE PERFORMANCE AND OUTLOOK

Yasons Chemex Care Limited specializes in a diversi??ed range star ?ng with Hair Re-Growth Oil, Perfume- deodorants, sani ?zers and Hand Made Shop. The ventures have also expanded to manufacturing bespoke products, including FMCG Products and diversi??ed range of dyestu??, pigments pastes, and skincare essen ?als. With just 3% contribu ?onfrom the Indian chemical industry to global produc ?on.

5. 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 organization9s 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 Auditor9s 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.

6. 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 ?mes, 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 situa ?ons. We focus on employee ful??llment, stretch, and development has translated into a highly mo ?vated and skilled workforce that consistently delivers excep ?onal results. To ensure that they can con ?nue to sa ?sfy our customers9 shi? ing needs and preferences, we will support our sta?? in helping them understand our customer-focused corporate culture and service quality standards.

7. SIGNIFICANT CHANGE:

There is no signi??cant or However, the company has successfully completed its Ini ?al Public O??ering (IPO) and raisedhe fund t which will be u ?lized for expansion of the business.

8. CAUTIONARY STATEMENT:

The Company9s goals, forecasts, expecta ?ons, and other informa ?on are included inhe t Management Discussion and Analysis sec ?ons, some of which may be deemed forward-looking statements under relevant laws and regula ?ons. 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 company9s opera ?ons. Consequently, even though the expecta ?ons are supported by reasonable hypotheses, the actual outcomes could signi??cantly diverge was from what predicted or indicated. The Company disclaims any duty to revise any publicly available forward-looking statements to re? ect any new knowledge, unan ?cipated events, or other circumstances.