Indo Rama Synthetics (India) Ltd

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I am delighted to present the Annual Report for FY 2023-24. Despite challenges and evolving business scenarios, we continue to maintain a prominent position in the market. We are optimistic about our capabilities and are committed to achieving long-term growth and success, leading our product segments with innovation.

During FY 2023-24, we generated a consolidated total income of 3,880.07 Crore, compared to 4,109.33 Crore in the previous financial year. This year’s financial performance reflects the ongoing challenges in the market, resulting decrease in profitability. EBITDA for FY 2023-24 also declined due to sluggish market conditions and geopolitical factors.

Various external factors, such as China’s dumping of goods in our product range at unfair prices, affected product segments across domestic and global market and influenced the Company’s performance.

Our performance was partially impacted by last year’s debottlenecking exercise of our existing operations. The good news is that we have ramped up our production capacity from the existing 1,743 tonnes per day to 1,920 tonnes per day, envisioning future growth and sustainability.

We successfully commissioned our 650 tonnes per day PET bottle resin capacity on June 2, 2023, fostering a different product segment to make the Company’s operations more sustainable. The Company will capture the PET bottle resin market in a phased manner with the demand growth in the domestic market. The Company has also commissioned 39 texturised machines to capture the value added product segment and improve our margins.

Thus, we are passing through challenging times and are implementing the necessary measures to overcome them and drive our future growth sustainably.

The man-made fibre (MMF) industry in India is on the rise. Although the country is predominantly known for its cotton textiles segments, but India is now the second-largest producer of MMF textiles globally as well, mainly comprising of polyester and viscose. The Government of India recognises the future of MMF sector and strongly supports its growth with various initiatives, including the Production Linked Incentive (PLI) Scheme (as of now, this is for MMF fabrics and garments only and MMF industry has urged the Government of India to include filament and yarn in this scheme so that more and more fibre, filament and yarn are available for the weaving industry), PM Mega Integrated Textile Region and Apparel (PM MITRA) scheme and more. The Indian Government has been also restricting import of cheaper fibre and filaments by implementing Quality Control Orders (QCOs) along with fixing Minimum Import Price (MIP) on the imported fabrics. The Indian Government has set an ambitious target to increase the total textile trade from the current $165 billion (exports: $40 billion+domestic: $125 billion) to $300 billion (exports: $100 billion+domestic: $200 billion) by 2030. India needs to produce more MMFs and filaments to achieve this target, as cotton availability is not increasing due to natural constraints.

We are focused on accelerating growth and value, surpassing our customers’ expectations with continuous innovation. We prioritise sustainable value creation for our stakeholders through innovation and research, cost optimisation, market expansion, integration, product mix value addition, quality certification, and superior technology.

The current global economic turbulence has impacted the textile and garment sector. Our aim is to achieve efficiency in our operations and even explore new markets. Leveraging on our advantage in the market in terms of low-cost position, integrated operations, and global presence, we are confident about maintaining our high-standard product portfolio and the legacy we have created over the decades.

Employees are our organisation’s biggest strength. We foster a work environment where our people can excel professionally and personally. We aim to enhance our teamwork and performance by facilitating transparency and new learning opportunities.

We focus on the importance of our employees’ safety in our operation. We ensure the safety of our people with our various measures and initiatives. Our systematic approach helps to maintain a safer workplace for everyone in the organisation. We also focus on promoting the health and wellness of our employees and their family members. Our comprehensive health centre at our Butibori plant is equipped with trained medical staff, ambulance service, and other medical facilities to ensure timely healthcare for our employees.

We are dedicated to societal growth and believe in giving back to the community for mutual growth in the future. To make a positive impact on people’s lives, we undertake healthcare, education, water conservation and energy conservation initiatives and programmes for our operating location.

We continue to innovate and evolve to reduce the environmental impact of all our offerings, which we understand can disrupt the ecological balance. Our initiatives aim to lower the environmental impact in and around our production facilities. We use energy effectively to minimise energy consumption and operational costs.

As we move towards a new fiscal year, I am hopeful about the Company and our resilient efforts to curb the impact of these challenging times. We are determined to recover rapidly and sustain growth, creating value for our stakeholders. On behalf of the Board of Directors and the management team, I would like to thank all our stakeholders, including our longstanding customers, employees, partners, bankers, and other associates, for their continuous faith and support. We are confident we can revitalise our operations and quickly recover to sustain our progress for a brighter future filled with new opportunities and hope.

Regards,

Chairman and Managing Director