The current global economic situation continues to be impacted by uncertainty due to
complex interplay of factors such as increased geopolitical tensions, escalating trade
disputes, protectionist policies, disruptions in supply chains, leading to market
volatility. The nature of US policy changes makes it difficult to predict the extent of
the economic disruptions going forward. The International Monetary Fund (IMF), in its
World Economic Outlook dated April 2025, has predicted that the global economy will grow
by 2.8 per cent this year, down from its previous forecast of 3.3 per cent, and by 3.0 per
cent in 2026.
Despite the Indian economy being increasingly linked to the global one, India has been
able to navigate the head winds with a fair degree of success. India's economy has
maintained a steady growth trajectory, with real GDP expanding by 6.5% in FY 2024–25
and registering a per capita income of Rs 2.35 lacs
p.a. In nominal terms, GDP grew by 9.8%, highlighting India's position as one of the
fastest-growing major economies globally. India is now the 4th largest economy in the
world with a size of more that USD 4 Trillion. The increase in GDP was largely driven by
healthy growth in private consumption and capital formation. All sectors of the economy
showed steady growth, and the increase in agriculture income by 4.6% is particularly
noteworthy.
The year 2024-25 has seen a record foodgrain production of 354 Million Tonnes. The
consumer price inflation rate declined to 2.82 % in May 25, lowest since February 2019.
The Reserve Bank of India has reduced interest rates by 100 basis points this calendar
year and introduced various liquidity-enhancing measures to stimulate economic growth.
Improved agricultural output, sustained infrastructure activity, decline in energy costs,
strong domestic consumption, focus on structural reforms; are all expected to supplement
India's growth momentum in FY 2026. The gross Goods and Services Tax (GST) revenue for the
month of May 2025 stood at ?2.01 lakh Crs, representing a 16.4% year-on-year growth and
this further reinforces the positive outlook. At the same time, given the aspirations of
the people, this is an opportune time for India to design a blueprint
for the next phase of reforms. It is imperative that the manufacturing sector is given
an impetus to generate jobs as well as reduce vulnerabilities of global supply chains.
This will require a reduction in cost of doing business by easing the regulatory burden so
that Indian products are globally competitive. The government, both at the Centre and the
States are fully committed to undertake the required reforms and we believe that a faster
rollout can make a substantial impact.
In the financial year 2024-25, the company witnessed improved financial performance
driven by higher volumes and robust realizations in the Chemicals, Vinyl, Shriram Farm
Solutions and Bioseed segments. Our business segments of Sugar and Ethanol and Fenesta
Building Systems also contributed to revenue growth but were impacted by margin pressures.
The Chemicals business reported an increase in revenue driven by higher volumes led by
capacity additions and higher realisation. The growth in margins was supported by lower
cost, mainly due to efficiencies achieved from newly commissioned power plant and lower
prices of energy and carbon material. The earnings of the Sugar and Ethanol business were
impacted by reduced margins on account of higher cane prices (SAP) and lower recovery due
to climatic conditions and red rot infection, partially mitigated by higher realizations.
Fenesta witnessed margin pressure due to an increase in fixed expenses towards enhancing
capabilities and higher promotional expenses, whereas Shriram Farm Solutions' earning
improved driven by higher volumes. Bioseed businesses witnessed a significant improvement
in earnings led by higher margins.
The Company's total revenue from operations (net of excise duty) on a consolidated
level stood at Rs. 12,077 crore in FY'25 vs. Rs. 10,922 crore last year. Chemicals and
Vinyl business reported a revenue increase of about 24% driven by higher volumes and
better realizations. Sugar and Ethanol business were up by 4% led by higher realizations
of Sugar and Ethanol. The Fenesta Building Systems business registered a growth of 5%,
driven by volumes, while the Shriram Farm Solutions business registered a 21% growth, and
the Bioseed Indiabusiness registered a 17% growth in revenue. The Fertilizer business
witnessed a decline of about 4%, on account of lower gas prices, which is a pass-through.
Profit before depreciation, interest and tax at Rs. 1,472 Crs, was up by 35% over last
year. The growth was mainly on account of 187% increase in the PBDIT of Chemicals and
Vinyl segment primarily due to higher volumes and realisations supported by reduced energy
costs. An increase of 27% in the PBDIT of SFS business was led by higher volumes. The
Bioseed PBDIT improved significantly, up by 141%, driven by better margins. The Fertilizer
business recorded an increase of 31% in PBDIT, mainly due to fertilizer arrears received
in FY'25. Sugar and Ethanol business PBDIT was down by 21%, majorly due to increased input
cost, partially offset by improved realizations. PBDIT for Fenesta Building Systems
business was down by 9%. Cement business also registered a decline in PBDIT, due to lower
realisations. Overall PBDIT margins for the company increased to 12% from 10% last year.
Net Profit for FY'25 was higher by 35% at Rs. 604 crore, from Rs. 447 crore in FY'24.
Net Debt (consolidated) as on March 31, 2025 stood at Rs. 1395 crore vis-?-vis Rs. 1,430
crore as on March 31, 2024, with surplus funds being utilized for project capex.
The Company commissioned projects in FY '25 at a cumulative investment of ~ Rs. 2270
crore. This included a 850 TPD Caustic soda plant, a 600 TPD Caustic soda flaker facility,
a 150 TPD Hydrogen Peroxide facility and a 120 MW coal/biomass based power plant at
Bharuch. A 12 TPD Integrated Compressed Biogas Project at Ajbapur Sugar complex was
commissioned, a first for the company. Currently, the significant projects under
implementation are 52000 TPA Epichlorohydrine (ECH) facility, Aluminium extrusion plant
for Fenesta, 68 MW (peak) renewable energy for Kota, 100 TPD Aluminium Chloride and 225
TPD Calcium Chloride at Bharuch..
During the year, our efforts towards sustainable business
practices were reinforced. We earned global recognition for our
from 54 to 59, placing us in the top 7% of 523 global chemical companies. Our EcoVadis
score rose from 45 to 62, earning us a Bronze medal. These achievements reflect our
enhanced focus on environmental stewardship. Energy transition remains a priority, as
result of which we had commissioned 44 MW (peak) renewable power facility for our
Chemicals Complex in Bharuch in FY 24. Now this is being further enhanced by 6.6 MW (peak)
capacity and we have also signed agreement for a 68 MW (peak) renewable project for our
Kota complex.. Our sugar division produced 14.63 Crore Litres of Ethanol, supporting
India's ethanol blending program and driving circular value from agri-residues. The
Company continues its steps towards reducing carbon foot print including circular ennomy.
Our CSR interventions, under the DCM Shriram Foundation umbrella, aspire to have a
deeper impact on people we engage with, by making the communities more resilient and self-
confident. Our focus is on two aspects: addressing community needs through all-round
development for a measurable improvement in quality of life and promoting economic
empowerment of farmers in India with emphasis on promoting climate sustainable
agriculture.
Our philosophy for long-term success is centred on our employees and a strong set of
corporate values. These principles cultivate a culture of engagement, collaboration, and
adaptability. The company actively promotes employee development through continuous
learning and skill enhancement, viewing this investment as a catalyst for both
satisfaction and growth. Acknowledging the vital contributions of all
stakeholders—from the board members and employees to business associates, government
authorities and investors, we express gratitude and look forward to maintaining our growth
momentum through this continued partnership.
With best wishes,
23rd June 2025
sustainability efforts—our S&P Global CSA score improved
(Vikram S. Shriram)
Vice Chairman & Managing Director
(Ajay S. Shriram) Chairman & Sr. Managing Director