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On behalf of the Board of Directors of SRF Limited, I am pleased to present the annual report for the financial year ended March 31, 2025.
As we reflect on the fiscal year 2025, we are filled with a profound sense of pride and optimism. The year has been a testament to our resilience, innovation, and unwavering commitment to growth. Despite a challenging start, we have navigated through uncertainties and emerged stronger, achieving significant milestones along the way.
This year, our theme is:
Despite global geopolitical tensions, tariff uncertainties, and potential growth slowdowns, our enhanced capabilities have prepared us for success. We made remarkable achievements in FY25. We have successfully expanded our operations, introduced innovative, value-added solutions, and strengthened our market position. From technological advancements to becoming a partner of choice, every milestone achieved this year has contributed to our overall success and positioned us for a promising future.
In the Chemicals Business, we saw a 6% increase in revenue, reaching ₹ 6,691 Crores. Our strategic investments in the Chemicals Business over the past several years, along with an allocation of ₹ 700 Crores for de-bottlenecking and expansion projects in FY25, have laid the groundwork for increased capital expenditure intensity, aligning with our future goals and aspirations. These investments have also fuelled innovative advancements, such as the development of new specialty chemicals and the commissioning of the third AHF plant at Dahej, which have significantly enhanced our production capabilities and market competitiveness.
Despite tough market conditions in the first half, our Specialty Chemicals Business (SCB) segment saw strong performance in the fourth quarter, driven by new product launches and a gradual pickup in demand for key agrochemical intermediates. Our cost-competitive pricing strategies and robust export market performance further supported revenue growth. SCB prioritised advancing customers’ new products and development projects. In FY25, we launched five agrochemical products and three pharmaceutical products. We focussed on fully utilising production capacities and optimising cost structures for efficiency. Both Bhiwadi and Dahej improved operational efficiency while managing a broader portfolio. SCB’s expertise in novel chemistries has grown, and progress in the pharmaceutical sector is encouraging.
The Chemicals Technology Group (CTG) at SRF has made remarkable strides in FY25, contributing significantly to the company’s innovation and growth. Equipped with state-of-the-art R&D facilities and an ingenious team of scientists and engineers, CTG has been committed to introducing novel chemistries and building cost-effective routes for existing and next-generation products in the Specialty Chemicals and Fluorochemicals Businesses. This has enabled the launch of new products and timely scale-ups, addressing technological challenges and improving output while reducing costs. In FY25, CTG worked on over 50 molecules, successfully scaled up many products, filed 38 patents, and had two patents granted, bringing the total to 151 granted patents.
Our Fluorochemicals Business segment also showed resilience, with positive developments such as strong domestic demand for refrigerants, especially in H2 FY25, and increased refrigerant gas prices in China. Additionally, inventory levels in the US have decreased following the implementation of the quota regime.
In our Fluoropolymers journey, we’ve seen good progress in bulk and domestic market growth. We are now focussing on ramping up new grades, such as free flow and fine cuts. The ongoing trials for free flow and fine cut grades are progressing according to plan. We are also preparing for commercial sales of fine cut products targeted at high-end application processors in export markets, with expected positive results beginning in FY26. This is a learning journey, and I believe that the knowledge we have attained will help us streamline our new fluoropolymer projects at a faster pace.
A major milestone was the commissioning of the third AHF plant at Dahej in the fourth quarter of FY25, facilitating maximised production and sales of refrigerant gases.
We are very optimistic about the prospects of this business, and we are investing heavily into it. We have recently announced an investment in new manufacturing facilities, including a project to develop fourth-generation refrigerants with an estimated investment of ₹ 1,100 Crores.
In line with our commitment to innovation and growth, we are excited to announce that our Packaging Films Business will now be known as the Performance Films & Foil Business. This change reflects our expanded capabilities and the broader range of products and services we now offer. The new name underscores our focus on delivering high-performance films and foil that meet the evolving needs of our customers.
Additionally, in a testament to our commitment to excellence and innovation, I am pleased to announce that SRF has been honoured as the champion of innovation in chemicals and materials science at the DET Hurun India Manufacturing Excellence Awards 2025.
In line with our commitment to innovation and growth, we are excited to announce that our Packaging Films Business will now be known as the Performance Films & Foil Business. This change reflects our expanded capabilities and the broader range of products and services we now offer. The new name underscores our focus on delivering high-performance films and foil that meet the evolving needs of our customers. Our dedication to quality, sustainability, and customer satisfaction remains unwavering as we continue to lead the industry with cutting-edge solutions.
The Performance Films & Foil Business reported a revenue growth of 24%, reaching ₹ 5,554 Crores. We achieved the highest-ever packed production with improved margins in both BOPET and BOPP. The commercialisation of new VAPs and the significant increase in the sale of high-impact VAPs have further strengthened our position. Additionally, the approval of a new manufacturing facility for the BOPP-BOPET film line in Indore aligns seamlessly with our sustainability goals. This project will expand our existing BOPP substrate and VAP offerings and explore the innovative polyolefin BOPE substrate.
SRF Industries (Thailand) Ltd. was honoured with the Industrial Estate Authority of Thailand Green Star Award, which is a prestigious recognition for companies that demonstrate excellence in environmental management, transparency, and good governance.
In the future, SRF's primary focus will be on significantly increasing sales of high-impact products across BOPP and BOPET by commissioning new downstream assets, including offline coating machines in India and metallisers in Thailand and India. Maximising profitability in the Aluminium Foil Business will be a key priority in the coming financial year. We will continue to drive sustainability initiatives with the '3R' approach - Reduce, Reuse, and Recycle. The vertical ramp-up of the newly acquired CPP Line will enhance our sustainable product offerings due to the monofamily advantage. Additionally, ensuring smooth commissioning and ramping up of the Capacitor grade BOPP Film Line will be a priority.
In the Technical Textiles Business, we recorded a revenue of ₹ 2,029 Crores, up 7% from the previous year. Despite facing margin pressure from low-cost imports and lactam price fluctuations, we expanded sales in N66 and PTC F products and successfully commissioned the full BF capacity expansion in Q4FY25.
In the future, we will continue to strive for a better performance by fully utilising capacities, implementing cost optimisation measures, and providing premium and value-added products.
Our Coated and Laminated Fabrics Businesses reported revenues of ₹ 428 Crores. In Coated Fabrics, we expanded textile capacity with new looms and a warper, set to boost profitability next financial year. Laminated Fabrics ramped up its new hot lamination machine and will begin producing its own knitted fabric.
In FY25, the Foundation touched the lives of 1,89,976 students across 493 Government schools. This remarkable achievement underscores our commitment to improving educational outcomes and providing better opportunities for students in underserved communities.
Sustainability remains a cornerstone of our strategy. Our facilities in Gummidipoondi and Viralimalai, Tamil Nadu, were awarded a Bronze medal by EcoVadis, reflecting our commitment to effective resource optimisation and meaningful contributions to the circular economy.
The SRF Foundation has continued to make significant strides in its mission to enhance education and community development. In FY25, the Foundation touched the lives of 1,89,976 students across 493 Government schools. This remarkable achievement underscores our commitment to improving educational outcomes and providing better opportunities for students in underserved communities.
One of the key highlights of the year was the laying of the foundation stone for the SRF School Bharuch. This new institution is set to become a beacon of quality education in the region, offering state-of-the-art facilities and a nurturing environment for students to thrive.
Our balance sheet remains strong, and with global interest rates trending downward, we expect reduced borrowing costs in FY26. We are committed to strategic investments for long-term growth, with an expected Capex of approximately ₹ 2,500 crore this year.
Reflecting on FY25, we are proud of our team’s resilience and dedication. Despite uncertainties, we believe FY26 will surpass FY25 for the Chemicals business and the company overall.
Our team members and management played an integral role, generously contributing to the positive developments and achievements in FY25. I extend my heartfelt gratitude and offer a sincere thank you to every single one of our team members for their support and continued motivation.
I would also like to express my appreciation and thank our shareholders for your support and confidence in SRF. We look forward to your continued support as we drive growth and enhance stakeholder value in the upcoming fiscal year. We are committed to building a future where our augmented capabilities will position us as industry leaders.
Sincerely,
Chairman and Managing Director
SRF Limited
