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In the following pages, the Management will provide its perspective on the operating and financial performance of the company during FY24 and an outlook of the business performance in the coming years.
SRF Limited is a Chemical-based, multi-business conglomerate engaged in the manufacturing of industrial and specialty intermediates. The company is widely recognised and well respected for its R&D capabilities globally, especially in the niche domain of Chemicals. SRF Limited is a market leader in most of its business segments in India and overseas. The company has operations in four countries namely, India, Thailand, South Africa, and Hungary. SRF has commercial interests in more than hundred countries and classifies its businesses as Technical Textiles Business (TTB), Chemicals Business (CB), Packaging Films Business (PFB), and Other Businesses.
During the year, the Technical Textiles Business (TTB) focussed on three important aspects, namely, expanding product portfolio, broadening customer base, and strengthening its market position in order to derisk from the flagship Nylon Tyre Cord Fabric (NTCF) from a long-term perspective. On the Business’ endeavours in the area of sustainability, a large portion of energy requirements were met through clean energy sources.
We will now discuss the three segments under TTB individually -
The NTCF market witnessed marginal growth during the year. Business increased the sales volumes of NTCF and Nylon Yarn in the domestic market with heightened focus on value-added Yarn portfolio.
During FY24, the business also successfully commissioned the capacity expansion of Nylon Yarn manufacturing for captive consumption and external sales.
In FY24, the Belting Fabrics (BF) segment did well with healthy demand coming from the core sectors of coal, steel, and cement. These sectors grew rapidly during the year on the back of increased spending on infrastructure projects by the Government of India.
Having said that, the Belting Fabrics segment faced challenges due to cheap imports from China, leading to stress on the domestic margins. Several countermeasures were undertaken to tide over the challenges that included an increase in its high-end, value-added products (VAPs) offerings, thereby tapping into a wider customer base.
During the year, the Polyester Industrial Yarn (PIY) performed well with strong demand from the Geotextiles, Seat Belts and Belting verticals. In H2 FY24, we witnessed a surge in demand for products manufactured by quality players, to which the business responded well.
The TTB also successfully commissioned PIY capacity expansion by the end of the year and the expanded capacity is expected to be fully utilised in FY25.
On an overall basis, the TTB is expected to deliver moderately improved results over FY24 with an enhanced focus on fully utilising capacities, reducing costs, and enhancing the portfolio of high-end, VAPs in BF and PIY. While margins will continue to remain under pressure in FY25, the increased volumes are expected to support the performance.
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