• The gross sales and other income for the year under review were Rs. 32,056.69 lacs as against Rs. 26,776.20 lacs for the previous year, registering increase of 19.72%. The profit before tax was Rs. 14,622.61 lacs (after interest and depreciation charges of Rs. 969.75 lacs) and the profit after tax was Rs. 9,511.67 lacs for the year under review as against Rs. 5,704.47 lacs and Rs. 3,788.26 lacs respectively, for the previous year, registering increase of 156.34% and 151.08% respectively.
  • The Company produced 1,03,059 MT of Hydrogen Peroxide, during the year under review, as compared to 93,564 MT during the previous year. The production was higher during the year due to improved plant efficiency. The Company sold 1,00,365 MT of Hydrogen Peroxide during the year under review, as against 96,195 MT during the previous year. The Company continues to maintain its prime position in the market and held 39% market share during the year as compared to 38% during the previous year. 1.16 Million Cubic Meters (MCM) of Hydrogen Gas were also sold during the year as against 1.26 MCM during the previous year.
  • During the financial year, the Company’s management has identified instances of embezzlement of its funds by certain employees of the Company, including senior management employees, whose services have since been terminated. Based on the management’s scrutiny and the forensic investigation, the Company has initiated criminal proceedings against these employees including filing of FIR and application for other appropriate action with the Joint Commissioner of Police, Economic Offences Wing. In view of embezzlement that has occurred, systems and controls have been further strengthened.
  • National Peroxide Limited (NPL) is the largest producer of Hydrogen Peroxide in the country. There are two other producers in the country. During the financial year ended 31st March, 2018, total production of all the three producers in India is estimated at 2,00,000 MT. NPL is a pioneer in Hydrogen Peroxide industry in India and has been at the forefront in development of technology, brand image and market share in the country.
  • Due to the eco-friendly nature of product, growing awareness of public towards the environment and increase in stringent environmental regulations, the domestic market has significantly developed over the years. The domestic demand is expected to grow by 5-6% during 2018-19. NPL has a market share of 39% in the domestic market. Due to mismatch in demand/supply within the country and surplus in other Asian countries, there has been continuing import of significant volume.
  • Both the key players in the domestic market (including NPL) are in the process of setting up additional capacities totaling to 78,000 MTPA, both of which are expected to be commissioned during the FY 2018-19. Two new producers have announced setting up new plants adding up to 80,000 MTPA. These capacities are also expected to be operational during the year 2018-19. This would lead to surplus capacity within the country in 2019-20 and restrict imports.
  • Growth in Paper industry and textile industry is positive for the company as they are user industries of Hydrogen Peroxide. Demand for Hydrogen Peroxide from oil refineries for effluent treatment has been developing and will continue to grow with growth in the volume of crude oil being processed by existing and upcoming refineries in the country.
  • One of the key inputs in production of Hydrogen Peroxide is Hydrogen Gas. NPL produces this by steam reforming of Natural Gas, which becomes a key raw material for production of Hydrogen Peroxide. India imports close to 50% of its requirement of Natural Gas. Price of Natural Gas to a very great extent depends on the crude oil price and US$ exchange rate versus Indian Rupee. This makes the price of Natural Gas subject to increased volatility. Also, Natural Gas does not fall under GST regime and input credit is not available for VAT paid. NPL procures its Natural Gas requirement under a long-term contract with GAIL (India) Limited and therefore, continuity of supply is fairly assured.
  • The outlook for industry in the near term can only be viewed with cautious optimism. Significant imports continued to take place from Thailand, Bangladesh and South Korea during the FY 2017-18. These imports have been at low prices due to surplus capacities in originating countries. Government of India has imposed Anti-dumping Duty on imports from Bangladesh, Taiwan, Korea RP, Pakistan and Thailand. Imposition of these duties combined with increasing production for expansion and new capacities in the country bodes well for the outlook for Hydrogen Peroxide industry in the near to medium term.
  • The additional capacities being built by competitors along with the proposed capacity expansion of NPL will alter the demand- supply situation in the country significantly. The custom duty on imports of Hydrogen Peroxide being Zero from some of ASEAN countries distorts the market dynamics. As a result, the margin may come under pressure particularly during periods of higher Gas prices.
  • The employee strength on the permanent rolls of the Company was 113, as on 31st March, 2018.

National Peroxide Annual Report 2018

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