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ANNUAL REPORT 2018 - 2019

MANAGEMENT DISCUSSION AND ANALYSIS

Amines & Plasticizers Limited (“APL”), which started its journey with a small Unit cum Factory at Turbhe, Navi
Mumbai in 1973 has now grown into a Company of repute in Chemical Industry. It has at its disposal a
multiproduct plant catering to needs of various customers domestically and internationally. APL as a Group has
diversified into Infotech and Engineering activities in addition to strengthening its core business of producing
specialty chemicals.

OVERVIEW OF THE ECONOMY
The year 2018 was a volatile year as factors such as global trade war, rate hikes by US Federal Reserves
and spike in crude prices internationally to a four year high all of which impacted the investor sentiments.
Emerging markets like India witnessed foreign outflows leading to currency weakness and higher inflation. In
order to curtail inflation, RBI raised interest rates. In domestic market, high raw material prices, high labor cost,
consistent increase in fuel and power prices impacted earnings and growth. However, the reversal in trend in
the 2nd half of previous financial year in terms of softening of crude oil prices and liquidity in banking system
have eased the pressure on Indian domestic manufacturing companies thereby increase in earnings.
Integrating economic, societal and environmental sustainability in operations would be a theme of doing
business in coming years.

BUSINESS OVERVIEW
The Company is engaged in the production of alkyl alkonalamines, morpholine derivatives and gas treating
solvents which finds application in various industries such as oil refineries, natural gas plants, ammonia plants,
petrochemical plants, pharmaceuticals and agro chemicals. Alkyl Alkanol mines are mostly used in oil refineriesa
and gas treating plants, whereas Morpholine Derivatives is used majorly in Textile Fiber Industries. As reported
earlier, the Company manufactures over 50 different varieties of organic chemicals / amines / solvents and
Agrochemicals. Petrochemicals is a core business segment of the Company, response from many of our Clients
are encouraging. We are hopeful to carter to their renewed demand and add more Customers in the course of
business.

Our Customers : -
The Company operates in a niche segment of chemical industry having a large client base that includes all
Public Sector Oil Companies / Refineries and Petrochemical Industries. As reported earlier, our foray into Textile
and Electronic Chemicals yielded results and few customers operating in the said segments continue to be
buyers of our products.

SUBSIDIARY COMPANIES PROGRESS :

APL Infotech Ltd :
As reported earlier, the Company is exploring various opportunities of marketing PA OR MA (a pipelinen a
detection software) by tying up with various specialized “software products marketing” agencies and software
consultants to explore the possibility of a breakthrough from amongst their clients based in India as well as
Abroad. However, in view of lack of regulatory support and awareness, the management is finding it difficult to
attract customer interest. The software product developed by the Company is a highly technologically
advanced product and is ahead of time and Company is making every possible effort to reach prospective and
relevant customers to market this product.

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MANAGEMENT DISCUSSION AND ANALYSIS