Sudarshan Chemical Industries Limited has announced the launch of a new product, Sudafast Red 313D, a specialized red pigment designed for printing ink applications. The announcement was made under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Product Details

Sudafast Red 313D is positioned to cater to both domestic and international markets, highlighting the company's strategic focus on expanding its global presence in the pigment sector.

Market Reach and Applications

The newly launched Sudafast Red 313D is designed specifically for printing ink applications and will be available globally. This launch represents Sudarshan Chemical Industries' continued expansion in the pigment manufacturing sector, targeting both domestic and international markets.

Regulatory Compliance

The product launch disclosure was made pursuant to Regulation 30 read with Schedule III Part A Para B of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The announcement follows the requirements outlined in relevant SEBI Circulars.

Corporate Governance Initiative

Sudarshan Chemical Industries noted that while the product launch has not triggered the threshold of materiality as indicated in Para B of Part A of Schedule III of SEBI Listing Regulations, 2015, the company is making this announcement as a measure of adopting good corporate governance practices. This demonstrates its commitment to transparency and effective stakeholder communication.

Sudarshan Chemical Industries , a leading player in the global pigment industry, has announced a revision in its financial guidance for FY26, citing soft global demand and high customer inventory levels. The company has adjusted its acquired group guidance from €35 million to €25-30 million for FY26, reflecting the current market challenges.

Key Highlights

• Revenue growth remained flat in the recent quarter
• Guidance for acquired group revised downward for FY26
• Q3 expected to remain subdued, with recovery anticipated from Q4 onwards
• Long-term 3-4 year projections maintained despite temporary setbacks

Market Challenges and Inventory Issues

Sudarshan Chemical has faced headwinds due to low demand across most pigment end-use sectors, particularly in coatings and plastics. This softness in demand has been attributed to high interest rates, which have led to lower household demand for paints and automotive products. The company's Managing Director, Mr. Rajesh Rathi, explained that the situation was exacerbated by unexpectedly high inventory levels at customer sites:

"Most of our global customers have degrown. But added to the problem of this degrowth was, as I had mentioned last time, during insolvencies, customers bought above normal stocks not only from Heubach, but products which were similar from competitors."

Financial Performance

The company's financial performance reflects these challenges:

The legacy Sudarshan pigment business saw flat growth, mainly affected by the coatings market in India. However, the plastics market performed well.

Outlook and Recovery

Despite the current challenges, Sudarshan Chemical remains optimistic about its long-term prospects. The company expects a recovery starting from Q4 of the current fiscal year. Mr. Rathi stated:

"Our 3- to 4-year guideline still remains the same. As I mentioned, this is a temporary phenomenon due to the demand adjustment, and that's the reason why we have to only adjust for this year. Our long-term 3- to 4-years guidance remains the same."

Integration Progress and Value Capture

The company reported positive progress in integrating its recent acquisitions, including stabilizing operations, generating good leads, and launching projects to integrate IT systems. Sudarshan Chemical is also focusing on value capture across various areas, including operations, supply chain optimization, and technical synergies.

Conclusion

While Sudarshan Chemical Industries faces short-term challenges due to soft global demand and high customer inventories, the company maintains its long-term outlook. Management expects a gradual recovery starting from Q4, with ongoing efforts in integration and value capture expected to drive future growth and efficiency.