Kohinoor Chemicals has outshined competitors, achieving 19% YoY profit growth in FY23, driven by strong sales of its popular soap, cosmetics, and toiletry brands. In contrast, other chemical suppliers faced profit declines and losses attributed to costlier raw materials, a stronger dollar, and energy price hikes, impacting SMEs relying on their products.
Economic turmoil from the Russia-Ukraine war exacerbated challenges, with gas and power disruptions affecting production and reducing demand. Kohinoor’s success is credited to the popularity of its products among middle-class and rural consumers.
Challenges for competitors include difficulty in opening letters of credit, a dollar crunch affecting raw material imports, and unhealthy competition from bonded warehouse facilities.
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