Chemical
We are not expecting substantial contraction in demand says Galaxy Surfactants
As Galaxy's products go into day to day consumer needs of Personal and Home care, the company does not foresee any material demand destruction.
- By ICN Bureau
| June 26, 2020
Galaxy Surfactants Limited does not expect any substantial contraction in the demand for their products post COVID-19 as they are used in manufacture of consumer cleaning products in home and personal care.
The demand for premium category specialty products will be impacted by down trading due to decline in consumer incomes. Business will get impacted to the extent operations are impacted on account of restrictions on movement of cargo and people experienced by all our stakeholders including customers, vendors, and service providers causing uncertainties and hindering smooth execution of trade.
As Galaxy's products go into day to day consumer needs of Personal and Home care, the company does not foresee any material demand destruction. Hence the assets, capital and financial resources are unlikely to see any economic impairment.
The IT systems of the company are mature and secured enough to work from home and undertake execution of transactions, banking operations, internal and external reporting and meet the documentation needs of undertaking supply chain activities.
With cash flows continuing on account of ongoing business operations, the company does not anticipate any stress on liquidity. Being cash positive in both April & May (including subsidiaries) the liquidity position remains good. The company is not seeking any moratorium on debt repayment obligations.
The supply chain situation has also improved as compared to the situation prevailing in April 2020 with gradual relaxations for permissible activities provided in subsequent lockdowns. May was better than April and the company expects June to be better than May subject to uncertainties relating to the second wave of infections and community transmission prospects on unlock.
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