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Aarti Industries Ltd.

BSE: 524208 Sector: Industrials
NSE: AARTIIND ISIN Code: INE769A01020
BSE LIVE 15:40 | 02 Dec 721.30 1.35
(0.19%)
OPEN

722.20

HIGH

730.55

LOW

713.75

NSE LIVE 15:46 | 02 Dec 723.80 2.70
(0.37%)
OPEN

726.50

HIGH

730.75

LOW

707.15

OPEN 722.20
PREVIOUS CLOSE 719.95
VOLUME 3668
52-Week high 765.00
52-Week low 417.00
P/E 20.81
Mkt Cap.(Rs cr) 6009.87
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 722.20
CLOSE 719.95
VOLUME 3668
52-Week high 765.00
52-Week low 417.00
P/E 20.81
Mkt Cap.(Rs cr) 6009.87
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Aarti Industries Ltd. (AARTIIND) - Chairman Speech

Company chairman speech

AARTI INDUSTRIES LIMITED ANNUAL REPORT 2008-2009 CHAIRMAN'S REPORT Dear Shareowners, It gives me great pleasure to address you in this landmark year for your Company. Your continued support and faith in your Company has helped it reach this far. With a vision to emerge as a leading player in the global chemical segment, your Company started off its operations in September 1984 as a small venture promoted by a group of technocrats and is in its Silver Jubilee year. On the eve of the completion of 25 years, I wish to present you a brief snapshot of our operations and achievements over the time. Operations Profile Starting its manufacturing activity from a small unit at Sarigam, Gujarat, your Company in its journey of past 25 years had setup various global size manufacturing units with state-of-the-art technologies. These manufacturing units are situated at Vapi, Sarigam & Jhagadia in the state of Gujarat, at Tarapur & Dombivali in the state of Maharashtra and at Silvassa. These units manufacture various Basic Chemicals, Speciality Chemicals, Agrochemicals & Pharmaceuticals having diversified applications into the end-user industries of Pharmaceuticals, Agrochemicals, FMCG, Pigments & Paints, Polymers, Dyes, Rubber Chemicals, etc. In all the company manufactures over 150 products on a regular basis, positioning itself as a unique entity capable of supplying basket of products to various Domestic as well as Global Customers & MNCs. As at 31st March 2009, the Company had invested over Rs 622 Crores in its various Global Scale manufacturing units capable of manufacturing its forward integrated and value added product chain diversified product mix to cater to the needs of its loyal and diverse customer bases consisting of over 600 domestic and over 300 export customers. As a matter of fact, your Company has also been selected and approved as a 'Preferred Supplier' by various Global Customers and MNCs. Exports accounts around 40% of its total revenue. The combined efforts of Production Team & R&D initiatives coupled with customized delivery solutions have enabled the Company to be amongst the leading manufacturers in its range of products and attain significant market share in the Global Markets. Over the years, your Company has emerged as a market leader in India and also globally ranks at 1st - 5th position for more than 75% of its top 50 products. While the top 50 products of the Company contribute around 80% of Company's revenues, the contribution from the top-most product is just over 6% of the total turnover. Thus the diversified product mix and varied customer base from different end-user industry provides for an ideal insulation for any downturn in a particular market segment. Your Company had commissioned in the year 2003-04 a 6 MW Steam based Captive Power Plant at its Sulphuric Acid Division to meet part of the Company's power requirements. The Company had been pioneer in India to commercialise the Greener Hydrogenation process based on Swiss Technology. The manufacturing units of the Company are of Global Scale & Size and are ISO/GMP certified. In the process of further diversification, the Company had entered the high value and high growth oriented Pharmaceuticals sector and Contract Research & Manufacturing activities during last couple of years. The Company had setup units dedicated to the efforts at CRAMs catering to the high value specialized contract research activities in the Global Markets. The Company had also set-up a State-of-Art Facility at Tarapur to cater to the needs of the regulated markets. The unit had been approved by the USFDA Authorities during the last year. The products cater to the high value life style drugs markets and are poised for rapid growth in coming years. By merger of erstwhile Surfactant Specialities Ltd into Aarti Industries Ltd in the year 2008-09, your Company had added a set of Personal Care and Oral Care based products to its existing product portfolio. Research and Development: Your Company has its own in-house Research and Development (R & D) Centre, which is recognized by the Department of Scientific and Industrial Research (DSIR), Government of India (GOI) employing over 80 Doctorates & Scientists. The R&D Centre is well supported & well equipped with various advanced analytical instruments and also has a Pilot Plant capable of handling various reactions at Pilot Scale. Over the years, our in-house R&D team had developed & successfully commercialized various new products, a variety of chemical reactions, engineered lots of manufacturing and process improvements to enhance the yield and optimize on the energy & utilities consumption by use of indigenous technologies & resources. Our capabilities of innovating, developing and improving the chemical technologies has been well appreciated by our global clients, who have been outsourcing various innovation / development projects to us under confidentiality terms. Human Resources In the Silver Jubilee year, your Company's human assets count stands at over 1250. Your Company is proud of its dedicated and loyal employees who have been a catalyst in its growth. We inspire & continuously support growth of people by providing opportunities & level playing ground. While a lot of companies across the globe resorted to trimming of their workforces in the current economic meltdown, your Company had remained focused on its growth strategy and had increased its workforce and, as always, has continued to have cordial relations with its workforce. While appreciating the efforts of the personnel at each level of operations, your Company in its Silver Jubilee year had held small celebration events at various locations and had felicitated the employees working therein. Corporate Social Responsibility (CSR): In keeping with the philosophy of 'Rebuilding Lives', your Company has served many social causes in the society that it belongs to. The allocation of time, efforts and resources towards meeting the social causes has kept pace with the growth that your Company has achieved over the period of its existence. Besides making contributions to various organisations & trusts and to institutions providing housing, medical, education, rural development, social upliftment, etc, Your Company has been involved in various projects to contribute towards the society. Some of the CSR initiatives that your Company has embarked upon are: * Funding of Schemes of Reconstruction and Rehabilitation taken up by various Non- Governmental Organisations (NGOs) after earthquake on Kutch, Gujarat in January 2001. * Contributions for the social development and for the needed community affected by various natural calamities such as Latur Earthquake, Cyclone- hit Orissa, Indonesia Earthquake, Tsunami Victims, Bihar Flooding, etc. * Contributions towards furtherance of agriculture, water harvesting, Drought Relief measures. * Formation of Tulsi Vidya Mandir at Kutch, Gujarat to encourage education in rural areas. Associations with Institute of Chemical Technology (ICT) Your Company's success is incomplete without acknowledging the contributions from ICT (erstwhile known as University Department of Chemical Technology), which is a premier institute in India imparting education on Chemical technology. The Company's three Promoter-Directors viz, the Chairman Mr. Chandrakant Gogri, our Vice Chairman & Managing Director Mr. Rajendra Gogri and our Director Mr. Primal Desai had graduated from ICT. We have been collaborating with ICT and its faculty from time to time for our various projects. We have contributed in various on going activities and for the improvement/up-gradation of the infrastructure at ICT. Performance Highlights & Outlook: In the journey of around 25 years, your Company has shown consistent performance in financial and operational terms. Some of the highlights that stand testimony to your Company's performance are as follows: The year 2008-09 is also a landmark year as your Company has recorded new highs in turnover, export & profits in this Silver Jubilee year. Your Company has for the first time crossed the level of Rs. 1000 Crores turnover, eventually registering an annual turnover of Rs. 1535.75 Chores for the year posting a quantum jump of over 60% as compared to last year. Exports, while registering a growth of around 56%, crossed As. 500 Chores and ended the year at As. 588.44 Chores. The PRE-TAX Profits have exceeded As. 100 Chores to close at As. 114 Chores, thus posting a jump of over 115%, while the Post Tax Profit had surged by around 130% from Rs. 36.67 Crores to Rs. 84.46 Crores. To cater to the growing demand of Basic Chemicals, the Company had developed Nitro Toluenes & its derivatives which shall be commercialized shortly. The Company is also expanding & upgrading its Hydrogenation technology which shall facilitate the increase in volumes and also for introduction of new Speciality Chemicals. Thus with the steps of capacity expansion, introduction of new products combined with the growth in the Pharmaceutical activities and FMCG products, we target the Company to maintain the growth momentum in coming years. Value Creation to Shareholders: Having gone Public in the year 1991-92, your Company has consistently reported growth in profits except for a few years. Your Company has consistently rewarded shareholders with dividends and has generally maintained a dividend payout ratio of around 25%of the profits. For a Shareholder having invested for 100 shares @ Rs. 46/- per share in our Public Issue in 1991-92 and if he would have stayed invested till date, then by now his 100 shares had become 1200 shares (by virtue of couple of Bonus and Split declared earlier). Further he would have also received around Rs. 18190/- as dividends, i.e. approx 4 times his initial investment amount. Considering the average market price of Rs. 42.5 for the month of August 2009, the 1200 shares are now worth around Rs. 51000/- i.e. a growth of 11 times over the initial investment. Thus the shareholder having invested Rs. 4600/- in 1991-92 has got a cumulative return of around 15 times in last 17years. Your Company remains on a firm growth trajectory and your unwavering support will enable it to scale greater heights in the years to come. With best wishes, Sincerely yours, Sd/- C.V. Gogri Chairman

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