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Asian Paints Ltd.

BSE: 500820 Sector: Consumer
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OPEN 1163.70
VOLUME 51274
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52-Week low 850.10
P/E 63.61
Mkt Cap.(Rs cr) 110,687
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Buy Qty 0.00
Sell Price 1153.95
Sell Qty 900.00
OPEN 1163.70
CLOSE 1163.70
VOLUME 51274
52-Week high 1230.00
52-Week low 850.10
P/E 63.61
Mkt Cap.(Rs cr) 110,687
Buy Price 0.00
Buy Qty 0.00
Sell Price 1153.95
Sell Qty 900.00

Asian Paints Ltd. (ASIANPAINT) - Director Report

Company director report


Dear Members

Your Directors have pleasure in presenting the 68th Annual Report of yourCompany and the Audited financial statements for the financial year ended 31stMarch 2014.


The financial performance of your Company for the year ended 31st March2014 is summarised below:

(Rs. in Crores)

Asian Paints Limited Asian Paints Limited Group Consolidated
2013-14 2012-13 Growth 2013-14 2012-13 Growth
Revenue from Operations (Net) 10418.78 8960.07 16.3% 12714.81 10938.61 16.2%
EBITDA 1950.93 1673.42 16.6% 2132.11 1846.46 15.5%
Less: Finance Costs 26.08 30.56 42.22 36.65
Less: Depreciation 212.32 126.98 245.66 154.60
Profit Before Exceptional Item & Tax 1712.53 1515.88 13.0% 1844.23 1655.21 11.4%
Exceptional Item 9.96 - 9.96 -
Profit Before Tax 1702.57 1515.88 12.3% 1834.27 1655.21 10.8%
Less: Tax expense 533.51 465.88 571.51 495.69
Profit After Tax 1169.06 1050.00 11.3% 1262.76 1159.52 8.9%
Less: Minority Interest - - 43.95 45.64
Profit attributable to shareholders of the Company 1169.06 1050.00 11.3% 1218.81 1113.88 9.4%
Opening balance in Statement of Profit and Loss 1000.00 700.00 1000.00 700.00
AMOUNT AVAILABLE FOR 2169.06 1750.00 2218.81 1813.88
That the Directors recommend for appropriation
as under:
Dividend - Interim 105.51 91.13 105.51 91.13
- Proposed Final 402.86 350.10 402.86 350.10
Tax on Dividend 82.02 74.29 82.02 74.29
Transfer to General Reserve 578.67 234.48 628.42 298.36
Closing balance in Statement of Profit and Loss 1000.00 1000.00 1000.00 1000.00


Net revenue from Operations on standalone basis increased to Rs. 10418.78crores as against Rs.8960.07 crores in the previous year - a growth of 16.3%. The profitafter tax for the current year is Rs.1169.06 crores as against Rs. 1050.00 crores in theprevious year - a growth of 11.3%.

On Consolidated basis your Company achieved net revenue of Rs.12714.81 crores asagainst Rs. 10938.61 crores – a growth of 16.2%. Net profit after minority interestfor the current year is Rs. 1218.81 crores as against Rs. 1113.88 crores in theprevious year - a growth of 9.4%.


The Consolidated Financial Statements of your Company for the financial year 2013-14are prepared in compliance with applicable Accounting Standards and applicable clauses ofthe Listing Agreement as prescribed by the Securities and Exchange Board of India. Theconsolidated accounts have been prepared on the basis of audited financial statementsreceived from subsidiaries and joint venture companies as approved by their respectiveBoards.

A separate statement containing the salient features of all subsidiaries of yourCompany which includes capital reserves total assets total liabilities details ofinvestment turnover etc. forms part of this report in compliance with the GeneralCircular No. 2/ 2011 dated 8th February 2011 issued by Ministry of CorporateAffairs granting a general exemption from the provisions of Section 212(8) of theCompanies Act 1956. The annual accounts and financial statements of the subsidiarycompanies and related detailed information shall be made available to members on requestand are open for inspection at the Registered Office of your Company.


Pursuant to the approval of the members at the 67th Annual General Meetingof the Company held on 24th June 2013 to the sub-division of the equity sharesof the Company each equity share of nominal face value of Rs. 10 (Rupees ten) each wassub-divided to 10 (ten) equity share of the face value of Rs. 1 (Rupee one) each. Theeffective date for the said sub-division was 1st August 2013.

The paid up equity share capital of your Company after subdivision of the face value ofequity shares is Rs. 959197790 (Rupees ninety five crores ninety one lakhs ninety seventhousand and seven hundred ninety only) divided into 959197790 of the face value of Rs.1 (Rupee one) each.


During the financial year 2013-14 your Company declared and paid an interim dividendof Rs. 1.10 (Rupee one and paise ten only) per equity share of the face value of Rs. 1(Rupee one) each in the month of October 2013. In addition your Directors recommendpayment of Rs. 4.20 (Rupees four and paise twenty only) per equity share as the finaldividend for the financial year 2013-14. If approved the total dividend (interim andfinal dividend) for the financial year 2013-14 will be Rs. 5.30 (Rupees five and paisethirty only) per equity share of the face value of Rs. 1 (Rupee one) each.


Your Company proposes to transfer Rs. 578.67 crores to the general reserve. An amountof Rs. 1000 crores is proposed to be retained in the statement of profit and loss.


In compliance with the requirements of Clause 49 of the Listing Agreement a separateReport on Corporate Governance along with the Auditors Certificate on its compliance formsan integral part of this Report.


A Business Responsibility Report as per Clause 55 of the Listing Agreement with theStock Exchanges detailing the various initiatives of the Company forms part of thisReport.


Dr. K.R. Chandratre Practicing Company Secretary conducted Secretarial Audit pursuantto the provisions of Section 383A of the Companies Act 1956 for the financial year2013-14. Dr. K.R. Chandratre has submitted the Report confirming compliance with theapplicable provisions of Companies Act 1956 and other rules and regulations issued bySEBI/other regulatory authorities for corporate law.


A detailed review of operations performance and future outlook of your Companyand its businesses is given in the Management Discussion and Analysis which forms part ofthis report.


As informed in the last year’s Annual Report your Company as a part of itsstrategic initiative in the direction of Home Improvement & Dcor identified modernkitchen space as a key opportunity to be explored in synergy with the existing line of thedecorative paints business in India. In August 2013 your Company acquired 51% stake inSleek group which is a major player in the organized kitchen space with a pan Indiapresence and is engaged in the business of manufacturing selling and distribution ofmodular kitchens as well as kitchen components including wire baskets cabinetsappliances accessories etc.

Your Company is also exploring other home improvement segments and has identified bathand wash business segment as another opportunity area. In early May 2014 your Company hasentered into a binding agreement with Ess Ess Bathroom Products Private Limited (Ess Ess)for acquisition of its entire front end sales business including Brands Network and Salesinfrastructure subject to the satisfaction of certain condition precedents and applicablestatutory approvals. Ess Ess is a prominent player in this space with high qualityproducts across consumer segments.

Your Company strongly believes that these business/ventures will offersignificant opportunities and synergy to your Company in Home Improvement & Dcorsegment.


During the year your Company through its wholly owned subsidiary – Asian Paints(International) Limited Mauritius acquired a 25.72% stake from a minority shareholder inBerger International Limited (BIL) a subsidiary which was listed on the Singapore StockExchange. Thereafter a voluntary cash offer was made to all the shareholders of BIL. Postsuch offer the stake in BIL increased to 96.79% and consequently BIL has been delistedfrom the Singapore Stock Exchange. BIL has no operations in India.


Asian Paints (International) Limited Mauritius your Company’s wholly ownedsubsidiary signed an agreement with the shareholders of Kadisco Chemical Industry PLC.Ethiopia (Kadisco) in April 2014 to acquire either directly or through its subsidiaries51% of the equity share capital of Kadisco subject to necessary regulatory approvals anddocumentation. Kadisco is engaged in the manufacturing and selling of paints othercoatings and adhesives in Ethiopia.


In December 2013 a strike was called by the Asian Paints Employees UnionSriperumbudur and workmen at your Company’s plant situated at Sriperumbudur TamilNadu which affected the operations of that plant. The strike has ended in April 2014 andthe plant has resumed normal operations. Your Company has discontinued manufacturingactivities at its Bhandup plant with effect from 5th May 2014. A"Voluntary Retirement/Separation Scheme" along with an alternate option ofrelocation to other facilities of your Company was offered to all the workmen at theBhandup plant in Mumbai. All workmen have accepted either the VoluntaryRetirement/Separation Scheme or relocation to other facilities of your Company. AsianPaints Industrial Coatings Limited (APICL) your Company’s wholly owned subsidiaryhas closed down the operations at its powder coatings plant at Baddi Himachal Pradesh inNovember 2013 due to significant decline in the processing volume of powder coatings inthe last two years. APICL’s plant at Sarigam Gujarat will continue its normaloperations and is sufficient to cater to the future requirements.


All the insurable interests of your Company including inventories buildings plant andmachinery and liabilities under legislative enactments are adequately insured.


The information on Conservation of Energy and Technology Absorption by your Company asper Section 217(1)(e) of the Companies Act 1956 read with the Companies (Disclosure ofParticulars in the Report of the Board of Directors) Rules 1988 are given as Annexure tothis report.


Details of expenditure and earnings in foreign currencies are given under Note 33 and34 to the financial statements.


In terms of the provisions of Section 217 (2A) of the Companies Act 1956 read withthe Companies (Particulars of Employees) Rules 1975 as amended names and otherparticulars of employees are required to be attached to this report. However as per theprovisions of Section 219(1)(b)(iv) of the Companies Act 1956 the Report and AnnualAccounts of your Company sent to the shareholders do not contain the said annexure. Anymember desirous of obtaining a copy of the said annexure may write to the CompanySecretary at the Registered Office of the Company.


Pursuant to Section 217(2AA) of the Companies Act 1956 the Directors confirm that: inpreparation of the annual accounts for the year ended 31st March 2014 theapplicable accounting standards read with requirements set out under Schedule VI of theCompanies Act 1956 have been followed; the accounting policies have been selected andapplied consistently and the judgements and estimates made are reasonable and prudent soas to give a true and fair view of the state of affairs of your Company as on 31stMarch 2014 and of the profit of the Company for the year ended that date; proper andsufficient care has been taken for the maintenance of adequate accounting records inaccordance with the provisions of the Companies Act 1956 and Companies Act 2013 to theextent applicable for safeguarding the assets of your Company and for preventing anddetecting fraud and other irregularities; and the annual accounts have been prepared on agoing concern basis.


During the year 2013-14 Shri Abhay Vakil and Mrs. Ina Dani resigned as Non-ExecutiveDirectors of your Company on 24th September 2013 and 21st October2013 respectively. Ms. Tarjani Vakil retired as a Director of your Company at the lastyear’s Annual General Meeting. In terms of Section 152 of the Companies Act 2013Shri Amar Vakil liable to retire by rotation at the ensuing Annual General Meeting doesnot wish to seek reappointment at the ensuing Annual General Meeting and wishes to retireas Director of your Company. Shri R.A. Shah Independent Director on the Board ofDirectors of your Company does not wish to be appointed at the ensuing Annual GeneralMeeting on the Board of your Company pursuant to the provisions of Section 149 152Schedule IV and other applicable provisions of the Companies Act 2013 read with Companies(Appointment and Qualification of Directors) Rules 2014. The Board places on record itsappreciation for their valuable contribution to your Company as Directors during theirassociation with your Company. The Board of Directors appointed Shri Malav Dani asa Non-Executive Director of your Company with effect from 21st October2013 due to the casual vacancy created by resignation of Mrs. Ina Dani. In terms ofSection 161 of the Companies Act 2013 Mrs. Ina Dani would have held office up to thedate of the ensuing Annual General Meeting and accordingly the term of Shri Malav Dani asa Director appointed in casual vacancy will expire at the ensuing Annual General Meeting.Shri Malav Dani is being appointed as the Director of your Company at the ensuing AnnualGeneral Meeting.

The Board of Directors at their meeting held on 14th May 2014 subject tothe approval of the shareholders at the ensuing Annual General Meeting considered andapproved the re-appointment of Shri K.B.S. Anand as the Managing Director & CEO ofyour Company for a further term of three (3) years commencing from 1stApril 2015 to 31st March 2018. The Board of Directors of your Company at theaforementioned meeting also appointed Ms. Amrita Vakil and Mrs. Vibha Paul Rishi as anAdditional/Non-Executive Director and Additional / Independent Director respectively onthe Board of Directors of your Company. In terms of Sections 149 152 Schedule IV andother applicable provisions if any of the Companies Act 2013 read with Companies(Appointment and Qualification of Directors) Rules 2014 the Independent Directors canhold office for a term of up to five (5) consecutive years on the Board of Directors ofyour Company and are not liable to retire by rotation. Accordingly it is proposed toappoint Shri Dipankar Basu Shri Mahendra Shah Shri Deepak M. Satwalekar Dr. S. SivaramShri S. Ramadorai Shri M.K. Sharma and Mrs. Vibha Paul Rishi as Independent Directors ofyour Company up to 5 (five) consecutive years up to on 31st March 2019.Appropriate resolutions for the appointment/ re-appointment of Directors are being placedbefore you for your approval at the ensuing Annual General Meeting. The brief resume ofthe aforesaid Directors and other information have been detailed in the Notice. YourDirectors recommend their appointment/reappointment as Directors of your Company.


M/s. Shah & Co. Chartered Accountants and M/s. B S R & Associates LLPChartered Accountants Joint Statutory Auditors are due for retirement in accordance withthe provisions of the Companies Act 1956 at the ensuing Annual General Meeting. M/s. Shah& Co. Chartered Accountants and M/s. B S R & Co. LLP Chartered Accountants arebeing appointed as the Joint Statutory Auditors of your Company at the ensuing AnnualGeneral Meeting. Your Directors recommend their appointment for the ensuing year.

The Company has received letters from M/s. Shah & Co. Chartered Accountants andM/s. B S R & Co. LLP Chartered Accountants to the effect that their appointment ifmade would be within the prescribed limits under Section 141(3)(g) of the Companies Act2013 and that they are not disqualified from being appointed as the Joint StatutoryAuditors of the Company.


Your Company had appointed M/s. RA & Co. Cost Accountants as the Cost Auditor ofyour Company for the financial year 2013-14 to conduct the audit of the cost records ofyour Company.

As per Section 148 read with Companies (Audit & Auditors) Rules 2014 and otherapplicable provisions if any of the Companies Act 2013 the Board of Directors of yourCompany has appointed M/s. RA & Co. Cost Accountants as the Cost Auditor of your theCompany for the financial year 2014-15 on the recommendations made by the Audit Committee.The remuneration proposed to be paid to the Cost Auditors subject to the ratification bythe members at the ensuing Annual General Meeting would be Rs. 600000 (Rupees six lacsonly) excluding out of pocket expenses if any.

The Cost Audit report for the financial year 2012-13 was filed within the due date. Thedue date for submission of the Cost Audit Report for the year 2013-14 is within 180 daysfrom 31st March 2014.


Your Directors wish to convey their gratitude and place on record their appreciationfor all the employees at all levels for their hard work solidarity cooperation anddedication during the year.

Your Directors sincerely convey their appreciation to customers shareholders vendorsbankers business associates regulatory and government authorities for their continuedsupport.

For and on behalf of the Board

Ashwin Choksi


Mumbai 14th May 2014

Annexure to Directors’ Report


a) Energy conservation measures taken

All manufacturing units continued their efforts to reduce specific energy consumption.Specific and Total energy consumption indicators are tracked on monthly basis at theindividual factory level and also at the consolidated manufacturing level. YourCompany’s manufacturing units regularly undergo Energy Audits to identify areas ofimprovement. In addition to the existing Energy Conservation measures the Engineering andProduction departments in each manufacturing unit work closely towards improving theefficiency of generation and also in the reduction in energy consumption. The measurestaken in all the Company’s manufacturing units can be briefly enumerated as below:

1. Replacement of Old Equipments with new/ energy-efficient Equipment

• Old Air-Conditioners and Lighting System at many locations are being replacedwith Solar Power Air-Conditioners to reduce the power consumption of these equipments

• All the trade blenders agitators were replaced with hydrofoil type energyefficient agitators

• Replacement of induced draft cooling tower with fan less cooling towers in PaintHouse

• Replacement of reciprocating air compressor with Variable Frequency Drive (VFD)based screw compressor to achieve energy conservation

2. Reduction in Specific Fuel Consumption for

Electricity generation

Most of your Company’s manufacturing units utilize electricity supplied by theState Government or its Electricity Board. However some of the manufacturing units had tooperate Diesel or Gas based Generating Sets to generate electricity. A good amount offocus and effort has resulted in improved generation efficiency thereby requiring lesseramount of fuel for equivalent amount of electricity.

• Vaccum Absorbtion Machine operation with heaters thereby reducing consumption ofNatural Gas in Cogen Engines

• Installation of APFC (Automatic Power Factor Correction) Panel and ActiveFilters throughout the plant on various Motor Control Center and PCC Panels to improvePower Factor reduce Harmonics and line losses

• Installation of Capacitor bank on Administration and Engineering Block PowerSupply Feeder to improve the Power Factor and save energy

3. Lighting

Efforts have been put to reduce or optimize the lighting requirements at themanufacturing units. Some of the initiatives are enumerated as under:

Timer-controllers that put off the lights during day-time

LED-based view-lamps in the manufacturing equipment vessels

Replacement of Conventional Light fittings with LED light fitting inside themanufacturing blocks and along staircases

Energy savings through lighting

• Provison of timer for vessel lamps to avoid excessive running

• Limit switch provided for Air Curtains in plant

• Conversion of lamp in several areas from 70W to 23 W based on illumination survey

Installation of motion sensors in shop floor cabins and conference rooms (20 Nos) forautomatic switch off

Installation of Astronomical timers to optimise the usage time of lighting

4. Control Instrumentation /Process Optimisation

Your Company’s engineering department has been consistently using process controlinstrumentation to optimize the use of energy during the production operations. Afew notable activities include:

Timer based interlock was provided to optimised the for operation of Paint HouseMixer’s agitator

Optimization of Twin Shaft Disperser batch sizing for energy efficient hydrodynamicsduring processing of batches

Pressure boosting system for treated water to Manufacturing block

Impeller trimming for diesel generator cooling tower pump & for utility coolingtower pump

Arresting leakages in compressed air lines thereby reducing energy consumption in thecompressed air system

Run hour reductions of utilities and accessories

Reduced running of vacuum pump and reactors (reduction of stripping time) by provisionof chilling coil in water tank

Reduction in run hours of air compressor by reduction of air pressure and continuousleakages monitoring / plugging

• Reduction of running of Nitrogen Plant compressor by providing external Airsupply

5. Optimisation of Electrical Equipment

In addition to the existing controls on prime production equipment and existing primeutilities equipment some electrical equipment modifications/ additions being done are:

• VFD for resin house cooling tower circulation pumps – installation of VFDfor cooling water circulation pumps (3 X 22 KW) in resin house

• Conversion of 1 (No) sand mill high capacity motors starter to run sand mill inonly star mode

b) Additional investments/proposals being implemented for reduction of consumption ofenergy

All manufacturing units will continue to put in efforts to reduce specific energyconsumption. Some key ideas that are planned to be implemented for energy conservationinclude:

• LED-based view-lamps in the manufacturing equipment vessels

• VFD on the packing machines

• Replacement of capacitor panels

• Pump capacity reduction for additives

• Mill for continuous paint processing

• New type of cowl disc to eliminate stator /Rotor setup in equipment

• Procurement of Screw shaft and Liner for TSD and Mixer pump

c) Impact of measures for reduction of energy consumption

Although a lot of efforts have been put in the metric "specific powerconsumption" tracked as a measure of the performance of Energy Management for thewhole Manufacturing setup has increased in the past year.

The primary reason for this increase has been the stabilisation of operations at thenewly setup Khandala facility though the production at this facility is being stabilizedin steps the energy consumption necessary to stabilize the production equipment utilityequipment and storage facilities has increased in a higher proportion. The energyconsumption is expected to proportionately increase with production volumes in the comingyear though the specific power consumption for the whole manufacturing setup isexpected to come down.


Particulars 2013-14 2012-13
A. Power and fuel consumption
1 Electricity
a. Purchased
Units (‘000 KWH) 58445.92 40804.00
Total Amount (Rs. in Crores) 44.82 29.51
Rate per unit (Rs.) 7.67 7.23
b. Own Generation
Through diesel Generator
Units (‘000 KWH) 12393.87 14808.00
Units per ltr of diesel oil 3.66 3.53
Cost/unit (Rs.) 17.15 13.48
Natural Gas
Units (‘000 KWH) 2636.70 5329.00
Units per nm3 3.40 3.38
Cost/unit (Rs.) 10.64 8.90
2 Coal
Quantity (in MTs) 18538.00 20046.00
Total Amount (Rs. in Crores) 10.12 10.94
Average rate/MT (Rs.) 5461.26 5457.00
3 Diesel
Quantity (in KL) 1395.38 1772.00
Total Amount (Rs. in Crores) 8.39 7.77
Average rate/Ltr. (Rs.) 60.10 43.87
4 Furnace Oil
Quantity (in KL) 110.13 625.00
Total Amount (Rs. in Crores) 0.55 2.64
Average rate/Kg. (Rs. ) 49.82 42.23
5 Natural Gas
Quantity (in ‘000 cubic m.) 3707.53 3167.00
Total Amount (Rs. in Crores) 14.29 10.05
Average rate/cubic m (Rs.) 38.53 31.71
Quantity (in MTs) 996.65 606.00
Total Amount (Rs. in Crores) 5.57 2.91
Average rate/MT (Rs.) 55.90 48.00

B. Consumption per unit of production

Electricity Furnace Oil Natural Gas LPG Coal Diesel
2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13
Paints 121 104 2 9 16 15 14 9 - - 3 3
Phthalic 91 117 - - 39 69 - - - - - 1
Penta 74 76 - - - - - - 3 4 - -


Disclosure of particulars with respect to technology absorption: Research andDevelopment (R&D)

1. Specific area in which R&D is carried out by the Company

1.1 The R&D Unit of your Company is carrying out the following activities tosupport the business goals of your Company:

• Development of new products and processes related to surface coatings andintermediates

• Value engineering through formula modification and use of new and alternate rawmaterials

• Upgrade of existing product and processes for value creation

• Technology support to all overseas units to enable business growth

• Optimization of products and processes to minimize waste generation and addressenvironmental and safety concerns

• Development of new application techniques for various substrates

• Import substitution and identification of new raw materials for development

• Development of new analytical test methods characterization techniques

• Collaborative development with vendors academia and institutes

• Development of domain expertise to support product development

• Development of laboratory simulation techniques for faster resolution of productcomplaints

• Development of nano composites for coatings application

• Research focus on building new capability such as nano processing andmicroencapsulation

• Focus on providing waterproofing solution

2. Benefits derived as a result of above R&D:

2.1 New products developed and commercialized during the year. Some of the key productslaunched during the year are:

• Ultima Protek exterior emulsion

• Apcolite Advanced

• Royale Sensation Galaxy

• Royale Sensation Glide

• Premium Gloss Enamel – Silver and Gold

• High Performance anticorrosive Red Oxide Primer and Yellow Primer

• Professional Emulsion Super White

• AP Smart Care Marvelloplast - wall leveler

• AP Smart care Vitalia - admixture

• Touchwood Oak Yellow

2.2 During the year following products were developed:

• Potable water Epoxy Tank Lining meeting BS 6920:2000 standard

• Solvent free EPN tank lining having resistance to crude at 93 deg C meetinginternational standard

• 2K PU gloss paint meeting VOC level of < 250 g/L

• Aspa supreme refinish paint

• Heat resistant paint for mufflers for two wheeler segment

• Cost effective inorganic zinc silicate coating for refineries

2.3 Energy savings achieved in manufacture of machine colorants using differentprocessing equipment.

3. Further plan of action:

Your Company believes that development of new capabilities and strengthening ofexisting capabilities are of paramount importance for sustained value creation. Thereforewhile effort has been in developing new products continual investment has also been madein developing new technology platforms to enrich new product pipeline improve itsmanufacturing capabilities for automated mega scale plant and open new business segmentsfor future growth. In order to address the changing needs of customers and proliferationof application substrates with immense diversity your Company has planned to strengthenits technical capabilities and knowhow by building new application research cell in thearea of waterproofing and decorative application. A new research group has been created tofocus on development of new products for waterproofing sealant construction chemicalsand tile segments.

4. Expenditure on R & D during the year is as follows:

(Rs. in Crores)

Particulars 2013-14 2012-13
Capital 4.48 4.91
Recurring 52.12 45.64
TOTAL 56.60 50.55
Net Revenue from Operations 10418.8 8960.1
R & D expenditure as % of Net Revenue from Operations 0.54% 0.56%

5. Technology absorption adaptation and innovation:

Technology acquisition of Intumescent Coating for cellulosic fire from M/s. NeutronFire Technology Inc. UK having 90 minute fire rating has been completed.

Most developments were done indigenously some of which were with internationalpartners. Collaborative research programs were pursued with academia on specific areaswhere knowledge development on new science platform is required.

A new internal group named ‘Joint Value Creation’ group has been formed tostrengthen partnership and collaborative work with prospective vendors on new ideas andopportunities.


Your Company’s exports primarily consist of Dipentaerythritol andMonopentaerythritol to American and European markets. The Dipentaerythritol is used mainlyas an additive in the manufacture of lubricant additives and the Monopentaerythritol ismainly used in the manufacture of high energy material. Your Company also exportsitems to its overseas units and licensees. Specific products or special productswhich are of low volume for domestic manufacture by the overseas units arealso produced and exported to the units from India. Support is extended to overseasunits through export of marketing materials and machinery parts. Export queries receivedin India from countries where your Company has operations is routed throughrespective overseas units.

For and on behalf of the Board

Ashwin Choksi


Mumbai 14th May 2014