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Bhansali Engineering Polymers Ltd.

BSE: 500052 Sector: Industrials
NSE: BEPL ISIN Code: INE922A01025
BSE LIVE 15:45 | 20 Sep 90.75 -1.80
(-1.94%)
OPEN

92.85

HIGH

92.85

LOW

90.10

NSE 15:53 | 20 Sep 90.90 -1.60
(-1.73%)
OPEN

92.75

HIGH

92.75

LOW

90.50

OPEN 92.85
PREVIOUS CLOSE 92.55
VOLUME 254084
52-Week high 94.50
52-Week low 18.95
P/E 34.51
Mkt Cap.(Rs cr) 1,506
Buy Price 90.75
Buy Qty 1550.00
Sell Price 0.00
Sell Qty 0.00
OPEN 92.85
CLOSE 92.55
VOLUME 254084
52-Week high 94.50
52-Week low 18.95
P/E 34.51
Mkt Cap.(Rs cr) 1,506
Buy Price 90.75
Buy Qty 1550.00
Sell Price 0.00
Sell Qty 0.00

Bhansali Engineering Polymers Ltd. (BEPL) - Chairman Speech

Company chairman speech

Dear Shareholders

I am delighted to present the 33rd Annual Report of your company forFinancial Year 2016-17. The year gone by was indeed heartening in terms of its overallperformance. When your company came into being the size of operations and spectrum of itsactivities were not so significant. However in a span of about three decades it has nowgained profound strength reputation and esteem as being one of the only two domesticmanufacturers of ABS resins in India- the other being an MNC. I recall that in thebeginning of nineties your company was the first to introduce foreign technology from aSumitomo group company of Japan which is presently functioning under the name and styleof Nippon A&L INC. for manufacture of ABS in India having established and integratedemulsion polymerization based ABS manufacturing plant at Satnoor MP which commenced itsoperations on 22nd January 1990. Incidentally Nippon A&L and your companyestablished a Joint Venture marketing and technical support company in May 2013. I mustadd that at that point in time it was a formidable challenge for a first generationentrepreneur - Mr B. M. Bhansali to inspire confidence in the minds of Japanese company tocollaborate with BEPL for establishing a green field project. I also recollect that importof ABS technology in the eighties was banned under the technology policy and it tookconsiderable efforts to convince the Department of Science & Technology Government ofIndia to allow the import of foreign technology for manufacture of ABS. Further you arewell acquainted with the fact that initial plant capacity of your company was only 6 KTPAwhich was subsequently expanded in a phased manner and today the company's plant capacityto manufacture ABS stands at 80 KTPA with two locations. This was possible because thecompany not only absorbed Japanese technology but adapted it with the changing requirementof new grades with wide ranging product specifications to cater to the emerging new marketsegments. Moreover your company took over the two other ABS manufacturing units onelocated at Baroda and the other at Abu Road in the year 1999 and 2003 respectively.Thereafter we transferred the Baroda plant to Abu Road in order to rationalize themanufacturing pattern based on adapted technology to produce HRG at Satnoor and at ABURoad continue to manufacture SAN and ABS through mass polymerization and extrusioncompounding processes.

Besides the above your company is now poised to launch a mega expansion project to setup a port based 200 KTPA green-field plant in the state of Gujarat. Board Report of FY2016-17 of your company throws adequate light on this subject. While the project has begunin right earnest it is likely that it would take about 5 years to commence itsoperations. In the interlude your company has an ambitious growth plan to ramp up itsproduction and sales from 80 KTPA to 137 KTPA. In this respect the Board Report andManagement Discussion and Analysis Report (MDAR) highlight pertinent details thereof as tohow your company is geared up to achieve the year on year targeted performance.

Little glimpse of the past and vision of the future can not cloud over the spectacularperformance achieved by your company in the year 2016-17. I am tempted to share myhappiness with you by touching upon the key financial performance data of your company asenunciated hereunder:

(i) Gross Turnover stood at Rs. 704.09 Crore as against Rs. 594.25 Crore in theprevious year registering a growth of 18.48% .

(ii) Profit before Tax (PBT) Rs. 55.88 Crore registered a growth of 138.91% as inthe previous FY 2015-16 PBT stood at Rs. 23.39 Crore. Likewise Profit after tax (PAT) atRs. 34.77 Crore witnessed a growth of 108.33% as in the previous year PAT was Rs. 16.69Crore. Consequent upon the impressive performance EPS doubled up to Rs. 2.10 as againstRs. 1.01 during the previous fiscal and the book value per equity share of face value ofRe. 1/- each as on 31st March 2017 stands enhanced by 24.03 % at Rs. 9.55 pershare as against Rs. 7.70 per share as on 31st March 2016.

While dwelling on the amazing performance of your company I must say that the Promoterand the Managing Director of your company Shri B. M. Bhansali with his strategic thinkingvisionary approach and dynamic leadership could establish such a wonderful performance. Iwish him the very best for continuing with his progressive journey and am confident thatunder his matchless leadership your company will achieve the performance year after yearas envisioned.

It is pertinent to touch upon the key aspects of the Indian economy as it influenceseach one of us including your Company. Hence let me share my views on the Indian economywhich is not only exhibiting resilience against the effect of relatively global slowdownbut is able to maintain the buoyancy of growth rate of GDP @ 7.1% in fiscal 2017 against7.6% in the previous fiscal. The robust growth rate of GDP of Indian economy shines as thebright spot on the map of world economy as it has surpassed in terms of GDP growth rate ofall countries including China. The macro economic fundamentals are strong in terms ofInflation control revenue deficit fiscal deficit current account deficit and Forexreserves etc. Demonetization has cleansed the economy to a large extent and GST willfurther strengthen it. The economic reform process has picked up velocity as 2017 is alandmark year in terms of introduction of GST by the Union Government and havingimplemented demonetization of Rs. 500 and Rs. 1000 currency notes to augment higherrevenue through indirect tax collection. It is predicted by many economists that effect ofimplementation of GST will add 1% to 2% in the GDP growth rate and your company willsurely gain in the process.

While concluding I must appreciate the efforts put in by each and every employee ofthe company to have contributed towards achieving the impressive results for F.Y. 2016-17.And I also take this opportunity to express my gratitude to colleague Directors for theirunflinching support and co-operation as ever.

With Best Wishes

M. C. Gupta

Chairman