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Bhansali Engineering Polymers Ltd.

BSE: 500052 Sector: Industrials
NSE: BEPL ISIN Code: INE922A01025
BSE LIVE 15:59 | 07 Dec 22.60 -0.45
(-1.95%)
OPEN

23.00

HIGH

23.25

LOW

22.50

NSE LIVE 15:59 | 07 Dec 22.55 -0.35
(-1.53%)
OPEN

23.05

HIGH

23.30

LOW

22.50

OPEN 23.00
PREVIOUS CLOSE 23.05
VOLUME 75075
52-Week high 29.80
52-Week low 15.00
P/E 19.15
Mkt Cap.(Rs cr) 374.93
Buy Price 22.60
Buy Qty 925.00
Sell Price 0.00
Sell Qty 0.00
OPEN 23.00
CLOSE 23.05
VOLUME 75075
52-Week high 29.80
52-Week low 15.00
P/E 19.15
Mkt Cap.(Rs cr) 374.93
Buy Price 22.60
Buy Qty 925.00
Sell Price 0.00
Sell Qty 0.00

Bhansali Engineering Polymers Ltd. (BEPL) - Chairman Speech

Company chairman speech

Dear Stakeholders

I am delighted to present the 32nd Annual Report of the company for the Financial Year2015-16. Your company crossed its Silver Jubilee year in 2014-15 and has entered into 26thyear of its operations last fiscal. During such a long stint it has seen a lot of highsand lows but kept performing consistently in a growing manner. I am pleased to share thatduring the F.Y. 2015-16 your company came out with an impressive performance as theprofit after Tax (PAT) stood at ' 16.69 Crore as against ' 5.40 Crore in the previous yearregistering a growth of 209.08% even in the ongoing volatile market conditions. Thisglaring success can be accredited to the relentless/tireless efforts of the MD and ED ofthe company along with their entire workforce and could be possible due to able guidanceand steadfast business plannings of the core management.

At present there appears to be congenial business environment as GDP growth of countrywhich was slow hitherto has started improving and grew 7.3% in the month of January 2016as against 7.1% in the month of January 2015 reflecting nation's growth momentum andpositive sentiments of the industry. Availability of loans at cheaper rates is alsoappearing as a propelling factor to all sectors including business houses and individuals.The contribution of RBI in this respect is significant as it reduced the key rates viz.repo rate to 6.5% and reverse repo rate to 6% in the month of April-16 as against reporate of 7.5% and reverse repo rate of 6.5% in the month of March-15 and also keeping theCRR stable at 4% in 2015 and 2016 both; which released substantial amount in the bankingsystem for providing loans.

It gives me immense pleasure to state that the first phase of expansion has beencompleted in the month of Mar-16 augmenting the installed capacity of company from 51KTPAto 80 KTPA. This will enable the company to meet the ever growing demand of ABS in Indiawhich grew strongly at a CAGR of 10% owing to the growth in the Indian middle classexpenditure in home appliances and automobiles which will drive the core demand for ABS.Both ABS and SAN have been witnessing healthy growth due to their wide ranging usage inconsumer electronics appliances and automotive sectors. In current market scenarioalmost all the Refrigerator manufacturers are likely to shift to ABS from HIPS forrefrigerator Liners hence the demand for ABS is likely to remain vibrant witnessingphenomenal jump therein. Thus the enhanced production capacity of company is a major stepin capturing the Indian ABS market.

On the Joint Venture front with Nippon A & L Inc Japan a Sumitomo Group CompanyI would like to state that your company has started producing almost all the licensedproducts of JV Grades at our Abu Road plant. The product development and marketingstrategy of Nippon A&L Inc focuses on automotive sector for which company is nowconcentrating on deepening market penetration in this segment by effectively positioningall the Licensed Products of Nippon A&L thereto. The company has started production oflatest grades like ASA AES Transparent ABS and alloys like ABS PMMA and ABS PC enablingthe company to have entire range of "product basket" for catering the pervasiverequirement of clients.

With all the humility at my command I must admit that whatever we have achieved wecouldn't have without your unflinching faith in our company's leadership and co-operationthat we have received from all the stakeholders. Our colleagues including everyone in thecompany and JV partner deserve credit. Everyone has shown dedication and determination inmeeting the company objectives holistically while working in a team spirit. Despite allodds we are committed to taking the steps necessary to deliver true value to allstakeholders.

I would like to state further that the innovation and continuous improvement in ourproducts permeated every corner of our business. At Bhansali it is no longer enough tosimply meet the expectations - we have to exceed it every time and in every way. Ourcompany is focusing on capability enhancing programme which is crucial for the industry'sfirm standing in the long

run considering extant market conditions as well as to gain consumer insights forlaunching new products or variety which requires constant analysis of consumer sentimentsand is underway. In this environment it is easy to focus on big picture and miss theminor things seeing the multi dimensional manner in which transformation is taking placeat present so we need to have alacrity for all the respective business activitieshappening around us. In order to hold leadership of market we need to look into everyfacet of business and bring about changes and improvements that addresses the new realityof a pervasively polymer segment. We see this in the renewal of ourselves internally todrive innovation and create value for our stakeholders on every count. We have embarkedupon our expansion upto 200 KTPA consisting of 80 KTPA existing installed capacity at AbuRoad plant of company and 120 KTPA proposed at some port based location with a view tosave a lot on transportational expenses etc and come out with cost-effective products. Wemust massively scale our innovation and research programme and derive our strategy inevery aspect of our company to make it consistently successful. All of you ourstakeholders some of whom have been with us for many years and are an integral part ofour journey in empowering our company and its people at best and some would haveassociated with us recently whose co-operation and patronage is also solicited in thetimes to come. If we can execute our strategy and do the things in desired direction inthe years ahead of us it could be deeply rewarding and I look forward to a great journeyahead together. The phenomenal growth in the operational results of company this fiscalreflects an enormous upsurge in client and employee engagement and their enthusiasm. Thishas helped us in achieving better financial performances. We are powered by the ambitionand driven by values in every facet of our activities. The MD of the Company has beenextra ordinarily helpful in mentoring the employees of the company at every level and Ilook forward to his dynamic leadership in the times to come.

We can further look for better days ahead as the Indian Economy is likely to grow atnearly 8% in the current fiscal as against 7.6% in the previous fiscal provided globaleconomic situation does not deteriorate and our country receives normal monsoon.

I thank you from the core of my heart and fervently look forward to receive yourcontinued support patronage and blessings in our endeavor.

With Best Wishes

M. C. Gupta

Chairman

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