The global Dyestuff industry is at a critical juncture today. Recently after a leadingcompany in China was shut down owing to environmental concerns the worlds focusshifted to the Indian manufacturers to fill the void created by the deficit in supply.This has presented a highly lucrative opportunity for Bodal Chemicals which is well knownas one of the leading Dyestuff manufacturers globally. Not only are we one of the lowestcost producers of Dyestuff owing to the level of integration in our manufacturingprocesses but are also well acknowledged in the international market through the widereach of our exports. With a sense of excitement and anticipation we welcome this nextlevel of growth.
Leaving aside the opportunity that lies ahead of us for a short while I would like toshare with all of you Bodal Chemicals operational and financial journey over thelast few years and how that has contributed to further strengthening our core. TheCompanys Total Consolidated Income during financial year 2016 stood at Rs. 9099.6million whilst the EBITDA stood at Rs. 1617.6 million translating into margins of 17.8%.The EBITDA represents a growth of close to seven times in 3 years. Furthermore the returnon equity has risen to 36.7% from a negative return three years back. With a Net Debt /EBITDA of 0.8x and a Debt / Equity of 0.6x we have much more financial flexibility todayalso reflected in our credit ratings. It has taken both perseverance and passion to get towhere we are today and we are not stopping yet.
Yet it is one thing to be great at what you do but totally another to keep pushing theboundaries. This time last year I shared with you our venturing into Specialty Chemicalsthrough Trion Chemicals. We have made significant progress on this initiative through theyear and as promised will be starting production in the second half of FY2017. During thelatter part of the financial year we also started commercial production of LABSA. Themarket feedback for the product has been absolutely encouraging so far and it gives usgreat confidence to enhance production of the same. A third high margin product we lookforward to increasing production of is Liquid Dyestuff which is used in the paper industryfor coloring paper. I expect these high growth initiatives to collectively put BodalChemicals on a new growth trajectory.
We owe our successes to our employees financial institutions vendors customers andshareholders. As we move on to a higher growth path your continuing support andcooperation will be imperative. We strive to break new grounds and reach new heights inour quest for excellence in business and innovation. In doing so we will continue tocreate value for our stakeholders and make the workplace at Bodal Chemicals a much morefulfilling platform for all our employees.
|Yours Sincerely |
|Suresh J. Patel |
|Chief Executive Officer |
|Chairman and Managing Director |