The year since the last Annual General Meeting has been a most eventful one for yourCompany and the country. It started with a new government beginning to implement a numberof policy decisions and clearing some of the systemic impediments to the smoothfunctioning of the economy. The sharp fall in global oil prices coupled with reduction ofthe fiscal deficit resulted in a much healthier economy. The signsforthe future indeedseem good.
Closer to home as you probably know by now your Company recently took a majordecision to divest its stake in its joint venture Henkel Chembond Surface TechnologiesLtd. This decision as you can imagine was not an easy one to make especially since YourCompany was founded with these pioneering metal treatment chemicals by Dr. Vinod D. Shahin the early seventies. Having achieved a top tier position in the country against globalcompetition in its initial days itself the joining of hands with Henkel led to yourCompany's jointventure becoming the market leaderin India.
Ultimately though it was an objective decision to focus on businesses where yourCompany holds more management control and where growth and profits are not subjected tofactors outside those of the economy. YourCompany believes that joint ventures need to berun in the true spirit of partnership and is proud of the fact that even in joint ventureswhere it has a majority decisions are taken by consensus and only in the best interestsof the company.
Moving forward Chembond will be investing in and focusing on growth via organic andinorganic means on its promising businesses of
Water treatment where Chembond uniquely offers the entire spectrum of specialtychemicals equipment systems and bio-remediation solutions fortreatment of intake waterprocess water and waste water enabling recycling;
Construction chemicals where the range of superior performance products serveall stages and segments of the new construction and repairindustry;
Coatings where your Company is in the process of consolidating its highperformance and industrial coatings businesses and developing greener waterbornecoatings;
Animal Nutrition which has shown promising growth over the last few years basedon the higher emphasis by farmers and industry on nutrition bio security and introductionof modern practices;
Protochem a 100% subsidiary which has introduced a wide range of maintenanceand repair (MRO) products and which will continue to develop its portfolio of productsforthe defence industry.
Furthermore your Company has ventured into two businesses which are attheirincubation stage:
As has been mentioned last year your Company started making a foray in thepolymers domain. The plan is to develop unique bio-based polymers which in addition tobeing renewable offer performance characteristics better than conventional polymers.Chembond has been able to attract Dr. Prakash D. Trivedi to the Board of Directors to helpguide these efforts. Dr. Trivedi is recognized as one of the foremost authorities andcredited with pioneering work in this field. The results of his joining the Board arealready being seen and Your Company can proudly state that it has filed its first patentthis year.
Your Company has just formed a new partnership with Calvatis GmbH in the form ofa 55:45 joint venture called Chembond Calvatis Industrial Hygiene Systems Ltd. This jointventure would focus on serving the dairy beverage brewing and food processing industrywith world-class specialty chemicals services and equipment solutions for cleaning andhygiene management.
We remain focused on translating the potential of the Indian economy through our strongbusiness portfolio and positioning into a profitable growth for all of you.
With warm regards
|Sameer V. Shah ||Nirmal V. Shah |
|Chairman and Managing Director ||Managing Director |
|6th July 2015 || |