- 2015 - 2016
Suresh Krishnamurthi Rao
I have great pleasure in welcoming you all to the 33rd Annual GeneralMeeting of your Company.
At the outset the year under review has been one of the most challenging years for usand for the Chlor-Alkali Industry in general. The depressed market conditions and itseventual slowdown saw most of the producers in the Industry not operating their plants atthe full capacity. The demand for Chlorine and Hydrochloric acid continued to be subduedand hardly showed any signs of revival. The problems were further compounded due tocheaper Caustic imports which put the product realisation under pressure. As if this wasnot enough Mother Nature also unleashed her fury by the unprecedented floods during thethird quarter of the year resulting in disruption of operations to many of our keycustomer facilities adversely impacting our operations.
COMPANYs PERFORMANCE FOR THE YEAR
In spite of the above challenges your Company has performed reasonably well during theyear 2015-16 as can be seen from the Annual Report. Though the profitability for the yearhas declined to Rs.8.66 Crores as against Rs.10.23 Crores for the previous financial yearthis was mainly on account of higher accelerated depreciation on redundant equipment andExchange fluctuations. The EBIDTA has however been maintained at Rs.26.19 Cr as againstRs.26.73 Crores for the previous financial year.
As the famous motivator Dale Carnegie said
When fate hands you a lemon make lemonade.
And we sure did that! The focus this year was on Cost Savings and I am happy to informthat on two of the key inputs viz. Power and Salt substantial cost savings were achieved.We managed to reduce our power consumption significantly consequent to the stabilizationof the New BiTAC Electrolysers and the tremendous efforts by the operating team inoptimizing power consumption.
During the year your Company also achieved the highest ever production of Salt so farand hence the procurement of high cost Salt from outside sources was at a minimum.Eventually this translated to lower salt cost for us.
Both these measures have resulted in significant savings during the year due to whichwe were able to maintain the EBIDTA despite the lower revenues and challenging marketconditions.
The much awaited statutory clearance for the proposed expansion is still awaited fromthe National Green Tribunal and we expect to receive the same in due course now.
Plans are also under way to boost up the revenues and the profitability by venturinginto newer areas trading activities and commencement of production at the new Salt field.
PROCESS SAFETY MANAGEMENT
Yet another feather in our cap was the successful implementation of ProcessSafety Management system for all the fourteen
Elements and we are the first plant in the Chlor-Alkali industry to adopt the same.
I am very happy to inform that your Company has completed the Sustainability Report forthe year 2014-15 and the same is also available on our website.
Your Directors are pleased to recommend a dividend of 25% for this year.
I thank all our Shareholders for the confidencethey have reposed in us which is atestimony of your trust in these difficult times that went past us. On behalf of all yourBoard of Directors and on my behalf I would like to express our sincere gratitude to allour Stakeholders for their valuable support. We also thank all the CCALmates for theirdiligent efforts commitment in these difficult times and their valuable contribution tothe progress of your Company. I express my gratitude to our Directors on the Board fortheir valuable guidance.
Your continued support motivates us to create superior value in future for all ourstakeholders.
Thank you all for attending this meeting.
|Place : Chennai || |
|Date : 18.05.2016 ||Suresh Krishnamurthi Rao |
| ||Chairman |