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Gravita India Ltd.

BSE: 533282 Sector: Metals & Mining
NSE: GRAVITA ISIN Code: INE024L01027
BSE LIVE 15:52 | 18 Aug 109.95 0.90
(0.83%)
OPEN

107.90

HIGH

113.70

LOW

105.45

NSE 15:59 | 18 Aug 110.40 1.45
(1.33%)
OPEN

107.70

HIGH

113.45

LOW

105.05

OPEN 107.90
PREVIOUS CLOSE 109.05
VOLUME 454934
52-Week high 113.70
52-Week low 28.00
P/E 32.34
Mkt Cap.(Rs cr) 755
Buy Price 110.05
Buy Qty 187.00
Sell Price 0.00
Sell Qty 0.00
OPEN 107.90
CLOSE 109.05
VOLUME 454934
52-Week high 113.70
52-Week low 28.00
P/E 32.34
Mkt Cap.(Rs cr) 755
Buy Price 110.05
Buy Qty 187.00
Sell Price 0.00
Sell Qty 0.00

Gravita India Ltd. (GRAVITA) - Chairman Speech

Company chairman speech

Dear Shareholder

It gives me immense pleasure to greet you all on the 24th year of ourjourney towards excellence and sustained leadership. On this momentous occasion wereaffirm our commitment of creating sustainable value for all our stakeholders includingshareholders customers banks employees and the society at large.

INDUSTRY OVERVIEW

Like all other industry sectors the Lead industry in India has come a long way with acommendable performance and creditable achievements. India used to be largely import-dependent for Lead in the sixties and seventies. Today India is a very significantproducer of recycled Lead purely from the huge domestic generation of used Lead AcidBatteries.

The Financial Year 2015-16 was challenging year for the Lead metal market. The Leadprices are market driven and depend on multiple factors existing in local as well as ininternational market. The price fluctuation in Global Lead Market hit the industryunexpectedly. We overcame challenges that emerged from the external environment in amanner that has made us more future-ready than ever before. It tested our organizationalcapability to counter headwinds. Ultimately our resilience made us even more confidentthat we will always continue to contribute positively to our stakeholders and to India'slong-term progress. It has also been an eventful year for global business. Global economicrecovery was inconsistent across geographies and major industries such as metal and powersectors had to cope with multiple challenges. Against the backdrop of uncertainties Indiaremained a bright spot in the global landscape. The country's economic fundamentals aresound and the Government is determined to remove impediments to economic development andsocial empowerment. In this context it is pertinent to mention that the 'Make in India'initiative has encouraged indigenous manufacturing expertise to compete at a global scale.Such an initiative is expected to take the share of manufacturing in the country's GDPfrom around 16% to 25% by 2022.

The overall industry is undergoing rapid changes and it has become essential tocontinuously refine and sharpen our capabilities. While responding to these changes isimperative response capability alone will not be sufficient to generate long termsustainable value for stakeholders. Anticipation of the future shape of the industry andtaking steps today to rightly position the Company is extremely important.

PERFORMANCE 2015-16

At GRAVITA we look beyond challenges at the opportunities present and apply ourabilities with focus and foresight. That is exactly what we did during the year. Weoptimized raw material consumption through best-in-class technology intervention; improvedcost competitiveness; managed cash flows; focused on value-added products to attract newcustomers; adding new territories and aligned longterm business strategies with diversestakeholder expectations. Such an approach has enabled us to emerge as one of the fastestgrowing secondary Lead manufacturers in India and despite of all internal as well asexternal factors the company performed rationally well and the revenues in current F.Y.stood at ' 431.20 Crores as compared to ' 501.29 Crores in last F.Y. The net Profit of theCompany stood at ' 4.37 Crores in 2015-16 as compared to ' 6.62 Crores in 2014-15.

THE WAY FORWARD

So as to overcome with all situations we set some standard for fighting with the forcesand factors of external environment in front of us. Some of our thoughts which weconsidered duly to stay in the market at the top:

The first is our financial stability:

After the previous financial year we made lots of changes in our revenue policy and weare looking forward for a new future project only to cope up with market conditions. Butfor some years now we have again been fully maneuverable with no financial concerns andare stronger now than almost ever before.

The second is our future vision:

With a vision of Largest Recycler by 2023 the Company is going ahead by diversifyingits business into same segment of recycling by adding Aluminum and PET Recycling to itsexisting manufacturing facilities. In doing so we have also expanded and strengthenedcollaboration within and throughout the corporation. We have put in place dedicated rawmaterial sourcing teams to ensure steady supply arrangements which will ensureuninterrupted supply to our manufacturing facilities. After all this is where our uniquepotential lies.

The third is our Research & Development capability: Our

Research & Development effort continues to direct towards building a strong anddifferentiated product pipeline.

GROWTH DRIVERS

We expect Gravita to evolve as a company with an interesting mix diversified sectorswith global presence persistently working for sustainable environment across the world.This evolution will entail taking multiple initiatives both organic and inorganic. Whilenot all of these initiatives may give the desired results we are gearing up the Companyto maximize the odds of succeeding and minimize the disruption due to failures.

In the long term we are targeting growth faster than the respective markets in whichwe are present. Our capable and committed employees will be the key drivers of thisgrowth.

NOTE OF APPRECIATION

On behalf of the Board of Directors of your Company I wish to convey earnest thanks toour valued Shareholders for their continuous support and trust in us. This motivationhelps us to excel in all our pursuits and constant endeavor to create value for you. Iwould like to thank my colleagues on the Board for their valuable guidance andcontribution in steering the Company to higher levels of achievement. Above all I wouldlike to place on record the commendable efforts and commitments shown by our most valuedresource i.e. the Human Resource of the Company as our employees have always contributedtheir best for the Company to set new benchmarks. I thank you all once again and offer mybest wishes for a very gala festive season ahead.

Warm Regards

Dr. Mahavir Prasad Agarwal

Chairman & Whole-Time Director