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Gujarat Pipavav Port Ltd.

BSE: 533248 Sector: Others
NSE: GPPL ISIN Code: INE517F01014
BSE LIVE 15:58 | 17 Nov 131.00 -3.55
(-2.64%)
OPEN

134.70

HIGH

136.60

LOW

129.95

NSE 15:59 | 17 Nov 131.85 -3.15
(-2.33%)
OPEN

136.05

HIGH

136.95

LOW

130.60

OPEN 134.70
PREVIOUS CLOSE 134.55
VOLUME 2756761
52-Week high 179.00
52-Week low 121.20
P/E 27.46
Mkt Cap.(Rs cr) 6,333
Buy Price 0.00
Buy Qty 0.00
Sell Price 131.00
Sell Qty 672.00
OPEN 134.70
CLOSE 134.55
VOLUME 2756761
52-Week high 179.00
52-Week low 121.20
P/E 27.46
Mkt Cap.(Rs cr) 6,333
Buy Price 0.00
Buy Qty 0.00
Sell Price 131.00
Sell Qty 672.00

Gujarat Pipavav Port Ltd. (GPPL) - Chairman Speech

Company chairman speech

Dear Members

For and on behalf of the Board of Directors I am pleased to present the Annual Reportof Gujarat Pipavav Port Limited ('the Company') with the first Ind AS compliant FinancialStatements for the year ended 31 March 2017.st Your Company holds 38.8% shares in PipavavRailway Corporation Limited (PRCL) an Associate Company as per the provisions of theCompanies Act 2013. Accordingly the Annual Report comprises the Standalone FinancialStatements and the Consolidated Financial Statements for the year ended 31 March 2017.stDuring the year your Company reported a Standalone Net Profit of Rs. 2499 Million anincrease of over 31% compared to the previous year. The Company's objective is to sustaina steady and consistent distribution of Dividend to its Shareholders subject toavailability of profits the Company's future funding needs and the applicable laws.Accordingly the Company declared and paid an Interim Dividend of Rs. 2.00 per share andis pleased to recommend a Final Dividend of Rs. 1.80 per share. The Global ContainerShipping Lines our direct customers faced historically low freight rates during the year2016. The excess capacity build up coupled with continued slow down in global tradeadversely impacted the Shipping Lines. This led to one of the major carrier going out ofbusiness. The Shipping Industry is also going through the consolidation phase and theLines are getting into slot sharing arrangements to reduce their operating cost in theweak market conditions. The Industry is expecting that these measures will lead to gradualrecovery in freight rates and provide relief to the highly stretched financials of theShipping Lines. In the muted global environment India continues to remain a country withpotential of strong GDP growth ~7%. The Container Shipping trade on the West Coast ofIndia that handles almost two-thirds of the country's container business is growing at~6%. Though it has caused certain imbalance in the trade because of strong imports andrelatively low exports. As far as the Dry Bulk cargo business is concerned Coal andFertiliser are the two main commodities imported in the country. The trend of reduction inCoal imports continues due to much improved availability of domestic coal and competitivepricing of Solar Energy. The Fertiliser imports are driven by the Government's policiesbut the compulsory Neem coating required to be done by the Port at which the importedfertilizer is discharged as per the Government's directive in order to prevent diversionof this subsidized commodity has also resulted into reduction of its imports. TheGovernment of India's launch of Pradhan Mantri Ujjwala Yojana scheme is targeted toincrease the coverage of population having supply of LPG. The population getting coveredwith LPG connection is rapidly increasing from ~62% in April 2016 to ~73% in March 2017and the target is to reach ~96% of the population by 2018-19. The Government is movingaggressively to meet its target by 2018-19. This development will have a positive effectof reducing air pollution and improving the local environment in rural areas. Your Companysees good potential in the growth of LPG imports in order for the Government to achieveits target. RORO is another business that is progressing well through Auto companies inGujarat. Going forward the Company's focus areas will be Containers Liquid and RORObusiness. AP Moller Maersk in partnership with the Confederation of Indian Industries(CII) had recently carried out an extensive study on current obstacles to Indian logisticsand associated trade growth. The study found that the cost of trade in India is amongstthe highest in the world when compared to the peer countries. Indian transport andlogistics costs represent 14.4% of its Gross Domestic Product (GDP) compared to 8% forChina. The study covered four businesses namely Textiles and Garments PharmaceuticalsElectronics and Auto Components. The data indicated that India's indirect cost of trade(including delays road congestion and non-essential paperwork) represent as much as 38%to 47% of total transportation and logistics cost. A reduction of these extraneous costsby 10% would create the potential for up to 5% to 8% in additional exports for the countryor USD 5.5 billion in additional export revenue above the current level of about USD 63.3billion in these four sectors. The State of Gujarat has been at the forefront inIndustrialization and the Auto companies recently set up in Sanand- Mehsana region havebeen quite successful. These can be an example for the other industries to set up theirmanufacturing facility in the Dholera Industrial Region which is being promoted by theState Government. Your Company along with all other ports within the portfolio of itsparent APM Terminals observed 17 to 20 April 2017 as Global Safety Day. The theme thisyear was “24/7 th th SAFE” with focus on Night Operations and Night Shiftsfunctioning at the Ports and Terminals. Several programmes were conducted during theperiod involving Skits and Spot Quiz by various departments. The families of the employeeswere also involved wherein a Drawing Competition for Safety posters was conducted forchildren and the Ladies had conducted Skits. The winners were felicitated by the Executiveteam of the Company and the Programme concluded with the Managing Director's address toall the employees their families and the Contractor's employees. As part of the globalinitiative APM Terminals has four underlying principles- Safety is the license tooperate; has no hierarchy; it means no compromise and all companies should be activelycommitted to it. Your Company is committed to highest Safety standards and has setstringent Safety rules for the Truck Drivers entering the Port. During the calendar year2016 the Port's Health Safety Security and Environment (HSSE) Team conducted 34900Training sessions for the Truck Drivers making them aware about the Safety measures theyneed to follow. The drivers are required to compulsorily undergo Refresher Safety courseevery six months before entering the Port. Your Company as a good and responsibleCorporate Citizen has taken certain initiatives during the year towards providing theservices that contribute to lifecycle sustainability. Some of the major initiatives takenare Conversion of 18 Rubber Tyre Gantry Cranes from Diesel to Electric Purchase of 2 newRubber Tyre Gantry Cranes operating on electric Replacement of 2782 High Voltage SodiumVapour Lamps with LED lights inside the port premises resulting into energy savings ofover 50% and 100% utilization of treated domestic waste water for development of greenbelt and reducing the requirement for fresh water. The HSSE department has set up adedicated Waste Management Cell which is responsible for segregation of all waste atsource its storage recovery and recycle. All Hazardous waste is collected and stored ina dedicated area and is sold only to authorized re-cyclers and re-processors. Certaingarbage and hazardous waste that can be used as fuel by the cement factories in thevicinity is disposed off accordingly.

On behalf of the Board of Directors of the Company I take this opportunity to expressour sincere appreciation to our Shareholders Vendors Customers for their continuoussupport our Associate Company Pipavav Railway Corporation Limited and to our Employeesfor their dedication and commitment. I also thank the State and Central Government bodiesand my colleagues on the Board for their support guidance and valuable insight. I lookforward with optimism towards a sustained economic growth in India and a very exciting andprosperous year ahead for Gujarat Pipavav Port Limited.

With Best Wishes
Yours truly
Tejpreet Singh Chopra
Chairman