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Himadri Speciality Chemical Ltd.

BSE: 500184 Sector: Industrials
NSE: HSCL ISIN Code: INE019C01026
BSE LIVE 15:42 | 20 Sep 129.15 -4.05
(-3.04%)
OPEN

133.90

HIGH

136.25

LOW

126.20

NSE 15:53 | 20 Sep 129.30 -3.70
(-2.78%)
OPEN

133.60

HIGH

136.00

LOW

126.20

OPEN 133.90
PREVIOUS CLOSE 133.20
VOLUME 503670
52-Week high 136.25
52-Week low 32.70
P/E 45.16
Mkt Cap.(Rs cr) 5,404
Buy Price 129.80
Buy Qty 50.00
Sell Price 0.00
Sell Qty 0.00
OPEN 133.90
CLOSE 133.20
VOLUME 503670
52-Week high 136.25
52-Week low 32.70
P/E 45.16
Mkt Cap.(Rs cr) 5,404
Buy Price 129.80
Buy Qty 50.00
Sell Price 0.00
Sell Qty 0.00

Himadri Speciality Chemical Ltd. (HSCL) - Chairman Speech

Company chairman speech

Dear shareholders

India represents one of the most exciting opportunities in the world today. At Himadriwe believe that the country is stepping out of an economic slowdown driven by apro-business government at the Centre eager on accelerating reforms and implementingground-level infrastructure initiatives. The result is that even as India grew 7.6% duringthe last financial year the fastest across any major economy the fact that it reported7.9% growth in the fourth quarter indicates that the growth is trending faster and issustainable. After years India has started to reap the twin benefits of high interestcosts and low inflation generating real returns which we believe represents thefoundation of capital formation larger savings and increased private consumption. Theeasing interest rates and investments becoming cheaper will create another round of growthof the country’s economy. There are other realities that favour India. According toInternational Monetary Fund per capita income in India is only US$1688 compared withUS$8280 in China. With 50% of its population being under the age of 25 and 65% under 35India enjoys the advantage of a young labour force as well.

The Indian Government has prioritised the development of a manufacturing base with theobjective to transform India into the world’s go-to destination for manufacturingthe same way China did a couple of decades ago. India is attractively placed tocapitalise: the country’s manufacturing wages are a quarter of what they are onChina’s Eastern coast a significant advantage. India has taken a number of decisivesteps in the infrastructure sector (like the introduction of the hybrid annuity model forroad construction and easing of interest rates) which are expected to create the necessaryinfrastructure to drive manufacturing growth. Moreover a slew of initiatives like Make inIndia Skill India Startup India and Digital India will drive economic growth in theyears that lie ahead. According to the World Bank’s Doing Business Report 2016 Indiaranks 130 out of 189 countries in terms of ease of doing business moving up four placesfrom last year’s adjusted ranking of 134. We believe this is the beginning of along-term improvement trend.

Himadri’s presence in strategic business spaces enables it to leverage theseemerging economic trends. The Company manufactures products for the country’s coresectors - steel aluminium automotive and infrastructure development. The result is thatwith India growing Himadri is expected to grow as well. Himadri’s advanced carbonmaterials are integral components of lithium-ion batteries. With growth in the smartphonesand electric vehicles segments exploding and an ever-increasing consumer hunger for longerbattery lives this sector is poised to take off like never before. Despite a volatilesituation demand in the aluminium industry is expected to improve owing to growing use ofaluminium in sectors like automobiles. To make the vehicles cost-effective lighter andreduce emission a number of global automobile majors are focusing on aluminium as one ofthe key raw materials in the manufacture of components.

Alcoa the US aluminium group expects global demand for the metal to grow 6% thisyear only slightly slower than 2015 in spite of volatility in the financial markets. Thedomestic demand for aluminium is expected to be strong owing expected economic growth.With the power sector getting back on fast track the demand for aluminium is expected torise as the power sector is one of the major aluminium consumers in the country. Himadriis also producing SNF a key admixture for concrete that is expected to perform betterowing to increased construction in the country and a low penetration of constructionchemicals in India. We are also at the final stages of acquiring approval for advancecarbon black for li-ion batteries which will open up a sea of opportunities. Growth indemand for lithium-ion (Li-ion) batteries has encompassed a range of application areasincluding consumer electronics hybrid as well as electric vehicles and energy storage.While the ubiquity of hybrid vehicles and full-electric vehicles has yet to be manifestedon global 50%of India’s population is under the age of 25 and 65% under 35 –the advantage of a young labour force.roads in greater numbers the process of a markedshift towards more fuel-efficient and eco-friendly means of transport as a switch fromconventional gasoline powered vehicles has commenced. Besides the battery is gainingtraction as the source of power for portable electronic devices including mobiles digitalcameras laptops and tablet PCs among others. For a country like India which is still inits industrialisation phase the increased consumption of steel and aluminium is imminent;there can be no national growth without these metals. Besides with housing constructionexpected to accelerate and the country’s automotive sector reporting a rebound acompany like Himadri can look forward to a sustained growth in ofitake. On account ofthese reasons I am optimistic that Himadri will add significant value in the hands ofstakeholders over the foreseeable future.

Bankey Lal Choudhary

Managing Director