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India Glycols Ltd.

BSE: 500201 Sector: Industrials
NSE: INDIAGLYCO ISIN Code: INE560A01015
BSE LIVE 15:59 | 22 Sep 245.30 -4.00
(-1.60%)
OPEN

245.10

HIGH

266.80

LOW

241.05

NSE 15:52 | 22 Sep 246.00 -2.45
(-0.99%)
OPEN

246.00

HIGH

267.35

LOW

240.65

OPEN 245.10
PREVIOUS CLOSE 249.30
VOLUME 184463
52-Week high 274.00
52-Week low 108.95
P/E 18.64
Mkt Cap.(Rs cr) 759
Buy Price 0.00
Buy Qty 0.00
Sell Price 243.90
Sell Qty 142.00
OPEN 245.10
CLOSE 249.30
VOLUME 184463
52-Week high 274.00
52-Week low 108.95
P/E 18.64
Mkt Cap.(Rs cr) 759
Buy Price 0.00
Buy Qty 0.00
Sell Price 243.90
Sell Qty 142.00

India Glycols Ltd. (INDIAGLYCO) - Chairman Speech

Company chairman speech

1997 INDIA GLYCOLS LIMITED. CHAIRMAN STATEMENT I have great pleasure in welcoming you to the Thirteenth Annual General Meeting of your Company. The Directors' Report and the Audited Accounts for the year ended March 31,1997 have been with you for some time and, with your permission, I shall take them as read. ECONOMIC SCENARIO AND YOUR COMPANY The Central Government, in the Budget for 1997-98, restructured both the direct and the indirect taxes. While, import duty on MEG remained unchanged, excise duty on MEG and Ethoxylates and the products of downstream industries have been reduced. The Industry friendly policies of the Central Government are expected to give a fillip to the industrial growth of the country in general and will also go a long way in improving your company's prospects for the year 1997-98. PERFORMANCE During the year, your Company's performance has been satisfactory. The sales and the Net profit during the year registered a marginal increase compared to 1995-96. The sales increased from Rs.117.27 crores to Rs.121.09 crores and the Net Profit from Rs.17.75 crores to Rs.18.64 crores. Your Company has maintained dividend at 20% for the year which will be free of tax in the hands of the shareholders. The outgo on dividend and corporate dividend tax will be Rs. 6.13 crores. During the year, production of MEG was 19481 MT compared to 20259 MT last year. However, production of Ethoxylates/formulated surfactants has improved significantly to 7671 MT compared to 4209 MT last year, an increase of 83%. The production of Ethylene Oxide ex-reactor was 99.5% of installed capacity. However, the lower production of MEG was on account of diverting larger quantities of Ethylene Oxide to produce Ethoxlates. DIVERSIFICATION You will be glad to note that the formulation plant put up in technical collaboration with Sanyo Chemical Industries, Japan, has been commissioned in August this year. This will enable your company to increase its product range in value added performance chemicals required by many major industries such as Textiles, Pharmaceuticals, Agro Chemicals, Lubricants etc. The chlorosulphation project is being technologically upgraded with the help of Sanyo Chemical Industries, Japan to produce products of international quality for personal care business. As a result, the implementation of the chlorosulphation project has been slightly delayed and is expected to be commissioned in February, 1998. CURRENT YEAR During the five months of the current year, the sale of MEG has been 8253 MT compared to 7976 MT during corresponding period in previous year. Your company has been able to sell its entire production of MEG. International price of MEG has also shown firmness due to favourable demand supply balance since April, 1997. Sale of Ethoxylates/formulated surfactants has been 4825 MT compared to 2752 MT, an increase of 75% over the corresponding period last year. Your Company through sustained marketing and R&D efforts, has achieved the position of market leader in the Ethoxylates business and is recognised as a major supplier of international quality ethoxylates/formulated surfactants. With the commissioning of new formulation plant and expected commissioning of the chlorosulphation plant, your Company would be able to broaden its product base further and considerably increase its market share in this business. During the year, some additional capacity of MEG has been set up in the country. Further capacity is expected in the coming years. However, during the last one year, there has been a simultaneous increase of 55% in the installed capacity of polyester industry leading to demand growth of 40% for MEG in the same industry. Increased production of MEG is expected to be absorbed by higher production of Polyester industry in the coming years. Your company has created large storage capacity for molasses and alcohol to tide over lean period of molasses availability in any year. Your company is also in the process of debottlenecking the MEG plant which will result in incremental production of MEG. At the same time, various cost optimisation and energy conservation schemes are being implemented to improve the profitability of the company. RESEARCH AND DEVELOPMENT Besides the existing R & D Centre, your Company is setting up a modern "Applications Research Centre" at an investment of Rs. 150 lacs for development and testing of performance chemicals. This will further strengthen the in-house R&D to meet the customer specific needs of performance chemicals. ENERGY CONSERVATION Your company is installing additional power generating set of 4 MW capacity based on heavy petroleum stock. With the commissioning of this set by February 1998, your company will become self-sufficient for its power requirements ensuring uninterrupted operation of the plant. This will also result in considerable saving due to lower power cost. ENVIRONMENT AND SAFETY Your Company is fully conscious of its responsibilities in protecting the environment. Towards achieving this objective, your company has commissioned one more Methane Upflow Reactor which will not only enhance the capacity of the existing bio-gas plant but also augment the effluent treatment facilities. Your Company is further augmenting the Secondary and Tertiary Treatment facilities with the construction of additional clarifier and lagoons for aeration at an estimated cost of Rs. 3.0 crores. Your company's plant was operated accident free during the year ensuring safety of the plant and environment. ACKNOWLEDGMENT On behalf of the Board and on my own behalf, I sincerely thank the employees, Central Government, Government of Uttar Pradesh, Financial Institutions and Banks. I also thank you all for attending this meeting sparing your valuable time. I am sure, with your fullest cooperation and unstinted support, your company will continue to perform in the coming years as well. M.L.BHARTIA Chairman & Managing Director