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Kanoria Chemicals & Industries Ltd.

BSE: 506525 Sector: Industrials
NSE: KANORICHEM ISIN Code: INE138C01024
BSE LIVE 14:16 | 17 Aug 78.00 2.45
(3.24%)
OPEN

75.90

HIGH

80.00

LOW

75.90

NSE 14:04 | 17 Aug 78.25 2.20
(2.89%)
OPEN

76.95

HIGH

79.80

LOW

75.50

OPEN 75.90
PREVIOUS CLOSE 75.55
VOLUME 40578
52-Week high 99.80
52-Week low 62.80
P/E 10.88
Mkt Cap.(Rs cr) 341
Buy Price 77.85
Buy Qty 50.00
Sell Price 78.00
Sell Qty 17.00
OPEN 75.90
CLOSE 75.55
VOLUME 40578
52-Week high 99.80
52-Week low 62.80
P/E 10.88
Mkt Cap.(Rs cr) 341
Buy Price 77.85
Buy Qty 50.00
Sell Price 78.00
Sell Qty 17.00

Kanoria Chemicals & Industries Ltd. (KANORICHEM) - Chairman Speech

Company chairman speech

The macroeconomic fundamentals of the Indian economy continue to be excellent. Aided bylow oil and commodity prices the fiscal situation is well under control. Deft managementof monetary policy has helped in warding off inflationary pressures. Although the industryis still keen to see lower interest rates the impact of the policy on controllinginflation seems to have been a success.

The focus of the Indian Government on the ease of doing business is very welcome. Theissue however is not so much at the centre but the states that have to imbibe the samespirit and facilitate easy and smooth conduct of business.

Measures taken for eliminating corruption and black money are important in impartinghealth to the economy. It is however essential to tackle the root cause of corruptpractices to be able to find a lasting solution rather than the process remaining just acleaning up exercise of past actions.

There have been recent murmurings on a proposal for holding central and state electionsat the same time. This is certainly desirable and will result in a situation wheregovernments will be able to function without continuously being hindered by electoralcompulsions. This will not only lead to better governance but also help in loweringcorruption.

Conditions are favourable for the next set of big bang reforms. Initiatives such as theGST are likely to fructify sooner than later thereby providing a new trajectory to theeconomy. We hope that political differences are set aside to quickly usher in thesereforms.

For the 'Make in India' initiative to succeed a clear focus on issues affectingcompetitiveness need to be addressed. Infrastructure and logistics must be once againprioritized. There is a need to focus on employment generation. This requires a bold andradical approach to labour reforms.

The ongoing issue of non-performing assets (NPA) has received much attention. In thiscontext it is essential to separate the wheat from the chaff so as not to create anatmosphere where money lent to industry is viewed with mistrust. Industry is the primarydriver of employment.

After divesting our Chlor Alkali division in the year 2011 the Company has beendiversifying into new businesses which have future promise. We entered the electronicautomobile components business by acquiring APAG Holding AG headquartered in DubendorfSwitzerland.

Use of electronics in the automobile industry is growing rapidly. Our investment inthis segment has proven to be a good move as APAG has doubled its sales since we took overthe operations in the year 2012. Profitability however is still elusive as costs werepushed up as a result of the strength of the Swiss Franc. As a part of the strategy forthe future APAG acquired a new development company in Germany called CoSyst ControlSystems and has also started a development centre in India so that the costs are averagedand distributed. The prospects this year look extremely promising as the strategic changesare expected to yield positive results.

Our investment in Africa was primarily focussed on the high growth opportunityavailable in the continent. We believe that Africa is poised to be the next global growthdriver. Demand for basic goods is increasing steadily and that inter alia prompted us toinvest in the textiles sector.

Our foray into Ethiopia Africa has been a challenge as it was both a new geography anda new industry. The fundamentals of the investment however seem sound. The Company hasstruggled to establish itself in the market and Kanoria Africa Textiles plc would needsome time before it yields returns.

The Company is now also refocusing on the chemicals business. We are upgradingtechnology at our plant in Ankleshwar with the objective of lowering cost and bettercapacity utilization. Our Vizag plant in the state of Andhra Pradesh is focussing on valueaddition and is already producing speciality resins. The Company is also identifying newlocations for further expanding capacity of existing product lines.

The Indian economy is looking up and presents an opportunity of growth in industry andbusiness. We look at this with great optimism and confidence to steadily enhance theactivities of the Company.

R V Kanoria

Chairman & Managing Director