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Kanoria Chemicals & Industries Ltd.

BSE: 506525 Sector: Industrials
NSE: KANORICHEM ISIN Code: INE138C01024
BSE LIVE 15:40 | 15 Dec 94.00 1.45
(1.57%)
OPEN

94.00

HIGH

95.00

LOW

93.45

NSE 15:51 | 15 Dec 94.05 1.60
(1.73%)
OPEN

94.30

HIGH

95.00

LOW

93.50

OPEN 94.00
PREVIOUS CLOSE 92.55
VOLUME 44073
52-Week high 108.70
52-Week low 63.00
P/E 12.50
Mkt Cap.(Rs cr) 411
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 94.00
CLOSE 92.55
VOLUME 44073
52-Week high 108.70
52-Week low 63.00
P/E 12.50
Mkt Cap.(Rs cr) 411
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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

Company chairman speech

There is a new found confidence in India and the country's macroeconomic indicators arestrong. The perceptions amongst the overseas investing community remain positive andstrong. Foreign direct investment is flowing in. The Government is making serious attemptstowards ease of doing business and inter-state competition amongst the states is helpingthis process.

Private investment however continues to remain sluggish. It seems that the impact ofthe unparalleled move of demonetisation of high currency notes is yet to completely wearoff. The implementation of GST augurs well for the future both in terms of simplifyingtax regime as well as improving compliance. The short term impact however of both thedemonetisation as well as the GST is likely to delay the revival in private investments.Inflation seems to be well under control and expected easing of monetary policy and fallin interest rates will further stimulate growth.

After the divestment of our Chlor Alkali business the Company had diversified intoelectronic automotive components textiles and renewable energy. The electronic automotivecomponents business headquartered in Switzerland has shown continuous growth. During theyear there was remarkable turnaround in profitability and going forward the businessshows promise with a full order book for the next three years. The Company's strategy isto realign its focus on development of products concentrating primarily on conceptlighting. It is also embarking on its second phase expansion project at its productionfacilities in the Czech Republic.

The textiles business in Africa is suffering from the pangs of gestation. Productionand quality have improved substantially however in the absence of a yet to developupstream garmenting industry margins are under severe pressure and losses continue. Freshinvestment in garmenting industry is happening in Ethiopia however it will take time forthis effect to be felt.

With regard to our chemical business technological upgradation of the productionfacilities at Ankleshwar is on the way and a single-stream Formaldehyde Plant replacingolder plants will be commissioned by September this year. The focus at our Vishakhapatnamfacilities is on value added products including phenolic resins. The Company is alsolooking at a third manufacturing location to cater to the demand of its existing customerswho are expanding their capacities in that location.

In the renewable energy segment Government policy on Renewable Purchase ObligationScheme continues to be weakly implemented and there is inadequate enforcement ofobligation to purchase Renewable Energy Certificates (RECs). Further the prices of RECswere unilaterally reduced without commensurate adjustment in the number of RECs. This isbeing collectively contested through the Green Energy Association and the Indian WindPower Association the two concerned trade bodies in India and the matter is in theSupreme Court of India.

In the coming year chemicals and automotive electronics businesses should continue toperform well while the textiles business will continue to be under pressure. We arehowever confident that the Company is in a strong position to leverage the positivesentiments in the Indian economy and its stable macroeconomic environment.

R. V Kanoria

Chairman & Managing Director