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Kiri Industries Ltd.

BSE: 532967 Sector: Industrials
NSE: KIRIINDUS ISIN Code: INE415I01015
BSE LIVE 15:40 | 22 Nov 576.45 2.80
(0.49%)
OPEN

578.80

HIGH

589.80

LOW

555.90

NSE 15:51 | 22 Nov 576.70 2.40
(0.42%)
OPEN

577.90

HIGH

589.00

LOW

556.00

OPEN 578.80
PREVIOUS CLOSE 573.65
VOLUME 96700
52-Week high 624.00
52-Week low 227.05
P/E 15.67
Mkt Cap.(Rs cr) 1,605
Buy Price 0.00
Buy Qty 0.00
Sell Price 575.90
Sell Qty 158.00
OPEN 578.80
CLOSE 573.65
VOLUME 96700
52-Week high 624.00
52-Week low 227.05
P/E 15.67
Mkt Cap.(Rs cr) 1,605
Buy Price 0.00
Buy Qty 0.00
Sell Price 575.90
Sell Qty 158.00

Kiri Industries Ltd. (KIRIINDUS) - Chairman Speech

Company chairman speech

KIRI DYES AND CHEMICALS LIMITED ANNUAL REPORT 2007-2008 CHAIRMAN'S REPORT First of all I would like to thank investors of all categories, especially retail investors for their response to our Initial Public Offering (IPO). Our IPO was opened on 25th March, 2008 and was closed on 2nd April, 2008 with price band of Rs. 125 to Rs. 150 per equity share. When we entered into primary market, the market sentiments were weak. With your support our IPO was subscribed to 1.35 times net. Our Stock got listed on Bombay Stock Exchange Limited and National Stock Exchange of India Limited on 22nd April, 2008 with overwhelming response in secondary market. Our price touched to Rs. 228 on NSE and 204 in BSE. This is first Annual General of the Company after listing, I would like to Just brief you on the history, we made modest beginning with a manufacturing unit in GIDC, Vatva, Ahmedabad in the name of Kiri Dyes and Chemicals Private Limited in year 1998 that to start with manufacturing limited quantity of reactive dyes. As on date our installed capacity is 15000 MTA reactive dyes comprises of more than 120 dyes stuff. Unparallel dynamism, rich experience, in-depth knowledge and farsighted business policies have strategically positioned us as a Leading exporter of dyes and dye-intermediates from India. Driven by innovation and passion to excel, we continue to grow every year not only to generate high revenues, but also to create shareholders' wealth by increasing percentage profit margins as well as by generating more rupee term profits from exports. Due to the distinctive product range that comes with irreplaceable high quality standards, we got international repute in all business practices that we conduct. This has been proved by being not only a major supplier to the multinational companies, but also a brand provider to them. In the year 2006, we have started the first phase of backward integration expansion project to manufacture Vinyl Sulphone at plant situated at village Dudhwada, Tal: Padara, Dist: Vadodara. In the year 2007, we have achieved another milestone starting second phase of backward integration expansion project to manufacture H-Acid at the same Dudhwada manufacturing facility and have become independent as regard to major raw materials for manufacturing of reactive dyes. Vinyl Sulphone and H Acid are major raw materials to manufacture reactive dyes, which are consumed in the highest quantity at KDCL. KDCL has proved unprecedented highest growth in the history of dyes and dye-intermediate industry globally. KDCL has established its presence in about 20 countries worldwide with esteemed organizational recognition and reputation as the most prominent, highly efficient, and the most competitive manufacturers from India. ACCELERATING FURTHER GROWTH KDCL is now also expanding its operations into basic chemicals manufacturing of sulphuric acid and its derivatives with a targetto achieve exponential growth in the next few years. This plant is also located at village Dudhwada, Tal: Padara. This plant is being set up with latest double absorption technology. Alongwith sulphuric acid plant we have also planned for 3.3 MW cogeneration steam based power plant. The steam generated from the plant will be used for generation of electricity. The Power generated will be sufficient not only to run Sulphuric Acid plant but also to operate intermediate plants of Vinyl Sulphone and HAcid, which will affect directly to our profit margin. The production capacity is 180000 metric tones annual. We have taken all required Statutory approvals for the said plant and the Construction activities of the said plant was started from November, 2007 and commercial production of the plant wi ll start from December 2008. To become stronger with higher economy of scale for key raw materials V. S. & H. Acid and to provide reliable supplies of these raw materials to JV Company, we have also planed for expansion of our existing intermediates plant capacity. The Existing capacity of V. S. and H. Acid is 7200 metric tones annually. After expansion the capacity will be 90000 metric tones annually alongwith 30000 metric tones annual production capacity of Acetanilide. Alongwith capacity expansion, we are also proposing =or 15 MW captive power plant. We have already acquired land for expansion of production capacity. Our environment clearance application with Ministry of Environment and forestis in process and environment clearance will receive at the end of September, 2008. To share another milestone, I glad to inform you that, we are also planning to set up various types of dyestuff manufacturing plant with latest technology alongwith our joint venture partner Well Prospering Ltd (WPL), a Honk Kong based company, subsidiary of Zhejiang Longsheng Group Co. Ltd., China. We have executed joint venture agreement with WPL on 24th May, 2008 for setting up dyes manufacturing facilities at village Dudhwada, Tal: Padra, Dist: Vadodara. Kiri dyes shares in the said plant will be 40% and we are also responsible for providing required raw material to Joint Venture Company. The initial production capacity will be 20000 metric tones annually in First phase and will be increased to 60000 metric tones annually in due course. KDCL will get be benefited in two way one for providing key raw intermediates from existing plant and wiLLget40% profit share. PERFORMANCE OFTHE COMPANY: Due to Starting of the backward integration project in worldwide increases in price of chemicals, the turnover of the company increased to Rs.22162.51 Lakhs for the financial year 2007-OS as against Rs. 13342.44 Lakhs for financial year 2006-07, registering the remarkable 66%. The Net profit for the year 2007-08 increased to Rs. 2014.08 Lakhs as against Rs. 842.20 Lakhs for the year2006.07. Before conclude, I would like to thank again all the shareholders of KDCL for putting their trust and confidence into me and the team of KDCL. We are committed to value and enrich your wealth. Yours Sincerely, Pravin Kiri Chairman