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Omkar Speciality Chemicals Ltd.

BSE: 533317 Sector: Industrials
NSE: OMKARCHEM ISIN Code: INE474L01016
BSE LIVE 19:40 | 19 Oct 81.00 -0.30
(-0.37%)
OPEN

80.55

HIGH

82.00

LOW

80.45

NSE 19:31 | 19 Oct 81.00 -0.20
(-0.25%)
OPEN

82.10

HIGH

82.10

LOW

80.70

OPEN 80.55
PREVIOUS CLOSE 81.30
VOLUME 16116
52-Week high 120.05
52-Week low 63.13
P/E 4.38
Mkt Cap.(Rs cr) 167
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 80.55
CLOSE 81.30
VOLUME 16116
52-Week high 120.05
52-Week low 63.13
P/E 4.38
Mkt Cap.(Rs cr) 167
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Omkar Speciality Chemicals Ltd. (OMKARCHEM) - Chairman Speech

Company chairman speech

Warm Greetings to you all

This was yet another year of exciting innovations converting challenges intoopportunities and maintaining focus on operational efficiencies. I am happy to share withyou that inspite of ongoing global macro-economic turbulences your company has performedwell during the year 2015-16. As you are aware your Company had embarked on the majorcapacity expansion to scale up for the existing product lines launch of new moleculeswhich have been developed in our own R&D lab and meeting certain regulatoryrequirements. For this the Company spent around Rs 180 crs. across all our Unitsincluding the wholly owned subsidiaries . This process has almost been completed and allour facilities have become operational except Unit No.5 at Chiplun which has alreadyreceived the consent from State’s Environmental Department.

The Company does not envisage any further capex except debottlenecking or maintenancecapex as and when required. Though the capex incurred by the Company so far has burdenedthe Company in terms of its debt liabilities we should look at this as a robustinvestment for creating an excellent infrastructure across all facilities of the Companywhich will enable us to reach a much higher level in the near future As you are aware inthe past the Company faced a challenge with respect to its extended Working Capital cycleand the management was committed to bring it under control. Our efforts have borne fruitsin the second consecutive year and the Working Capital cycle has come within a wellcontrollable limit. The Company’s existing facilities are sufficient enough tomaintain the trajectory of historical growth without any major capex. The Company alsoproposes to adopt a model based on contract manufacturing to get various new intermediateswhich are already developed in-house. Since this model will not be requiring any capitalinvestment we are optimistic that this will bring in better ROCE in near future.

The Company’s all wholly owned subsidiaries have also maintained improving trendin their performances as is evident from performances of our major subsidiary – LasaLaboratory Private Limited.

Our wholly owned subsidiary – Lasa Laboratory Private Limited demonstrated a verygood growth in the segment it operates in i.e. veterinary APIs. Veterinary APIs is apromising market with significant opportunities in the domestic as well as in theinternational markets. This business is poised to grow further to new heights in very nearfuture. Since the product lines of the parent Company and Lasa are altogether differentand there are unlimited opportunities for growth in each sector the Company has decidedto opt for a merger-demerger scheme wherein Lasa’s operations will get demerged fromthe parent Company’s business and Lasa Supergenerics Limited will emerge as anIndependent Listed entity post the demerger. The detailed about this scheme are alreadyapproved by the Stock Exchanges and SEBI and the matter has now been submitted to MumbaiHigh Court. The details of this scheme are available on our site - www.omkarchemicals.com.

My Executive colleagues and I deeply value the involvement of all our distinguishedNon-Executive Directors and Independent Directors for their critical inputs valuedsuggestions and encouragement to the management in the operations of the Company. I amprivileged to have them on the Board of our Company.

I also appreciate the contributions from every member of OSCL family and take thisopportunity to thank all our shareholders Banks valued customers Government Agenciesour suppliers and partners in business for their continuous support on the basis of whichyour Company looks forward for maintaining its robust growth at all times in future.

Yours Sincerely

Pravin Herlekar

Chairman & Managing Director