ORGANIC COATINGS LIMITED
ANNUAL REPORT 2009-2010
It gives me great pleasure to share with you the successful journey your
company has taken in the last year. From modest sales growth of just 1% in
the financial year 2008-09, your company grew by more than 22% in the
financial year 2009-10. The growth was more phenomenal when it comes to
profitability where your company grew by 88%. It gives me an immense
pleasure to inform you that your Board has recommended a dividend of 5%
(Rs.0.5 per equity share) to all the shareholders and we hope that this
trend of giving dividend will continue for the future.
During the year your company reached optimum capacity utilization at its
Mumbai facility and hence an investment had to be made to buy Land &
Building in Vadodara to meet the increasing demand for our products. As I
write this note, the Government approvals for starting the manufacturing
plant at Vadodara has been received and we expect production to start for
inks at Vadodara Plant before the end of the year.
During the year, Black Plant was also installed at our Mumbai factory and
it added around 100 Tons per month of additional capacity of Black Ink.
This in turn strengthens your company in gaining high market share in the
The current trend is also very encouraging, our first quarter net sales for
the financial year 2010-11 grew by 38% and profit after tax also has shown
growth of 69 % over the same quarter last year. Your company is now set on
the momentum for continuous growth for this fiscal year and beyond. Some of
the new products launched during this year have shown tremendous growth
potential and the full impact of these products will be seen by the end of
this year. The products launched were Plasto Coat for currency printing,
Rich Green for environmentally friendly application, High Speed Coldset
Inks for newspaper industry and Pantone bases based on eco-friendly
I would also like to inform you that our labour negotiations with the Union
were agreed and signed in the month of July 2010. This contract will be
valid till 2013.1 take this opportunity to thank the workers as well as the
Union and all employees of the organization in settling all the issues
related to negotiations amicably.
During the year company has launched a new redesigned website. It
represents spirit in our company today which is upbeat about its future,
agile and aggressive in its pursuit of growth and excellence, and emerging
into a great place to work.
The current escalation and volatility with the prices and availability in
critical raw material is an area of concern to the Management. We are
trying to get into long term price and supply contracts to ensure that your
company is least affected. However, to counter the effect of cost increase,
the company has revised its prices upward during the month of June 2010.
My sincere thanks to all of you, management colleagues, independent
directors and employees for continued support and trust.