From the Chairman's Desk ...
I welcome you all to the 24thAnnual General Meeting of your Company.
This is the second year after the listing of your Company at the National StockExchange and Bombay Stock Exchange and it gives me immense pleasure to greet you at thismomentous occasion. We all have travelled together this one and a half year's journeyand I thank all of you for remaining loyal to the Company. On this occasion I take theopportunity to also welcome those of you who have joined us midway on this journey.
As you are aware that since inception over the years Shree Pushkar has progressed bypersistently widening its product base by way of backward integration as also diversifyingnot only into newer products but also adding up new product verticals depending upon theneeds of the occasion while keeping our attention focused on our mainstream activity ofproducing Dye-intermediates and now Reactive Dyes as well.
The year 2017 has been unique andone-of-its-kindforus significant achievements ofputting on stream various yearof additional product lines by way of: Reactivedyes.
2 new product lines in our fertiliser division namely Sulphate of Potash(SOP) & NPK mixed fertiliser.
Creating additional capacities in our intermediates division to meet captiveneeds
And all this within the period when we have seen new highs and lows in the prices ofour mainstream products. Though it has been a time of significant opportunities andsuccesses yet at the same time it was of stern challenges.
As we look back you will observe that the operational performance of the year wasstrong; the product volumes surpassed those of the earlier years and also did meet theexpectations of our budgeted figures. All this at a time of falling unit prices ofintermediates and consequently that of dyes the late arrival of monsoon adverselyaffecting the Kharifseason which as all of you know is the most important contributor forthe demand for the fertiliser industry. Against these odds you will agree with me thatthe overall performance has been fairly satisfactory if not a boom.
Key indicators of our performance over the last five years show that we have with ourunique business sustainable operating platform that could be considered amongst the bestin the industry.
After nearly 2 years of volatility and high prices of intermediates we have beenwitnessing a sustained stabilisation.
This as you all will agree with me will have a profound impact on our industry.
As you all know price is a derivative of demand and supply on which we have hardly anycontrol. We can however to a certain degree take corrective action when the prices goagainst us.
One of such actions being lower and controlled inventory both in terms of raw materialas also finished goods. This along with a few more similar corrective actions we havebeen in a position to ride on the tide and continue to generate surplus.
Let me now look to the future.
From the basic human necessities you will agree that apparels textiles and colourantsin that order will always be needed at all times. The yarns or for that matter thetextures may and will certainly change however to be inline if not ahead we need to besure that we can within reasonable limits anticipate or foresee the changes in thecoming and respond to such changes.
Your board as the steward of the Company has been looking over a medium term horizon.We have a good portfolio of projects and more to come with promising returns.
The industry continues to operate within a tough environment. The current economicaspirations the perennial pollution problems and cleaner environmental necessities posea challenge on the Industry which under any circumstances has to be met. Our challengesare not only financial. Our task in oversight involves monitoring three areas of riskFinancial operational and geopolitical.
On our part I may say in very few words that we within our capacity and reachareclear on our financia framework and are in the course of action to meet the otherchallenges as well.
Currently we have on our drawing board plans for the next 3 years to maintain ourupward trajectory of growth through continued expansions in our operations a plannedapproach and a strict discipline over capital costs and gearing.
In conclusion Shree Pushkar is in a good place with a great team and an emergingmarket.
I once again thank you for your support and I sincerely look forward to your continuedsupport in the future as well. I also express my heartfelt thanks to my colleagues andteam at Shree Pushkar without whose active support it would not have been possible toreach the current stage. Let me say we may be a little larger Company than before but itis also equally agile and ready for the future.
Chairman & Managing Director.