Post October 2016 the financial year 2016-17 was one of the toughest years for yourCompany. Initial anxieties displayed by the Companys dealers when demonetisation wasimplemented and the unfortunate incident at Nasik plant in November 2016 pulled theperformance down but these events have made us stronger than before boosting ourconfidence. I am happy to say that we successfully bagged ourselves up and not onlyimproved our process efficiencies but also managed to implement multiple initiatives toenhance our preparedness to meet such unexpected events in the future.
Each one of us has come out as a leader having the ability to withstand setbackssuccessfully finding means to overcome any adverse situation manage the availableresources optimally and yet achieve what is expected out of a leader. I can proudly saythat your Company is committed to attain a pinnacle of operational excellence financialrobustness and long-term sustainability.
In addition to the Company's eagerness and determination towards achieving the statedcorporate goals we also understand its responsibility in building community trust whichis an integral part of our culture. This is more than ever important now with changing andchallenging times. I believe that it is not an option but rather a duty that one shouldfulfil in order to make the world a better place. Time and again we have engaged inactivities that we feel will bring however small a change in the society in which weoperate.
With such excitement and zeal amongst all employees and management I strongly believethat your Company has all the potential to rise to retain its position as a leading Indianpaint manufacturing Company that will continue to make its mark. The possibility and scopeof becoming a large branded player in this sector is huge and I truly believe that yourCompany is working towards having all the right blocks of the puzzle placed mostappropriately in order to create an image that reflects our values and vision.
MANAGING DIRECTORS MESSAGE
The previous year especially 2nd half has been a year of challenges with demonetisationand unfortunate incident of fire at our Nasik plant. It gives me a great pleasure toupdate you on the overall performance of your company for fiscal year 2016-2017
Our companys constant endeavour to retain the existing customers and to createnew customer base by way of offering new quality products better benefits and addedadvantages; has been possible with the reinforcement of our product mix improvisation ofour existing products operational efficiencies margin management and cost efficiencies.
After Nasik fire the company's senior management worked tirelessly to maintain theproduction output through outsourcing the products that were being manufactured at Nasik.They also took utmost care and steps to ensure that the products meet the quality andstandards. At the same time we also understand that our future success depends on gettingahead of the changes we see in business and environment today. Thats why our singlebiggest challenge and opportunity is to accelerate growth which is profitable consistentand achieved in a responsible way.
During the fiscal year your company has launched a number of new and innovativeproducts which helped us to maintain the growth trajectory. In the decorative segment itlaunched Superlac Advance & XTRA Tough in interior and exterior. Besides launching newproducts the company also changed the packaging and design of most of the existingproducts.
In the industrial segment your company had launched quite a few new products namelySingle Pack DT-Primer cum Top coat Low Cost Zinc Silicate for Projects High Build QuickDrying Coal Tar Epoxy Solvent less Epoxy Coating for pipes Quick drying Single packPaint for Cylinder Industries Black and Clear Bitumen Varnish and Stoving Paint for HairClip.
Your company always strive for innovation and automation. During the year your companyhas been concentrating a lot on innovation and the R&D team is working constantly todevelop new products in the pipeline. Automation is the new age mantra and your companyhas shown a lot of advancement in automating the processes. The tool for the sale force isa mobile application which won the Business Technology Award (from Cyber Media Dataquest)for its Mobility Project. A lot of other marketing and supply-chain processes have alsobeen automated.
Your company intends to restart its Resin Aluminium and Packaging facilities at itsHowrah Plant. Certain Government approvals are required for which Company is coordinatingwith respective Government departments. These facilities are expected to restart in Q3 FY2017-18 after getting necessary approvals. It also gives me immense pleasure to share thatyour company has already started its saved Nasik plant which includes Resin Packaging andAluminium facilities in Nasik in Q1 FY 2017-18. The Chennai Plant of the Company is nowrecommissioned and ready for production. The commercial production is likely to start inthe second half of FY 2017- 18.
Regarding Rights Issue of Equity Shares your company has already filed the draft offerdocument with SEBI for their observations/comments. After receiving final observationsfrom SEBI and clearances from other regulatory bodies the further actions will beinitiated by your company.
In the end I would like to thank each one of our shareholders customers suppliersemployees bankers statutory authorities for their continued support in our journey todeliver value.