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SRF Ltd.

BSE: 503806 Sector: Industrials
NSE: SRF ISIN Code: INE647A01010
BSE LIVE 14:11 | 22 Aug 1454.15 -27.50
(-1.86%)
OPEN

1481.00

HIGH

1494.35

LOW

1449.65

NSE 13:55 | 22 Aug 1461.00 -19.55
(-1.32%)
OPEN

1483.00

HIGH

1493.90

LOW

1448.50

OPEN 1481.00
PREVIOUS CLOSE 1481.65
VOLUME 2703
52-Week high 1969.50
52-Week low 1352.15
P/E 22.30
Mkt Cap.(Rs cr) 8,350
Buy Price 1452.40
Buy Qty 31.00
Sell Price 1454.55
Sell Qty 16.00
OPEN 1481.00
CLOSE 1481.65
VOLUME 2703
52-Week high 1969.50
52-Week low 1352.15
P/E 22.30
Mkt Cap.(Rs cr) 8,350
Buy Price 1452.40
Buy Qty 31.00
Sell Price 1454.55
Sell Qty 16.00

SRF Ltd. (SRF) - Chairman Speech

Company chairman speech

A multi business entity like ours has the ability to withstand business specificdownturns and can develop " individual strategies for each segment. "

Dear shareholders

I am delighted to present before you the overall performance and the strategicdirections of your company. As you all know 2015-16 was an excellent year for yourcompany. A growth of 40% in consolidated PAT in such a weak global economic scenario onlyreaffirms our belief in our strategy and execution capabilities.

As an organisation we stuck to the basics of driving a high performance culturethrough people involvement. On our part as always we tried to foster an environment whereeveryone felt highly motivated and empowered to deliver outstanding results. I take thisopportunity of expressing my gratitude to all my colleagues in SRF who worked tirelesslyto generate high value for all our stakeholders.

A multi business entity like ours has the ability to withstand business specificdownturns and can develop individual strategies for each segment. This time theturnaround of our global operations especially the plants under the packaging filmsbusiness contributed significantly to the overall performance. In our Chemical Businessthe transition of the Dymel acquisition went ahead smoothly. Using our distributionstrength in the domestic market we launched new products as well. As a countermeasure tothe slowdown in the agrochemical segment we diligently worked and succeeded in enhancingour presence in the pharma segment for our specialty chemicals business.

Our plants for packaging films ran at full capacity utilisation despite over supply inthe market. The nylon tyre cord fabrics (NTCF) business continued to retain marketleadership in the domestic market even as the demand remained subdued. The performance ofNTCF assumed a special significance as one of the major plants at Manali remainedinoperative for almost three months due to floods in Chennai during December 2015.

What is more reassuring about your company’s sustainable growth prospect is thatits balance sheet looks healthy and financial ratios indicate steady business performance.In sync with our strategy to transform SRF into a technology & innovation orientedcompany we made investments of around Rs. 3200 crores across all business segments in thelast five years and more than 50% of these investments were made in the chemicals businessalone. Our future plans also reiterate our commitment to continue to grow in the space ofchemicals. We have a plan to spend around Rs. 3500 crores in the next four years andaround 70% of the investments are earmarked for the chemicals business.

Our unrelenting focus on enhancing our competencies and capabilities in the space ofchemicals has manifested in many ways. Recently your company announced its plan to set upa pilot plant to manufacture the next generation refrigerant HFO

1234yf with indigenous technology a move that will make SRF the first technologydeveloper outside US and Europe to do so. Your company has also introduced several newprocesses and technologies which are new to the world thereby becoming a criticalsupplier of intermediates for the innovators in the field of pharma and agro chemicals.And our R&D efforts has helped your company file more than 80 process patents so far.The list goes on.

It’s indeed a matter of pride that SRF is today recognised as a world classchemical company driven by its cutting edge R&D capabilities. That being said we willalso continue to explore opportunities for growth and expansion in the packaging filmsbusiness which despite being a cyclical business makes a significant contribution to thetop line and the bottom line besides de-risking our businesses. What gives your company anedge over other players in the space of packaging films is its persistent focus onmaximising value-added products along with a relentless focus on cost efficiencies whichmakes SRF a preferred supplier for customers in the organised segment. While NTCF willremain a significant product in SRF for the next few years we will continue to enlargethe portfolio of other product segments such as coated fabrics and laminated fabrics underthe technical textiles business.

I am sure our colleagues in SRF will not leave any stone unturned to make SRF a worldclass organisation. But I am also aware that such goals in isolation mean nothing unlesswe create value for the society and ensure our reputation of impeccable governance.Building on our founders’ legacy of social consciousness we through SRF Foundationimplemented several programmes to enrich the lives of thousands of poor students under oureducational and skill development initiatives and improved the livelihood of more than6000 families under our Natural Resource Management programmes. We are duty bound tocontribute to the community at large.

Let me assure you that we will continue to build protect and strengthen a value systemin your company that you will remain proud of and which will deliver results that meetyour expectations.

With kind regards

Arun Bharat Ram