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Apollo Pipes Ltd.

BSE: 531761 Sector: Industrials
NSE: APOLLOPIPE ISIN Code: INE126J01016
BSE 00:00 | 20 Jan 585.10 2.85
(0.49%)
OPEN

602.00

HIGH

602.00

LOW

578.45

NSE 00:00 | 20 Jan 586.45 -1.00
(-0.17%)
OPEN

598.95

HIGH

598.95

LOW

577.50

OPEN 602.00
PREVIOUS CLOSE 582.25
VOLUME 3738
52-Week high 680.05
52-Week low 214.00
P/E 41.26
Mkt Cap.(Rs cr) 2,301
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 602.00
CLOSE 582.25
VOLUME 3738
52-Week high 680.05
52-Week low 214.00
P/E 41.26
Mkt Cap.(Rs cr) 2,301
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Apollo Pipes Ltd. (APOLLOPIPE) - Chairman Speech

Company chairman speech

Statement from the Chairman's desk

"Having crossed an uncertain and challenging FY21 with a stellarperformance I am particularly excited about sustaining the momentum."

Mr. Sanjay Gupta Chairman throws light on what lies ahead

Dear friends

I trust you all are safe. Safety for mankind has assumed a completelynew meaning in the wake of the more aggressive and fatal second wave of the pandemic.Having survived this wave me must respect our existence. We must adhere toCovid-appropriate behaviour for ourselves our relatives friends and communities. We mustpledge to stop the probability of any other waves in future. In doing so we will ensurethat India and Indians become firm-footed on the journey to economic resurgence.

While talking about resurgence I take great pride in stating thatApollo Pipes is firmly placed on its journey to emerge as a dominant player in itsbusiness space. This transpired in FY21 where we utilised the prevailing uncertain periodto ensure the certainty of our growth. The low-hanging fruits have already deliveredheartening results. Our operating margin continue to scale our return on capitalemployed a critical measure keen observed by opinion influences to determine theutilisation of money deployed in business moved up by 127 bps over the previous year. Ina seemingly bad year we bettered our performance.

For me FY21 is an inflection point in the Company's journey. Weused the prevailing headwinds to strengthen the tailwinds under our wings. We channelisedour efforts in multiple areas with considerable success which promises to catapult ApolloPipes into a new orbit in the future. Am proud of the combined efforts of the entire teamin creating this platform which promises a big leap in our performance.

1) We enhanced capacities at all our units through Brownfieldexpansions. This augmented our capability to increase volumes of existing products as wellas add new products in that Plant. For example we added the water tank manufacturingcapability at Tumkur and Sikandrabad. We have doubled our fittings capacity at Dadri.These investments will increase volumes and widen our market base from our diverse productcategories.

2) In line with our long-term strategy of widening our productoffering we launched water tanks in North India. The product received an overwhelmingresponse from the markets. To the extent that we needed to create capacities for watertanks in our other manufacturing units. By the end of the fiscal we were marketing thisproduct Pan-India. In addition we significantly widened our product range in fittings andbathroom products primarily faucets.

This product widening is an important part of our long-term strategy toshift our dependence from the agri-sector to the building product segment which providesbetter margins. In FY21 the shift has happened. It will only intensify further over thecoming years which will enhance business profitability.

Going forward

FY22 started with a bang. A resilient India fattened the second wave ina shorter time period albeit with considerable losses. But the economy with the help ofthe Central and State Governments the RBI and financial institutions is working its wayup to register a high single digit growth. The rural markets which were considerablyimpacted by the second wave are also toiling hard to resurface out of the abyss. India ismaking an all-out effort to come back to winning ways.

For Apollo Pipes we have created our growth levers and will now focusour energies on maximising returns therefrom. Our Raipur unit is expected . to commenceoperations in the current year which should

Focus areas for FY22
Strengthen foothold in existing markets of North and Western India
Penetrate and establish footprint into neighboring markets in Central and Eastern India
Improve utilisation at the existing manufacturing plants at Dadri and Ahmedabad
Increase focus on the building segment.
Undertake various brand building exercises and establish stronger brand recall

Help us entrench our presence in East and Central India. Our tanksbusiness should continue to grow rapidly. Our fittings should deliver improved growth. Inall I expect the revenue contribution from non-pipe verticals to increasesubstantially… a trend which will continue over the medium term.

Having crossed an uncertain and challenging FY21 with a stellarperformance I am particularly excited about sustaining the momentum.

I would like to express my sincere gratitude to my fellow Directors fortheir commitment to the Company's growth aspirations. My deep appreciation to all ourloyal and valuable shareholders for their continued confidence and support. My thanks toour other stakeholders who continue to be our partners in growth. Lastly my sinceregratitude to the management team and staff for their valuable and ongoing dedication indrawing and executing the Company's strategies with disciplined dedication.

I seek your continued support as we gain momentum over the comingyears.

Warm regards

Sanjay Gupta
Non-Executive Chairman

.