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Asian Granito India Ltd.

BSE: 532888 Sector: Consumer
NSE: ASIANTILES ISIN Code: INE022I01019
BSE 10:37 | 29 Jun 43.15 0.30
(0.70%)
OPEN

41.60

HIGH

43.30

LOW

41.60

NSE 10:24 | 29 Jun 43.20 0.30
(0.70%)
OPEN

42.80

HIGH

43.35

LOW

42.30

OPEN 41.60
PREVIOUS CLOSE 42.85
VOLUME 5885
52-Week high 131.55
52-Week low 39.50
P/E 6.22
Mkt Cap.(Rs cr) 547
Buy Price 43.15
Buy Qty 152.00
Sell Price 43.30
Sell Qty 523.00
OPEN 41.60
CLOSE 42.85
VOLUME 5885
52-Week high 131.55
52-Week low 39.50
P/E 6.22
Mkt Cap.(Rs cr) 547
Buy Price 43.15
Buy Qty 152.00
Sell Price 43.30
Sell Qty 523.00

Asian Granito India Ltd. (ASIANTILES) - Chairman Speech

Company chairman speech

IN OUR THRUST TO BECOME A GLOBAL BRAND WE ARE LOOKING TO ENGAGE WITHGLOBAL PLAYERS WITH AN OBJECTIVE TO MAKE INDIA A GLOBAL MANUFACTURING HUB

Dear Shareholders

I am pleased to present to you the Annual Report of Asian Granito IndiaLimited (AGL) for the financial year 2020-21. The last lessons and achievements for AGL.Numerous developments and adapting strategies ensured that your Company ended FY21 on ahigh with many new opportunities at the fore. In the last quarter of FY20 the onset ofCovid-19 pandemic began. The implications of the epidemic were so far-reaching that theworld economy plummeted to its worst recession more severe than the depression of 2008.The economic resurgence looks far as of now but there is increased optimism in the marketswith the fast-paced vaccination drives and the falling Covid-19 cases. Our effortsthroughout the year have been on focusing our employees health and well-being. Safety kitsand sanitizations drives had been conducted on a regular basis at our office premises andfactories I would like to appreciate the AGL family who did stood firm and faced thechallenges in these tough situations. I shall also extend my gratitude to all our heroesdoctors health workers essential service personnel police personnel for theircontribution and keeping us safe in these uncertain times. The unlocking phase began in anorganised way in the latter half of FY21 to allow businesses to regain lost ground. TheIndian economy?s longer-term prospects are still promising. Various effortsincluding as the privatisation of public sector businesses asset monetisation and thedevelopment of the National Infrastructure Pipeline as well as targeted investmentincentives through the Production-Linked Incentives Scheme have been yearwasfilledimplemented. In the medium run the new Labour with Code and the new Investment Code areexpected to spark the size of investments and growth.

The demand in the domestic market remained weak in the current fiscalowing to low disposable income and weak consumer sentiment. The real estate sector whichwas already sluggish before the onset of the pandemic witnessed a further slumpresulting in dampened demand. This has impacted industry revenues and margins and creditmetrics of the players may come underpressure. In FY21 industry-wide revenues declined byalmost 55-65 per cent on a year-on-year basis due to lower demand and supply chaindisruptions. Our manufacturing plants were also shut for almost two months in April 20 andMay 20 due to the lockdown and unavailability of labour further added to the challenge.However the operations resumed from June 20 and witnessed a gradual recovery in bothdomestic and export demand with a marked increase in utilisation levels. At AGL weprovided hygienic safe accommodation and food for our workers due to which we were ableto resume operations much earlier compared to our peers. In 2nd half of the year and witheasing of restrictions the festive season saw an uptick in sales with an average capacityutilisation of 85%. Exports continued to support demand owing to improved competitivenessof Indian tile players following large investments in technology upgradation and theimposition of anti-dumping duty on China by some importing countries. Gas prices on theother hand saw a marked increase towards the end of the fiscal year. With the prices ofnatural gas the rise your company have decided to focus on propane gas whenever the priceof propane goes below the natural gas price.

The global presence of AGL translated to a promising internationaldemand of the Company?s products which helped us turn the tides in the aftermath ofthe pandemic. We have seen strong demand coming from USA Europe UK and Middle Eastcountries. To strengthen international business and boost exports your Company launched a15000 sq ft ‘AGL Export House? at Morbi. Gradually we are making strongstrides in other nations as well like France and Germany where our presence is now wellestablished. AGL has its footprint in 100 countries as of now. Moving forward we will putincreased focus on enhancing our Exports and increase our presence to over 120 countries.In our thrust to become a global brand we are looking to engage with global players withan objective to make India a global manufacturing hub for tiles marble quartz andsanitaryware and aims to provide end-to-end solutions including quality assurancepackaging efficient supply chain management and adherence to stringent compliance andethical norms. Barring the short term challenges in view of increase in freight costsrising gas container shortage and transportation costs the broader view on the industryoutlook looks promising. Over medium to long term the Government focus is clear oninfrastructure development overall improvement in rural economy greater focus on policyimplementation and employment generation by pushing growth in real estate and constructionsegment amongst others. Going forward the declining second wave of Covid-19 along withrapid progress in vaccination has set the stage to further accelerate economic recoveryand boost demand. We will continue to embark on innovation superior design andhigh-quality products that personify excellence. We are also focussing on deleveraging ourbalance sheet through major debt reduction and the creation of a more asset-light andcapital-light business model. Recently your company right?s issue was oversubscribedwith bids received for r 258.77 crores as against issue of r 224.68 crores. Theutilization of proceeds has made company net debt free on standalone basis. We furtherplan onto bring down the debt at the consolidated level as well. During the FY2021-22 yourcompany made a divestment from Astron Paper & Board Mill Limited. The proceeds fromsale of the said shares has been utilised to meet long term working capital requirementand reducing debt. The reduction in debt will bring down borrowing costs and will enhancemargins. We will continue to become debt free in the next 2-3 years on a consolidatedbasis.

In the month June 2021 your company successfully completed a brownfield expansion at its Crystal Ceramics Industries Private Limited Meshana plant. Thisstrategic brownfield expansion was planned keeping in mind low cost natural gas benefit atCrystal Ceramics which helps company to further reduce its manufacturing cost. With thiscapacity expansion Asian Granito on a consolidated basis will further improve its marketshare in domestic and export market. Further we have enrolled ourselves for exhibitionsin Italy Las Vegas Spain UAE Russia and Poland to enhance our presence in the globalmarkets. To support our vision of creating modern and feature-rich products we are alsomodernising our manufacturing plants. As a result there will be better productivityease-of-execution and higher quality products being shipped. Technology-basedmanufacturing units will also contribute towards a better working environment foremployees. As I conclude I would like to thank the customers for their unending supportand trust. I also want to acknowledge all AGL employees for their continuedprofessionalism and belief in the organisation. Also I?d like to extend my thanks toall the investors and shareholders who continue to encourage and motivate us.

Regards

Kamleshkumar Patel
Chairman and Managing Director

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