Letter to the Shareholders
I hope you and your near and dear ones are safe and healthy. The Covid-19 pandemicdominated the entire 2020 and still continues to create disruptive impact on the lives andlivelihood of people across the world. In our history of three decades we have notexperienced anything like this pandemic before. But as they say challenges always giveyou the opportunity to revisit yourself and change the approach we also brought aboutseveral changes to our strategy and strengthened our core while adapting to the newnormal.
Adapting to the Winds of Change
As an event of global scale the pandemic forced us to pause review the emergingtrends and prepare ourselves to build a future-ready organisation. This has given usgreater confidence and pride in our people and processes. As a responsible corporatecitizen we adhered to the Government guidelines that were issued during different phasesof the Covid-19-induced lockdown to contain the spread of the virus. With the slow andgradual lifting of restrictions we started opening up our facilities to resumeoperations. We ended the year with 12424 Million of consolidated revenues 1025 Millionof EBITDA and 398 Million of PAT.
The results were impacted owing to the extreme external scenario as mentioned above.
While the pandemic did disrupt businesses all across it also brought in severalindustrial opportunities. The Indian Chemical Industry is poised for an exponential growthover the next few years owing to several favourable factors such as:
1. Increasing preference of global players towards considering India as an alternatesource of supplies
2. Stringent measures and environment norms have eliminated small companies in Chinawhich is further diverting the demand to India
3. Textiles constitute ~80% of the total Dyestuffs demand and is expected to recovergradually with the improvement in the end industry
4. The share of the unorganised players in the Dye Intermediates and Dyestuffs Industryhas been consistently declining further favouring established organised players like us
5. The Government's constant endeavours towards reducing India's dependency on chemicalimports and launch of ambitious initiatives such as Atmanirbhar Bharat (Self-reliantIndia) is further helping the domestic players At Bodal we are fully prepared with ourhighly compliant and integrated manufacturing set up that meets the needs andspecifications of the global players with most of raw materials being sourced from India.
Our scale allows us to lower our cost of production and ensures quality supplies to ourcustomers all across the globe. Besides our strategically located facilities on thewestern belt of India with proximity to nearby seaport at Mundra Pipavav Hazira andNhava Sheva further give us an added advantage.
Responding to the Winds of Change
Over the past three years we have made several strategic acquisitions that havestrengthened our business ecosystem and derived synergic benefits. Our expansion ofbusiness is not only limited to India but also at a global level in countries such asChina Turkey Europe and Indonesia.
We are investing ~ 4000 million in a greenfield project at Saykha Gujarat.
In FY21 we strategically acquired Siel Chemical Complex (SCC) at a capex of 1520Million which was a unit of Mawana Sugars Ltd located at Rajpura Punjab. Further wewill spend about 1200 Million for technology upgradation of that plant. The synergybenefits of this acquisition and expansion includes strategic locations productdiversifications integration benefits from captive consumption better marginsdiversifying client portfolio cost efficiency and most importantly long-termsustainability. We are evolving from an integrated Dyestuffs player to niche value-addedsolutions provider through new product additions under benzene derivatives sulphuricacids and chlor alkali that find its applications across several segments such aspharmaceuticals agro-chemicals paper textile and home care.
Our innovation-driven growth model will result in consistent financial results byleveraging the Company's proven technology capabilities to improve product mix increasingemphasis on value-added speciality chemical businesses and sustaining and expandingleadership in attractive niche markets. We are further enhancing the capacities of ourdedicated R&D labs aligned to the Company's growth agenda.
Embracing Sustainability to Bring in Change
Sustainability is placed at the core of all our activities and it greatly influencesthe way we conduct business. We understand that we have a responsibility towards all ourstakeholders by successfully balancing environmental stewardship social progress ethicalbusiness conduct and economic success. We have installed the world's most-advancedtechnology under the tie up with Advent Envirocare as a response to environmentconservation. We have restructured our safety functions and enlarged their role asEnvironment Health Safety & Sustainability (EHSS) function.
We are also participating in different certification programmes and acquainted with ECOcertifications such as ISO Bluesign ZDHC and GOTS.
As an organisation Bodal Chemicals believes in everyone's growth and success. Duringthe pandemic period we engaged in lots of activities such as distributing food to theneedy providing shelter to the migrants extending and driving special support to thefront-runners such as police and medical staff among others. Besides we have also beenpositively benefitting lives of communities through our contribution to renowned NGOs suchas YUVA and other various Trusts.
The Company's fundamentals are intact to support the strong growth prospects. Over theyears we have built a highly resilient and diverse business with a strong foundation. Thebroadness of our portfolio further allows us to serve a wide range of markets andapplication areas. As a leading global player we have also developed the flexibility andagility needed to compete in today's demanding markets as well as the ability to respondswiftly and effectively to
Today when I look back on the path we travelled it gives me a sense of pride andconfidence in our strong and diverse team which is capable of handling any challenges. Itis this pride of working with such an illustrious team that drives us every day as we workto honour our stakeholders' faith and investment in us. I would like to thank ourcustomers suppliers and other partners for their continued faith in our capability andhelping us in improving our processes and in developing ourselves into a world-classcompany. I would like to thank my fellow Directors our senior leadership team andstakeholders for their continued support and faith in our vision and helping us drive theWinds of Change towards success. Be safe and healthy!