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Chemcon Speciality Chemicals Ltd.

BSE: 543233 Sector: Industrials
NSE: CHEMCON ISIN Code: INE03YM01018
BSE 00:00 | 08 Aug 331.20 -2.35
(-0.70%)
OPEN

337.45

HIGH

337.45

LOW

328.55

NSE 00:00 | 08 Aug 331.30
(%)
OPEN

336.00

HIGH

338.50

LOW

328.95

OPEN 337.45
PREVIOUS CLOSE 333.55
VOLUME 11035
52-Week high 539.05
52-Week low 262.30
P/E 19.27
Mkt Cap.(Rs cr) 1,213
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 337.45
CLOSE 333.55
VOLUME 11035
52-Week high 539.05
52-Week low 262.30
P/E 19.27
Mkt Cap.(Rs cr) 1,213
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Chemcon Speciality Chemicals Ltd. (CHEMCON) - Chairman Speech

Company chairman speech

 

"Empowering Growth through Chemistry"

At Chemcon our mission reflects where we see our innovation engine creating growth andopportunity. We aim to set new standards in specialty chemicals with the use of leadingtechnologies and development of innovative solutions.

DEAR STAKEHOLDERS

I hope that you and your families are safe and well. It gives me great pleasure toaddress you all as we collectively continue to navigate through the challenges posed bythe pandemic. We express our gratitude to all those with whose support India managed toquickly return to the growth path. The collective efforts by the medical fraternitygovernments and various organizations have enabled the return to normalcy even as weremain vigilant. As a result financial year 2021-22 witnessed faster than expected demandrecovery. Global and Indian economies recovered with the growth of 6.1% and 8.2%respectively in financial year 2021-22.

We have always aimed at increasing shareholder values through an effective use of theresource potential and by brining strategies into action. The establishment of new sourcesof business growth and a maximum return on investment in new projects is the keyobjective that we drive through as a theme for the next year. This is largely a reflectionof the Company’s effective management and the high quality of the decisions madewhile clearly adhering to the path specified in the long-term strategy.

When a company grows its business while caring for the environment and sharing with thesociety it is making its own journey sustainable. In our social interactions weparticularly focus on challenges such as education skills development and environmentalsustainability. Our aim is to improve the living conditions of our employees theirfamilies and the communities in which we operate ultimately balancing profit people andplanet.

Performance review and Capacity Expansion

In this challenging environment we have delivered a spirited performance with increasein Revenue from Operations to INR 25711.11 lacs in FY 2021-22 compared with INR 24348.72lacs recorded in the previous year. Profit after Tax (PAT) increased by 11.3% to INR6275.66 lacs against INR 5639.82 lacs.

We would like to highlight that we have successfully commenced commercial productionin plant P8 and have added a capacity of producing 2400 metric tons of TMCS annually. Thisexpansion of production capacity will result in reduction of imports of TMCS and increasein production of HMDS. We’ll continue to source TMCS through imports for existingHMDS production. We aim to attain backward integration to gain better control of thesupply chain reduce dependence on the suppliers and increase business competitivenesswhile simultaneously focusing on the original business. We have healthy visibility of thischemical and are confident to carry the momentum in the coming financial year 2022-23.

During the financial year 2021-22 out of the total revenue approximately INR 68 crorewas derived from sale of CMIC. In the year gone by global supply chain has disrupted manypharmaceutical MNCs and their overall business momentum. The overall demand for CMICchemical is strong and we have healthy enquiries for the upcoming year. We have added anadditional capacity of 1200 metric tons at P8 facility making us the world’s largest

CMIC producer with a total capacity of 3000 metric tons per annum.

In addition to this we have also witnessed a marginal progress in our bromide businesswhere approximately INR 60 crores out of the total revenue were aided by oil wellcompletion chemicals during the financial year 2021-22. The overall onshore oil and gaswells are growing gradually in the drilling and completion fluid’s market. We havehealthy enquiries for various bromides and expect meaningful contribution of bromidesegment in the revenue during the financial year 2022-23.

Commercial production on P9 have been expected to commercialize in Q2 of financial year2022-23. We will add few existing products and a few new products at P9 unit. On otherhand we’re pleased to announce that we have started mechanical construction our P10at the same location for other pharma intermediate products.

Industry Megatrends

We are now persistently focusing on restoring business growth and expanding productportfolio. India is still a net importer of our key products i.e. HMDS & CMIC andthere is ample opportunity for us to become a long-term reliable partner. Post expansionplan we will be well prepared to seize the upcoming opportunities. We believe that overthe years we have built strong relationship with our customers who recognise ourstrengths and proficiencies.

Closing Thoughts

To drive future growth we will steer our focus and investments towards increasing ourproduction capacities expansion of product portfolio and digital transformation. We alsoaim to invest and strengthen the marketing division to enhance the reach and visibility ofour products.

I would like to thank our customers suppliers and other partners for their continuedfaith in our capabilities and helping us in improving our processes and in evolving into aprestigious organization. I thank my fellow Directors senior leadership team andstakeholders for their continued support and faith in our vision and helping us to achievesuccess. We welcome financial year 2022-23 with new aspirations. Stay safe and healthy.

Warm Regards

Kamalkumar Rajendra Aggarwal

Chairman and Managing Director

.