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Chemfab Alkalis Ltd.

BSE: 541269 Sector: Industrials
NSE: CHEMFAB ISIN Code: INE783X01023
BSE 00:00 | 22 Mar 141.15 -3.85
(-2.66%)
OPEN

147.80

HIGH

148.00

LOW

136.00

NSE 00:00 | 22 Mar 141.25 1.90
(1.36%)
OPEN

140.55

HIGH

153.00

LOW

140.50

OPEN 147.80
PREVIOUS CLOSE 145.00
VOLUME 1953
52-Week high 314.95
52-Week low 122.60
P/E 5.57
Mkt Cap.(Rs cr) 196
Buy Price 141.25
Buy Qty 50.00
Sell Price 143.45
Sell Qty 12.00
OPEN 147.80
CLOSE 145.00
VOLUME 1953
52-Week high 314.95
52-Week low 122.60
P/E 5.57
Mkt Cap.(Rs cr) 196
Buy Price 141.25
Buy Qty 50.00
Sell Price 143.45
Sell Qty 12.00

Chemfab Alkalis Ltd. (CHEMFAB) - Chairman Speech

Company chairman speech

Dear Shareowners

It gives me great pleasure to present to you the Annual Report of your Company for theFY 2017-18. An overall positivity in the macro economic environment propelled growth inboth the domestic and international markets paving the way for significant upward demandand price movement in the Chlor Alkali industry during the year.

International market

In the global market there has been a notable increase in the prices for Caustic Sodaattributable to a combination of factors including removal of 1.3 Million MT of Causticcapacity due to phasing out of Mercury cells in Europe. A series of enviromnentalrestrictions in China and a strong demand push for Alumina across the globe have alsocontributed to the price growth.

Domestic market

The industry posted good performance in the domestic market too during the year.Domestic prices moved in line with the international prices through FY 2017-18. Thepositive sentiment in the industry was also evident in the fairly robust demand forCaustic Soda in the domestic market across all segments particularly in the backdrop ofstrong demand pull from the Alumina sector.

Demand Cor Woth Caustic as well as Chlorine has been growing at h-6 % p.a.

Company's performance

Your Company with its intrinsic strengths was well positioned to harness thefavourable conditions prevailing in the industry in the year under review.

What gave a major impetus to the Company's business momentum was the approval receivedin July 2017 for augmenting production from 33000 tpa to 45600 tpa. This immediately ledto a scaling up of production which coupled with the strong tealisation for Caustic asper the prevalent market conditiont gave a major boost ro the Company's Cop lieras well or the bottom line.

Your Company's performance was manifest in its numbers. Net Revenue from Operationsrose by 28% - from Rs. 140.22 Crore in FY 2016-17 to Rs. 179.61 Crore in FY 2017-18. PBTalso went up commensurately posting a growth of 141% to increase from Rs.16.51CroreinFY2016-17toRs.39.78 Crore in FY 2017-18.

The external environment remains favourable for your Company which is well entrenchedto leverage its strengths to move aggressively towards higher levels of production andgrowth. We have already received In-Principle approval for enhancement of capacity to 200TPD which is expected to become operational from the fourth quarter of FY 2018-19. Thiswill give a definite impetus to your Company's performance both in terms of Revenues andProfitability.

In addition your Company is in the process of setting up of a Desalination Plantwhich is expected to be operational from the last quarter of the next fiscal. We expectthis first-of-its-kind plant in Puducherry region to emerge as a key driver in realisingour commitment towards preservation and sustenance of natural resources thus raising thebar for your Company to become an even more environmentallyresponsible corporate focusedon sustainable and sustained growth.

Another factor that we see aiding our continued growth in the coming years is ourdecision to diversify into the manufacture of Oriented PVC pipes. Manufacturing facilitybeing set up in Sri City Tada Andhra Pradesh with an investment of Rs. 50 Crores and isscheduled to go operational in the third quarter of FY 2018-19. This new unique andhighly advanced pipes have exceptional features designedto enable conveyanceofhighpressure water with the best-in-class operational and cost efficiencies.

Our strategic foray into the manufacturing of Oriented PVC pipes is driven by the hugedemand that we see coming up for advanced and efficient pipes as a result of thelarge-scale investments being made by the Government of India to strengthen waterconnectivity both in urban as well as rural aaeae. Tire diversification which is in linewith our focus on identifying and seeking new opportunities for business growth will lendfuehrer momentum to our plens for adding value to the Compaq and all its stakeholdees.

On behalf of all your Board of Directors and on my own behalf I express my sinceregratitude to the Government of Puducherry and all our stake holders for therr continuedsupport. I thank all the CCALmates for their efforts commitments and valuablecontribution to the progress of your company.

I am confident that with the support and contribution of all stakeholders we shallcontinue our journey to create more value.

Place : Chennai Suresh Krishnamurthi Rao
Date : 10.05.2018 Chairman