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Container Corporation Of India Ltd.

BSE: 531344 Sector: Others
NSE: CONCOR ISIN Code: INE111A01025
BSE 00:00 | 24 Jun 622.25 1.15
(0.19%)
OPEN

623.00

HIGH

628.15

LOW

615.75

NSE 00:00 | 24 Jun 622.10 1.75
(0.28%)
OPEN

615.20

HIGH

628.55

LOW

615.20

OPEN 623.00
PREVIOUS CLOSE 621.10
VOLUME 20061
52-Week high 754.10
52-Week low 554.10
P/E 35.68
Mkt Cap.(Rs cr) 37,914
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 623.00
CLOSE 621.10
VOLUME 20061
52-Week high 754.10
52-Week low 554.10
P/E 35.68
Mkt Cap.(Rs cr) 37,914
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Container Corporation Of India Ltd. (CONCOR) - Chairman Speech

Company chairman speech

Dear Fellow shareholders My sincere wishes that each of you is safe and well in theseunprecedented times.

The year 2020-21 has been challenging for each one of us due to Covid-19 pandemicwhich has had a significant impact on lives livelihoods and the businesses world over.Operational challenges mounted due to restricted movement and disrupted supply lines. Asthe second wave of the pandemic unfolds with predictions of a third wave our focuscontinues to be on organizing our business by ensuring uninterrupted logistic support totrade including for transportation of essential commodities liquified oxygen for medicalpurpose and above all taking care for health and safety of our people and the communitiesin which we operate.

As per report of International Monetary Fund (IMF) the global economy contracted by3.2% during the year 2020 whereas the GDP of India in Fiscal Year 2020-21 contracted by7.3% and the global growth is projected at 6.0 percent in 2021. The Governments worldover including in India have taken various steps which includes financial stimulus to thesupport their economies in this tough time.

In order to ameliorate impact of COVID-19 pandemic on Country's economy our Governmenthas announced a special economic and comprehensive package under ‘AatmanirbharBharat' amounting to about Rs.27.1 lakh crores. Structural reforms were also announcedwhich inter-alia included de-regulation of the agricultural sector new PSU policycommercialization of coal mining higher FDI limits in defence and space sectordevelopment of Industrial Land/ Land Bank Production Linked Incentive (PLI) scheme in 13(thirteen) Sectors including investments in creating infrastructure etc.

Indian Railways registered an increase of 1.90% in originating loading of cargo from1210.22 million tonnes in 2019-20 to 1233.24 million tonnes in 2020-21. The originatingcontainerized cargo transported by rail increased from 61.22 million tonnes in 2019-20 to63.23 million tonnes in 2020-21 reflecting an increase of 3.28%. The containers handledat all ports of the country registered a marginal growth of 0.28% from 16.45 million TEUsin 2019-20 to 16.50 million TEUs in 2021.

In this environment I am writing this letter with a sense of pride by sharing theeconomic and business outlook and consistent achievements of your Company.

The relentless commitment and dedication of every member of the CONCOR family hashelped the business overcome many challenges in the past year. As a result we have beenable to conclude the financial year 2020-21 with impressive financial numbers. For theyear we reported a Gross Turnover of Rs.6670.44 crores Profit after tax at Rs.503.33crores and the net worth of the Company at Rs.10204 crores as on 31.03.2021.

During the year 2020-21 CONCOR has handled 3.64 million TEUs and transported 42.02million tonnes of cargo volume by rail a marginal drop of 2.79% and increase of 3.93%respectively over the preceding year. There was marginal drop of 3.77% and increase of2.42% in the physical volumes of EXIM and Domestic segments of businesses respectively.The profitability for the year 2020-21 was impacted due to increase in land license fee byRailways one time provisioning for assets build on terminals handed over to IndianRailways and impairment of investment in subsidiary Companies.

Till the financial year 2019-20 CONCOR was paying Land License Fee (LLF) to theRailways for the railway lands leased to it on the basis of number of Twenty-footEquivalent Units (TEUs) handled. Ministry of Railways had communicated that the LLFapplicable on the Railway lands leased to CONCOR shall now be charged w.e.f. 01.04.2020 asper extant policy of Railways i.e. @6% of the value of land which will further increase7% annually. As this was impacting viability of some of our terminals build on Railwayland 17 terminals were surrendered during the year. Taking into consideration the landparcels surrendered and as per the company's assessment an amount of Rs.517.39 crore hasbeen paid as Land License fee to Indian Railways in FY 2020-21 towards terminals built onRailway land.

In the challenging environment and rising competition particularly from the roadsector and PCTOs our endeavour is to retain market share along with maintaining themargins in containerized rail transportation by improving service experience takinginnovative steps in marketing meeting customer's expectations and creating new businessverticals. In this direction your Company has provided 50 percent rebate in rail freighttariff for movement of empty containers from various gateway ports to CONCOR ICDs/Privatesiding/CRTs till 31st March 2022. The freight rebate scheme on empty containers hasfurther been amended for the benefit of the trade w.e.f 01.09.2021 that 75% rebate onfreight will be given for offering 10000 to 15000 containers per month and 100% rebatewill be granted for offering more than 15000 containers per month for movement fromGateway ports and port CFS to hinterland terminals.

The running of double stack trains from Mundra/Pipavav Ports to Khatuwas (CMLK) andvice-versa has helped in containing the cost of empty running enhancing rail co-efficientand has made our services more competitive. The commencement of operations on DedicatedFreight Corridors (DFCs) has begun and now CMLK is directly connected to Western DFC. Thismovement will be an added advantage for containing costs growth in volumes bettercapacity utilization of terminals and faster turnaround time. Daily Freight Express Trainsto MDPT/PPSP and JNPT are being run from TKD/DER/DDL/MB with an assured transit timewhich has evoked lot of interest among the customers.

The new business verticals of First Mile & Last Mile (FMLM) Business solutionsBulk loading and Distribution Logistics that are launched recently to provide completelogistics solutions to the end customers will not only result in reduced logistics costbut also customer value creation.

In FY 2020-21 your Company has enhanced its international presence by transporting1032 TEUs (21 trains) loaded export containers from CTKR/ SNF/ CTDI/ TKD to Benapole/Jessore/ Iswardi/ Khulna/ Noapara in Bangladesh. Further 951 containers stuffed withRice/Marble were moved to Iran via Mundra Port (MDCC).

The positive business outlook for the logistic sector is intact for which your Companyis fully geared up with our ethos of “Customer Value Creation”. The Company isworking on various initiatives to seize the opportunity by expanding its bouquet ofservices which include setting up of private freight terminals expansion through settingup MMLPs on DFC network increase in double stack haul e-business foray intoDistribution Logistics venturing internationally bulk movement of Cargo in Containersother value added services like labelling palletization bar coding KYCL cross-dockingwrapping etc.

During the year around Rs.551 crores was spent toward capital expenditure mainly ondevelopment/expansion of terminals acquisition of wagons handling equipments and ITInfrastructure etc. The Company has identified areas such as Dahej Kandla/ Gandhidhamand Vapi for further strengthening its existing Terminal Network in order to provideefficient services to its customers.

Aatmanirbhar Bharat & Make in India have been the main objective of your Companyever since its inception for which it has been helping in creating an eco-system in thelogistics sector in the country thereby facilitating trade in both EXIM and domesticsectors. In this direction your Company has taken an initiative for procurement of 8000nos. of ‘Twenty-Foot-High Cube End Open' containers from Indigenous Manufactures inorder to reduce dependency on foreign soil for container procurement and push India as amanufacturing hub for containers.

Your Company continuously strive to identify respond and adapt to rapidly changingbusiness environment by being technologically unconventional and effectively using its ITinfrastructure. This approach has helped it to adapt in the disruptive times whenlock-downs/restriction on travel were imposed by Central/State Governments. Through usageof its IT infrastructure it was ensured that team CONCOR continued to function from Homeand access databases and applications through Company's own encrypted Virtual PrivateNetwork (VPN). The Company wants to leverage its existing digital assets and do furtherinvestment in technology driven solutions to improve operational efficiencies with focuson providing quality services and customer satisfaction. In this direction it has takenmany initiatives recently like upgradation of VSAT based hybrid network with MPLS cloude-payment to vendors electronic filing of documents on commercial systems Know YourContainer location  (KYCL) providing continuous cargo visibility through mobile AppSMS alerts and interactive website. The Company is working towards implementing ArtificialIntelligence (AI) in its operations.

During the year your Company has adopted a new bill processing & payment platform.The new developed platform aims for faster vendor payments restricts human interventionand involves paper-less working which is eco-friendly as well. Through these ITinitiatives your Company has also facilitated its venders to access the system and submittheir bills in digital mode at their end.

I would like to inform that during the year with a view to have faster anddecentralized decision making it was decided to redefined the organisation structure onfunctional and locational basis. The existing Regions of the Company have been done awaywith and these Regions have been reclassified into four Areas (North West South &East). After this restructuring the Company now have two-tier structure comprising of itsTerminals and Corporate Office.

Effective steps were taken by the Company to combat Covid-19 which includedvaccinating employees and their family members and other Stakeholders. Informativewebinars seminars and lectures have been organized to spread awareness for containingspread of virus. In addition counselling and expert advice were also provided to theemployees to deal with mental and physical health issues related to the pandemic. Furtherprovision of oxygen concentrators have been made for emergency need of employees or theirfamilies. Employees have been provided Smart Watches to monitor their health parameters.The Company has also set up vaccination camps at various places in which around 3500stakeholders have been vaccinated under its CSR initiatives.

Your Company follows transparent practices in doing its businesses particularly in theareas of Corporate Governance and its Social Responsibilities. This has created anenvironment of trust and has helped in winning the confidence of its stakeholders. Herethe initiatives have been taken in the field of education health sanitationenvironment sustainability and skill development which have touched and positivelyimpacted the lives of many underprivileged people. The Company has earlier contributedRs.30 crores to PM Cares Fund and in addition the employees have also contributed Rs.1.05crores to this Fund. Going forward it is committed to carry out activities in theaspirational districts identified by Government of India with prime focus on educationhealth and nutrition.

I would like to place on record my deep sense of gratitude to my colleagues on BoardMinistry of Railways Customs local Administrations Ministry of Commerce and others fortheir guidance and support. I am grateful to all our shareholders esteemed customers ourbusiness associates for having reposed trust in us. I also thank the entire CONCOR familyfor their commitment and hard work in the journey of success of your Company.

I wish you and your family members all the best!

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