A year has flown by and it is my pleasure to once again share with you details of yourCompany's performance and the way forward for the future.
During FY 19 the Company's consolidated revenue was up 11.7% y-o-y at ' 2707 crores(exclusive of duty recovery) and Net Profit at ' 192.53 crores. Although capitalexpenditure was incurred for strategic reasons to equip the units to meet market dynamicscommissioning of the new unit in Assam shifting of our Russian unit to a larger premisesthe Company continues to maintain its growth rate and will perform even better in thecoming years.
I would like to brief you on the actions taken on ground to make your Company"future-ready". Last year I did highlight some important action points; let meshare with you the progress we made in them:
The call for sustainability
Our latest offering in sustainable laminates viz. Green Maple Leaf and Etain have beenaccepted by several customers; our C&I and Business Development teams are workingtogether to fine-tune the laminates to meet specific product requirement of individualCustomers and our efforts to offer better innovative solution to Customer requirementswill continue.
For the Aluminium Barrier Laminate I had mentioned about Project Liberty which is aprocess and technology that facilitates electrostatic separation of polymer and metalenabling them to go to their respective recycling processes without any degradation. I amhappy to inform you that this project has begun commercial production and is well on itsway to become commercially sustainable.
The other point I had spoken about was the challenge e-commerce brands were likely topose to the established brands which will put a demand on our business as the forecastsfrom the established brands would become less reliable. Therefore your Company took itupon itself as an opportunity. To take advantage of this opportunity we had to look forsolutions that would allow us to take smaller MOQs minimise our turnaround time while atthe same time ensuring we maintain our high standards for tube making and quality.
The solution was automation of the production as far as possible. I am happy to informyou that during the year your Company has successfully ...
a) Automated the artwork approval process - involving the Customer drasticallyreducing time for the approval process.
b) Installed zero defect systems on prototype basis the results of which are quiteencouraging.
c) Use of auto packers and suction system to remove any dust particles before finalpacking.
d) Equipped relevant units with high- definition highly efficient click printingfacilities.
e) This coupled with ink kitchens that uses most minimum number of base colours hasensured that we can quickly service small MOQs.
A Company that is future-ready will be able to seize the opportunities presented by thechallenges in the dynamic market and also protect itself from challenges posed by dynamicand volatile world. Change has become the norm of the day and for us to retain ourposition as world market leaders it is essential to have a multi-pronged approach toremain future-ready. Towards this end we continue to work on:
a) Taking advantage of innovations and high-end technology
b) Committing to sustainable and responsible growth and
c) Building future-ready capabilities
In all the above efforts we have used the infrastructure available with us includingIT and roped in our technology partners to give us the required solutions.
I can now confidently say that Your Company is" future ready "- to providecomplete service to the Customers and sustainable solutions that are in conformity of theconcept of "Circular Economy".
There is one more important information to share with all of you - our valuedstakeholders. Although you may be aware of this through media reports and information inthe public domain
I would like you to hear from me that my family and I decided to sell 51% of thepromoters' share we hold in Essel Propack to Blackstone. The necessary filings with SEBIand Anti-trust authorities have been made by Blackstone. I expect it to take another 2-3months for completion. However I still remain a shareholder and will be associated withthe Company in the capacity of an Adviser for the next 5 years. Therefore
I look forward to continued association and interaction.
It was a difficult decision to take;but the silver lining is that it has gone into thehands of a Company that upholds the same values as Essel; promises to facilitateimplementing every commitment we have made to our Customers to take care of our employeesand to take the Company to greater heights. As Steve Jobs said "Great things inbusiness are never done by one person. They are done by a team of people." I amconfident with the combined expertise of Esselites and Blackstone in their respectiveareas the Company will scale great heights. I shall be ever grateful to each one of youfor your invaluable support in all our efforts over the years - memories of which I willcherish forever.
I would like to take this opportunity to thank our Valued Customers Suppliers Bankersand all our Stakeholders including the Shareholders for their continued support to Essel.
I earnestly request them to extend the same cooperation and support to Blackstone PE.
To all my colleagues the Esselites I have a special message - I have been saying timeand time again - "Change is the only constant". There is always room forimprovement - no matter how long we have been in business. I earnestly request each one ofyou to embrace change focus on your deliverables help one another to meet the targets weset for ourselves together; in short - be worthy ambassadors carrying forward the Essellegacy.
Chairman & Managing Director