Dear Fellow Stakeholders
The year gone by has continued to remain tough for your company. We witnessednegligible levels of activity with all manufacturing units shut down. This situation isexpected to continue into FY2019 as our manufacturing units are still not operational. Wehave undertaken various measures to completely restructure the finances to bring downdebt to sustainable levels and to ensure adequate fund inflow to meet the projectcompletion and working capital requirements over a longer horizon.
The restructuring process is time consuming as it involves locating potential equitypartners with a shared and aligned vision extensive discussions with the lenders andfulfilling the compliances to the various regulatory norms.
After two and a half decades of consistently exceeding expectations we are now passingthrough turbulent times. Managing performance in such an unpredictable scenario andemerging successfully is a challenge and I must take this opportunity to thank allstakeholders associated with this enterprise who have silently and actively supported theprocess.
As they say "Never let a crisis go waste". We are following the same dictum.The difficult and painful actions that are required now to become lean cost competitiveand with an efficient balance-sheet are all being taken. We are taking all actions thatwill not only help us survive this crisis but will take us much beyond our past glory.
Just to quickly re-cap Ess Dee Aluminium had well and truly established itself as amarket leader
1. With an integrated business model and eleven manufacturing units pan India deployingthe hub and spoke model
2. Providing end to end comprehensive primary packaging solutions to the Health careFood and FMCG segments
3. whilst ensuring compliance to global quality standards
During FY 2014 to counter the menace of spurious drugs in keeping with our leadershipstatus we decided to invest heavily into upgradation and a paradigm shift in technologyautomation R&D along with capacity expansion. This path would have propelled toglobal recognition and acceptability. Unfortunately this vision and investment was notaligned with the Lender Banks leading to a debt trap which in turn adversely affectedboth project implementation and existing business.
We have covered a significant distance and are now in advanced discussions withexisting/prospective lenders/strategic investors. We hope to bring-in to your notice acomprehensive revival plan by the end of FY 2019 with a target to commence operations andcomplete the stalled transformational project in early calendar 2019. Further on aregular basis we have audited the hygiene of our equipments besides sharing progress andour long term plans with our marquee clientele. This gives us the confidence that we willmove on to the path of sustainable and profitable growth within the shortest possibletimes. Our enriched product portfolio will also help us expand our foot print globally. Wefirmly believe-in that there is light in spite of all the darkness
Although the results may not be visible it is suffice to state that significantground has been covered in effecting a turnaround and reviving the fortunes of yourcompany. We have also initiated the process of putting in place an experienced effectiveand enabled team besides installing advanced Information Systems and review processes. Weare filled with enthusiasm renewed vigour hope and optimism. Our destination is veryclear and together we will journey towards the setting new milestones at every stage.
As I end on that positive note it will be amiss if I do not thank our dedicated staffmembers and numerous stakeholders including esteemed customers & bankers and allfellow shareholders for their help counsel and support during these difficult times.