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Finolex Cables Ltd.

BSE: 500144 Sector: Engineering
NSE: FINCABLES ISIN Code: INE235A01022
BSE 00:00 | 21 Jan 499.80 -12.30
(-2.40%)
OPEN

512.20

HIGH

512.20

LOW

494.60

NSE 00:00 | 21 Jan 499.90 -11.25
(-2.20%)
OPEN

513.00

HIGH

514.00

LOW

494.55

OPEN 512.20
PREVIOUS CLOSE 512.10
VOLUME 22279
52-Week high 608.65
52-Week low 350.60
P/E 19.93
Mkt Cap.(Rs cr) 7,644
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 512.20
CLOSE 512.10
VOLUME 22279
52-Week high 608.65
52-Week low 350.60
P/E 19.93
Mkt Cap.(Rs cr) 7,644
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Finolex Cables Ltd. (FINCABLES) - Chairman Speech

Company chairman speech

Dear Shareholders

Trust that you all are safe and in good health. The COVID-19 pandemic has ravaged thefoundations of world economy and is forcing an unprecedented social economic andbusiness response. It has fundamentally changed the way we live work and has made workfrom home social distancing and increased digitization and technology adoption as thenew normal.

The Indian economy has been severely impacted on account of the pandemic andcontraction of economic activity following the nationwide lockdown. As per the CentralStatistics Office (CSO) the economy contracted by 7.3% in FY 2020-21 as compared to 4%economic growth recorded in the previous fiscal. Recent economic indications and datasuggest that the economy is headed for a gradual revival with 1.6% growth recorded in Q4of the fiscal year.

Favourable government reforms strong thrust on infrastructure development recovery inconsumer sentiments following successful vaccination drives contributed to the buoyancy ineconomic activity. However uncertainty about the resurgence of coronavirus infections andsubsequent restrictions may threaten the economic recovery.

At Finolex Cables we have stayed focused and demonstrated agility and resiliencethrough these uncertain times by enhancing our focus on cost process efficiency and newproduct development. We have taken judicious actions to help ensure our continuedcompetitiveness financial resilience and business continuity in the new normal. We areadopting increased digitization and automation across our operations to enhanceoperational efficiencies while also controlling costs where possible. At the same timefor ensuring safety of our employees business partners and customers utmost precautionand highest safety standards are being followed across all our locations.

Our capex plan of Rs. 200 crores over the next 18-20 months remains unabated. TheCompany's conduit plan at Goa was commissioned during the year and has also startedclocking revenues during the last quarter. The construction of electron beam cured cablesplant has faced delays due to the pandemic and international travel restrictions onexperts. The Company expects the work to commence once the travel restrictions arerelaxed.

This plant at Pune for manufacture of cables with deployment of electron beamaccelerators will serve the renewable energy sector as well as construction and automobilesegments due to their ability to withstand higher temperature. Further we are planning toset up a new line to make tinned copper and foray into instrumentation cables. While thenationwide lockdown and shortage of labour had impacted our project timelines we areworking towards restoring speed with the easing of lockdowns and resumption of economicactivities.

One of our most significant achievements this year has been the launch of a new rangeof decorative fans and lighting products to strengthen our FMEG portfolio.

As a consumer-centric brand we have always kept innovation at the forefront. We haveobserved an increase in demand for stylish designs and innovative technologies byhouseholds and are confident that our newly introduced products will help us furtherstrengthen our market share. With our increased reach in tier II and III cities we expectto get encouraging results. The investments made by the Company will be a source ofcompetitive advantage enabling us to capitalise on the unfolding opportunities and givethe required scale and strength to the business.

Our well-spread distribution network has been our driving force in reaching out todifferent parts of the country. We have set an ambitious target of growing ourdistribution network to 150000 retail touchpoints by connecting with 500 distributorseach reaching out to around 300 retailers.

While we could achieve taking up our retail touchpoints to 90000 retailers this yearwe are continuing with renewed vigour towards the goal of 150000. Further we arebringing our dealers on a common software platform to get better visibility of secondarydata. By deepening our reach and leveraging technology solutions we are upbeat aboutgrowing the sales of our consumer products. Our continued investments in brand buildingand channel partner engagement will help us augment our market reach and connect.

Government's continued strong focus on infrastructure development ruralelectrification and affordable housing also augur well for the wires and cables industry.Moreover rapidly growing urbanization increasing disposable incomes and changingpreferences are driving the adoption of consumer electrical goods among Indian households.The COVID-19 pandemic has also fuelled the demand for electrical appliances that can helpconsumers and their families to live healthy and stay safe. Further with thework-from-home trend expected to continue consumers want smart electrical products thatcan make their life easier and productive. We are proactively investing in capacity andnetwork expansion and product innovation to cater to the evolving market trends andcapitalise on the thriving opportunities.

I would like to thank all our stakeholders-our customers channel partners businessassociates suppliers employees and our community. We have grown and become a successfulentity with your persistent confidence and support. While the pandemic has creatednear-term hiccups we are well- placed to emerge stronger and deliver sustained value inthe years ahead with our dynamic principles and corporate character.

Warm Regards A

D.K. Chhabria

Executive Chairman.

.