" During these last 60 years your Company crossed several milestonessuccessfully steered through several challenges strengthened its operations and nancialswith several good returns on investments.
FY 2021 was the 60th year of the Company having been incorporated on April 20 1961.During these last 60 years your Company crossed several milestones successfully steeredthrough several challenges strengthened its operations and nancials with several goodreturns on investments. In this report we have tried to bring to the you some of theseachievements and photographs of yester years.
Last year (FY 19-20) we navigated the pandemic situation well thanks to our dedicatedo cers and sta . FY 21-22 started with the second wave of COVID 19. To mitigate theGovernment imposed lock down and containment in several locations which a ected thesupplies from vendors availability of manpower at several of our locations. TheManagement has been able to minimise impact and meet customer commitments to the best oftheir ability. With the vaccination drive gaining momentum and availability of vaccinesimproving 3rd wave of COVID if any is expected to be mild in nature.
The GDP growth projection for FY 2021-22 is expected to be around 9.5% as per RBI.Thanks to the Government's initiatives in energising the economy there are several greenshoots emerging under the Indian economy since April 2021. Exports have started risingForex reserves have increased to $ 625 billion. GST collections have become stable andthe manufacturing sector has increased its share of GDP. The external value of the RupeeVs the Dollar has also shown stability over the past several months. All these point to aGDP growth of 8 9.5% as per World Bank and IMF estimates.
Your Company and its subsidiary IDL Explosives Ltd. being under the essentialservices categories operated during lock downs with limited manpower. Yet it was able tomaintain commitments. During the pandemic period the metal and infrastructure sectorsaided by policy initiatives by the Central and State Governments helped to maintain demandfor energetic and explosives products. The defence sector was a major contributor to theresults of the Company in FY 21. We express our gratitude to our biggest customers likeCoal India Limited responsible for nearly 45% of our output continued to repose theirfaith and con dence in us.
Your Company has also identi ed certain niche areas for future growth such asElectronic Detonators Systems having applications in Commercial Mining Defence andAerospace sectors Electronics Assemblies and Metal Cladding.
To o set the cyclical variations in the revenue and pro ts from its core businessesyour Company had been able to establish steady income streams leveraging its landproperties. However despite the waning of the covid waves and state governments liftinglock down curbs the adoption of work from home arrangement over the last year and a halfby IT/ITES companies has a ected the commercial realty sector. New lease arrangementscould not be nalised. Opportunities for monetization of properties are also being activelylooked into.
After its earlier success in the acquisition of Houghton International Inc HGHLHoldings Limited (HGHL) the UK based wholly owned subsidiary of your Company has alsoundertaken another project by way of stake in a luxury hotel and residences project inLondon with Ra es (Accor Group). In the meantime HGHL has been encashing its bene cialholding in Quaker Chemical on a tax-free basis in the UK and has been paying considerableamount of dividends to the Company which is being distributed to its Shareholders since
FY 20. Thus your Company continues to venture into new
areas to enhance shareholder value.
With an encouraging order book modernisation of facilitates at the major plants and ane cient workforce your Company is con dent of a better future.
I on my behalf and on behalf of the entire Board of Directors of the Company thankthe Bankers Auditors other stakeholders and appreciate the commitment resilience andthe spirit of innovation displayed by the employees of your Company and its subsidiariesfor the commendable performance during the year in spite of the Covid-19 constraints insustaining the business activities in the pandemic year.
We welcome you to the 60th Annual General Meeting
scheduled on 27th September 2021.