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HSIL Ltd.

BSE: 500187 Sector: Industrials
NSE: HSIL ISIN Code: INE415A01038
BSE 00:00 | 26 Nov 213.90 -12.60
(-5.56%)
OPEN

225.00

HIGH

225.00

LOW

212.35

NSE 00:00 | 26 Nov 213.65 -12.75
(-5.63%)
OPEN

224.40

HIGH

224.40

LOW

212.00

OPEN 225.00
PREVIOUS CLOSE 226.50
VOLUME 21026
52-Week high 287.35
52-Week low 95.00
P/E 12.51
Mkt Cap.(Rs cr) 1,384
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 225.00
CLOSE 226.50
VOLUME 21026
52-Week high 287.35
52-Week low 95.00
P/E 12.51
Mkt Cap.(Rs cr) 1,384
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

HSIL Ltd. (HSIL) - Chairman Speech

Company chairman speech

DEAR SHAREHOLDERS

In my last letter to you I had dwelt extensively on how the relentlesspursuit of excellence has been a value multiplier for us for over six decades. This yeartoo I intend to reiterate on the same guiding philosophy and inspiration. You may askwhy is that so? My simple answer is that as a company we follow an abiding commitment toexcellence.

Our strategies over the years may differ as the macro environmentsuggests but the commitment to excellence remains enduring. At HSIL we are crafting aninspiring legacy of excellence which when looked at a granular level translates into anurgent call to ceaseless action innovation and forward movement.

We know our journey will seldom be smooth sailing; there will always beunpredictable storms trying to deflect our course. We are operating in a sluggishmacroeconomic environment where global growth prospects will continue to remain fragileto downside risks. Headwinds however can be best addressed by concerted efforts andmeasured optimism. Measured because we must constantly assess where our Company is headingtowards or if there is a need for course correction; and optimism along with dynamism isthe only Holy Grail to move forward.

We are all aware that the COVID-19 outbreak has impacted globaleconomies and businesses in a manner that we have not seen before. There are going to befurther hurdles in the coming few months before the economy reboots and revives itself.We wholeheartedly welcome the Government of India's economic stimulus package of Rs 20lakh crore to help support businesses and the lives and livelihoods of millions of peopleespecially the disadvantaged sections of society. I must also praise the Reserve Bank ofIndia's (RBI's) role in enhancing the liquidity in the economy through aggressive interestrate cuts and temporary moratorium on loans to help cushion the hardship faced by citizensand small businesses.

Although the nation-wide lockdown has impacted our businesses we arekeeping a close watch on the evolving scenario and I can assure you that based on currentmarket conditions the Company currently has enough liquidity within its undrawn bankinglimits to service its debt and other financing arrangements.

Other than the sudden COVID-19 challenge the financial year 2019-20was a rather satisfying year for us. Our customer centricity continued to be thecornerstone of our success during the reporting period. We delivered value with speed andcost-efficiency along with sustainable resource management.

At HSIL sustainability and operational priorities are closelyinterwoven. Our manufacturing capabilities remain best-in-class and can match efficiencybenchmarks of any advanced country of the world. We are consistently working on surpassingour quality benchmarks incorporating global best practices in manufacturing andupskilling our team members.

Most of you are already aware that our plastic pipes and fittings andcounterfeit-resistant security caps and closures manufacturing plants at Telangana complywith green building norms and have received the platinum rating by the Indian GreenBuilding Council (IGBC). Our plants have achieved a very high watermark benchmark in termsof manufacturing capabilities waste management and water management (zero-waterdischarge). You will be glad to know that we have embedded sustainability even in ourfactory design. Our other measures comprise ensuring energy and water conservation withprocess waste being collected and reused.

As you know our demerger was a strategic move to enhance capabilitiescreate future-focused institutions of excellence and unleash stakeholder value. The aim isto accomplish the next orbit of growth. Following the demerger which got approved by theHon'ble Kolkata Bench of National Company Law Tribunal vide its order dated 26 June 2019HSIL is now manufacturing and selling Packaging Products which offer a comprehensivebasket (glass containers PET bottles and products and security caps and closures); andalso houses the manufacturing of Building Products businesses (sanitaryware faucets andplastic pipes and fittings).

Our Packaging Products division saw encouraging growth on the back ofgrowing sales volume and pricing while effectively managing costs. Through pricingproduct innovation and ongoing efficiency efforts we could offset higher-than-expectedraw material and logistics cost.

At the heart of our success is our value proposition - the best resultsat the lowest total cost and environmental impact for our customers. During FY 2019-20 wewitnessed growth across both our packaging and plastic pipes and fittings manufacturingbusinesses along with better realisations.

Going forward we see significant opportunities for our PackingProducts businesses to create value for our discerning customers by offering efficientpackaging solutions aligned to their needs. In the Building Products manufacturingbusinesses our focus remains relentless on achieving optimum utilisation of capacitiesand better efficiencies. We will continue to invest to deliver more value to our customersand communities and sharpen our focus on our core businesses.

Our core purpose is to passionately strive to enrich the customers'quality of life; and over the years we have evolved a talented team of highly motivatedgo-getters who continue to deliver on our purpose keeping the customer at the heart ofall initiatives. We are investing proactively in nurturing our talent pool and enablingthem to shoulder more responsibilities and embrace a greater measure of challenges. Ourpeople provide us with the best competitive advantage; and we will continue to sharpen theskills of our human assets as we equip ourselves for the third decade of the twenty-firstcentury.

Holistic excellence cannot flourish without the participation of thecommunity. Our approach is participatory growth that takes into account the interests andaddresses the concerns of community stakeholders. We are committed to community welfareand undertake various programmes around hygiene and sanitation healthcare skilldevelopment women empowerment education and disaster management.

Before I conclude it is pertinent to mention that our initiatives fordecades have made us an even more efficient effective company for the long term andimproved our profitability curve and growth potential. Over the years we haveaccomplished many milestones but the journey continues. HSIL's message is simple:Excellence can't wait. HSIL celebrates excellence every day and I am happy to know thatwe remain a company that our shareholders customers our team can count on today and inthe years to come.

Thank you for your trust.

Warm regards

DR. RAJENDRA KUMAR SOMANY

Chairman and Managing Director

.