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Kesar Petroproducts Ltd.

BSE: 524174 Sector: Industrials
NSE: N.A. ISIN Code: INE133C01033
BSE 00:00 | 06 Dec Kesar Petroproducts Ltd
NSE 05:30 | 01 Jan Kesar Petroproducts Ltd
OPEN 5.91
PREVIOUS CLOSE 5.91
VOLUME 216983
52-Week high 5.92
52-Week low 4.41
P/E 21.11
Mkt Cap.(Rs cr) 57
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5.91
CLOSE 5.91
VOLUME 216983
52-Week high 5.92
52-Week low 4.41
P/E 21.11
Mkt Cap.(Rs cr) 57
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kesar Petroproducts Ltd. (KESARPETROPROD) - Chairman Speech

Company chairman speech

"We will weather the prevailing slowdown build additional downstream capacitiesdiversify our product mix and engage in backward integration with the objective ofbuilding a stronger and sustainable company."

Kesar Petroproducts performed creditably during the last financial year when it grewrevenues 3.19 per cent and profit after tax 52.13 per cent over the previous financialyear.

At our Company the principal objective is to enhance our business sustainability. Ourunderstanding of 'sustainability* does not necessarily indicate a continuous growth inrevenues and profits. We do believe that in our commodity business there will be periodsof business sluggishness alternating with phases of significant recovery in thisenvironment our principal objective would be to resist sectoral downtrends - remainprofitable on the one hand and maximize recovery during phases of industry rebound on theother.

Strengthening business sustainability

I am pleased to report that we have done preciously this during the last few yearsthrough various initiatives.

One we strengthened our throughput - from a time we generated ^146.18

crore in revenues in 2014-15 to 2017-18 when we generated

?180 crore in revenues - validating our capability in investing in manufacturingfacilities generating a higher throughput and being engaged deeper with customers.

Two we ran an austere ship during the last few years sustained by no access toshort-term loans from banks to fund our working capital until the cooling period followingour exit from BIFR had passed.

Three we broadened the product base of our Company - from a considerabledependence on CPC to the manufacture of alternative products whereby the proportion ofthe latter has increased by 10 per cent of our overall product mix today.

Four by leveraging our sizable capacity - 9 per cent share of the global CPCmarket - in exchange for superior economies..

A sense of macro-optimism

The management of Kesar Petroproducts is optimistic of its long-term prospects for somegood reasons.

As the consumer revolution has grown there has emerged a greater role for vibrantcolours in the consumer persuasion process. This focus has strengthened on account ofimproved printing technologies. The result is an enhanced ability to deliver any colour ondemand and the ability to go into finer shade variations

within a single colour. The result is that not only has the quantum of our downstreambusiness progressively increased but there has been a growing room for qualityvalue-added products. At our Company we are capitalizing on this reality through adynamic business model that is perpetually extending from one principal product to anumber of value-added downstream alternatives.

There is a greater emphasis on the use of environment- friendly technologies. Thisemphasis is not only coming

from communities living in the periphery of pigment manufacturing facilities but alsocoming from customers needing to work with vendors employing responsible manufacturingpractices mitigating the risks of any environmental under-performance affecting productdelivery and business continuity.

The market for pigments continues to grow while the larger dyes market de-grows.Pigments presently account for just 2 per cent of the overall colours market indicating amulti-year opportunity.

China has closed pigment capacities until stronger environment safeguards areintroduced an evident opportunity for manufacturers in India. Besides China's pigmentssector has been affected by higher wages an attractive opportunity for Indianmanufacturers to only address the growing global demand but also export to China.

Where we wish to go

At Kesar Petroproducts the short-term aberration

strengths of Kesar

Petroproducts

• No debt on the books

• 70% of revenues derived from clients of five years or more

• Ability to manufacture more products through in-house productisation capability

• Graduated from commodity end to value-addition (to progressively increase)

• Increase in capacity utilisation to drive ROCE

• Plans charted for widening the value-chain (backward and forward integration)

• Unused in-factory space to facilitate quick capacity creation

notwithstanding we believe that we address an optimistic future.

We will weather the prevailing slowdown build additional downstream capacitiesdiversify our product mix and engage in backward integration with the objective ofbuilding a stronger and more sustainable company.

Mrs. Snehlata D. Sharma Chairperson

.