Message to Shareholders
I We value the commitment of our investors in having faith in the leadership of thecompany understanding of our business our strategy the market environment and ourgovernance arrangements.
It is amidst singularly challenging times that I present you the Annual Report forMorganite Crucible (India) Limited for the year 2020-21.
The year 2020 was extremely difficult with the COVID-19 pandemic impacting every partof our business across the world. We saw the initial effects in China with our Suzhouplant in China closed for an extended period beyond the Chinese New Year holidays. Thequick spread of COVID-19 to Europe the Americas and wider Asia forced governments allaround the world to implement unprecedented lockdowns that disrupted economies businessesand the society at large.
During recent times what has been an unprecedented pandemic our first focus was toprotect the health and safety of our employees. Since the outbreak of COVID-19 we haveemphasised plant disinfection and improved hygiene allowed our employees to work fromhome wherever possible and continuously advised employees to practice COVID-19appropriate behaviour - wash or sanitise their hands often wear masks and follow socialdistancing. With all these protocols in place we were able to keep our MMS plantsoperating through the second half of 2020.
As a result of lack of business demand compounded with supply-side disruptions ourrevenue declined by 17%. However due to our rapid cash management actions we were ableto maintain a healthy balance sheet which is a testament to the resilience and commitmentof our people. I am proud to state that we were able to minimise any negative effect onpeople's employment and compensation during this very difficult period. I thank all ouremployees and related stakeholders for their hard work perseverance and dedication.
The gradual lifting of worldwide restrictions beginning in the second half of 2020.Stimulated by government incentives and the subsequent global vaccine rollout demandbounced back in our key markets around the world. This restoration of market demandcombined with a more efficient operation resulting from the pre-planned consolidation ofthe Mehsana site operations with Aurangabad positions ensured your Company quickly resumethe path to growth that we have been pursuing over the past few years.
We aim to deliver service-excellence so that our customers feel valued and choose usas their 'go-to' supplier. We work cohesively with them listening and engaging closely totheir views and feedback. We develop lasting relationships with our customers based onmutual trust and constructive dialogue. We have been working closely with our customers todevelop new solutions for their next-generation of products and processes.
We value the commitment of our investors in having faith in the leadership of thecompany understanding of our business our strategy the market environment and ourgovernance arrangements. We always foster an open and transparent relationship with ourinvestors to enable them to make effective investment decisions in the Company.
With new strains of the COVID-19 virus emerging business outlook remains uncertainwith lockdowns and travel restrictions being maintained to some degree around the world.Nevertheless in the second half of 2020-21 we experienced a rising trend in orderintake which is a positive development that we hope will persist in the coming year.Morgan's strategy implementation and continuous focus on improving product quality and newproduct development will be the key drivers of optimism and growth in 2021.
I would like to thank our employees business partners and investors once again fortheir continued support in these difficult times and look forward to a healthy safe and asuccessful year ahead.
Dr. Aniruddha Karve
Molten Metal Systems (MMS).