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Oriental Aromatics Ltd.

BSE: 500078 Sector: Industrials
NSE: OAL ISIN Code: INE959C01023
BSE 00:00 | 25 Jan 702.45 20.25
(2.97%)
OPEN

747.95

HIGH

747.95

LOW

668.80

NSE 00:00 | 25 Jan 703.60 21.00
(3.08%)
OPEN

683.00

HIGH

711.00

LOW

656.50

OPEN 747.95
PREVIOUS CLOSE 682.20
VOLUME 951
52-Week high 1148.00
52-Week low 545.00
P/E 36.36
Mkt Cap.(Rs cr) 2,364
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 747.95
CLOSE 682.20
VOLUME 951
52-Week high 1148.00
52-Week low 545.00
P/E 36.36
Mkt Cap.(Rs cr) 2,364
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Oriental Aromatics Ltd. (OAL) - Chairman Speech

Company chairman speech

Dear Shareholders

I would like to welcome you all to the Forty Ninth Annual General Meeting of OrientalAromatics. I wholeheartedly thank each one of you for being with us in our journey. I hopeyou and your family members are safe and healthy during these unprecedented times.Financial Year 20-21 has been challenging for each one of us as the Covid-19 pandemic hashad a significant impact on lives livelihoods and the businesses. Last year has beenextremely challenging as even your Company was not spared by the wrath of Covid-19. Allour manufacturing sites had undergone shut down for a period of forty days in the quarterhowever your Company was able to compensate for it in the rest of the year. During theyear the sales declined marginally by 7% primarily due to plant shutdown however yourCompany was able to clock an 18% growth in profitability and achieve its highest everprofit after tax by surpassing the INR 100 Cr mark in the current financial year for thefirst time since its inception.

Sustainability Innovation Business Continuity and De- Risking has helped your Companyevolve stronger than ever. Your Company is slowly gearing up to maximize the opportunitiesthat will come along its way and to face all the challenges that it might face in itsgrowth and success. Our focus and interest on innovation continued this year and I am gladto inform that your Company continued to spend on projects related to Innovation andSustainability. Flavours and Fragrances form the backbone of the FMCG industry as they area critical part of the everyday essential products. Due to this the impact of theCovid-19 pandemic on demand has not been as significant as it has been on otherindustries. Additionally due to the pandemic during the year the country witnessed anincrease in demand for health and hygiene products which in turn has led to increasednumber of product launches in this category by the FMCG industry. This led to a higherdemand for Flavours and Fragrances required for these products.

India being a developing economy the expected growth rate for the Flavours andFragrances industry is higher than the global average; thus the industry is expected tocontinue to grow providing more opportunities for players like us. We are confident thatthe aforementioned factors and expected growth in the economy will enable your Company tocontinue its growth strategy in the Flavours and Fragrances division.

Your Company is proud to be one of the very few fully integrated players in the globalFlavours and Fragrances (F&F) industry. We are glad to have achieved this position dueto strategic acquisitions and amalgamations done over the years and a robust productdevelopment strategy. Your Company has the capability and the capacities to manufacture awide portfolio of speciality aroma chemicals which form the building blocks of modernFlavours and Fragrances. These speciality aroma ingredients are not only used for captiveconsumption but also sold to global Flavours and Fragrances houses family-owned Flavoursand Fragrances compounding globally and in India. China is a major manufacturer andexporter of speciality aroma chemicals. Due to the Covid pandemic most of the flavoursand fragrance manufactures across the world are highly focusing on diversification andhence looking to reduce reliance on China for their aroma chemical supplies. This augursvery well for the Indian Speciality Aroma chemicals industry and will definitely benefit aplayer like Oriental Aromatics.

With over 6 decades of experience that your Company holds in the F&F industry wehave a very good understanding of the tastes and preferences of the consumers in thedomestic as well as the international markets. During the year we witnessed a spike incertain raw material prices in our flavour and fragrance division. These raw materialprices had a significant impact especially in the second half of the Financial Year.However with an established diversified and sustainable raw material sourcing policy wewere successful in combating the situation and not only maintained but also increased ourprofitability in this division.

Innovation is the key to success; hence your Company places immense focus on researchand development across all its four divisions. The innovation program includes projectswhich are related to new product launches in the area of flavours fragrances andSpeciality Aroma ingredients continuous process reengineering of our products to achievebetter value and sustainability and last but not the least projects related to greenchemistry and green factories.

In order to fuel future growth and capture significant market share across all itsoperating divisions your Company has a well thought out expansion plan which is in placefor the next 3 years (we call it our "1000 Day Program"). This includes furtherstrengthening of our speciality aroma chemicals base as well as building new manufacturingplants to augment the capacities in Camphor Turpene chemicals and Speciality Aromaingredients. This expansion will be a key milestone for your Company.

To conclude on behalf of the entire Oriental Aromatics Team I would like to express myheart felt gratitude to all our stakeholders which foremost includes our employees whohave worked extremely hard even during the pandemic also our other partners likesuppliers vendors distributors for supporting us during the year and lastly but mostimportantly our shareholders for showing confidence in our Company. Valuable suggestionsguidance and unflinching support of my colleagues on the Board are also gratefullyappreciated.

I am confident that with the strength of our core capabilities and our dynamic team ofprofessionals OAL is well-positioned for an exciting journey ahead that it's embarking onfor the next few years. We thank you for your trust and look forward to your continuedsupport on the journey ahead.

Best Wishes
Dharmil A. Bodani
Chairman and Managing Director

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