The year under review was a challenging one comprising a slowdown inthe global and Indian economy as well as a pandemic whose impact became perceptiblestarting from the last quarter of FY 20.
COVID-T 9 pandemic has ravaged the economic foundations of world tradeand is forcing an unprecedented social economic and business response. It hasfundamentally changed the way we live work and has made 'Work from Home' 'Socialdistancing' and 'Highertechnology adoption' as the 'new normal'.
As the world deals with the spiraling effects of the pandemic at OCCLwe quickly took decisive action to respond to the unfolding challenges. Our Plants wereShut from 23rd Of March following the Order of the Government of India in thisregard. However We were and have been in constant engagement with all our stakeholders tounderstand and allay their anxieties and to ensure that our operations are not affectedonce they restart.
We resumed production at our Plants as soon as we were allowed to do soby the respective authorities in order to cater to the requirements of our customers.
Our employees 'Worked from Home' (WFH) during the nationwide lockdownto contain the spread of the virus and protect their health. To ensure seamless businesscontinuity with least disruption our employees had access to the latest technologicaltools.
The Senior Management volunteered to sacrifice a percentage of theirsalaries and all the employees did not take any increments. Our workers also stood withthe Company by forgoing their salary increment as per the wages agreement.
As a responsible corporate citizen your Company stands united with thenation during this challenging phase of COVID-19. In our endeavor to be support the nationin this crisis we are extending a helping hand to our local communities in consultationof the respective local authorities.
Tough times bring about the best in a prudently-managed Company anddespite the global gloom it is doing its best to restore production levels at allfactories and to reach valued customers across the globe. The situation though stillfluid appears to be better then what we feared in the Month of April and we definitelysee rays of faster economic revival than earlier envisaged and sincerely hope to reviveour 26- years old competitive journey as India's first and only manufacturer of Insolublesulphur.
The Company continues to be engaged in the process of streamliningcosts eliminating wastage and reduce consumption of water in order to remain competitiveand socially responsible in order to meet the new challenges as they appear post thisglobal event which shall have far reaching and long lasting effects.
The Board of Directors have proposed a final dividend of ? 6 per sharesubject to the approval of the shareholders at the AGM. Together with the interim dividendof ? 4 per share the total dividend for the financial year ending 31* March 2020 amountsto ? 10 per share.
During the year under review we embarked on capacity expansion at ourDharuhera plant. We obtained environment clearance for an increase in our InsolubleSulphur and Sulphuric acid plant capacities and started the work on expansion on schedule.However The Project is now facing delays due to suspension of civil/other work during theshutdown period and availability of labour thereafter. Therefore the project is nowexpected to be commissioned in Q1 of 2021-22 instead of Q3 of current year as envisagedearlier.
We remain committed to reducing our environmental footprint. During theyear we took significant steps to further reduce wastages water consumption energyusage and C02 emissions in our factories and offices. During the year our rooftop solarplant at Dharuhera of 405 KW capacity was inaugurated. We also initiated a project ofrejuvenation of village ponds around our factory of which two became operational andhave started delivering benefits to the villagers.
As quality standards at tyre Companies and therefore the requiredquality benchmark from Insoluble Sulphur keeps rising so has the quality of our product.This is a continuous process which keeps us at the fore front of the competitivebenchmark. As the Insoluble Sulphur application in tyre manufacturing is highly criticalto its quality Customers take years to approve vendors for initial engagement; A majorityof our revenue of 2019-20 continue to be derived from customers with relationship ofseveral years vindicating our deep commitment to them.
I again re-assure our stakeholders that we are responding adequately tothe new challenges posed by the pandemic as well as global slow down and we are in a goodposition through our various initiatives to tide over the current crisis and come outstronger.
I wish all of you good health. Stay Safe.
|Arvind Goenka |
|Managing Director |