PUNJAB ALKALIES & CHEMICALS LIMTED
STATEMENT OF THE CHAIRMAN SHRI I.S. BINDRA AT THE 19TH ANNUAL GENERAL MEETING
HELD ON 20TH SEPTEMBER 1994
Ladles and GenUemen,
I have great pieasure in extending to you a warm welcome to the 19th Annual
General Meeting of the Company. The Directo.s' Report and the Abridged
Annual Accounts lor the year 1993-94 have been with you for some time, and
you would be having a fair idea of the performance of your Company.
In our last meeting I spoke to you about the challenges thrown up by the fast
changing economic scenario in the country and the emerging opportuniUes. The
move is towards Integration with the world economic order. lt is gratifying
to note that the competitive forces unleashed by liboralisation and
budgetaty changes have been met squlrety by us. Productivity and cost contrd
are the key are.s In whlch your Company never misses a chance to convert the
challenges into opportunities. With this in view, the Company is exploring
the possibility of sening-up a Captive Pow,er Generating Station for cutting
down the cost of power ' a major input.
The Company has registered extremely good results for the year ended 31 st
March,1994, surpassing the previous performance leveis. Gross Sales of
Rs.77.21 crores and Net Profit before tax at Rs.13.93 crores reflect an
increase of 25% and 37%, respectively, over the previous year. The
performance would have been even more impressive but for the exhorbitant hike
in power tariff, withdrawal of e;octricity duty exemption, floods in July,
1993 and transporters' strike In AugusVSeptember,1993. Cash Profits during
the year were Rs.17.28 crores. This ensuted excellent liquidity and enabled
the Company to fully meet its otligations towards'the finandal Institutions.
ThR Reserves of the Company stood at a healthy Rs.18.29 crores compared to
Rs.12.97 crores for 1992-93, leading to an increase of 41 %.
Your Directors have recommended a Dividend of 30% for the year 1993-94.
The global caustic price movement is cyciical. After bottoming out in
December, 1993, the international caustic prices have started firming up. The
recovery in international prices means that imports will not be a threat In
the medium term even as tariffs fall. However we in PACL realise that we must
be even better prepared at the time of tile next trough in this cycle.
Wordwide the production of Cusstic Soda is generally linked to the demand of
chlorine. The Clorine demand and prices in India witnessed an upsurge during
The market for Caustic Soda continues to expand. While the capacity
utilisation of the industry went up from 69.4% (1980-81 ) to 84.98% (1993-
94); the Caustic Soda production Increased from 5.72 lakhs MT to 11.15 lakhs
MT. The capacity utilisation of PACL Plant at 104.1 % far exceeds the
industry averrage of 84.98% for the year 1993-94. The revamping of the
existing Flaking Unit was completed in January,1994, giving additional
leverage to the Company in optimising product mix. The third phase of
Capacity Optimisation Project has become operational, which will go a long way in maintaining continuity of plant operations at higher ioads.
I am happy to report positive trends for fiscal 1994-95. The Production of
Caustic Soda Lye and Gross Saies during the first five months of the current
year were 21571 MT and Rs. 34.01 crores, respectively, which are higher than
the corresponding figures for the period ended 31st August, 1993. The Company
has posted a Net Profit before tax of Rs 5.53 crorss for this period, which
is also higher than that for the corresponding period in 1993-94. The
implementation of Company's 100 TPD Membrane' Cell Caustic Soda Project based
on HOECHST-UHDE technology, is proceeding according to plans. We are aware
that ultimately continuous growth only be sustained by the consumers.
Although we have well defined regionalised marketing strategy, your Company
is assiduously working on creating new markets. You will be happy to know
that based on surveys we expect a tairly good growth in the consumer industry
in the region to match the increased production. l am conf.dent that on
commissioning, this project will give a significant boost to the Company's
The Finandal InsUtutions had sanctioned assistance to the tune of Rs.54
crores for the Membrane Cell Project The Company had made a 1: 1 Rights Issue
of equity shares to finance a part of the cost of this project. l would like
to place on record my profound gratitude to the shareholders for their
overwhelming response to the Rights Issue.
We share the global concern for providing a healthy environment and have
taken approprlate steps in this direction. Based on in-house research, the
Company has successfully implemented a project for the removal of Sulphates
from the Brine as a significant pollution control measure and the same has
become operational in June, 1994.This plant reduces the quanUty of brine
sludge to be disposed off and will generate upto 1000 TPA of Barium Sulphate
- an additional value added product.
Our people are our strength. They have been insirumental in building the
Company's strong base and sustaining its performance over the years. l would
like to express my deep gratitude to every member of the PACLfamily without
whose contribution, commitment and involvernent, the Company could not have
performed as well as it did. Their combined efforts underthe dynamic
leadership of Shri P.S. Bajwa and Shri P.S. Pruthi, enable1 us to achieve
our corporate goals.
I would also like to express my sincere thanks to the State Govemment,
Financial Institutions, s;lr bankers and our customers for their cooperation
and support. I am also grateful to my colleagues on the Board for their wise
counsel and support.
Above all, I thank you, our esteemed shareholders, for your unstinted support
to the management tn its efforts to build an even better future for the
Ladies and Gentlemen, in the end I thank you tor your presence and valuable
I S BINDRA
20th September, 1994