It is a great pleasure to connect with you at the end of another eventful year. We livein fast-changing times and the more responsive we are to these changes the betterprepared we will be for the future. Our Hon'ble Prime Minister has set an ambitious targetof making India a USD 5 trillion economy by 2025. To achieve this target our economy willhave to shift gears and grow at over 9% a year for the next six years. In addition to themassive amount of investment required to achieve this higher growth our country will alsoneed a large pool of skilled manpower who are trained in the skill sets that the industryrequires. This year's Annual Report explains how your Company is providing upskilling andreskilling opportunities to meet evolving needs along with presenting our performancehighlights.
PURSUING A HIGH GROWTH TRAJECTORY
I am delighted to share that we continue to grow from strength to strength. In theprevious year we had crossed an important landmark of 300000 KL in sales volume. Thisyear we have sustained that momentum by clocking over 346000 KL in sales volume asurge in excess of 15%. Our rate of growth was nearly twice that of our end-user industrya testament to the
In the knowledge-centric world that we live in adapting to new technologies andembracing change are essential for survival and growth.
underlying demand for our brands and products. Though our Profit before Tax (PBT) washigher on a year-on-year basis we recorded a lower Profit after Tax (PAT) over the sameperiod due to higher tax incidence. The volatility in the forex market during the firsthalf of the financial year also impacted our bottom line.
LEVERAGING R&D FOR A GREENER TOMORROW
As always our R&D contributed significantly to introducing innovativedifferentiated products that promote environmental sustainability. We developed a greenerversion of our coolants that contain less glycol and are free from silicates andphosphates. These are more environment-friendly than traditional coolants. We alsodeveloped a range of chain sprays that are used to lubricate motorcycle chain drives.These sprays not only extend the life of the vehicle's chain by providing corrosionprotection and friction wear but also contribute to reducing noise and vibration. OurR&D team is also working to develop lubricating oils that conform to the BS-VIspecifications coming into effect from 1st April 2020 in the Automotiveindustry.
MAINTAINING STATE-OF-THE-ART FACILITIES
Equipping our manufacturing units with the latest technologies and enhancingcapabilities to meet market requirements is a continual endeavor at our Company. Work ison to increase the capacity of our plant at Silvassa (Silli) as it is nearing 100%capacity utilization. Our Silvassa (Kharadpada) plant is now IATF 16949:2016 approvedwhich is the International Standard for Automotive Quality Management Systems. Thiswell-recognized certification will strengthen our credentials in reaching out to leadingGlobal Automotive OEMs. We take pride in being the only Carbon Positive Specialty Oilmanufacturer in India. To further advance our green agenda we are implementing a projectto increase the production of solar-powered energy at our Turbhe plant.
PARTNERING THE SKILL INDIA INITIATIVE
The Skill India Mission a flagship scheme launched in 2015 by the Hon'ble PrimeMinister aims to train over 40 crore people in India in different skills by 2022. Theobjective is to provide industry-relevant skill training to the Indian youth for helpingthem to secure a more meaningful livelihood.
As a part of our CSR initiative we decided to contribute to this Government endeavorby rolling out a nationwide program - Mission 5K. Our goal is to upskill 5000 mechanicsby providing them with requisite training and re-training in a workshop environment. Weare confident that while our steps are small it will create a ripple effect ofempowerment for the larger good.
We remain confident in the medium and long-term prospects for our Company. In keepingwith the Government's plan to increase the power generation capacity from 356GW to 479GWby 2023 we foresee robust demand for transformer oils. Similarly we expect to seeconsistent growth in the demand for white oil due to rapid urbanization and risingdisposable incomes. While the automobile sector is presently experiencing a slowdown dueto the forthcoming BS-VI norms we envisage that momentum will accelerate once thistransition period is over.
I want to place on record our heartfelt appreciation of the efforts of our Whole-timeDirector Mr. C. V. Alexander and Independent Directors Mr. S. R. Pandit Mr. N. B. Karpeand Mr. H. A. Nagpal who all retired in March and May 2019. Mr. Alexander has been anauthority on Company Law and Taxation matters and has been the driving force on theseissues within the Company for more than five decades. The 3 Independent Directors wereassociated with the Company for more than a decade. I would like to place on record ourappreciation of their valuable guidance and inputs to the overall growth of the Company.
I am also thankful for the unstinting support of the Board of Directors our SeniorManagement and team members across hierarchy bankers vendors and customers. Last but notthe least I thank you dear Shareholders for your continued support. Together we havebuilt a company that plays a positive role in our industry and society. With the continuedsupport of all our stakeholders we will strive to work towards reaching new heights andfor the common good of our great country.
|Best wishes |
|Gautam N. Mehra |
|Chairman and Managing Director |