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Solar Industries India Ltd.

BSE: 532725 Sector: Industrials
NSE: SOLARINDS ISIN Code: INE343H01029
BSE 00:00 | 20 May 2797.05 -87.30
(-3.03%)
OPEN

2950.00

HIGH

2950.00

LOW

2780.00

NSE 00:00 | 20 May 2797.35 -87.05
(-3.02%)
OPEN

2937.60

HIGH

2975.00

LOW

2761.35

OPEN 2950.00
PREVIOUS CLOSE 2884.35
VOLUME 2036
52-Week high 3191.55
52-Week low 1217.00
P/E 96.88
Mkt Cap.(Rs cr) 25,313
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2950.00
CLOSE 2884.35
VOLUME 2036
52-Week high 3191.55
52-Week low 1217.00
P/E 96.88
Mkt Cap.(Rs cr) 25,313
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Solar Industries India Ltd. (SOLARINDS) - Chairman Speech

Company chairman speech

CHAIRMAN'S INSIGHTS

Prospering with all stakeholders

- Solar will be the first Indian company to fully indigenise anddevelop Loitering Munitions (LM) in house. This Indian innovation will prove to be animportant step ahead in Solar's commitment of making India self reliant in ammunition.

Dear Shareholders

On behalf of Solar Industries India Limited I extend my warmestgreetings to you. I hope you and your family are safe and in good health. It gives megreat pleasure to present the Company's 27th Annual Report for FY 2021-22.

Our Strength Our People

As we continue to navigate the uncertainties of the Covid-19pandemic safety and well-being of our employees still remain our topmost priority.Through these arduous times our team at Solar has shown great resilience and strength toensure uninterrupted operations. To support our employees we established work-from-homeinfrastructure periodically conducted RT-PCR testing and provided free vaccinations. Thepandemic took the world by storm and still continues to disrupt people across the globeand I would like to laud the heroic efforts of all the frontline workers who directlyengage in the fight against the virus every day and illuminate the way for humanity.

Reflecting on FY 2021-22

After a tumultuous two years post the outbreak of the Covid-19pandemic the global economy has shown steady progress and recovery. Some developedeconomies have played a crucial role in the global economic recovery while developingeconomies are anticipated to experience growth. Equitable vaccine distribution and headwayin medical research across the world have been crucial steps that have helped minimise therepercussions of the pandemic and gave the global economy growth a chance to recoveragain.

Additionally the government has bolstered the Indian defence sectorby allocating 25% of the defence R&D budget to the private sector which will go along way towards breaking the public sector's monopoly on creating cutting-edge militaryequipment.

The Indian economy is projected to grow by 8.9% in FY 2021-22 atthe backdrop of favourable reforms and increased domestic consumption. The country'sstrong economic fundamental will help withstand short-term pressures of inflations andremain a fast growing economy in the world.

The Union Budget of FY 2022-23 has focused on overall economicgrowth there has been an increase of 35.4% in Capital Expenditure as compared to FY2021-22 which is bound to boost the economy. The budget has laid a notable emphasis oninfrastructure as well as increasing support for small and medium businesses.

Additionally the government has bolstered the Indian defence sectorby allocating 25% of the defence R&D budget to the private sector which will go along way towards breaking the public sector's monopoly on creating cutting-edge militaryequipment.

In keeping with the government's Aatmanirbhar Bharat goal 68% ofcapex is designated for domestic procurement which is up by 10% over the previous budgetand will reduce India's dependency on defence imports. The government also catered to thelong-standing demand of the defence industry by introducing a nodal umbrella body fortesting and certification.

Based on synchronised growth across major industries and supportivegovernment reforms the country is looking forward to a brighter future.

Business Performance

We have secured outstanding progress in FY 2021-22. Robust growthand project execution across all sectors have enabled us to surpass yearly revenue growthtargets. Our sales stood at RS 3948 Crore for the current fiscal year in comparison to RS2516 Crore in the previous year a 57% increase. We recorded EBITDA margins of 19.43% asagainst 21.31% the year before and our Net Profit stood at RS 441 Crore compared to RS276 Crore in the previous year.

Despite challenges related to an unprecedented increase in commodityprices across business verticals increased freight and forwarding charges and foreignexchange fluctuations we have demonstrated a strong financial performance during theyear. We have also successfully commenced commercial execution of Multi Mode Hand Grenades(MMHG) orders from the defence industry. The defence sector continues to contribute to ourtop line along with other industries like mining exports overseas markets housing andinfrastructure. To keep pace with advancements in defence technologies and adopt forcemultipliers to counter enemy threats we took up the challenge to enter the field of dronesand counter drones. Our drones can be used in both offensive and defensive roles. Inoffensive role these drones can be used to target enemy troops bunkers vehicles andtanks. In defensive role we have developed anti-drone system capable of soft kill and hardkill using micro-missiles.

A loitering munition (LM) (also known as a suicide drone or kamikazedrone) is a weapon system category in which the munition loiters around the target areafor some time searches for targets and attacks once a target is located. Solar will bethe first Indian company to fully indigenise and develop loitering munitions (LM)in-house. This Indian innovation will prove to be an important step ahead in Solar'scommitment of making India self reliant in ammunition.

Positioning for Future Growth

We are committed to deliver continued and profitable businessgrowth. Our positioning for future growth is driven by our refreshed strategy for movingforward. All our endeavours are part of a collective effort by our employees and acommendable cross-departmental collaboration. Each of our departments is led by seniormanagement personnel with extensive knowledge in their respective areas which theyeffectively execute across their departments.

With an extended focus on developing new and upgraded products theCompany aims to strategically focus on increasing its contribution to the defence sectorand upgrading its existing skills. Over the short-term we are aiming to improve productas well as process efficiency and in order to do that we are we are stepping uptechnological innovation to support cutting-edge processes and upgrading ourinfrastructure to adapt to best industry practices.

As we forge ahead we aim to further strengthen our position asglobal leaders in the explosives industry. To achieve our long-term objectives we haveannounced green field investments in Australia. The proposed cartridge plant in Australiais also expected to be a key investment area that is anticipated to further aid ourefforts to shorten delivery time to the customers.

The Indian economy offers promising prospects for the growth of theorganisation. With better opportunities the government's focus on sectors likeinfrastructure and real estate and emphasis on Atmanirbhar Bharat Make in India PMGatiShakti National Master Plan (PMGS-NMP) Pradhan Mantri Awas Yojana and Housing forAll we are poised to capitalise on emerging opportunities within the country. We areoptimistic that with the increased outlay for infrastructure and defence procurementparticularly with the stated policy of procuring 68% from domestic industry industrieslike ours will be benefitted to a great extent.

We are not only expanding our geographical footprint but alsoimproving production facilities and internal capabilities by developing new and improvedproducts in India to cement our position in an evolving market. In the overseas market wehave a strong presence in Turkey Nigeria Zambia South Africa and have startedoperations in Tanzania and Ghana. Additionally we endeavour to broaden our reach enhanceour product portfolio and sustain market leadership in emerging markets around the world.

Dividend

We have recommended the dividend payout of 375% this year which is25% more than the previous year.

Occupational Health

Solar is dedicated to providing a safe and healthy workingenvironment to all its employees and workers. Our Safety Health and Environmentmanagement is based on ISO 14001/2015 and OHSAS/800/2007 principles and supplemented bystringent regulatory standards. Our health and safety policy takes into account alloccupational hazards and diligently undertakes efforts to propagate training on workplacesafety. Benefits such as insurance retirement plans healthcare and disability coverageare also offered to our employees.

Ethical Governance

As a responsible organisation we lay great emphasis on corporategovernance to ensure business sustainability. At Solar we follow transparent reportingpractices and consistently improve internal communication systems to create a robustcorporate governance policy that focuses on active and meaningful engagement with thestakeholder community.

Sustainability Our Responsibility

We at solar believe in equating our growth with sustainabledevelopment of the planet. We are constantly advancing the ESG agenda by incorporatinglong-term sustainability into our core business operations. Our approach to sustainabilityis in line with the UN sustainable development goals. We have a comprehensive policystructure to guide our sustainability agenda which is in accordance with our mission. Oursustainability policies have been designed to meet the needs of our entire business.

We have taken several initiatives for reducing our emissions as wellas energy and water consumption to ensure responsible operations for the safety of ourenvironment we regularly monitor our emissions and take necessary steps to reduce them.By following the emission requirements set forth in the Maharashtra Pollution ControlBoard's permission to operate (MPCB) we make sure to be a responsible and environmentallyconscious Company. We understand the need to source water from surface sources and arediligently working towards water harvesting and pond building initiatives as well.

Service to Community

Solar makes it a priority to reach out to the underprivilegedcommunities. We truly believe in making a difference in society by addressing issuesrelated to ‘human dignity' instead of just focusing on material prosperity. Ourbelief is built upon the concept of ‘trusteeship' which permits us to look beyondour commercial interests and allows us to play our part in minimising economicinequalities. It also influences our CSR initiatives and enables us to effectivelycontribute to the socio-economic development of the communities in which we operate.

We have been able to achieve this by building infrastructures anddeveloping dedicated skill development programmes to create employment along with buildingschools in several locations within the vicinity of our plant. We have also built andrenovated hospitals and rehabilitation centres in order to work towards the health andhygiene of the underprivileged society.

We continually engage with our stakeholders since they are the heartof our Company and our goal remains to preserve all of our stakeholders' interests in ouroperations and business decisions.

Gratitude

I would like to take this opportunity to thank the entire Solarteam for their perseverance hard work and dedication towards the Company. Each member ofour team has served as a source of inspiration and despite difficulties has helped toaccomplish organisational objectives. I am truly humbled by the ability of the leadershipteam and the employees to remain steadfast in the face of hardship. I also remain thankfulto our customers suppliers shareholders business partners and other stakeholders fortheir unwavering support. I look forward to continue on this truly gratifying journey toensure success.

Regards
Satyanarayan Nuwal
Chairman

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