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SRF Ltd.

BSE: 503806 Sector: Industrials
NSE: SRF ISIN Code: INE647A01010
BSE 00:00 | 23 Sep 2573.10 -49.90
(-1.90%)
OPEN

2638.30

HIGH

2638.30

LOW

2560.40

NSE 00:00 | 23 Sep 2572.35 -49.95
(-1.90%)
OPEN

2620.00

HIGH

2630.35

LOW

2564.05

OPEN 2638.30
PREVIOUS CLOSE 2623.00
VOLUME 24709
52-Week high 2864.35
52-Week low 1975.00
P/E 44.24
Mkt Cap.(Rs cr) 76,272
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2638.30
CLOSE 2623.00
VOLUME 24709
52-Week high 2864.35
52-Week low 1975.00
P/E 44.24
Mkt Cap.(Rs cr) 76,272
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

SRF Ltd. (SRF) - Chairman Speech

Company chairman speech

Dear Shareholders

It is a great privilege to be able to share my thoughts with you forthe first time since taking over as the Chairman and Managing Director of SRF Limited inApril 2022.

This year we bid farewell to the patriarch of our Group Mr. ArunBharat Ram who expressed his desire to step down as the Executive Chairman and Directorof SRF Limited. The amount of value SRF has created under his leadership - isextraordinary as he leaves behind a strong foundation for future generations. Having saidthat SRF will continue to benefit from his valuable knowledge and wisdom fromtime-to-time as a mentor to the Board of Directors and the management.

As I take on the role of Chairman and Managing Director with a greatsense of responsibility and humility I look forward to leading SRF into the future withan outstanding team at my side.

Firmly rooted. Growing responsibly.

We chose "Firmly rooted. Growing responsibly" as the theme ofour annual report this year as we prepare to shape our future growth journey based on apowerful combination of experience and energy. Experience of a Company that has succeededfor decades and the energy of a young Company with fresh opportunities. SRF productstouch millions of lives every day and we work hard to remain relevant and current to thecustomers we serve and respond appropriately to changes taking place in our environment.

As an organisation that continues to evolve grow and progress intothe future we are also making concerted efforts towards identifying our ESG(Environmental Social and Governance) risks and opportunities. It was thereforeimperative for us to adopt ESG as part of our Company aspirations. In March 2022 weintroduced and launched our Company's new ASPIRATIONS 2030. The five pillars of ourASPIRATIONS 2030 are:

We will continuously strive to be known for our:

• Professional Reputation and Value System

• Customer Advocacy

• Innovation and Technology Leadership

• Operational Excellence

• Environment & Social Responsibility

Our efforts in ESG encompass management of water use protectingecosystems and reducing community impacts related to operations among others. I inviteyou to read the ESG section of this report for more on our work towards our environmentalresponsibility.

Financial Performance

FY 2021- Rs 22 was an extraordinary year. Despite the ongoing COVID-19pandemic widespread supply bottlenecks and increasingly higher energy and raw materialsprices we achieved robust operational and financial performance.

From a financial point of view in FY 2021- Rs 22 the Company achieveda 58% increase in profit after tax at Rs 1889 crore compared to Rs 1198 crore last year.The Company's revenue for the year stood at Rs 12434 crore as against Rs 8400 crore inthe previous year recording an overall growth of 48%.

Business Performance

Let me now talk about some of the milestones achieved by each of ourbusiness segments during the year.

Chemicals Business

In FY 2021 - Rs 22 the Chemicals Business accomplished strong growthof 43.8% Year-over-Year (Y-o-Y) to achieve record revenues of Rs 5240.8 crore.

Our Specialty Chemicals Business performed remarkably well in the yeardriven by strong demand in both the exports and domestic markets. Our new productportfolio is being enhanced continuously which also helps us expand and strengthen ourcustomer base further. Our customers are demanding more-and-more complex molecules ademand that is being met by our robust in-house R&D team giving the Company anoverall edge in the marketplace. With rapid strides in the development of new products andprocess technologies we launched four new products in the agrochemicals and two in thepharmaceuticals segment during the year. In addition we are also seeing traction in theActive Ingredients (AI) space and building our capabilities on this front.

As we grow our revenues we will continue to invest in this business tosustain healthy growth rates over the next few years. In this regard I am pleased toshare that the Board of Directors have approved the setting up of dedicated facilities toproduce agrochemicals intermediates at Dahej Gujarat at a cost upwards of Rs 200 crore.In addition to that the Board approved a project to set up a Pharma Intermediates Plant(PIP) at a cost of Rs 190 crore which will strengthen SRF's pharma capabilities. Similarinvestments alongside improved efficiencies optimum utilisation of capacities and otherinitiatives to reduce the environmental costs of manufacturing were also announcedthroughout the year.

Overall as India's largest specialty chemicals player SRF in FY2021- Rs 22 continued to maintain its 'preferred partner' status with most of its marqueeglobal customers.

Poised for sustainable growth our Fluorochemicals Business delivered astrong performance during the year. This was largely on account of higher volumes inrefrigerants blends and chloromethanes in both the domestic and exports markets. Ourcapabilities on backward integration allow us to control costs as well as propel thebusiness forward.

As an organisation that continues to evolve grow and progress intothe future we are also making concerted efforts towards identifying our ESG(Environmental Social and Governance) risks and opportunities.

Furthermore in our constant endeavour to offer cutting-edge productsto our customers we enhanced our portfolio by introducing Anhydrous Hydrogen Chloride(AHCL) for pharmaceutical applications and ramping-up production of other key products inthe Industrial Chemicals segment. Our Pharma propellant which is sold under the brandname of Dymel? HFA 134a/P witnessed a significant increase in sales expanding to newgeographies and consolidating its customer footprint across the globe.

With large capex such as Polytetrafluoroethylene (PTFE) chloromethane(CMS) etc. likely to capitalise in the next few quarters we are looking forward toexciting times ahead in the Fluorochemicals Business.

Packaging Films Business

In FY 2021 - Rs 22 our Packaging Films Business witnessed robustgrowth of 45.2% Y-o-Y to achieve record revenues of Rs 4779.2 crore. Both our domesticand international facilities delivered strong performance and contributed to the overallgrowth. Over-the-years SRF's Packaging Films Business has established itself as arenowned player in the worldwide packaging industry with a growing market presence across100+ countries with multi-country and multi-substrate presence. This is a result of theBusiness' 'Easy to do Business with' philosophy our geographical spread along withcontinued focus on enhancing efficiencies innovative practices and cost-competitiveness.

During the year the Company made an important announcement to furtherenhance our leadership position in this segment. We have allocated a capex of Rs 425 croreto set up an Aluminium Foil manufacturing facility near Indore in Madhya Pradesh Indiawhich is expected to be commercialised in approx. 20 months. Our new BOPP film line whichis currently under construction in Indore is also on track and expected to be commissionedin the forthcoming quarter.

I am also happy to share that during the year our Packaging FilmsBusiness was recognised with two prestigious awards. Our facility at Indore was conferredthe Quality Sustainability Award at the international convention organised by theInternational Academy for Quality (IAQ). SRF FLEXIPAK our South African facility receivedthe 'Sword of Honour' from the British Safety Council demonstrating our emphasis onsuperior Environment Health Safety (EHS) practices.

As a market leader our focus on sustainability initiatives is ourresponsibility and we will continue to work towards innovating films that have a lowerenvironmental footprint. We aim to foster the 'Circular Economy' where we increasinglybring waste materials back into the economy.

Technical Textiles Business

In FY 2021 - Rs 22 our Technical Textiles Business demonstratedpromising results of 68.1% Year-overYear to achieve healthy revenues of Rs 2085.2 crore.This was achieved on the back of highest-ever sales volumes from the Belting Fabrics andthe Polyester Industrial Yarn segments. This contributed to partially offsetting the weakdemand for Nylon Tyre Cord Fabrics. Overall the Company is actively focusing on improvingits operational efficiency and productivity paraments in this segment.

Other Businesses

In our Other Businesses SRF continues to maintain market leadership inthe Coated Fabrics Business with a high-volume share driven by improved sourcinginitiatives and plant efficiency. In the Laminated Fabrics Business SRF retained itsprice & volume leadership with the facility operating at full capacity achieving itshighest-ever sales in the fourth quarter. However realisations in this segment wereadversely impacted by the continuing surplus supply situation.

Our People are our Real Assets

I would like to emphasise at this point that our passionate workforceis our core business asset. I want to thank the employees of SRF for their hard workdedication and resilience in scripting our success story.

As most of our teams have now returned to our offices I have had theopportunity to rediscover the collaborative culture that makes us such a unique andextraordinary Company.

Expanding our Community Impact

SRF Foundation the CSR arm of SRF has deep expertise in supportingtransformative education initiatives at local and grassroot levels including improvingstudent-learning outcomes for more than one lakh fifty thousand students in India. We alsogo beyond traditional education by imparting vocational skill training to the youthmaking them employable and contributing citizens of our country.

More importantly our employees worldwide share our passion forcommunity service. They volunteer and leverage their skills and experience to make adifference in the world. I am grateful to my team for their commitment towards making apositive change in our society.

In closing

On behalf of the Board and management I thank you our shareholdersfor your continued support. I am confident that with the actions we have outlined tocontinue driving growth we will create long-term and sustainable value for ourstakeholders.

Stay well.
Sincerely
Ashish Bharat Ram
Chairman & Managing Director SRF Limited

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