Dear Shareholders on behalf of the Board of Directors I am pleased to present to youSRF's annual report 2018-19. It reflects an eventful year in which our employees onceagain showed great commitment in taking your Company to greater heights.
Diversified Business; Unified Growth
Your Company performed well in FY19 which is largely due to our diversified businessmodel with all the core business segments delivering an encouraging operating andfinancial performance in a fast-evolving and volatile global and domestic environment.Viewed from a financial lens your Company achieved a 39% increase in profitafter tax at Rs. 642 Crores compared to Rs. 462 Crores last year. Your Company's revenue for the year stoodat Rs. 7693 Crores as against Rs. 5589 Crores in the previous year recording from SGS agrowth of 38% which is very commendable. This has been possible due to the management'sfocus in the last few years to strengthen the Company's foothold through the strategiclevers of operational efficiency adoption of superior technology the addition ofappropriate value-added products to its portfolio and deeper market penetration.
In the year gone by we realigned our businesses into four segments to enable a clearunderstanding of our core businesses. Consequently the Coated and Laminated FabricsBusiness and the Engineering Plastics Business were regrouped as other Businesses and theerstwhile Chemicals and Polymers Business was renamed as Chemicals Business whichcomprises Fluoro chemicals and Specialty Chemicals Businesses.
In terms of business segments the Chemicals Business delivered a healthy performanceduring the year. In the Fluorochemicals Business our prudent investments ininnovation and technology has made us one of the very few fully backward integratedproducers of Refrigerant Gases in the world offering the widest portfolio of gases andvalue-added products to our customers. We continue to maintain a dominant position withthe largest market share of refrigerants in the Indian market while at the same timefurther increasing the penetration of our FLoRoN brand of refrigerants in the overseasmarkets. The Chloromethanes plant at Dahej which we commissioned in December 2017 isfunctioning at optimal level leading to higher sales for the segment. During the year wealso launched a new product in the Indian market under the name SUPERTRoN AC Air Pure.This is a multipurpose product which keeps the AC system clean and can be used in bothcar and room ACs.
We have also started the commercial supplies of Dymel F 134a/P our propellant forasthma inhalers to domestic pharma customers from our cGMP USFDA facility at Dahej. oursite in Dahej has been awarded an EXCiPACTTM GMP for Pharmaceutical Excipient (2017)Certificate of EXCiPACT's internationally recognized certification bodies.
At SRF we have a responsibility in creating a sustainable business environment and wecontinue our journey in finding new ways to adopt good sustainability practices. we areheartened to be recognized for this with our Bhiwadi and Dahej sites having once againbeen granted the permission to use the Responsible Care Logo for a period of three yearsby the Indian Chemical Council (ICC). This underscores our commitment to excellentenvironmental health safety measures that we have in place at our facilities.
About the Specialty Chemicals Business while the first six months in FY19 weretough we are now witnessing a revival in the agro-chemicals space with new productopportunities emerging in both the agro and pharma segments. Along with the revival in theindustry our committed investments in this business are already in place. These include acGMP plant a P32 plant -ever most complex first which is our Active Ingredients (AI)plant and a P34 plant which was commissioned in record time to seize any opportunitiesthat the future may present.
Backed by our strong differentiated technology play and our endeavor to introduce newproducts for the innovators of the world we remain committed to enhancing our productofferings further within our business model. Consequently we have filed one-hundred andseventy patents to date of which thirty-three have been granted. I am also happy to sharethat our customers have appreciated these initiatives and we were honored with theSyngenta Supplier Award for Innovation' at the Syngenta Suppliers Meet underliningour inherent strengths and capabilities.
In the Packaging Films Business we continue being an Easy to do businesswith' partner by delivering excellence in manufacturing efficiency in supply and successin customer engagement. Our ongoing investment in our people and manufacturing sites inThailand and Hungary will ensure we continue to deliver excellence to satisfy thepackaging requirements of every customer. Sustainability and innovation are fundamental toour approach in new product development and this year we introduced multiple new productswhich have increased our portfolio of value-added products and helped us deliverindustry-leading margins. Across all of our operations we are committed to maintaining asafe work environment and continue to garner accolades for our focus on superioroperational performance. our Indore SEZ facility was bestowed the Sword of Honour and5-star rating for occupational Health and Safety from the British Safety Council which isa in the Indian Packaging industry.
The Technical Textiles Business delivered a steady performance during the yeardespite a challenging operating environment. Our focus on increasing operationalefficiency continues to be an ongoing process. With our investments in capacityaugmentation across Tyre Cord Fabric and Belting Fabrics segments we remain optimisticabout the future performance of the Technical Textiles Business.
In May this year we also signed a definite our Engineering Plastics Business. We viewthis as a strategic step towards focusing on our core businesses where we see largergrowth opportunities emerging in the future.
Concerning our community engagement SRF Foundation and our employees continue to driveinitiatives primarily in the areas of education youth empowerment and natural resourcemanagement. SRF Foundation's flagship Rural Education Program' is marching onsuccessfully. It now covers 269 schools with 78714 students across 21 locations in nineIndian States. We have a responsibility that we accept and we are making progress in thatdirection with utmost sincerity.
Our Purpose and Shared Values
It gives me immense pleasure to share with you that this year your Company wasconferred The Economic Times Family Business of the Year Large Companies'Award. The esteemed jury selected SRF on the principles of strong performance and thepresence of a stringent family governance framework. We are very proud to have establishedgood governance as the baseline grow high-potential executives and bring the rightdiscipline to succession and integration processes. These principles unite us by a commonsense of purpose and shared values.
The Board of Directors Welcomes New Members
SRF's Board of Directors appointed three new board members at its recent meeting. Asthe Chairman of the Board I welcome Bharti Gupta Ramola Puneet Yadu Dalmia and YashGupta onto your Board. I am sure that their experience and knowledge will help take yourCompany to the next level.
Before I conclude I would like to thank all employees of SRF the management team andmy colleagues on the Board for their hard work and strong commitment. I would also like tothank our customers and business partners for their loyalty and close ties. And finallyI would like to thank you our shareholders and investors for placing your trust in SRFand for supporting us as we execute the next steps in our strategy and focus resolutelyon ensuring that SRF continues to stride ahead. -of-its-kind recognition
Arun Bharat Ram
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