I am happy to report a year of strong performance .Our remains on nurturing the longterm growth potential of the Company while maximizing the available opportunities andminimizing the risk. Our revenue performance has affirmed our strategic product mixchoices and now our focus is on acceleration of the growth patterns.
Despite differential pricing policy adopted by the primary producers the Company wasable to achieve higher sales both in terms of value & quantity mainly due to increaseddemand for Electrical / Engineering products . It is this differential pricing policy andupward variation in input cost has affected margin before Interest and depreciation.
OUTLOOK FOR ALUMINIUM INDUSTRIES
Aluminium segment includes primary aluminium aluminium extrusions aluminium rolledproducts alumina chemicals Demand for aluminium is expected to pick up as the scenarioimproves for user industries like power infrastructure and transportation Production ofaluminium stood at 2.8 million metric tonnes during FY17.Total imports of aluminium andaluminium products in India during FY17 stood at US$ 3.55 billion whereas in FY18 itreached US$ 2.15 billion Consumption of aluminium in India estimated at 3.4 million tonnesin FY17 is expected to reach to 5.3 million tonnes by 2020 Aluminium production isestimated to reach 3.33 million tonnes per annum in FY20.
National Aluminium Company (NALCO) a central government-owned entity is set to jointhe club of million-tonne producers in the metal segment by 2020. NALCO has readied anabout US$ 3.72 billion investments for increasing its alumina aluminium and powerproduction capacities.
?In April 2017 NALCO readied about US$ 3.72 billion investments for increasing itsalumina aluminium and power production capacities the other update fine Demand ofaluminium in India was expected to grow at 17-18 per cent per annum and this was driven bygrowth in sectors like electricity transport building construction and packaging"Consumption of aluminium in India estimated at 3.4 million tonnes in FY17 isexpected to reach to 5.3 million tonnes by 2020.
India is among the lowest cost producers of aluminum in the world owing to easyavailability of raw materials and comparatively low labor costs. The growing demand foraluminum in the last decade driven by India's underlying growth story has resulted inexpansion of smelting capacities of the major domestic players.
With the addition of new aluminum capacities India aims at not only satisfyingdomestic demand but also playing a major role in the global aluminum market.
Prices of aluminum have shown recovery over the past financial year. One of the mainreasons for this is due to measures taken up by the Chinese economy as well as renewedsentiments toward the demand for aluminum.
Our Directors express their sincere appreciation to the dedication of the officersemployees and workers of the Company at all level to show the resilience in theperformance of the Company.
Your director place on record their appreciation for the support and cooperation extendto the Company by the bankers customers vendors and shareholders.
| ||For and on behalf of the board of Directors |
| ||For Sudal Industries limited |
| ||Sd/- |
| ||Sudarshan S Chokhani |
|Place : Mumbai ||Managing Director |
|Date : 3rd July 2018 ||DIN 00243355 |