The year 2017 has been a very exciting year with some significant milestones for ourBusiness. It gives me immense pleasure to inform you that TRIL'S net revenues grew by anenviable 46% in spite of facing tremendous headwinds caused due to GST Implementationdemonetization and general tightness of credit flow from banks.
The Period under review
In 2014 the Company embarked upon a mission to diversify its revenue streams andreduce dependency on income from the road/infrastructure sector.
During the year your company made a significant improvement in the marketing of itsproducts to the Non Road sector and we continue to develop new applications for ourmaterials. Encouraged by positive response from its customers your company increasedproduction of Reclaim Rubber at Panipat Plant(Haryana).
Further Your Company is also delighted to inform its stakeholders that we have alsorestarted our Emulsion production at Panipat Plant (Haryana) and Crumb Rubber productionat Kala-amb Plant (Himachal Pradesh). I also take this opportunity to congratulate ourHon'ble Prime Minister and Finance Minister in steering the introduction of Goods andServices Tax (GST). We expect that these Structural Reforms would further boosttransparency which will benefit your company as it will level the Competitive landscapeand remove unfair competition from players who have survived by evading taxes.
Tinna has been in Business since 1987 and has been a part of the societal economic andother changes the Country has witnessed. Your Company is the only company in India whichis fully integrated in sourcing of waste/ELT tyres processing & manufacturing valueadded products from Rubber and Steel and the only manufacturer in India possibly in theworld to make 120 mesh grade ultra-fine crumb in ambient conditions.
The Company has stabilized its steel wire processing plant to make value added HiCarbon Steel Abrasives from the scrap wire segregated from end of life (waste) tyres.These are extensively used for shot blasting shot peening and other surface treatmentapplications. The most notable accomplishment is our ability to successfully diversifythe Company's revenue verticals and as a result reducing the Company's dependency on theroad and infrastructure sector. In earlier years Crumb Rubber Modifier (CRM) and otherroad related products having application in the infrastructure sector has been themainstay of the Company's sales mix. The management consciously decided to reduce itsdependence on this sector. During the financial year 2017-18 the contribution of non-roadsector rose to approximately 70% compared to 40% in the financial year 2014-15. This wasachieved by management vision extensive research & development and qualitativeimprovements to Crumb Rubber and commencement of manufacturing of Hi carbon steelabrasives & Hi Tensile Reclaim Rubber.
Your Company's efforts have resulted in successful execution of export contract forsupply of Crumb Rubber to Dubai (U.A.E) South Africa Australia and Sri Lanka. We expectto see a significant rise in Company Export during the year 2018-19. Globally demand forREACH (Registration Evaluation Authorisation and Restrictions of Chemicals) compliantproducts is increasing we are well placed to benefit from it. Further efforts are beingmade to improve the exports business and increase our market share.
Statistics on Indian and Global Economy
The Global Trade growth has been sluggish from the past couple of years mainly due toslow and uneven economic recovery in major developed economies and moderate growth indeveloping economies. The GDP growth for the fiscal year 2017-18 is at a four-year low of6.7% in the current fiscal mainly due to the poor performance of agriculture andmanufacturing sector as against 7.1% in the last fiscal. However the InternationalMonetary Fund (IMF) has said that India could grow at 7.4% in the current year 2018 asagainst China's 6.8% making it the fastest growing country among emerging economies.India continues to be one of the proverbial bright spots among large economies of theworld and large infrastructure development and investments is expected to further give animpetus to the Indian economy in the coming year. Your company is very optimistic for astrong performance in coming year and we are optimally positioned to grasp suchopportunity.
During last year Natural rubber consumption increased to 1110660 tonnes in 2017-18from 1044075 tonnes in 2016-17.Import of Natural Rubber touched an all-time high of469433 tonnes in 2017-18 an increase of 10.1 percent as compared to 2016-17 and.. YourCompany is a leading manufacturer of Crumb Rubber Powder and Reclaim Rubber which to anextent acts as a substitute to Natural Rubber. Higher consumption of natural rubberfavorably impacts demand for our product and they are much more competitive compared tonatural rubber.
Esteemed Customers: Our most valuable stakeholder
I am delighted to inform you that our esteemed list of customers include leaders intyre industry where there is two to three years process to commence commercial supplies.This creates a time based entry barrier for others. Our fine grade high quality crumbrubber as well as High Tensile Reclaim Rubber is being supplied to prestigious customerslike APOLLO CEAT JK TYRES amongst others. The auto components industry is also bound togrow as India consolidates its position as a manufacturing hub. This will result in higherdemand for steel abrasives.
The Board of Directors of Tinna Rubber and Infrastructure Ltd. (TRIL) and Tinna TradeLtd. (TTL) had approved the Scheme ofArrangement (Demerger). The Separate Meetings ofSecured Creditors Unsecured Creditors and Equity Shareholders of the Company were held atNew Delhi on September 17 2016 as per the directions of the Hon'ble High Court of Delhiand the Scheme of Arrangement was duly approved at the respective meeting. Hon'ble HighCourt has transferred the matter to National Company Law Tribunal (NCLT) and Hon'bleNational Company law Tribunal Sanctioned the Scheme of Arrangement on 15thDecember 2017. Further we bring in to the Notice of Stakeholders that Tinna TradeLimited got the Trading approval from Bombay and Calcutta Stock exchange Limitedrespectively and became Listed Entity with effect from 20th August 2018.
Period of Promise:
During the coming year 2018-2019 we hope to reap benefits of the hard work done overlast three years. We expect to continue to grow at breakneck speed of 40% to 50% duringcoming year. This will be the year to exploit benefits from economics of scale andestablish a formidable presence in the market for recycled rubber in the non-road sector.Over the last two to three years we have made substantive investments to mitigate risksassociated with our business and have laid the foundation for solid growth.
The year 2017-18 did not bring favorable outcome as expected in road sector due to fallin use of Crumb Rubber Modified Bitumen as a result of a change in government policiesbut we hope that during the year 2018-19 Various initiative and new reforms of governmentis going to be implemented. Your company also introduced new technologies such as MicroSurfacing Recycling grades Emulsion and EcoFriendly cold mix emulsion for rural road andwe hope that Your Company will witness accelerate growth from road sector in 2018-19.
Our differentiator is that we "don't" shred waste tyres we"de-construct" the tyre to derive maximum value from the rubber and steelpresent therein. Tyres are built to last. However the very same properties that make themdurable also make them difficult to break down. Disposing of tyres in landfills orstockpiles can cause severe environmental and health concerns. In many cases tyresstockpiles end up being burned releasing toxins and pollutants into the air water andsoil. Recycling tyres translates into reduction in emissions and most importantly areduction in the amount of raw rubber needed for manufacturing which ultimatelycontributes to preserve natural resources like crude oil.
The Company has articulated its ambition in its Vision and Mission statements which Iwould like to share with you:
Our Vision is 'To continuously innovate and apply environment friendlytechnologies for conversion of waste into value added products with the aim to maximizestakeholder value.'
Our Mission is 'To become the largest fully integrated waste tyre recyclingcompany in India and amongst the top 10 in the World by 2020'.
Last but not least I feel strong sense of responsibility to sustain and strengthenrelationship with our customers partners and stakeholders. I would also like to thank allemployees partner Stakeholders for unstinted trust support and confidence in theCompany
Thank you for your continued support.
Place: New Delhi Date: 27th August 2018
|Mr. Bhupinder Kumar Sekhri ||Managing Director |
|Mrs. Shobha Sekhri# ||Whole Time Director |
|Mr. Anand Kumar Singh ||Director |
|Mr. Vivek Kohli ||Director |
|Mr. Ashish Madan ||Director |
|Mr. Ashok Kumar Sood ||Director |
|Mr. Rajender Parshad Indoria ||Director |
|Mrs. Promila Kumar* ||Director |