I have great pleasure in welcoming you to the 31st Annual General Meeting
of your Company.
I am sure you share my sense of satisfaction that your Company has
completed twenty nine years of its successful business operations.
I am pleased to highlight your Company''s performance during
Last fiscal year:
The overall profitability, has declined from Rs. 23.48 Crores during
the last year to Rs.16.45 Crores, this year. This is mainly due to the
steep increase in the power rates and the Fuel Price and Power Purchase
Cost Adjustment (FPPCA) demand. However, the silver lining is that,
though initially there was a downward trend, the realisation levels
have remained stable coupled with other costs which remained under
control, helped arrest further decline in the profitability.
As you are kindly aware, your Company has already taken proactive steps
to replace the existing CEC monopole electrolyses with the latest CEC
bipolar BiTAC® technology, including electrical installations and other
critical equipment that are due for replacement. Upon receiving the
pending local Government clearances which are expected shortly,
your Company will complete the proposed modernization.
An appeal has also been filed with the National Green Tribunal for
legal remedy towards the granting of NOC for the proposed Expansion of
Capacity, and we hope for positive directions from the Honorable Bench
As highlighted above, the power tariff has seen a steep increase of
about 35%. Further, we also received a FPPCA demand this February for
quarters Q1 and Q2. This demand was for Rs.176 lakhs and after
including the provision for quarters Q3 and Q4, the total demand works
out to Rs. 329 lakhs.
I look ahead with guarded optimism. Your Company has taken proactive
steps to replace certain old equipment, which upon completion, will
result in better operational efficiencies and most importantly,
reduction in consumption of power.
Other measures, such as sourcing of alternative cheaper power, optimum
production of Salt at our Salt fields, thereby reducing the dependence
on outside procurement, are in progress. Upon implementation, these
will certainly result in achieving better operational efficiencies.
With all these measures, we are confident that your Company will be
able to sustain the operations and emerge with good results in the years
Since the inception, your Company is committed to carry on its
operations with utmost safety, coupled with the objective of conserving
the natural resources and saving energy. In line with this philosophy,
a number of measures have been undertaken during the year. Some of them
Carbon footprint report has been prepared by The Energy and Resources
Institute, Bangalore (TERI). This report is first of its kind in the
Chlor-alkali sector in India, and serves as a benchmark for other
chlor-alkali units in India. Your Company is taking initiative for
reduction of the carbon footprint through energy conservation and
increasing the carbon sink.
Further an energy audit was carried out by TERI. The energy audit was
performed as per the guidelines and tools of Bureau of Energy
Efficiency (BEE). The energy audit served as a basis for the reduction
of the carbon footprint of the Company.
Keeping in line with Global initiatives on Corporate citizenship,
Social responsibility, Climate change or green movement, your Company
proposes to prepare a Sustainability Report which will help to measure,
understand and communicate the economic, environmental, social and
governance performance. Hence, the Sustainability report will be a
vital resource for managing change towards a sustainable global
economy. Your Company is also taking steps to study the carbon sink
which would highlight the initiative taken, towards sequestration of
With an objective to maintain the lowest specific water consumption in
the Chlor-alkali sector, an attempt has been made for an effective
utilization of water in the process. A Reverse Osmosis system was
designed to process high TDS water and waste-water for extraction of
good water for process use, which would result in reduced raw water
consumption thereby lowering the specific water consumption.
1. We believe sustained improvement and innovation are key to success
for any organisation. Internally, over the past years, we have been
streamlining and re-engineering our processes and in line with this we
have initiated the process of implementing Process Safety Management
2. Your Company continues to acquire Salt lands in South Tamil Nadu,
for the production of Industrial grade Salt. This will help to reduce
the dependence on outsourced salt.
Further, during the year, your Company has won the following awards:
From the Indian Chemical Council, Mumbai - Certificate of Merit - 2012
for Water Resource Management in lustry.
From Green tech Foundation, New Delhi - Silver Award in Chemical sector
for outstanding achievement in considering all the above aspects, your
Directors have recommended the payment of a dividend of 25
%for this year.
We value the importance of our relationships and will continue to
remain fair and true in all our dealings with all stakeholders.
I thank all the shareholders of the Company for the confidence they have
reposed on us.
Glad to inform you that over the years, we have maintained healthy
relations with our business and trade partners, whilst fostering
positive industrial relations throughout the Company.
While concluding, on behalf of your Board of Directors, I would like to
extend our sincere gratitude to all our stakeholders including our
customers and our business partners for their belief in us and in our
products. We also thank the various Central and State Government (UT)
bodies, banks, auditors, vendors, dealers and other institutions
for their valuable support.
Our human capital is the most valued asset. On all our behalf, I thank
our CALmates for their commitment and contribution.
I express my sincere gratitude to my Directors on the board
For their valuable guidance and contribution.
Thank you all for attending this meeting, Ladies and Gentlemen.
Place : Chennai
Suresh Krishnamurthi Rao
Date : 11th April 2014 Chairman