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Chemfab Alkalies
BSE: 506894|NSE: CHEMFALKAL|ISIN: INE479E01028|SECTOR: Chemicals
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« Mar 13
Chairman's Speech (Chemfab Alkalies) Year : Mar '14
Dear Shareholders,
 
 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.
 
 Modernization
 
 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.
 
 Expansion
 
 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
 shortly.
 
 Power Tariff
 
 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
 to come.
 
 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
 are:
 
 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
 GHG emissions.
 
 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
 (PSM).
 
 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
Source : Dion Global Solutions Limited
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