The year since the last Annual General Meeting has been a most eventful
one for your Company and the country. It started with a new government
beginning to implement a number of policy decisions and clearing some
of the systemic impediments to the smooth functioning of the economy.
The sharp fall in global oil prices coupled with reduction of the
fiscal deficit resulted in a much healthier economy. The signsforthe
future indeed seem good.
Closer to home, as you probably know by now, your Company recently took
a major decision to divest its stake in its joint venture, Henkel
Chembond Surface Technologies Ltd. This decision, as you can imagine,
was not an easy one to make especially since Your Company was founded
with these pioneering metal treatment chemicals by Dr. Vinod D. Shah in
the early seventies. Having achieved a top tier position in the country
against global competition in its initial days itself, the joining of
hands with Henkel, led to your Company''s jointventure becoming the
market leader in India.
Ultimately though, it was an objective decision to focus on businesses
where your Company holds more management control and where growth and
profits are not subjected to factors outside those of the economy.
YourCompany believes that joint ventures need to be run in the true
spirit of partnership and is proud of the fact that even in joint
ventures where it has a majority, decisions are taken by consensus and
only in the best interests of the company.
Moving forward, Chembond will be investing in and focusing on growth
via organic and inorganic means on its promising businesses of,
- Water treatment, where Chembond uniquely offers the entire spectrum
of specialty chemicals, equipment systems and bio- remediation
solutions fortreatment of intake water, process water and waste water
- Construction chemicals, where the range of superior performance
products serve all stages and segments of the new construction and
- Coatings where your Company is in the process of consolidating its
high performance and industrial coatings businesses and developing
greener, waterborne coatings;
- Animal Nutrition which has shown promising growth over the last few
years based on the higher emphasis by farmers and industry on
nutrition, bio security and introduction of modern practices;
- Protochem, a 100% subsidiary, which has introduced a wide range of
maintenance and repair (MRO) products and which will continue to
develop its portfolio of products for the defence industry.
Furthermore, your Company has ventured into two businesses, which are
attheir incubation stage:
- As has been mentioned last year, your Company started making a
foray in the polymers domain. The plan is to develop unique bio-based
polymers, which in addition to being renewable, offer performance
characteristics better than conventional polymers. Chembond has been
able to attract Dr. Prakash D. Trivedi to the Board of Directors to
help guide these efforts. Dr. Trivedi is recognized as one of the
foremost authorities and credited with pioneering work in this field.
The results of his joining the Board are already being seen and Your
Company can proudly state that it has filed its first patent this year.
- Your Company has just formed a new partnership with Calvatis GmbH
in the form of a 55:45 joint venture called Chembond Calvatis
Industrial Hygiene Systems Ltd. This joint venture would focus on
serving the dairy, beverage, brewing and food processing industry with
world-class specialty chemicals, services and equipment solutions for
cleaning and hygiene management.
We remain focused on translating the potential of the Indian economy
through our strong business portfolio and positioning into a profitable
growth for all of you.
With warm regards,
Sameer V. Shah Nirmal V. Shah
Chairman and Managing Director Managing Director
6th July, 2015