MESSAGE FROM THE CHAIRMAN
I A year has flown by and it is my pleasure to once again share with you, details of your Company''s performance and the way forward for the future.
During FY 19, the Company''s consolidated revenue was up 11.7% y-o-y at Rs. 2707 crores (exclusive of duty recovery) and Net Profit at Rs. 192.53 crores. Although capital expenditure was incurred for strategic reasons to equip the units to meet market dynamics, commissioning of the new unit in Assam, shifting of our Russian unit to a larger premises, the Company continues to maintain its growth rate and will perform even better in the coming years.
I would like to brief you on the actions taken on ground to make your Company future-ready. Last year, I did highlight some important action points; let me share with you the progress we made in them:
The call for sustainability
Our latest offering in sustainable laminates viz. Green Maple Leaf and Etain have been accepted by several customers; our C&I and Business Development teams are working together to fine-tune the laminates to meet specific product requirement of individual Customers and our efforts to offer better innovative solution to Customer requirements will continue.
For the Aluminium Barrier Laminate, I had mentioned about Project Liberty, which is a process and technology that facilitates electrostatic separation of polymer and metal, enabling them to go to their respective recycling processes without any degradation. I am happy to inform you that this project has begun commercial production and is well on its way to become commercially sustainable.
The other point I had spoken about was the challenge e-commerce brands were likely to pose to the established brands, which will put a demand on our business as the forecasts from the established brands would become less reliable. Therefore, your Company took it upon itself as an opportunity. To take advantage of this opportunity we had to look for solutions that would allow us to take smaller MOQs, minimise our turnaround time while at the same time ensuring we maintain our high standards for tube making and quality.
The solution was automation, of the production as far as possible. I am happy to inform you that during the year, your Company has successfully ...
a) Automated the artwork approval process - involving the Customer, drastically reducing time for the approval process.
b) Installed zero defect systems on prototype basis, the results of which are quite encouraging.
c) Use of auto packers and suction system to remove any dust particles before final packing.
d) Equipped relevant units with high-definition highly efficient click printing facilities.
e) This coupled with ink kitchens that uses most minimum number of base colours, has ensured that we can quickly service small MOQs.
A Company that is future-ready will be able to seize the opportunities presented by the challenges in the dynamic market, and also protect itself from challenges posed by dynamic and volatile world. Change has become the norm of the day and for us to retain our position as world market leaders, it is essential to have a multi-pronged approach to remain future-ready. Towards this end, we continue to work on:
a) Taking advantage of innovations and high-end technology
b) Committing to sustainable and responsible growth and
c) Building future-ready capabilities
I In all the above efforts, we have used the infrastructure available with us including IT and roped in our technology partners to give us the required solutions.
I can now confidently say that Your Company is future ready - to provide complete service to the Customers and sustainable solutions that are in conformity of the concept of Circular Economy.
There is one more important information to share with all of you - our valued stakeholders. Although you may be aware of this through media reports and information in the public domain, I would like you to hear from me, that my family and I decided to sell 51% of the promoters'' share we hold in Essel Propack to Blackstone. The necessary filings with SEBI and Anti-trust authorities have been made by Blackstone. I expect it to take another 2-3 months for completion. However, I still remain a shareholder and will be associated with the Company in the capacity of an Adviser, for the next 5 years. Therefore, I look forward to continued association and interaction.
It was a difficult decision to take;but the silver lining is that it has gone into the hands of a Company that upholds the same values as Essel; promises to facilitate implementing every commitment we have made to our Customers, to take care of our employees and to take the Company to greater heights. As Steve Jobs said Great things in business are never done by one person. They are done by a team of people. I am confident with the combined expertise of Esselites and Blackstone in their respective areas, the Company will scale great heights. I shall be ever grateful to each one of you for your invaluable support in all our efforts over the years - memories of which I will cherish forever.
I would like to take this opportunity to thank our Valued Customers, Suppliers, Bankers and all our Stakeholders, including the Shareholders for their continued support to Essel. I earnestly request them to extend the same cooperation and support to Blackstone PE.
To all my colleagues, the Esselites I have a special message - I have been saying time and time again - Change is the only constant. There is always room for improvement - no matter how long we have been in business. I earnestly request each one of you to embrace change, focus on your deliverables, help one another to meet the targets we set for ourselves together; in short - be worthy ambassadors carrying forward the Essel legacy.
Chairman & Managing Director