BSE LiveMar 31, 16:00
Bid Price (Qty.)
Offer Price (Qty.)
NSE LiveApr 03, 15:43
Bid Price (Qty.)
Offer Price (Qty.)
I am happy to announce that we posted a strong result during the FY2015-16 despite the ongoing macroeconomic scenario. Understanding the steep decline in polyester and crude oil prices, the Company showcased its true spirit by recording increase in production by more than 20% and sustainable rise in revenues and profitability by 4% and 8% respectively. Our continued efforts and growing tie-ups helped us strengthen our leadership position in the recycling industry. We believe that our hard work, dedication and innovative technology will help us create sustainable value for all our shareholders.
At a time when a number of macroeconomic developments conspired to create an inhospitable environment for growth and were generally outside the Company''s control, we reorganized with speed and precision, taking some key measures.
First, we successfully completed the first full year of operations of our expanded RPSF capacity of Bilaspur Unit. With this achievement, we are now well positioned to rebalance our supplies aligning to demand variations. With an expanded capacity of more than 21,000 TPA, the new unit contributed 22% of the total production of the Company.
Second, Company successfully passed on steep fall in prices of its finished products, towing the price fall in Crude Oil prices, to its raw material suppliers and thereby minimizing the impact of price fall in its finished products.
Third, RPSF products of Bilaspur Unit got overwhelming response in the market due to superior quality and placed at premium over other products of the Company.
Fourth, Company added new set of customers and thus widening its customer base as well as deepening its market reach.
Fifth, our profit after tax improved by 8% despite higher provisioning of tax by H 645 lac on expiry of tax holiday period at Rudrapur Unit of the Company.
Slowdown in China and decrease in oil prices were the primary reasons for bleak macro economic conditions globally. Advanced economies are mostly making a modest recovery, while many emerging market and developing economies are under strain from the rebalancing of the Chinese economy, lower commodity prices and capital outflows.
However, India continued to emerge a stronger nation with GDP growth of 7.6% during FY2015-16 as against 7.2% during the previous year. Emerging as the world''s fastest economy, the growth was substantiated by increase in per capita income, rebound in farm output, and an improvement in power generation. The dropping crude oil prices did result in curbing the fiscal deficit to a large extent. Now, with the crude prices moving up steadily, economies across the globe are expected to get back to the path of stability and growth.
Changing Industry Dynamics
Plastic Waste Management Rules, 2016 issued by the Ministry of Environment, Forest and Climate Change puts extended responsibility for collection of plastic scraps to manufacturers, producers and bulk generators. This will ensure increased collection of plastic waste, greater investments in waste collection processes, higher income for waste collectors/ rag pickers, elimination of intermediaries and transformation of plastic scrap business into organized market.
The last two years of below normal monsoon caused significant rural distress, which in turn impacted many industries dependent on rural consumption and the economy in general. In 2016-17 monsoons are expected to be good. This shall not only result in better farm output and higher agricultural income, but also higher per capita income for rural and urban economies. We expect this higher per capita income to have a positive cascading effect on increase in demand for textile sector.
The recent approval for GST reform is another shot in the arm for several manufacturing industries, including us. The GST will make the market more conducive and transparent and provide a level playing field to organized players.
With soaring cotton prices due to lower production as well as disadvantageous position of cotton in GST regime by taking off its tax exempt status, manmade fibre industry will get level playing field and demand of polyester products will increase due to competitive pricing.
At Ganesha, we continue to sustain our market leadership backed by our core competencies - quality product, wide product range and greater operational efficiencies. Our timely and strategic investments in capacities and technology have enabled us to capitalize on the market opportunities and derive tangible and intangible value. We continue to forge strong relationships with our clients to drive value for them on a long-term basis.
Foreseeing the increased appetite for quality recycled products as well as to capitalize the growing demand of Recycled Polyester Fibre, Company is marching towards expanding RPSF capacities with a proposed brown field expansion of 21000 TPA at its Bilaspur Unit.
Sensing the opportunity put forth by new regulations for handling the plastic scrap, Company is strengthening and widening its collection network across the country.
Evolving with changing times and leveraging our deep market understanding, we are now focusing towards producing more value-added products with concentrated R&D efforts and cutting edge technology.
On a concluding note, although, we remain one of the largest and oldest Company in India to recycle PET bottles into valuable products, we strive to become more environment friendly and technologically sound. Hence, I congratulate my employees and co-workers for their valuable support and trust and their tireless efforts towards achieving our goals. Also, I would like to thank all our shareholders for their continued faith in our strength and capabilities.
With warm regards,
Shyam Sunder Sharmma