At Himadri, our ambition to go global is not by chance. It is conscious
Consider this: the aluminium industry, our principal customer,
registered a supply-side growth above seven percent in 2006-07, among
the highest in a decade, primarily fuelled by Chinas demand for the
metal. Chinas aluminium production is likely to grow 46 percent to
reach 19.27 million tons by 2010, compared with 13.2 million tons in
2005-06. The Indian aluminium industry increased 19.2 percent to attain
a production level of over 10 lac MT during the year under review at a
five-year CAGR of 11.30 percent.
Based on the optimism that a quicker aluminium industry growth would
increase the demand for our core product, we undertook the following
-We planned to foray into China for the first time through the proposed
acquisition of an existing manufacturing facility.
- We set up a representative office in China to strengthen our raw
- We invested in a wholly owned subsidiary in Hong Kong to spot global
It is important to mention that we entered China to cater to local
opportunities and also to source low-cost raw material from that
country, fuse it with our in-house technology and service the global
market. As a result, our presence in China is not based on the need to
source and export, it is based on the optimism that we can account for
a significant share of that market as well. Since we already possess a
leading share of the coal tar pitch market in India, a similar success
in China will enable us to emerge as a global leader, faster than an
Going ahead, we are optimistic that we will be able to cater to the
rising demand for coal tar pitch in the Middle East, South Africa,
South America and Australia. The global production of coal tar is
expected to touch 20.6 million tons by 2011 and, out of this, nearly 49
percent is expected to be manufactured in China. As a future-focused
organisation, we intend to set up liquid pitch terminals in key Chinese
ports to export coal tar pitch in liquid form to meet the requirements
of our overseas customers.
strenugthening our local presence
Concurrently, we undertook a number of initiatives on the Indian front:
- We expect to introduce the concept of use and pay through a
dedicated facility for Balco in Korba, Chhattisgarh. This represents a
win-win for both: assured sales, lower transportation cost and timely
delivery. The Company expects to clone this concept globally for
enhanced customer convenience, resulting in an unbeatable competitive
- We fully commissioned a by-product plant to generate value-added
products of high margins.
- We succeeded in implementing the pilot production of advanced carbon
material with indigenous research. We are now engaged in setting up a
commercial scale facility.
Positioning the Company
Himadri is respected for its ability to innovate new processes and
technologies. As a result, we have evolved our presence from a mere
productionled company to a research oriented and value focused
- We developed our own technology to produce advanced carbon material,
a high margin, value added product used in lithiumion batteries.
Himadri is the only Company outside Japan that possesses the technology
to produce advanced carbon materials. Following the implementation of
this project India will emerge as the second country in the world to
manufacture superior carbon.
- We are one of only three players in the world to have developed Zero
Ql Impregnating Coal Tar Pitch used in the graphite industry.
- We possess a dedicated fleet of special tankers through in house
technology to transport liquid pitch at a temperature above 240 C right
to the customers doorstep.
This rich technology legacy provides us with the optimism to use
specialised coal tar pitch as a building block to extend to the
production of high value-added products like advanced carbon material,
super plasticizer, carbon fibre and needle coke.
At Himadri, we have chalked out substantial expansion
plans to grow both our topline and bottomline.
We are in the process of finalising a joint venture with an existing
coal tar distillation plant in China and have plans to set up a
greenfield facility there.
We plan to increase our coal tar distillation capacity in India from
1,69,000 MTPA to 4,00,000 MTPA by 2010 and acquire/set up 6,00,000-MTPA
coal tar distillation capacity in China.
The cumulative effect of the two strategies is that we expect to emerge
with a combined installed capacity of 10,00,000 tons per annum by 2010,
making us one of the largest manufacturers of coal tar pitch in the
It is the interplay of local and global as well as margins and volumes
that vindicates my optimism that Himadri is on the cusp of sustainable
growth over the coming years; it is our long-standing focus on
improvement in processes and systems that reinforces my confidence that
we will more than replicate what we have achieved until now in our
existence in only the next few years.
We have great pleasure in presenting the 19th Annual Report of the
Company, together with the audited accounts for the year ended 31st