We commissioned our projects on time in the earlier years. We now
expect our carbon black, power, SNF, advanced carbon and China plants
to start in the current year. These developments will establish the
foundation for significant growth in the years to come.
For years we were a coal tar pitch Company. Today, we are a leading
specialty carbon corporation. For years we were an India-centric
organisation. Today, we are an organisation with a global footprint.
We created a sound financial foundation to drive our growth: A gearing
of 1.0 corresponding to a net worth of Rs. 845.78 cr and a cash profit
of Rs. 159.93 cr at the close of FY 2010-11.
What gives me pleasure is that we achieved several significant
milestones over the last few years:
We integrated our capacities and captured value across an entire chain
starting from one input (coal tar)
We successfully scaled new products from pilot to commercial capacities
We translated our potential into tangible results
We attracted globally respected institutions to invest in our Company
We extended our presence from one region to several across the world
This foundation makes me optimistic about our prospects.
Himadri is the largest manufacturer of coal tar pitch (CTP) and
by-products in India; it is an example of a globally unique and
vertically integrated specialty carbon corporation.
The principal users of CTP are aluminium and graphite manufacturers,
who cumulatively consume 91% of the total CTP produced.
Asia''s CTP consumption is expected to increase significantly due to a
shift in aluminium production from Europe to the Middle East, China and
India, owing to cost and demand considerations. The Indian aluminum
industry is likely to emerge as a powerful player in this evolving
industry environment, given its rapid consumption growth, increasing
downstream applications, competitive production costs, vast captive
bauxite reserves and access to economically attractive coal mines for
generating captive power.
Per capita consumption numbers are indicative of the potential: India''s
per capita metal consumption is a mere 1.3 kgs compared with 25 kgs in
the US, 19 kgs in Japan and 10 kgs in Europe. As India continues to
develop, incomes will grow, resulting in higher living standards. Given
this, more aluminum will be consumed as happened in the western world.
The graphite industry accounts for about 13% of the country''s CTP
production. CTP is required to make graphite electrodes, which, in
turn, are used to make steel through the electric arc furnace (EAF)
route. The increasing deployment of EAF-based steel production and
favourable industry outlook are expected to strengthen graphite
electrode demand. This, in turn, will catalyse demand for Himadri''s
Binder and Zero QI impregnating coal tar pitch.
This holds true for India''s steel sector as well. The Indian steel
sector is expected to increase its production capacity from 75.463
million TPA presently to 110 million TPA by 2012-13.
Himadri Chemicals will capitalise on India''s large growth opportunity
by expanding its coal tar distillation capacity in locations closer to
key customers. By doing this, we expect to retain and grow our share of
the Indian CTP market.
Himadri is also positioned to benefit from the large and growing
Chinese market. China''s aluminium consumption is expected to grow
rapidly, driven by two key reasons. First, the infrastructure growth of
the country, and second, the country''s growing emphasis on becoming a
consumption-driven economy. China''s abundant coal tar availability will
help fuel this growth in coal tar pitch demand. Himadri''s cutting-edge
technology and infrastructure in China (e.g. large liquid pitch
terminal at port) will allow us to build a large presence in that
geography. Additionally, it will serve as a base that will allow us to
serve other key global consumption centers.
We also plan to replicate our India strategy in China to drive margins
The big message at Himadri is that a lot of good has happened at
Himadri but the best is yet to come.
Mr. D. P. Choudhary