Warm greetings to you all;
I heartily invite you all to the 29th Annual General Meeting of your
Company and once again take this opportunity to present the excellent
financials of your company for 2013-14. The plastic Industry faced
considerable setback during the year 2013-14. Because of steep
depreciation of rupee, which reached all time high, the polymer prices
were very volatile which adversely affected the input cost your company
resulting in thin margins.
Despite these facts, the Company has reported highest ever sales
turnover of Rs. 1245 Crores during the period under review. Profit
after tax is marginally low. It stands at R s. 19.48 Crores as
compared to Rs. 19.97 Crores in previous year. In fact, jump in i nput
cost and financial costs were largely offset by improved operational
Your Company continues to march ahead in its vision to remain as the
leading manufacturer of Polymer compounds in the country. You will be
glad to know that your Company has diversified into new area of
Flexible Packaging. The unit has been set up at Dankuni, West Bengal.
The commercial production has already been started. Your company has
also commenced full scale marketing activities with its target
customers so that the plant would be able to deliver quality products
to prospective customers in multiple segments in the shortest possible
time. As a backward integration, Kalpena has also invested in
manufacturing of Industrial Ink at Bhasa, West Bengal, where commercial
production has already started. Both these activities will auger well
for your company both in terms of top line an d bottom line.
In its drive towards the strategic expansions, your Company has
commissioned a new production unit at Surangi, with capacity of
handling 200,000 TPA of its products. This unit is spread over an area
of approximately 56000 square metres and having FSI available to the
extent of 500,000 square metres of construction. The production
capacities of Bhiwadi and Daman unit have been shifted to the new unit.
The new unit produces various grades of Compounds which include XLPE,
HFFR, Filled PP for furniture & appliances, Filled PE Compounds for
antifab used for Woven Sack, White & Black Master Batches, Rigid and
Flexible PVC Compound used for
Cable insulation, Footwear & Pipe jointing and other value added
compositions like Zero Halogen Fire Retardant Compound and Engineering
Plastics. Your Company also has more expansion projects in pipeline for
catering to the untapped regions to enlarge geographic footprint in
various parts of the country.
During this year, your company had hived off the Unit at Dhulagarh,
West Bengal. This is due to the fact that the operation of that unit
was not yielding desired profits because of high competition with
unorganized sector coupled with high administrative costs and sluggish
demand. The cash inflow from sale of the said undertaking will help to
reduce the debt and strengthen the Company''s Balance Sheet. This will
also support growth plans and ensure greater focus in other businesses
of the Company.
Today, your Company has one of the strongest operating matrix in the
Plastic industry in India. With its cost competitiveness, quality
products, a robust marketing distribution system and extensive network,
your Company has reinforced its formidable brand image.
Your Company has taken timely and adequate steps in the area of its
financials to ensure healthy leveraging and availability of adequate
financial resources to meet its ever growing aspirations.
I am very happy to announce that your Directors have recommended a
dividend of 12% for 2013-14 on paid up capital.
Lastly, I sincerely wish to thank my colleagues on the Board, the
dedicated Management team and employees at all levels for their
unflinching support. I would also like to thank the Company''s
shareholders, distributors, vendors and financial institutions for
their unstinted support.
With Best Regards,
Chairman & Managing Director
Date 30th May, 2014