During the Financial year 2014-15 and the beginning of FY 2015-16 the
Indian Industrial and market climate were subdued. Market sentiments,
by and large was depressed affecting demand for various products.
Infrastructure sector which gives major impetus to the economy has
witnessed no major project initiative. Inventories were piled up in the
Realty segments awaiting Policy changes from the new Government formed
both at the center and few other states.
As we cater mainly to the Infrastructure and Realty segments, the
slowdown in these sectors has impacted the business of the company
severely. Added to this, change in our marketing policy of supplying
against secured payments has also affected the sales of the company. As
against the earlier practice of giving clean credit to our customers,
we are now insisting Letter of credit or PDCs to secure supplies. As a
result we have to loose several orders and at the same time we have
secured ourselves against the credit risk of defaults by our customers.
Dips in the sales coupled with loss at the net levels have resulted in
tight liquidity position which as a vicious circle in turn has affected
the business further. Your Company''s strong de-risking strategy pursued
over the last one decade, has enabled your company to withstand the
onslaught of several external factors and remain fundamentally strong
with a strong foundation for improved earnings in the coming years.
Notwithstanding sluggish economic conditions, your company continued to
pursue process improvement across at all levels of the organisation.
This will not only improve operational efficiency but also enable us to
gear up for the future competition. The initiatives taken up includes,
optimization of raw material usage, internal and external wastage
reduction, Energy Audit, minimum inventory levels, rationalization of
headcount etc., The impact of these initiatives, even though remained
subdued in the past year, should start translating into improved
operational performance from the current financial year onwards.
With expected near normal monsoon and Government Investments in
infrastructure, it is believed that 2015-16 can provide necessary
impetus to the economy. The international community has started seeing
India as a promising destination for business. If backed by policy
reforms and ''ease of doing business'' initiatives, this interest can
turn into a major opportunity for industrial development.
Spurt in e-commerce platforms and steps like Digital India, ''Smart
Cities etc., is expected to bring economy in to growth trajectory.
Your company will immensely benefit from Smart city as well as from the
Solar power generation projects initiative of the Government.
Requirement of processed Glass in these projects would be significant.
Being a leading company in glass processing industry, we envisage
significant business potential in the ensuing years.
The brand ''Sejal Glass the Sixth element'' is the core asset of your
Company. Continued investment in ''brand building'' has enabled your
Company to maintain or improve market share in most of the product
categories across all geographies. ''Sejal Glass the sixth element''
continues to be recognized as the ''Super Brand'' in the Processed Glass
We are upbeat that with the Brand image, Product superiority, loyal
Customer network, long standing relationship with established
suppliers, improved operational efficiencies, efficient Human resources
and trust reposed by stakeholders, Investors, Lenders and Governmental
authorities will enable us to reposition and take the business of the
company to the great heights in the current and following financial
Towards this we would like to thank you in advance and solicit your
continued appreciation and support.
Amrut S. Gada
Chairman & Managing Director