GRAVITA INDIA LIMITED
24th Annual General Meeting
|Venue||‘Saurabh, Chittora Road, Harsulia Mod, Diggi- Malpura Road, Tehsil Phagi, Jaipur-303904|
Chairman’s Speech- AGM 2016
Good Morning Ladies and Gentlemen!
It gives me immense pleasure in welcoming you all to the 24th Annual General Meeting of your Company. The Annual Report for the year ended 31st March, 2016 along with the Directors’ Report and the Audited Financials of the Company have already been circulated to you. I request your kind permission to take them as read.
The Financial Year 2015-16 was challenging year for the Lead metal market. The Lead prices are market driven and depend on multiple factors existing in local as well as in international market. The price fluctuation in Global Lead Market hit the industry unexpectedly. We overcame challenges that emerged from the external environment in a manner that has made us more future-ready than ever before. It tested our organizational capability to counter headwinds. Ultimately our resilience made us even more confident that we will always continue to contribute positively to our stakeholders and to India’s long-term progress. It has also been an eventful year for global business. Global economic recovery was inconsistent across geographies and major industries, such as metal and power sectors had to cope with multiple challenges. Against the backdrop of uncertainties, India remained a bright spot in the global landscape. The country’s economic fundamentals are sound, and the Government is determined to remove impediments to economic development and social empowerment. In this context, it is pertinent to mention that the ‘Make in India’ initiative has encouraged indigenous manufacturing expertise to compete at a global scale. Such an initiative is expected to take the share of manufacturing in the country’s GDP from around 16% to 25% by 2022.
The overall industry is undergoing rapid changes and it has become essential to continuously refine and sharpen our capabilities. While responding to these changes is imperative, response capability alone will not be sufficient to generate long term sustainable value for stakeholders. Anticipation of the future shape of the industry and taking steps today, to rightly position the Company is extremely important.
I would now like to present the salient features of your Company’s performance during the year 2015-16.
At GRAVITA, we look beyond challenges at the opportunities present, and apply our abilities with focus and foresight. That is exactly what we did during the year. We optimized raw material consumption through best-in-class technology intervention; improved cost competitiveness; managed cash flows; focused on value-added products to attract new customers; adding new territories and aligned long-term business strategies with diverse stakeholder expectations. Such an approach has enabled us to emerge as one of the fastest growing secondary Lead manufacturers in India and despite of all internal as well as external factors the company performed rationally well and the revenues in current Financial Year stood at Rs. 431.20 Crores as compared to Rs. 501.29 Crores in last Financial Year. The net profit of the Company in current Financial Year 2015-16 stood at Rs. 4.37 Crores as compared to Rs. 6.62 Crores in last Financial Year.
So as to overcome with all situations we set some standard for fighting with the forces and factors of external environment in front of us. Some of our thoughts, which we considered duly to stay in the market at the top:
- With a vision of Largest Recycler by 2023 the Company is going ahead by diversifying its business into same segment of recycling by adding Aluminum and Pet Recycling to its existing manufacturing facilities
- To establish Lead processing plants in South India.
- Diversification in aluminum recycling and pet bottles recycling.
- Diversification in trading activities in other non-ferrous metal scrap & Agro Commodities.
- To increase the market shares in Indian secondary lead production from 17% to 25% in FY 2016-17.
- Continuous Research & Development efforts to direct towards building a strong and differentiated product pipeline
Gravita has always been under the canopy of Corporate Governance of paramount standards and we follow a culture that is built on core values and ethical business conduct. Our company is committed towards transparency, sound corporate practices based on conscience, openness, fairness, professionalism and accountability paving the way in building conﬁdence among all its stakeholders for achieving sustainable long term growth and proﬁtability. We believe that an efficient Corporate Governance goes beyond working results and financial gains and is a pre-requisite for the attainment of excellent performance. Company aims at building and retaining trust with our shareholders, employees, customers, suppliers and diverse stakeholders; and in order to ensure this, we have embedded the best of corporate governance practices in our day to day operations.
Corporate Social Responsibility
Corporate Social Responsibility (CSR) has been making holistic and meaningful contributions to the society in many life-touching areas, for decades now. CSR initiatives and activities at Gravita extend well beyond its core business objectives, and the organization’s commitment and concerns for the society are evident from the various initiatives it has taken in different fields in such short period.
Gravita’s CSR policy is inspired by the Nobel thought ‘’ We have a social responsibility, a constitutional opportunity and a moral obligation to help others‘’. CSR activities in Gravita aim at bringing about a measurable improvement in the quality of life of people living in and around the production and operation areas of the company through positive intervention in quality of life improvement programs.
Before I conclude, on behalf of the Board of Directors of your Company, I wish to convey earnest thanks to our valued Shareholders for their continuous support and trust in us. This motivation helps us to excel in all our pursuits and constant endeavor to create value for you. I would like to thank my colleagues on the Board for their valuable guidance and contribution in steering the Company to higher levels of achievement. Above all, I would like to place on record the commendable efforts and commitments shown by our most valued resource, i.e. the Human Resource of the Company as our employees have always contributed their best for the Company to set new benchmarks. I thank you all once again and offer my best wishes for a very gala festive season ahead.
Thank you all!