It gives me immense pleasure to welcome you all at the 35th Annual General Meeting of your Company.
Since requisite quorum is present I declare the meeting as open. As informed 197 members are present in person and 9 members are present by proxy.
All the Board members are present except Shri J. K. Khetawat and Shri U. G. Bhat, Independent Directors, who could not attend the Annual General Meeting today due to their preoccupation.
Moving ahead, I feel highly delighted to share with you the performance of your company for the financial year 2016-17. The year has been encouraging as your company delivered record earnings by achieving highest ever revenue of Rs.1138.35 Crores registering a jump of 111%. Earnings before Interest and Tax (EBIDTA) increased by 170% to Rs.144.85 crores as against Rs.53.63 cores in 2015-16. You company was able to capitalize on the market conditions through its operational excellence and higher efficiency.
As you all know that the management of the company has recommended double dividend from 30% to 60% in view of remarkable performance of the company for 2016-17 and further, I am also pleased to announce that the Board of directors, at their meeting held today, has approved Expansion Plan for doubling the capacity of Multilayer Coated Board at Balasore Odisha plant with an estimated cost of Rs. 650 crores with the prior approval from Odisha Government.
Your company is open for further acquisition in the field of high end packaging Board.
Your company has already gained a prestigious position in the market of Multi-Layer Coated Packaging Board products with focus on highend segment of virgin fibre board with its brands “Emami Maxo Fold” & “Emami Glamkot” and for recycled board under “Emami Eco Strong” brand. Your Company also continued to enjoy dominant position in India being one of the preferred suppliers of Newsprint.
The year witnessed remarkable performance with all-round growth coming from the newly setup Multi-Layer Coated Board plant with the designed capacity to produce 132,000 TPA of high grade paperboard which finds its usage in pharmaceutical, healthcare, food, cosmetics and other consumer product industries in various sizes and gsms ranging from 170-450. The board plant has recorded 136691 MT of production thereby contributing 55% to overall sales and has achieved over 100% of capacity utilization in the very first year of its commercial production.
The year 2016-17 was very challenging for the domestic newsprint industry particularly during the last two quarters. The lower growth in GDP and decrease in the number of pages per newspaper due to lower advertising spend, has resulted in a sharp decline for the demand of newsprint. Considering the sluggish newsprint demand and to capitalize the opportunity in writing & printing segment, your Company has decided to convert its existing Paper Machine (PM) 2 towards more demand & profit driven writing & printing paper.
Despite challenges like erratic demand due to demonetization and heightened competitive market scenario your Company has been able to put forth a remarkable performance. During the year, various measures were undertaken by your Company to enhance product efficiency and reduce costs. This was achieved through focus on product quality, process innovation, improved manufacturing efficiencies and enhanced service delivery level with better logistic arrangements. Your Directors believe that these initiatives will be beneficial for the Company in the long run. Emami Paper being a catalyst and pioneer in the paper industry is attractively positioned to take benefit of this growing opportunity and looks to the future with optimism and confidence.
Your company’s approach towards environmental protection is guided by its Environmental Policy, commitment towards a sustainable planet and a clean environment as well as a healthy workplace for employees. It is a matter of great pride that Company’s endeavor and commitment to achieve higher level of operational performance and environmental excellence has been recognized at various forums. During the year under review, your Company won various awards and honors for Safety, Environment protection, serving the community as good corporate citizen and for the outstanding contribution in the field of large scale industry sector.
Emami Paper Mills Limited through its CSR activities takes up programs that benefit the communities in & around its place of work and ensure over a period of time, enhancement in the quality of life & economic well being of the local people and thereby establishing its presence as a good corporate citizen.
The company takes pride for its sense of responsibility towards the community and environment and the way it is duty bound for enrichment of the life of less privileged people and protection of the environment around its area of operation. The company has taken its social responsibility as a part of its operating policy and gearing its social activities to promote inclusive and sustained growth.
The Company’s philosophy is to achieve long term value to serve the best interest of all stakeholders - shareholders, customers, employees, Government and the society at large.
I appreciate the confidence and faith reposed by the shareholders in the Board and the Management team which has, in my view, geared up to take on more challenges. I can say with confidence the Company will improve its performance further in the coming years. This is however only possible through tireless efforts; dedication and commitment of our team who have helped us reach where we are now and look forward to their continued commitment in the journey forward.