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Plastiblends India Ltd.

BSE: 523648 Sector: Industrials
NSE: PLASTIBLEN ISIN Code: INE083C01022
BSE 00:00 | 24 Apr 2020 Plastiblends India Ltd
NSE 05:30 | 01 Jan 1970 Plastiblends India Ltd

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OPEN 140.00
PREVIOUS CLOSE 127.35
VOLUME 93
52-Week high 242.80
52-Week low 96.05
P/E 8.18
Mkt Cap.(Rs cr) 336
Buy Price 122.10
Buy Qty 10.00
Sell Price 129.40
Sell Qty 1.00
OPEN 140.00
CLOSE 127.35
VOLUME 93
52-Week high 242.80
52-Week low 96.05
P/E 8.18
Mkt Cap.(Rs cr) 336
Buy Price 122.10
Buy Qty 10.00
Sell Price 129.40
Sell Qty 1.00

Plastiblends India Ltd. (PLASTIBLEN) - Chairman Speech


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Company chairman speech

PLASTIBLENDS INDIA LIMITED ANNUAL REPORT 2011-2012 CHAIRMAN'S REPORT The Backdrop: The World Bank expects the Indian economy to grow by 6.9% in the Financial Year 2012-13 notwithstanding problems like high fiscal deficit and sticky inflation. For the longer term, however they have pegged growth at 7.2% and 7.4% in fiscal years 2013-14 and 2014-15, respectively in the report titled 'Global Economic Prospects'. The global economy is projected to grow by 2.5% in 2012 and 3.1% in 2013, following a growth of 2.7% in 2011, a slight downward revision from previous forecasts. Despite the uncertain economic outlook in India and worldover, we are optimistic about the long term prospects of the plastic industry. As per Plastindia Foundation the demand for plastics in India alone is expected to almost double over the next three years. Globally too, the Plastics Consumption is expected to reach 297.5 Million Tons by 2015, according to New Report by Global Industry Analysts, Inc. The masterbatch industry is a direct beneficiary from the growth in plastic industry. The value of total masterbatch market is 14.8 Billion USD and the share of additive masterbatch market in this is about 3 Billion USD. Despite witnessing a temporary deceleration in growth in the years 2008 and 2009, world masterbatch market is expected to grow, on account of the resurgence of demand fundamentals, such as, improving income levels, growing propensity to spend, continued shift towards packaged products and increase in the demand for consumer goods, automotives and electronic appliances among others. The Government of India is likely to announce huge investment in infrastructure, irrigation, agriculture water management, in the 12th Five year plan which as a whole will lead to increased demand for masterbatches used in processing plastics. With the polymer consumption in India expected to grow at annual rate of 15% and the per capita consumption of plastics expected to double over the next five years, the outlook is very optimistic in terms of growth for masterbatches in the coming years and the business could grow at about 20% for the next few years. (Source: www.derivatives.capitaline.com) The Performance: I am pleased with the way we have performed during the year, despite subdued economic growth. The Net Income stood at Rs. 34,112.47 lacs, a growth of 23.2% as compared to last year. The Indian polymer processing industry grew at the rate of 3-4% in the year 2011-12, which has been growing. Fat an average rate of 10-12% and masterbatch industry is growing at a rate of 15%. Exports continued to boost our topline as it grew by 46% in terms of value in 2011-12, while, in terms of volumes it registered an increase of 27% in 2011-12. On the domestic front too we have been able to maintain our performance as our sales grew by 16%. Notably, the significant rise in exports and domestic sales have been on account of our continued thrust on marketing initiatives, participation in trade fairs, focused marketing approach for specific markets, developing high performance specialty masterbatches thereby creating a strong brand equity for our products. During the year, EBIDTA stood at Rs. 3,217.28 lacs while Net Profit stood at Rs. 1,671.17 lacs, de-growing by 9.8% against the previous year. Raw material price volatility and fluctuations impacted our operating performance as crude oil prices rose last year along with rupee depreciation. Further, we had to account for the rise in power cost by over 30% with retrospective effect from June 2011, the entire amount for which had to be debited in the third quarter of the financial year 2011-12. There was also a one-time cost of implementing SAP which has been accounted for in the third and fourth quarter of the financial year 2011-12. As we are now getting past the cost curve, we are poised to benefit from the revenue curve ahead, once the demand situation improves. As SAP implementation has been completed we expect improved inventory and financial management arising out of efficiencies in various areas of operation. We are diversifying our product mix by focusing on high performance and specialty masterbatches. In line with our focus on technological advancement and resultantly innovation, we have been able to introduce some new generation additives and masterbatches like anti-rodent, antimicrobial (bactiblock), nucleating and clarifying agents and high performance masterbatches such as UV Stabilizers. These speciality and high performance additive masterbatches enhance the performance of the plastic products that are widely used in household appliance, kitchen wares, electronic goods, sports & leisure, construction, agricultural activities etc. with Indian population over 1.2 billion, the opportunity for these sectors to grow is immense besides the global markets. The Growth Strategy: Sharp deceleration in the Indian economy has meant that the polymer consumption was nearly flat in the first half of the current fiscal on y-o- y basis. Going forward, as India's inflationary trend eases, we can expect a rebound in demand for polymers from many interest sensitive sectors like automobiles, real estate, packaging, consumer durables etc. So, while the demand for masterbatches is relatively sluggish in the current fiscal thus far, the prospects remain bright for the medium to long term. We will also continue to lay thrust on exports which provides us with immense opportunities as India accounts for 4% of global masterbatch demand. Our participation in various trade fairs including the Plastindia Exhibition, K-2010 etc. yielded a very good response and thus aided our geographical expansion. This will be a key strategic area going forward as we continue to strengthen our marketing network. While opportunities are abound, we would continue to focus on product and service innovation and improvement. In a market which is highly unorganized, it is our ability to invest in R&D and differentiate ourselves by offering innovative yet cost effective and value added offerings that makes us the market leader. The recognition from the Department of Scientific & Industrial Research (DSIR) continues to propel our growth by enabling the development of newer, high performance, value added and low cost products in our portfolio. This will help us not only improve our business performance but also to strengthen our relationships with our existing and prospective clients. Overall, our strategic efforts remain focused on saving costs, increased thrust on marketing and enhancing our product portfolio through continuous investments in R&D. As the macroeconomic parameters turn around, we will be ready to tap the next growth phase for our business. We won the Plasticon 'Gold Trophy Award' for Fastest Growing Enterprise Processing (Commodity Polymers) declared by Plastindia Foundation and Government of India has also awarded to us Star Export House status based on excellent export performance for the last three years. This has strengthened the conviction that our strategies are working. Vote of Thanks: I extend my sincere thanks to all of you who have helped us achieve continued success and who will remain the vital force in shaping our history-our employees, consumers, customers, suppliers, business partners, bankers and stakeholders. I am also grateful to our Management Team for their persistent efforts towards redefining our growth strategy and to our Board of Directors for their continued guidance. We look forward to continued success and profitable growth. S. V. Kabra Chairman & Managing Director

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