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Let me begin by sharing with you some good news. Last year, the prestigious Deming Prize was conferred on our Chemicals Business for improving business performance through quality based management. The recognition came to SRF for the second time. Earlier in 2004, our tyre cord business bagged the same honour. My congratulations to the entire Chemical Business team which left no stone unturned to make this happen.
As you are all aware, we are facing challenging times. The global economy continues to remain uncertain and the scenario that is playing out in our domestic market is also not encouraging. Even a chance glance at the newspaper reports reveals the scale of prevailing economic crisis. The trend is ominous and the sentiment somber.
But at SRF, we have once again reported profit even during a turbulent year, albeit a decline over the previous year. We have continued to invest in our people, process and technology to stay ahead of the pack. And more importantly, our confidence in the path trodden and faith in our ability to travel that path remains unshakable.
As stated earlier, we are progressing on our way to becoming predominantly a chemical company, which is known and respected globally for its R&D capabilities and quality of its produce. The transition that began a couple of years back crossed a major milestone last year with the commissioning of initial projects in our new Chemical Complex at Dahej in Gujarat. Today, the Dahej site is buzzing with activity with several projects in different stages of completion. The current focus on enhancing and enriching the basket of speciality chemicals will certainly make SRF a force to reckon with in this segment.
What is more heartening is to note that all our new plants in Dahej are being designed and executed with in–house technologies, a huge testimony to the R&D capability we have developed over the years.
As expected, the revenue stream from CERs will cease to accrue from the current year. But the income from new units in Dahej is expected to more than compensate the loss in the next couple of years.
A lot is also happening in our Packaging Films Business. We will not only enhance our capacity for BOPET films through our first overseas polyester film plant in Thailand but will also add a new category of product to the portfolio in the form of BOPP films through another overseas plant in South Africa. Both these green field overseas projects will be commissioned during the year. As regards Engineering Plastics Business, our efforts are on to make further inroads into the auto and electrical sector.
Our expansion into chemicals and polyester films is perfectly aligned with our business strategy to reduce the companys dependence on Technical Textiles, which continues to be the flagship business. The growth in select areas of Technical Textiles Business will, however, continue. The newly commissioned laminated fabrics plant is stabilised and is now running at full capacity. The coated fabrics business where we have added new products in the last one year is presently under stabilisation and the efforts are on to explore new applications and penetrate new markets both in India and abroad.
As our global footprint expands, we are increasingly becoming more and more conscious of the challenges of operating in a multiple socio–cultural, political and regulatory environments. Greater challenge, however, is to foster a unified set of organisational values that we are proud of as a company. We plan to initiate a series of synchronised actions to promote understanding of what we stand for amongst our colleagues. I am also pleased to inform you that we have recently successfully upgraded our ERP system with the latest version of R12 Oracle across the units in India and the plans are on the anvil to connect the same with the global units as well. These measures will, undoubtedly, improve our overall organisational efficiency and effectiveness.
We truly believe that the benefit of our business must be shared with the community. Building on its pioneering work, our social wing, SRF Foundation undertook several initiatives in the area of education, vocational skills, health, natural resource management and affirmative action during the year gone by. Let me reiterate that our work in these areas will continue unabated with full zeal and commitment. The FICCI CSR Award conferred on our organisation during the year reaffirms our concern and commitment to the cause of community.
I would like to express my gratitude to all the shareholders for reposing trust in the SRF management, our Board of Directors for their constant support and guidance and our colleagues in SRF for their commitment and contributions towards the organisational goals.
We believe in our dream. And, we remain committed to converting our dream into a reality.
With kind regards,
Arun Bharat Ram