In this annual report, we disclose forward-looking information so that investors can understand our outlook and make investment decisions. This report and other written and oral statements we make from time to time contain forward-looking statements that set forth expected results based on management’s plans and assumptions. Wherever possible, we have used words such as “anticipate”, “evaluate”, “anticipate”, “design”, “intend”, “plan”, “believe” and in any discussion of future results.
We cannot guarantee that these forward-looking statements will come true, although we believe our assumptions are reasonable. Achieving performance comes with risks, uncertainties, and even inaccurate assumptions. If known or unknown risks or uncertainties materialize, or if the underlying assumptions prove inaccurate, actual results may differ materially from those expected, estimated or forecast. Readers should keep this in mind. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Indo Rama Synthetics (India) Ltd. was founded in 1986 and is now one of the largest special purpose polyester manufacturer in India. With a presence on the market for almost three years, we are one of the most profitable polyester producers in the country. Our investment in innovation and capacity expansion allows us to add value to our large customer base.
We have an integrated manufacturing facility in Butibori near Nagpur, Maharashtra. Our belief that polyester will be the “fiber of the future” motivated us to enter this business with confidence. Our well-defined quality and process management systems allow us to have a global reach.
Become the preferred business partner of polyester manufacturing by focusing on customer satisfaction and innovation for sustainable growth.
Our global technology partners enable us to continually improve our capabilities and seize new opportunities. These partners include:
The main raw materials required for the production of polyester are purified terephthalic acid (PTA) and monoethylene glycol (MEG). Both PTA and MEG are petrochemical derivatives and the industry is sensitive to crude oil prices.
Our commitment to quality, health, safety and the environment has helped us achieve the following key certifications:
Awarded the Petrochemical Industry Energy Saving Award from the Maharashtra Power Development Authority (MEDA) 2015-2016.
Best Exporter and Best Importer Award in Central India by M/s Container Corporation of India Ltd., India.
“Atmanirbhar Bharat” is more than a “Made in India” call for success. It represents a commitment by Indians to support the Indian government’s goal of building a $5 trillion economy by 2025.
I am glad that we are cogs in this nation building journey that will bring prosperity to the nation. Among the fastest growing economies in the world, India, with the youngest population, is on the verge of becoming a powerful economic powerhouse with great influence.
In FY2019-20, the challenges to economic growth that arose in the second half of FY2018-2019 continued. During the year, factors such as Sino-US trade disputes and the UK’s no-deal exit from the EU led major economies to adopt protectionist policies. This undermined investor confidence and affected international trade.
Toward the middle of the fiscal year, the first sprouts of recovery appeared. This was mainly due to the concentrated monetary policy of the central banks of the largest economies and improved investor sentiment due to progress in US-China trade negotiations and the Brexit deal.
However, the COVID-19 pandemic, which has crossed borders, has led to a halt in global economic activity. To curb the spread of the deadly virus, most countries, including India, immediately declared lockdowns, halting all non-essential economic activity.
According to the International Monetary Fund (IMF) forecast for April 2020, the global economy will contract by 3% due to the COVID-19 lockdown and could endure the worst recession since the Great Depression of the 1930s. However, the IMF is also projecting a V-shaped global economic recovery in fiscal 2020-21, with growth of 5.8%, in line with the base case that the pandemic subsides in the second half of 2020.
India has taken a proactive, proactive and differentiated approach to the threat of a pandemic, prioritizing the lives of its citizens. The Government of India has adopted
A number of measures have been taken to limit the impact of the nationwide lockdown on the economy. This includes a $1.7 trillion relief package, equivalent to 1% of the country’s GDP, especially for citizens suffering from loss of livelihood.
Thus, the IMF expects India to grow by 1.9% in 2019-2020 and by 7.4% in the next fiscal year under the base case scenario.
The government also announced a $20 trillion special plan, or 10 percent of India’s GDP, to continue progress towards its ambitious goal of building a $5 trillion economy by 2025.
With its young demographic, rapidly urbanizing population, strong consumer demand and a development-oriented government, India remains an attractive investment and manufacturing destination for investors from all over the world.
Despite this factor, the 2019-20 fiscal year has been a subdued one for India. This was mainly due to low incomes in rural areas, lower domestic demand and tighter liquidity in the capital markets. In addition, weak global exports have reduced capacity utilization and discouraged new investment.
The Indian government intervened swiftly to offset these market conditions and inject positivity into the economy. He cut corporate tax rates, provided loan guarantees to non-bank financial institutions (NBFCs), and facilitated rate cuts by the Reserve Bank of India (RBI), injecting huge amounts of liquidity into the economy.
India’s push for faster growth and strong fundamentals has led international investors and businesses to view India as a viable option to shift their manufacturing base away from China and other neighbors. With the Government’s focus on developing India as an investment and manufacturing destination in the world, the Make in India initiative will gain significant momentum and push India towards becoming an atmanirbhar.
The Government of India has taken a number of measures to support the Indian textile industry. An important step in this regard is the abolition of anti-dumping duties on purified terephthalic acid (PTA), a key raw material for the production of textile fibers and yarn. At Indo Rama, we welcome this decision as PTA is one of our main raw materials.
In addition, the government aims to increase the country’s technical textile output to US$27.72 billion by fiscal year 2020-21, so various measures have been taken, including:
ATUFS is a loan-linked capital investment subsidy that will encourage investment in the textile industry and indirectly facilitate the financing of textile machinery manufacturing.
The government is also looking to fill the skills gap in the industry and has approved a new skills development scheme for the textile industry (SCBTS), which received $202.9 million from FY2017-2018 to FY2019-2020.
During the year, the company’s operating profit was Rs 2,122 crore compared to Rs 1,695 crore in the previous year, an increase of more than 25%, EBIDATA was Rs 0.7 crore, while EBIDTA loss was
We are working to increase capacity utilization through better products and a satisfied customer base to make operations profitable. With technical, financial and operational support from Indorama Ventures Public Limited (IVL), a co-founder and leader in man-made fibers, the company aims to achieve a capacity utilization rate of over 60% in fiscal year 2020-2021. with various benefit costs, up from 42% in FY2019-20.
At Indo Rama, the safety of our employees is an absolute priority and we have proven this once again during the COVID-19 crisis. During the nationwide lockdown announced by the Government of India, we have closed our business and
Phased on June 9, 2020 in compliance with all government recommendations for social distancing, hand hygiene, staff safety and health.We regularly promote
Programs for the families of our veterans, contractors and employees living in the colony.
We have developed SOPs for any outsiders entering the plant area and have shown the do’s and don’ts of the various locations within the plant.
We provide our employees with a rewarding, elite work culture that helps them improve their skills. Transparency and knowledge sharing between our employees promotes collaboration and camaraderie within the Indo Rama team.
As a responsible corporate citizen, we participate in community development activities and support the education of 1,200 Ira International School students. In addition, we cooperate with ITI Nagpur and ITI Butibori for skills training. We also organize free health screenings and eye camps inside and outside the plant, and help local authorities promote polio pulse immunization programs.
We are aware of the impact of our activities on the environment. Therefore, we have taken a number of measures to achieve an ecological balance inside and outside our production facilities. We have our own power plant (CPP) with a capacity of 40 MW of coal-based thermal energy and 31.08 MW of FO-based diesel generator capacity. This is enough for our electricity needs, but we still prefer to use electricity from the National Grid from June 11, 2020. This will help reduce our carbon footprint and will also help our operations by lowering energy costs thanks to government subsidies.
Our unwavering commitment to energy efficiency helps to continuously improve energy efficiency and efficiency.
We also focus on water conservation with a focus on reducing, reusing, recycling, recovering and rethinking alternative solutions. In this way, we have been able to reduce
Market opportunities call us to growth. By giving back, we are preparing to take a customer-centric and value-driven approach to improving our product quality, people engagement and safety measures.
On behalf of the Board and our Indo Rama team, I thank you all for your continued trust and support. We are confident that with your continued support, we will soon turn the tide of our business.
In view of the fact that the 34th AGM of Indo Rama Synthetics (India) Limited will be held on Wednesday, August 26, 2020 at 11:30 am via video conference (“VC”)/other audio, we hereby inform you that the Visual Mean Process (“OAVM”) Next case. The meeting point is the company’s registered office at A-31, MIDC Industrial Estate, Butibori, Nagpur-441122, Maharashtra, India.
2. To appoint a director in place of Mr. Udaypole Singh Gill (DIN 00004340), a non-executive independent director who retires on a rotating basis, is eligible and willing to reappoint.
3. Consider and, at its discretion, adopt (with or without modification) the following resolutions as special resolutions:
“The decision is read in accordance with sections 149, 152 and any other applicable provisions (if any) of the Companies Act 2013 (the “Act”) and rules adopted pursuant thereto, read in conjunction with Schedule IV of the Act, SEBI . (Listed Obligations) and Disclosure Requirements) The 2015 Regulations as amended (the “Listing Regulations”) (including any statutory amendments or changes then in effect) or any other applicable laws, rules and regulations may apply from time to time to time, in accordance with the decision of the Nomination and Remuneration Committee of the Board of Directors. Upon the recommendation of the Board of Directors, the members of the Company agree and hereby agree to the re-appointment of Ms. Ranjana Agarwal (DIN03340032) as a non-executive Independent Director of the Company for a period of five (five) years from 18 May to May 17, 2015,
In 2020, she is eligible for re-election under section 149 of the Companies Act 2013 and has filed a declaration that she meets the independence criteria set out in the Act and hereby reappoints the Listing Regulations as a non-executive independent director of the company, second term will be from May 18, 2020 to May 17, 2025 for five consecutive years and will not retire on a rotating basis;
It is further decided that, in order to implement this resolution, the company’s board of directors (including any of its committees) and/or the company secretary are hereby authorized to file the necessary documents/report forms, respectively, with the Registrar of Companies, as well as to enforce this resolution and in connection with hereby Take all actions, actions, questions and things that may be deemed necessary, desirable, appropriate or expedient in connection with or in connection with the questions. ”
4. Consider and at its discretion adopt (with or without modification) the following regulations as ordinary regulations:
“A decision pursuant to Sections 149, 150, 152 and 161 and other applicable provisions if any of the Companies Act 2013 (the “Act”) and the rules set forth in Schedule IV of the Act and the SEBI Regulations 2015 (Listing and Disclosure Obligations) Regulations (“Listing Regulations”), Section 16(1)(b) (including any statutory amendments or changes then in effect), relevant sections
Nomination and Remuneration Committee and approval and recommendation of the Board of Directors, Mr. Dhanendra Kumar (DIN 05019411), appointed as an additional director in the category of non-executive independent directors of the company from February 14, 2020, submits an application in accordance with section 161 of the Act, demonstrating that he complies with the standards of independence set forth in the Law and the Listing Regulations and is appointed as a non-executive independent director of the company on the date of the current annual general meeting for a maximum term of five (five) consecutive years, commencing February 14, 2020 from February 13, 2025;