In this annual report, we disclose forward-looking information to enable investors to understand our prospects and make investment decisions.This report and other written and oral statements we make periodically 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,” “estimate,” “anticipate,” “project,” “intend,” “plan,” “believe,” and with any discussions of future performance.
We cannot guarantee that these forward-looking statements will materialize, although we believe our assumptions are prudent.The achievement of performance is subject to risks, uncertainties and even inaccurate assumptions.If known or unknown risks or uncertainties materialize, or if underlying assumptions prove inaccurate, actual results could differ materially from those expected, estimated or projected.Readers should keep this in mind.We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
Indo Rama Synthetics (India) Ltd. was established in 1986 and is now one of the largest specialty polyester manufacturers in India.With nearly three years of market presence, we are one of the most cost-effective polyester producers in the country.Our investments in innovation and capacity expansion allow us to integrate value for our large customer base.
We have an integrated production facility in Butibori near Nagpur, Maharashtra.Our belief that polyester will be the “fiber of the future” has driven us to enter this business with confidence.Our well-defined quality and process management systems allow us to enjoy a global reach.
Be the polyester business partner of choice by focusing on customer satisfaction and innovation for sustainable growth
Our global technology partners allow us to continuously improve our capabilities and take advantage of emerging opportunities.These partners include:
The main raw materials required for polyester production 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, occupational safety, health and environmental management has helped us achieve the following key certifications:
Awarded Petrochemical Industry Energy Conservation Award by Maharashtra Energy Development Authority (MEDA) 2015-16
Awarded Top Exporter and Top Importer in Central India by M/s Container Corporation of India Ltd., India.
‘Atmanirbhar Bharat’ is more than a clarion call to ensure the success of ‘Made in India’.It represents Indians’ commitment to support the Indian government’s goal of building a $5 trillion economy by 2025.
I’m glad we are a cog 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 an economic powerhouse with great influence.
The 2019-20 fiscal year continued the challenges to economic growth from the latter part of the 2018-19 fiscal year.During the year under review, factors such as Sino-US trade disputes and the UK’s no-deal Brexit led major economies to adopt protectionist policies.This has eroded investor confidence while affecting international trade.
Approaching the middle of the fiscal year, the green shoots of recovery emerged.This was mainly due to the concentrated monetary policies of the central banks of major economies and improved investor sentiment due to progress in the US-China trade talks and the Brexit deal.
However, the COVID-19 pandemic, which has crossed borders, has brought global economic activity to a standstill.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’s (IMF) April 2020 forecast, the global economy will contract by 3% due to the COVID-19 lockdown and could experience its worst recession since the Great Depression of the 1930s.Nonetheless, the IMF also forecasts a “V”-shaped recovery for the world economy in fiscal 2020-21, with growth of 5.8%, under a baseline scenario in which the pandemic subsides in the second half of 2020.
India has taken a pre-emptive, proactive and graded approach to the threat of the pandemic, prioritizing the lives of its citizens.Government of India has taken
A series of measures have been taken to limit the impact of the nationwide lockdown on the economy.This includes a 1.7 trillion bailout package, equivalent to 1% of the country’s GDP, especially for citizens suffering from the loss of their livelihoods.
As a result, the IMF expects India to grow by 1.9% in 2019-20 and 7.4% in the next fiscal year with the baseline scenario in place.
The government also announced a special plan worth $20 trillion, or 10 percent of India’s GDP, to continue progress toward its ambitious goal of building a $5 trillion economy by 2025.
With its young demographic, rapidly urbanizing population, strong consumer demand and development-focused government, India remains an attractive investment and manufacturing destination for investors from around the world.
Despite this factor, the 2019-20 fiscal year has been low-key for India.This was mainly due to weak rural incomes, lower domestic demand and tighter liquidity in capital markets.In addition, weak global exports led to lower capacity utilization and hindered new investment.
The Indian government stepped in nimbly to offset these market conditions and inject positivity into the economy.It has lowered corporate tax rates, provided credit guarantees for non-banking financial institutions (NBFCs) and facilitated rate cuts by the Reserve Bank of India (RBI), injecting massive liquidity into the economy.
India’s focus on boosting growth and strong fundamentals has led international investors and businesses to see India as a viable option to shift their manufacturing base away from China and other neighbours.With the government’s focus on developing India as the world’s investment and manufacturing destination, the Make in India initiative will get a major boost and push India to become atmanirbhar
The Indian government has taken several measures to support the textile industry in India.An important step in this regard is the removal of anti-dumping duties on purified terephthalic acid (PTA), a key input in textile fiber and yarn manufacturing.At Indo Rama, we welcome this decision as PTA is one of our main raw materials.
In addition, the government aims to grow the country’s technical textiles industry to US$27.72 billion by the 2020-21 fiscal year, so various measures have been taken, including:
ATUFS is a credit-linked capital investment subsidy that will facilitate investment in the textile industry and indirectly facilitate the financing of textile machinery manufacturing.
The government is also looking to bridge the skills gap in the industry and has approved a new Capacity Building Skills Development Scheme for the Textile Industry (SCBTS) – spending $202.9 million from FY 2017-18 to FY 2019-20.
During the year, the company’s operating income was Rs 2,122 crore compared to Rs 1,695 crore in the previous year, an increase of over 25%, EBIDATA was Rs 0.7 crore, while EBIDTA loss was
We are working to increase capacity utilization through better quality products and a satisfied customer base to make operations profitable.With the technical, financial and operational support of Indorama Ventures Public Limited (IVL), a co-sponsor and leader in the man-made fibers space, the company aims to achieve a capacity utilisation rate of over 60% in FY 2020-21, with various costs Benefit initiatives compared to 42% in FY 2019-20.
At Indo Rama, the safety of our people is an absolute priority; we have proven this again during the COVID-19 crisis.During the nationwide lockdown announced by the Indian government, we have closed our business and
Phased on June 9, 2020, adhering to all government guidelines on social distancing, hand hygiene and personnel safety and health.We regularly promote
Programs for the families of our frontline workers, contract workers and employees living in the colony.
We have developed SOPs for any outsiders entering the factory area, and displayed the dos and don’ts at different locations in the factory area.
We provide our employees with a rewarding, elite work culture that helps them improve their skills.Transparency and knowledge sharing among our employees fosters collaboration and camaraderie within the Indo Rama team.
As a responsible corporate citizen, we participate in community development activities and support the education of Ira International School’s 1,200 students.In addition, we have partnered with ITI Nagpur and ITI Butibori for skills training.We also organize free health checks and eye training camps inside and outside the factory, and help local authorities push pulse polio immunization programs.
We are aware of the environmental impact of our operations.Therefore, we have taken several measures to achieve an ecological balance inside and outside our production facilities.We have a Captive Power Plant (CPP) with 40 MW of coal-based thermal power and 31.08 MW of FO-based DG capacity.This is enough for our electricity needs, but we still choose to use electricity from the National Grid from June 11, 2020.This will help reduce carbon emissions and it will also help our operations due to lower electricity costs due to national government subsidies.
Our unwavering focus on efficient energy use helps to continuously improve energy performance and efficiency.
We also focus on water conservation with a focus on reducing, reusing, recycling, restoring and rethinking alternative solutions.Therefore, we succeeded in reducing our
Market opportunities call us to pursue growth.While 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.With your constant encouragement, we are confident that we will soon turn the tide of our business.
It is hereby notified that the 34th Annual General Meeting of Indo Rama Synthetics (India) Limited will be held on Wednesday, August 26, 2020 at 11:30 am via video conference (“VC”) / other audio visual means (“OAVM”) dealing with the following business.The meeting place shall be regarded as the registered office of the company at A-31, MIDC Industrial Area, Butibori, Nagpur-441122, Maharashtra, India.
2. Appoint a director to replace Mr. Udeypaul Singh Gill (DIN 00004340), the non-executive non-independent director who retire by rotation is eligible and willing to re-appoint.
3. Consider and, as it sees fit, adopt (with or without modification) the following resolutions as special resolutions:
“The Resolution is read in accordance with Sections 149, 152 and any other applicable provisions (if any) of the Companies Act 2013 (the “Act”) and the rules made thereunder, read in conjunction with Schedule IV of the Act, SEBI (Listed obligations) and disclosure requirements) the Regulations 2015, as amended (the “Listing Regulations”) (including any statutory amendments or re-enactments in force at the time) or any other applicable laws, rules and regulations may apply from time to time, in accordance with the Nomination and Remuneration Committee of the Board of Directors. With 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 term of five (five) years from 18 May to 17 May 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 Ordinance as a non-executive independent company Director, the second term will be from May 18, 2020 to May 17, 2025, for five consecutive years, and shall not retire by rotation;
It is further resolved that for the implementation of this resolution, the board of directors of the company (including any of its committees) and/or the company secretary are hereby authorized to file the necessary documents/form returns, respectively, with the Registrar of Companies, and for the implementation of this resolution and in connection with this To take all actions, actions, matters and things that may be deemed necessary, desirable, appropriate or expedient in connection with or incidental to matters.”
4. Consider and, as it sees fit, pass (with or without modification) the following resolutions as ordinary resolutions:
“Resolution pursuant to Sections 149, 150, 152 and 161 and other applicable provisions, if any of the Companies Act 2013 (the “Act”) and the rules read under Schedule IV of the Act, and Regulations SEBI 2015 (Listing Obligations and Disclosure Requirements) Regulations (the “Listing Regulations”), section 16(1)(b) (including any statutory amendments or re-enactments then in force), related articles
Nomination and Remuneration Committee of the Company and Board of Directors Approval and Recommendation, Mr Dhanendra Kumar (DIN 05019411), who has been appointed as an additional director in the category of non-executive independent directors of the company with effect from 14 February 2020, pursuant to Section 161 of the Act File a statement that he meets the independence standards set out in the Act 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 term of up to five (five) consecutive years commencing in February 2020 From 14th to 13th February 2025;