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  Chairman's Statement
 

   
       
  Dear shareholder,    
  Welcome Back!    
       
 

I am extremely happy to welcome you all at 21st Annual General Meeting because I have many positive things to report and share with you.

   
       
 

You have the annual report of the company for the year ended March 31, 2007 and I hope you have appreciated all round growth in the performance of the company.

    
       
 

A 56.78% increase in installed capacity to 21,635 MTPA from 13,800 MTPA in 2005-06 (which at present is further increased by 7,800 MTPA to 29,435 MTPA compared to 6,000 MTPA prior to 2004-05), 68.57% increase in revenue, 98.26% increase in PBDT and above all a 358.5% increase in net profit with EPS of Rs. 10.29 for equity share, says it all, when compared to the figures upto 2004-05. An interim dividend of 15% was paid on Equity Shares and a final Dividend of 10% is recommended by the Directors for your approval, making total dividend at 25% on paid up equity shares.

   
       
 

Since amalgamation of Bodal Chemicals Pvt. Ltd., we have been successful not only in turning around the company but there has been all round growth and achievements in all areas of operations. This has put the company on solid foundation and now the company is poised to walk the path to growth. The “Bodal Team” is proud of this achievement and also conscious of the responsibility to perform better against this benchmark.

    
       
 

The year 2006-07 has been a year of internal growth. The new project at  Padra, Vadodara, at cost of 35 Crores, has since been successfully commenced ahead of its schedule and is in production at full swing. This is expected to add Rs. 100 crores in company’s turnover in current year. The company now has 7 production locations.

    
       

Now, from 2007-08 upto 20010-11-12, the company is focusing upon a rapid expansion of its capacities and operations which is envisaged to catapult the company to be a Rs.1000  crore turnover, Rs. 100 crore Net Profit and Rs. 150 crore asset based company. For this the company is adopting both routes of inhouse creation of new capacities and also by acquisition of capacities of other companies should a right opportunity come forth.

   
       
 

An investment budget of about Rs. 110 crores is under deployment/next in line, in terms of capacity expansion to achieve the said targets. Some such expansions and new projects the company is/will be undertaking are as under :

    
       
 
a) Amalgamation of Milestone Organic Limited and expansion of capacities upto about 3500 MTPA at its plant at a cost of about Rs. 8 crore. This is expected to add approx. Rs. 45-50 crore every year to be built up from April-June 2008 onward.
   
b) A Dyes manufacturing project on the companies land at Padra Vadodara (adjacent to its Dye Intermediates Project) with 12000 MTPA at an estimated investment of Rs. 45 crores. This together with existing 6000 MTPA of Dyes manufacturing capacity will make Bodal, the largest dyes manufacturing company in India This is expected to add Rs. 175 crore in turnover  every year to be built up from July-Sept 2008.
   
c) Beta Naphthol Plant : It will be Backward Integration for us and we plan to manufacture 3600 MT PA of Beta Naphthol. About 30% will be used for captive and balance will add total turnover of the company by about 40 Crores.
   
d) Acid Plant : It will also be Backward Integration for us and we plant to manufacture Sulphuric Acid (300MT per day) and Single Super phosphate (SSP) (100 MT per day). SSP plant will consume much of our liquid effluent and it will support our commitment for pollution free environment. Excluding some of the captive consumption this plant will add total turnover of the company by about 80 Crores.
 
 

The Beta Naphthol and Acid plant will involve capital expenditure of about 55 Crores. Further note that these two plants will definitely have the positive impact on the profitability of the company.
   
   
 

Dear Shareholders, this goes on & on, as growth has become day to day business at Bodal. The above planned growth is just the beginning. I have set mission for Team at Bodal to become part of top five players, in our industry, worldwide in 7 to10 years.

    
       
 
The team also has a mission to look far beyond the traditional Dyes and Dyes Intermediate business and start working on years beyond with the target to increase value of all stakeholders in Bodal – shareholders, investors, Employees, Customers, suppliers etc..
    
       

There will be consequential operations of fund raising & deploying, acquisitions, mergers and the lot whatever to make the above plans a reality.

    
       
 

The company is coming with a right issue including warrants in current year which is very attractively priced for you all when seen in context with the recent market price of the equity shares of the company. I am sure you all will take full advantage thereof. 

   
       
 

In anticipation to present a still better new year, next year.

    
       
 

With warm regards,

    
       
  Suresh Patel    
  Chairman & M D
    
  Bodal Chemicals Ltd.    
       
  Date : 29th September, 2007    
       
       
       
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