LETTER FROM MANAGING DIRECTOR'S DESK
We have continued to work closely with our customers seeking to be long
term Partners of those businesses where we can make the most meaningful difference
Dear shareholders,
The Financial Year 2020-21 was dominated by COVID-19 and it continued
to test our individual and collective resilience. The health, safety and well-being of
people has continued to be at the heart of our COVID-19 response. Being a Global Company
providing critical solutions to diverse customers in more than 120 countries of the world
in the Cement Segment and to more than 35 countries of the world in Mining Segment, it was
the key focus area of the Company to ensure that there was no disruption in the supplies
of our products and services to our customers, and I am happy to share that we have proved
our resilience by ensuring that in spite of the challenging times where there were severe
international travel restrictions for a major part of the year, there was no disruption
from our side in fulfilling our supply commitments to the customers.
The year gone by was a challenging year by all the measures. While we
seem to have come out of the second wave of the pandemic, the threat of the third wave is
looming large in front of us. However, optimistically we feel that we should be able to
face the third wave without causing any serious disruptions given the fact that the World
is now seemingly much better equipped, having accepted the fact that continued recurrence
of COvId-19 pandemic in medium to long term will be the "new normal" with which
we all will have to learn to live on an ongoing basis.
Alongside the ongoing challenges of managing the pandemic, COVID-19 has
accelerated sharper focus to respond to the longer-term trends impacting our business and
ensuring that we could better adapt to the ongoing change and hope for a better tomorrow.
Our strengths in metallurgy, designing, massive global footprint and skilled talent base
remain the core reason for our growth amidst the challenging times. As you all may be
aware, we have developed a comprehensive solution portfolio for taking care of grinding
and crushing needs of the Global Cement and Mining Industries, with the later posing a
massive opportunity of converting the mining companies worldwide from their conventional
forged grinding media based solutions to the Hi-Chrome based solutions offered by the
Company. There is a significant headroom available for conversion which is the core area
of focus of our Company and we believe that we are now fully equipped through our
multifaceted solutions portfolio to convert a large number of mines into Hi-Chrome use and
thus gain a dominant market share over a medium to long term horizon in this space. The
golden triangle: Application, Metallurgy and New Product Development help us deliver the
exact need of our clientele. It also helps us reduce the operational costs and limit our
environmental impact, which drives us towards fulfilling our main goal.
On the ongoing projects' front, the Company is setting up a
manufacturing plant of Mill Liners with 50,000 Mt with an estimated CAPEX of Rs. 250
Crores. The Company's total installed capacity will be increased to 4,40,000 TPA from
the present installed capacity of 3,90,000 TPA. Given the massive opportunity of growth in
front of us, we will be continuously going on with new Capex plans for capacity
augmentation. However, as we have been doing in the past, a bulk of it will continue to be
financed through our internal accruals only - given a comfortable balance sheet and
surplus cash position that we have been maintaining.
The Company has always believed in giving back to the society, and
through its sustainable measures, the Company actively contributes to the Social, Economic
and Environmental Development of the community in which the Company operates ensuring
participation from the community and thereby creating value for the nation. It ensures
socioeconomic development of the community through different participatory and need-based
initiatives in the best interest of the poor and deprived sections of the society so as to
help them to become self-reliant and build a better tomorrow for themselves. It also
ensures the environmental sustainability through ecological conservation and regeneration,
protection & regrowth of endangered plant species and promoting biodiversity.
| 3,90,000MetricTon |
| Current installed capacity |
Going ahead, we would continue to increase our focus on strengthening
the total solution capabilities through our extensive and fully equipped R&D team.
During the year, we also focused on improving productivity and employee morale, helping
them adapt to the evolving time, the new regular post the pandemic.
With this note, I would like to thank all our stakeholders, investors,
bankers, customers, suppliers and Government/Regulatory bodies for standing with us during
the unthinkable situation happening around the globe. We promise to deliver value to all
associated with us through ethical, sustainable and profitable means.
| Best Wishes, |
| Bhadresh K. shah |
| Managing Director, |
| AIA Engineering Limited |