Dear Shareholders,
We are delighted to share Ganesh Benzoplast
Limited's (GBL) annual report for the scal year 2023 with you.
Over the years, Ganesh Benzoplast Limited has emerged as a prominent
provider of liquid storage facilities in India, standing as the leading logistics service
provider for liquid commodities in the Mumbai region. As of March 31, 2023, your company
has achieved the distinction of being included in the list of the top 1000 listed
companies based on market capitalization.
During the year 2022, the global economy recovered from the COVID-19
pandemic and Russia s invasion of Ukraine, while the growth hindered due to rise in
geopolitical tensions, the synchronized tightening of global monetary policies and
inationary pressures. Despite the global macroeconomic headwinds, India s economy has been
hailed as a bright spot in global economy. India is one of the fastest growing markets
globally and showcasing promising growth in various industries and sectors. The government
s Make in India initiatives, ease of doing business and various incentives, stimulated
growth and attracting global companies to invest in the country.
Global Liquid Storage industry has a strong growth potential due to
growing demands for fuel and commodities in emerging markets, expansion of petrochemical
industry, growing demand for oil and gas storage, emergence of new clean fuels and growing
focus on renewable energy. The industry is having a growth potential of 5-7% annually.
Higher production and consumption of chemicals and related products are projected to
generate high demand for bulk liquid transportation. Your Company is well placed to
capitalize on the increasing industry opportunities
The nancial year 2022-23 marked a notable period of success for the
company in terms of its nancial performance. During FY 2023, the company achieved a
consolidated revenue of 4,208 million, representing a substantial growth of 18% compared
to the 3,575 million recorded in FY 2022. Furthermore, the company's consolidated
Prot after Tax (PAT) also saw impressive growth, reaching 550 million in FY 2023, compared
to 327 million in FY 2022, marking a remarkable increase of 68% year-on-year (YOY). It s
noteworthy to mention that the consolidated revenue of the Liquid Storage and
Transportation (LST) business in FY 2023 encompasses an EPC turnover of 382 million, which
was generated through a wholly-owned subsidiaries company, contributing to the
company's overall nancial performance.
Annual Report 2022-23 _ 04
On a standalone basis, the Prot after Tax (PAT) for the nancial year
2022-23 stands at 509 million, reecting a substantial increase of 59% year-on-year (YOY),
as compared to the 320 million recorded for the preceding year ending on March 31,
2022.
In terms of capital expenditures (capex), the storage tanks that have
been constructed on the newly allocated land at the JNPT terminal are now fully prepared
for commissioning and the storage of liquid cargo. This brand-new, state-of-the-art
chemical-grade terminal at JNPT, with a capacity of 17,876 KL, has been developed to cater
to the long-term requirements for the storage and management of specialty chemicals. It is
anticipated that this facility will commence generating revenue starting from the third
quarter of nancial year 2023-24.
In an effort to boost the EBITDA margin, the company is working on
altering the product mix to prioritize chemicals with higher revenue potential.
Additionally, the company is focusing on enhancing throughput by expediting the discharge
of cargoes at the terminal. This approach aims to make tank capacities available for reuse
more swiftly.
The Chemical Segment of the Company recorded a Prot Before Tax (PBT) of
127 million in FY2023, a signicant turnaround from the loss of (23) million in FY2022.
Throughout FY2023, we dedicated our efforts to optimizing various operational aspects,
including enhanced utilization, improved absorption of xed costs, and minimized wastage.
These strategic measures were implemented to bolster our competitive standing and enhance
protability margins within the Chemical Segment.
The Company has also entered into a Memorandum of Understanding (MOU)
with Nhava Sheva Distribution Terminal Private Limited to handle liquid commodities at the
shallow water berth at the Jawaharlal Nehru Port (JNP). The shallow water berth is part of
Nhava Sheva Distribution Terminal (NSDT), the latest PPP venture of the J M Baxi group,
located at the state-owned
Jawaharlal Nehru Port, Nhava Sheva. The shallow water berth is already
outtted with Ganesh Benzoplast's pipelines, and this agreement will not only enhance
our customer service by eliminating vessel waiting times but will also contribute to
long-term growth by enabling the berthing of larger vessels and accommodating a diverse
range of cargoes.
I am very delighted to share that, once again this year, your company
has received recognition for achieving the highest Liquid Cargo handling in the Non-PSU
sector, awarded by JNPT. This marks the ninth consecutive win for our company in this
category. Additionally, we are proud to share that our company has been honored with the
distinction of achieving the second-highest Cargo Handling (Non-PSU) at the Cochin
terminal, bestowed upon us by the Cochin Port Trust.
I also wish to share with you the remarkable journey our company has
embarked upon, one that is deeply rooted in the principles of sustainable development and
our commitment to making a meaningful impact on society. We believe that businesses have a
vital role to play in shaping a better future for all, and our initiatives in the areas of
education, senior citizen well-being, rural development, safe drinking water, and blood
donation camps reect our dedication to this cause. Our journey towards sustainable
development is an ongoing one, and it is shaped by our core values and the belief that
businesses can be a force for positive change. Our collective endeavor, as together, we
can create a brighter and more sustainable future for all.
I would like to extend my heartfelt gratitude to all our shareholders
for their continued trust in GBL and our core values. I express my appreciation for the
employees for their relentless focus, passion, and dedication in this journey. I want to
express my sincere gratitude to the Government of India, Port Authorities, our customers,
suppliers, bankers and the board of Directors for their consistent support and continued
association.
With Regards,
Rishi Ramesh Pilani
Chairman & Managing Director