Dear Stakeholders,
Optimism is a mindset; it is an attitude that holds the ability of rewriting future. At
Himadri, our constant focus is on improving business performance every year through a
prudent decisionmaking process. This focus is rightly guided by years of research and
specialised competencies in the markets we operate. Despite business uncertainties and
challenges, we are continuously growing our market share while maintaining our leadership
position.
The FY 2019-20 has been a challenging year from a macroeconomic perspective. Changes in
the worldwide macroeconomic environment had already flattened the economic momentum early
in the business year. The radical change in the trade policies of the United States did
more than just question the industrialised world's economic system, which so far was based
on globalisation. Many of the challenges that we faced in the previous year, persisted in
FY 2019-20 as well. Moreover, continued softness in the Chinese economy, reduced
automotive sales in China, Europe, the UK and Japan, impacted demand for raw materials
that we produce.
But even amidst such scenario, I am pleased with our operational performance against
the backdrop of a gradual economic recovery. We analysed the longterm positioning of all
our key business segments in the past, in view of such challenges in the economy. Our
timely investments in resources, capacity expansions, research and development and IT
infrastructure, fill us with a sense of confidence to respond to such structural and
longing situations in a flexible manner. Moreover, with the recent commercialisation of
Speciality Carbon Black, I am confident that, with a rebound in the economic environment,
the future holds a lot of prospects for Himadri as it continues to march towards its
long-term vision.
The outlook for both the near and long-term future remains optimistic for the Company.
Even amidst the current market sentiments, we are hopeful of all the potential that
lies untapped in the industry. It instils a sense of confidence in us about the future
that lies ahead. Our robust business model, powered by our stronger fundamentals, has
helped strengthen our operational efficiencies. This helped us align to the changing
environment while focusing relentlessly on cost optimisation and risk mitigation. As a
result, the impact of the current temporary slowdown will not affect our future goals.
As a socially responsible Company, Himadri structures its business development strategy
in a symbiotic relationship with the Sustainable Development Goals of the United Nations
(UN). The Company's priorities include organising safe production as well as the
occupational health and safety of its employees.
Before I conclude, I would like to extend my thanks to the entire team, customers,
vendors, and other stakeholders who supported us during the year. The dramatic current
conditions have put Himadri's great strengths on display yet again: for one, it is
employees who are doing their best work to overcome this extraordinary situation and, for
another, its robust strategic alignment that provides the Company's underpinning. I would
also like to thank my colleagues on the Board for their support and guidance to the
Company's management.
Best Wishes,
Bankey Lal Choudhary
Executive Chairman.