Dear Shareholder,
It gives me immense pleasure to reach-out to all of you. Our JG family
has expanded multi-fold with the addition of over 50,000 shareholders. The unwavering
confidence and trust you have imposed in us gives us immense joy and propels us to perform
better and deliver value to each of you.
During the fiscal year 2023-24, our Company made significant progress
in revitalizing our foundation and achieved a major milestone, i.e, becoming the first
dedicated zinc oxide manufacturer to be listed on the Indian bourses and probably also in
the world. It gives me immense pleasure to see our Company achieve this milestone and this
has been possible due to the strong support of our customers, suppliers and each and every
member of the JG Chemicals family who has worked with us in the decades gone by. Our IPO
was a strong success. The issue received a huge response from investors with an overall
subscription of over 28 times at close with over 10 lac applications. We remain profoundly
grateful to each one of you for reposing your faith in us.
Our improved strategy, defined purpose and strong values aid us in our
quest for sustainable growth. Our diverse, focused and dedicated pool of human resources
helps us build a sustainable future for ourselves while we create value for our
stakeholders.
With a large war chest coupled with low leverage, JG Chemicals is ready
to embark on a long and exciting journey full of growth and new learnings.
Business is dynamic and sometimes challenging. FY 2024 was a mix of
both with certain external factors impacting our performance. Our overall revenues was Rs.
6676.86 Mn and our PAT was Rs 321.08 Mn. This was lower than the previous fiscal due to a
sharp fall in zinc prices for a short time during HI FY 2024. Such sharp movements in
commodity prices over a short term hit our inventory and such movements also sometimes
distort the scrap market. H2 was better and this helped improve the overall yearly
performance. Despite all these macro challenges, the core ethos of the company which is 1)
volume expansion 2) cost optimization and 3) research and development went ahead. We are
happy to share that we achieved overall volume growth coupled with increased cost
efficiencies and also worked successfully on introducing some new grades of zinc chemicals
for our customers.
In my experience of over 50 years in business, we have always focussed
on long term and sustainable value creation for our organization. This has helped us in
expanding JG Chemical's capacity in zinc chemicals from a mere 2,000 MTPA in 2001 to
over 70,000 MTPA today. As we lay the seeds for the future, JG Chemicals is looking at a
multi-pronged growth strategy to achieve global scale and significance in the zinc
chemicals industry.
Let me take you through some future growth strategies that make us a
truly sustainable company:
Expand Product Portfolio
Deeper Penetration in Domestic Markets
| Ramp-up of Zinc Sulphate Business |
| Expansion to New Geographies |
| Diversify Customer Base and Product Application in End
User |
| Industries in India and Globally. |
| Diversify our Export Base. |
It is our belief that sustainable corporate businesses' longevity
is reliant on focused governance, ethical management and strategies that foster
stakeholder confidence and boost corporate reputation. We have always laid focus on this
and would continue to do so going ahead.
Our improved strategy, defined purpose and strong values aid us in our
quest for sustainable growth. Our diverse, focused and dedicated pool of human resources
help us build a sustainable future for ourselves and we create value for our stakeholders.
The circular economy of our dream goes beyond mere recycling.
Lastly, I want to once again extend a hearthfelt thanks to all the
members of the JG Chemicals family, our customers, suppliers, bankers and various
government institutions for all their unwavering support to JG Chemicals during its multi
year journey of progress. It is with the combined efforts that we are where we are today.
Together, we shall move higher and we look forward to improving our performance in the
years to come and deliver value to our over 50,000 shareholders.
Let us march forward in enhancing shareholder value across the
foreseeable future!
Suresh Jhunjhunwala |
| Chairman |