ANNUAL REPORT - 2001
ASHAPURA MINECHEM LIMITED
CHAIRMAN'S SPEECH
To,
Our Family of Shareholders,
I have yet one more opportunity to extend a hearty welcome to all of you to
our Company's Twentieth Annual General Meeting.
The Annual Report containing the Director's Report and Auditor's Report and
also the Audited Accounts of your Company and its subsidiaries, for the
year ended 31st March, 2001, has been, as usual, with you for quite some
time. I hope that you are pleased to note that for the first time your
Company has crossed a sales turnover of Rs. 140 Crores in the year
2000/2001. It is heartening for me that your Company has achieved this
spectacular performance for the first tome ever since its inception under
the younger and new generation Managing Directorship of Shri Chetan Shahand
his team of enthusiastic managers. Under his Leadership, Company has
achieved a major break through in the export of Bauxite. The figures
mentioned in the Annual REport speak for itself and this is tonnage
achievement of Bauxite would be doubled in the year 1999-2000 and would
lead to a significant contribution to the bottom line of the years 1999-
2000 and 2000-2001.
I want to tell something about the basic business policy that makes a
company's performance remarkable. Sometimes, investors are impatient for
high returns in a short time. The stock market scenario of last one year
has shown that in spite of all setbacks, the companies on sound foundation
and powerful management have stood against all the odds. Your Company is
endeavoring to be one such Company. The performance of some business that
was showing high profits or speculative growth carry a danger of
speculative down falls also. Your Company is endeavoring to avoid this
course.
Over and above profits and turnover, the purpose of the business should be
to work with the people in the area where the business has its roots and
where its roots and where it obtains all its nutrition and strength. Your
Company also endeavors for this social purpose of business by providing
employment, growth, prestige and honor to " MY KUTCH "(PANJO KUTCH} which
has so far provided the required nutrition and strength to your Company.
As for the current year, the Company has a full order book for Bauxite and
there is an improvement in the inquiries and order Bookings for Bentonite
and Barites. The Company has already achieved sales turnover of Rs. 30
crores during the 1st Quarter ended on 30th June, 2001. The Company expects
to achieve a sales turnover of Rs. 36 Crores during the 2nd Quarter ending
30th September 2001, which is expected to make a total sales turnover of
Rs. 66 Crores during the first half of the Current Year.
With control over vast resources of Bentonite and Bauxite minerals, your
Company has also ventured into value added Bentonite clay products like
pet litter and acid activated bleaching clay.
Your Company caters to local and international customers in Foundry, Iron
Ore Pelletization, Petroleum Drilling, Pet Litter, Civil Engineering and
other diverse applications of Bentonite.
Your Company started exporting metallurgical grade Bauxite from Kutch in
1998-99. It has today emerged as the Preferred Supplier for metallurgical
grade Bauxite from India,exporting to Alumina Plants in Canada, Ukraine ,
Azerbaijan, Iran and Japan. Your Company is also planning to enter into
manufacturing value added Bauxite products like calcined Bauxite and other
allied products.
Among the Company's other interest for exports are minerals like Barites,
Attapulgite, Mica, Feldspar, China Clay and Lime.
Your Company has set up an R & D center near Mumbai for detailed analysis
of its minerals. These R & D facilities are among the world's best with state
of art analytical facilities acquired from SHIMADZU of Japan. Headed by a
senior Scientist, this facility will help your Company to understand and
develop advanced applications of various minerals. The R & D will continue
its focused efforts on several development activities and will enable
ASHAPURA to embark on a journey of excellence.
MIZUSAWA of Japan, under a tie-up arrangement, has provided technical know-
how to manufacture acid activated bleaching clay and use their brand name "
GALLEON" by ASHAPURA VOLCLAY LIMITED in which your Company and AMCOL Group
of USA have shareholding on 50:50 basis. I am glad to inform you that AVL
is expected to start its commercial production very shortly.
You all are also well aware that the State Government, the Central
government as well as the CAPAXIL have honored ASHAPURA every year with
Best Export Performance Award.
The motto of the Company Ashapura is "COMPETE AND THRIVE". This is the
reason the Company has jumped from a turnover of about Rs. 20 crores in
1993 to around Rs. 140 crores in 2000/2001 and targeted to be around Rs.
180 to Rs. 200 crores in the current year.
Quality and consistency has been the pillars of ASHAPURA'S reputation in
international markets. ASHAPURA considers it a duty to make optimal
utilization of the extracted raw materials through continual research and
innovation. Through close co-operation between chemist, geologists,
engineers and specialized workers, the Company has made every endeavor a
success. A quest for quality, efficiency, value and an internationally
oriented vision has made the name of ASHAPURA synonymous with Bentonite and
its allied products in India and abroad. To day your Company exports to
over 30 countries and in 6 continents across the world.
Board Changes
Shri Bachubhai Shah, the Whole-time Director in charge of the Company's
mining activities has on health ground resigned from the Board. The Company
takes on record, and I am sure the Members will join the Company, the
valuable services rendered by Shri Bachhubhai Shah in various capacities
for more than three decades and almost right from the inception of the
Company.
Acknowledgement
I would like to express my sincere appreciation for the contributions made
by employees at all levels. They are the backbone of our organization and
their sustained commitment and efforts are crucial to our growth. I would
also like to acknowledge continued co-operation and support given to the
Company by the Banks, Financial Institutions, Government Authorities and
the Shareholders.
Before I conclude, on behalf of the Company and the Board of Directors, I
wish to convey my heartfelt sympathies to the people of Gujarat, affected
by the devastating earthquake of 26th January, 2001, which caused enormous
loss of life and, property and rendered thousands homeless. In order to
extend all possible support in relief and rehabilitation work, the Company
had made available its men and materials and equipments for the immediate
relief operations. Your Company has also promoted a Public Charitable Trust
known as the "KUTCH NAVNIRMAN TRUST'" to construct houses for the
rehabilitation of the people displaced by the earthquake. The Trust is
registered with the Public Charitable Trust Office at Rajkot and also under
the provisions of the Income Tax Act and Foreign Contribution Act. The
construction of the houses has already been started at Kukma village near
Bhuj, Kutch and expected to completed shortly.
NAVNITLAL R. SHAH
EXECUTIVE CHAIRMAN
Place : Mumbai
Date : 21st September 2001