Progressing with Agility
Dear Shareholders,
I am thrilled to share with you that Astral marks its 25th anniversary this October
2023, a milestone that commemorates legacy of innovation, connectivity, brand building,
wide distribution reach, and strong production capabilities across the country. Moreover,
it represents our unwavering commitment to creating sustainable value for all our
stakeholders. As one of the pioneers in the Indian CPVC market, our pride rests not only
in our contributions to this rapidly growing polymer sector, but also in our sustained
ability to lead, innovate, and expand in various products in building material category.
In our journey towards further expansion and progress, I am confident that our agility
and resilience will consistently propel us towards maintaining our industry leadership,
achieving greater growth, and enlarging our scale of operations.
Looking back on FY23, I would like to provide an overview of our accomplishments and
growth over the last year.
This was a year when our businesses exhibited tremendous resilience and steady growth.
We successfully navigated through significant fluctuations in polymer and chemical
prices, allowing us to achieve substantial profitability and value growth in both the Pipe
segment (12% growth) and the Adhesive segment (35% growth), resulting in an increased
market share. Strategic resource management and talent acquisition have enabled us to
successfully diversify into sectors such as faucets, sanitaryware, paints, and valves,
without compromising the growth of our core businesses. Over the years, we have witnessed
a strong response in our Silencio product, and more recently, our DrainPro product has
also garnered significant attention and positive feedback. The success of these products
has inspired us to introduce another exciting addition to our portfolio, Rainway. We are
confident that this will further enhance our offerings in the pipes segment.
In addition to our pipes segment, we are also expanding our product range in the valve
category. Valves serve as a crucial component in various applications, and we recognize
the immense potential they hold. We are actively focusing on developing and offering
high-quality valves as import substitutes. We are currently on the trajectory of expanding
these product lines and have initiated the process of doubling the capacity for both. As
part of our growth strategy for the faucets and sanitaryware segment, we are focused on
network expansion and have completed 383 Showrooms/display centres across various states,
with more under construction.
Our adhesives business displayed robust growth. Amid industry-wide consolidation, our
strategic expansion into new geographies, reinforced dealer networks, and innovative
product launches underpinned our strong growth. With the continuous shift from unorganised
to organised players, we expect further market capture from regional players.
Sustained demand from UK and US markets further promises a positive outlook for this
vertical.
Additionally, during the year, we expanded the Bondtite brand umbrella to incorporate
two additional adhesive offerings: Cyanoacrylate instant adhesive, and Polyvinyl Acetate
(PVA) under Bondtite. These concerted efforts culminated in a robust consolidated
performance for the year, yielding a PBT of 6,170 million and an EBITDA of 8,351 million.
During the year, we undertook several steps to ensure a solid foundation for our
business.
Believing in the pivotal role of strong leadership, we onboarded a CHRO and a CTO to
streamline our human resources and technology strategies.
This move will significantly contribute towards the realization of Astral's strategic
vision and mission, solidifying our place as an industry leader. Further, we are
leveraging technology to boost our cross-selling opportunities once our new business
verticals gain solid ground and are confident that the new leadership will guide and
direct the business towards progress. We reinforced our brand recall by engaging Allu
Arjun as our brand ambassador to bolster our pipe business in South India. Further, we
launched various TVCs and magazine advertisements to forge stronger connections with our
customers. In the 2023 edition of the IPL, we extended our brand visibility by
co-sponsoring a total of four teams. Astral Pipes proudly served as co-sponsors for three
teams: Chennai Super Kings, Mumbai Indians, and Gujarat Titans. Furthermore, our adhesives
brand, Bondtite, stepped in as a sponsor for the Lucknow Super Giants.
We have always had a community-first attitude.
While profitability is our goal, it is not without the recognition of the importance of
community empowerment. We understand that our business thrives when our community thrives.
Therefore, we aim to strike a balance between achieving our financial objectives and
making meaningful contributions to the communities in which we operate. This dual focus is
integral to our business model and long-term sustainability.
Our social initiatives encompass a wide range of areas, from education to healthcare,
providing growth opportunities and fostering self-sufficiency and resilience. We strive to
light the way towards knowledge and skill development, enabling individuals to realise
their full potential. We are also committed to environmental sustainability, as we
advocate for eco-friendly practices and lead innovative projects that safeguard our
planet's delicate ecosystems.
The Astral Foundation, our guiding light, facilitates collaboration by connecting us
with implementation partners who share our passion for making a difference. Together, we
forge partnerships that break barriers and transform aspirations into tangible realities,
ultimately creating a brighter future for all.
I am pleased to inform you that we've received multiple accolades for our distinguished
project films. Our Ranthambore project film, titled "Ranthambore - The Jungle
Story," and the innovative "Ice Stupas in Ladakh" project film, have been
decorated with gold awards. Additionally, our "Hiwali Pipeline Project" film has
also been recognized with an award. Renowned Organisations, Digies, ABBY, and Afaqs, have
graciously recognized our contributions.
As we end FY23, we are motivated to do more in the years to come.
We have made considerable investments in our main business line over the past five
years, enhancing our production capacities and priming us for future rewards. We are
confident that our investment of ~ 1,000 Crore in capex in the last 5 years will yield
results in the upcoming years. Our upcoming launch of two advanced pipe plants in Guwahati
and Hyderabad, and an adhesives plant in Dahej will fortify our market presence and
provide opportunities in new markets, supporting our ambitious expansion plans.
In closing, I would like to extend my heartfelt gratitude to each one of you. To our
valued shareholders and investors, thank you for placing your trust in us and supporting
our vision.
Your faith in our Company's potential has been instrumental in propelling us forward.
To our dedicated employees, your unwavering commitment, hard work, and innovation are the
driving forces behind our success.
I assure you all that we will continue to strive for growth and profitability while
maintaining our commitment to corporate responsibility. As we look towards the future, I
am confident that we will remain a resilient and successful business that consistently
offers good returns.
Thank you once again for trusting in us and for being a part of our growth journey.
Together, we will build an even brighter future for our Company.
Best wishes,
Sandeep Engineer
CHAIRMAN & MANGING DIRECTOR