2004-September-Matrix.Pdf

1 Chemplast Sanmar Ltd Sanmar Holdings Ltd Sanmar Engineering Corporation Ltd Cabot Sanmar Ltd Asco (India) Ltd BS&B Safety Systems (India) Ltd AMP Sanmar Life Insurance Company Ltd Fisher Sanmar Ltd Sanmar Speciality Chemicals Ltd Flowserve Sanmar Ltd FMC Technologies Sanmar Bangalore Genei Ltd Sanmar Engineering Services Ltd Intec Polymers Ltd Sanmar Foundries Ltd Sanmar Weighing Systems Ltd Sensortronics Sanmar Ltd Sanmar Shipping Ltd Tyco Sanmar Ltd Xomox Sanmar Ltd The Sanmar Group 9, Cathedral Road, Chennai 600 086. Tel: + 91 44 2811 8500 Fax: + 91 44 2811 1902 2 In this issue... Group Annual Day AMP Sanmar Life Insurance Company Sanmar hosts distinguished guests 4 AMP Sanmar launches Kanaka Shree 24 Employees of the Year Awards 25 honoured at Group Annual Day 9 Business Bibles Only! 25 Nine receive Long Service Awards 17 Chemplast Sanmar Prabhakar Rao honoured by World Telugu Federation 26 World Environment Day 19 A veteran retires 19 Employees’ Corner Pondicherry CM’s Safety Award for Chemplast 20 When I led India to victory over Pakistan… 28 Sanmar Speciality Chemicals SSCRC is now ProCitius Research 21 Legends from the South ProCitius website launched 21 Dr Sarvepalli Radhakrishnan 30 Exceptional employees 22 Visitors from Cabot 22 World Environment Day 23 EMS accreditation for SSCL, Alathur 23 Matrix can be viewed at www.sanmargroup.com Designed and edited by Kalamkriya Limited, 9, Cathedral Road, Chennai 600 086. Ph: + 91 44 2811 8051/ 52 For Private Circulation Only. 3 4 Group Annual Day Sanmar hosts distinguished guests As always, the Sanmar Group Annual R Sankar of Mercer Human Resource Day was the big event of the year. This Consulting spoke of the challenges year, Sanmar invited top business posed by an economy in transition. The personalities from outside the group. employer brand of a group is as Adit Jain, Chairman, IMA India, of the important as any product brand, its Economist Corporate Group, R Sankar, elements have to be defined and CEO of Mercer India and R Seshasayee, reviewed to ensure they hang together. Managing Director, Ashok Leyland, lent Groups have to understand the substance to the proceedings with their dynamics of their businesses, classify thoughtful presentations. their talent, define their talent market The Sanmar business presentations took and identify the competition in each place on the second day. Vijay Sankar talent category. took the audience through the trends R Seshasayee of Ashok Leyland spoke and performance of each business, and on Globalisation and Its Impact, in the the business managers then took the context of niche players. You have to conference forward, with their grow, scale up to meet globalisation. He individual presentations. P Viswanathan used the ocean metaphor of big and (Shipping), V Ramesh (Chemplast), small fish coexisting to explain how Adit Jain S Gopal and P Natarajan (SEC) and agility is at least as important as size. It V R Venkataraman, C G Sethuram and is important to innovate, but ‘sparklers’ Swaminathan Subramaniam (SSCL) are as important as big bang were the presenters. innovations.‘Relearn, Reskill, Re-enter’ A major highlight of the Group Annual was his parting shot. Day was the giving away of the Employee of the Year awards to 22 Vijay Sankar gave a broad overview of “The Indian Sanmar employees, plus the very senior all the businesses, the challenges faced, economy is still S B Prabhakar Rao, M N Radhakrishnan the progress registered, the areas of and P U Aravind. concern and the steps taken or being robust and planned to address these, etc. On a year Sarada Jagan who anchored the on year comparison, Vijay noted a 10% quite proceedings, opened with some apt growth in the top line and a robust 60% quotations to illustrate the Sanmar way. independent of growth in the bottomline for the group Ethics and discipline are our hallmark as a whole, the bottomline growth being the political and Sanmar is known to practise a more largely the contribution of Sanmar right way among right ways of doing situation.” Shipping and SEC. Going forward, he business, she said. expects similar trends in 04-05. The main thrust of Adit Jain’s presentation was that the Indian There were major developments and economy was still robust and quite challenges in the form of high input costs independent of the political situation. in the PVC operations of Chemplast. While referring to the modest fiscal Investment proposals to the extent of deficit, he also stressed the size of India’s Rs. 200 crore had been initiated, foreign exchange reserves, though this including the strategic acquisition of the may not always be an unmixed blessing. Kothari caustic soda operations at 5 Karaikal. An expansion proposal had been approved at Cabot, the capacity being augmented from 700 to 950 tpa. At SEC, the foundry operations had stabilised and one business, Sanmar Micropack had been divested. There was considerable activity at SSCL, with the acquisition of Bangalore Genei at Bangalore and Intec Polymers at Dadra, in Gujarat. The business had been divided into focused areas of V Ramesh operation: API, Performance Chemicals, time high global EDC prices, Biotech, Research Services. fluctuation in availability of feedstock, CFC and CTC phasing out, the limited market for silicon wafers and environmental challenges. He gave a detailed account of the various initiatives R Seshasayee to meet all the challenges including the acquisition of the Karaikal caustic soda plant, and the cost control measures launched at Chemplast. He also spoke of the measures to be initiated at Cabot Sanmar in order to counter the threat of replacement of fumed silica by competitive materials. Vijay Sankar Vijay Sankar also spoke of some of the important initiatives in IR undertaken “Sparklers are by the group, including the introduction of more productivity-linked schemes. as important Training was now increasingly a focus as big bang area in HR, and the launch of the HR portal, Sparsh, was a major step forward, innovations. as was the integration of HR into SAP Relearn. ERP. Reskill. An important feature of the streamlining of finance was the repayment of Rs. 150 S Gopal Re-enter.” crore of high cost debt. There was a In S Gopal’s presentation on five SEC secretarial-legal focus on tax efficiency, businesses, Flowserve Sanmar, BS&B the merger of SPIL with Chemplast one Safety Systems (India) and Asco (India) such initiative. There was an effort to (all three serving the same market), centralise accounts with the setting up Sanmar Weighing Systems and of an internal BPO and the formation Sensortronics Sanmar, he stated that the of a central SAP core team. companies were leaders in the Indian In his presentation on Chemplast, market, confident of exceeding targets V Ramesh spoke of pressures on the in both the topline and bottomline, bottomline and the focus on topline based on their exemplary first quarter growth. Ramesh took the audience performance. through the prevailing scenario of all- 6 Gopal sees huge export potential for responsiveness. There are excellent each of the businesses. prospects to grow sales even in the domestic market. Other goals include Flowserve has registered impressive being an “integrated part” of the growth in 2004-05 and has a market worldwide strategy of the JV partner, share of 32%. becoming a centre of excellence with the BS&B has virtually a 100% market best plant in the world in each of the share, with export sales now catching up businesses, expanding the product with domestic sales. One of the factors portfolio to include more high end is the growth in exports by OEM valves, and growing the technical customers of BS&B; for example, ABB services business to a significant size. circuit breakers. Recent manufacturing initiatives include Asco (India) will soon become the sole being in sync with the JV partner’s global source for Asco worldwide. programmes of LEAN, Lean Black Belt, and Six Sigma, sharing best practices Many Asco products being developed across the companies; and a focus on for export will also be sold in the improvement in the supply chain, domestic market. Modernisation of accounts receivable and inventory, and retail distribution of petrol will lead to creating a vibrant environment to foster R Sankar increased demand for Asco solenoid high performance. valves; equally the increasing emphasis on dust control and clean environments will mean requirements for air handling and dust collection equipment, leading to high volumes for Asco. On an acquisition spree in the last 18 months, the Sensortronics JV partner, “Creating and Vishay Transducers is the biggest player sustaining an in the loadcells business now. Phenomenal cost control and a focused employer brand business model at SWSL have led to high is a major profits. P Viswanathan P Viswanathan described the challenge. peculiarities of the shipping trade in Define the some detail. Shipping is a truly international business governed by talent market. standard regulations and a high level of transparency, with fixed expenses Understand and variable income dictated by a large the dynamics number of imponderables. Sanmar Shipping went through a period of low of the job earnings rates, a huge debt burden, market.” high interest costs and mismatched P Natarajan cash flows, resulting in cash deficits. This was followed by a period of P Natarajan made a presentation on the correction, when it went back to valve businesses of SEC. He spoke of basics, identifying a focused business virtually “unlimited” potential to grow area, retired high cost debt, established inter-company export sales. The key to a screen for purchase of ships, arrived success lies in achieving focus on at long term maintainable earnings, operational excellence and 7 and associated with one strong pool partner.

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