Sudarshan Annual Report 2019-20
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Table of Contents 1-29 CORPORATE OVERVIEW 01 Staying Resilient. Emerging Stronger. Resilience 02 Resilient through Covid-19 04 From the MD’s Desk 06 Sudarshan at a Glance is creating 08 Performance Highlights 10 Business Model 12 Sudarshan’s Investment Case 14 Building Capabilities. Emerging Stronger. a dynamic 16 Our Brands and Product Range 18 Our Journey over the Years 20 Our Presence across Geographies 22 Driven by Responsibility system that 26 Awards & Accolades 28 Board of Directors 30-115 STATUTORY REPORTS adds to 30 Corporate Information 33 Management Discussions and Analysis 36 Directors’ Report adaptability. 89 Corporate Governance It is the ability of swiftly moving towards your 117-265 FINANCIAL STATEMENTS goal while preparing to discover and change into 117 Standalone what the future holds. It is about fighting today for building a more resilient and stronger tomorrow. 192 Consolidated In our pursuit of global leadership, we have come a long way. When we set our goal, of becoming the To know more about investor rd INVESTOR related information & annual 3 largest manufacturer globally, we were clear to INFORMATION general meeting, please visit: proceed towards our target, come what may. We www.sudarshan.com CIN : L24119PN1951PLC008409 strengthened our preparedness with our brownfield BSE Code : 506655 expansions to build resilience towards seen and unseen challenges. This preparedness is the key NSE Symbol : SUDARSCHEM to our performance. Our determination of striding Bloomberg Code : SCHI:IN towards our goal is what helped us navigate th AGM Date : 4 September 2020 despite the current tumultuous environment. Using AGM Mode : Video conferencing our foresighted approach, we are geared up and all set to fire our cylinders as we adapt the next ABOUT THIS REPORT normal. With our vision fixed on tomorrow, and our This Annual report highlights some elements that are aligned with the integrated reporting framework. The aim is the focus on being provident, we are ready to progress, ` 2,58,877 Lakhs communicate with all stakeholders’ of Sudarshan Chemicals on the progress, prospects and material activities of the group. traversing every hurdle to come out victorious, All the previous annual reports are available on our website at www. sudarshan.com/financial-reports-information.php resilient, and stronger than before. Market Capitalisation as on 31st March, 2020 CORPORATE OVERVIEW Statutory Reports Financial Section Resilient through Covid-19 Our response to the pandemic Making a Difference to our THE COVID-19 PANDEMIC IS A HEALTH Business Continuity Communities CRISIS CRIPPLING THE GLOBAL We serve the essential industries of food It was important for us, during these uncertain times, that Sudarshan ECONOMIC INFRASTRUCTURE packaging and personal care, and hence stayed committed to its higher purpose of BY ADVERSELY AFFECTING THE received permission, early on, to restart our Roha growing together by being spiritually ECONOMIC ENVIRONMENT FOR ALL & Mahad sites and transport material, within fulfilled, socially just and environmentally BUSINESSES. EVEN IN THE FACE OF Maharashtra. sustainable. THESE DIFFICULT TIMES, OUR RESOLVE Our production capacities have been ramped up We decided to focus our efforts on two fronts, providing food and TO PROGRESS HAS ONLY GROWN with focused interventions that we made along essentials to daily wage migrant workers and supporting the local STRONGER, AND OUR RESPONSE HAS with our suppliers and logistics partners. This healthcare infrastructure. was only made possible by our dedicated leaders BEEN SWIFT AND RESILIENT. Food and essentials to daily wage migrant workers who stayed back at the sites and ensured that our Provided shelter and food for 100+ migrant families We have focused on both, economic and operations resumed with full attention to safety humanitarian, fronts to ensure business continuity and health of our employees. Provided one month’s supply of food grains and cooking while making a positive impact on our communities. essentials to more than 5,000 families in Mahad, Roha, Shrivardhan and Pune ACTIONS TAKEN TO ENSURE Provided feed to the livestock of the tribal families living in HEALTH AND SAFETY OF ALL OUR Raigad district, to support their livelihood EMPLOYEES: Supporting the healthcare infrastructure Transportation: Donated 10 ventilators to the Government of Maharashtra Operating buses at 50% capacity to ensure safe distance between commuters Donated syringe pumps and blood monitoring machines to the Trauma ICU center of Sassoon Hospital, Pune Security: Donated essential medicines and PPE Kits to a rural hospital at Roha Monitoring employee health and disinfection Over 100 women from our self-help groups prepared cloth before entering the production area as per the masks. 1,00,000 masks were stitched and sold by them, out Government and WHO mandated norms of which 30,000 were donated to the Government Health Plant: Departments, Police, Asha workers and Rural Health Centers Ensuring safe working environment by making 14 peripheral villages trained on social distancing norms sanitizers, masks, and face shields, available Provided Covid-19-safety training to 12 health workers at Roha across the plant, along with sanitising plant and office areas Canteen: Maintaining social distance at the canteen with proper demarcation of spaces Stay: Early into the crisis, we were cautioned on the risks we would face due to the migration of labour. We swung into action and created accommodation arrangements for contract workmen within the campus, maintaining all distancing norms 2 SUDARSHAN CHEMICAL INDUSTRIES LIMITED ANNUAL REPORT 2019-20 3 CORPORATE OVERVIEW Statutory Reports Financial Section From the Our successes in FY 2019-20 have been the crucial building MD’s Desk blocks for the quantum leap we envision for the future. compared to ` 1,593 crores in FY2018-19. EBITDA recorded a significant growth of 19% with margins at 14.4% in the current fiscal year as compared to In the last year, we have 12.8% in the previous year. Profit after Tax without made some significant exceptional items was recorded at ` 132 crores with achievements towards a growth of 63%. our journey to be amongst Major Highlights of FY 2019-20 the top 3 pigment players in the world. In the last year, we made some significant achievements towards our journey to be amongst the top 3 pigment players in the world. The major complementary pigment chemistries highlights were as follows: Launch 15-20 new products in existing and Our efforts on multiple fronts have started to pay new chemistries off handsomely as we achieved highest ever sales Commission all new Capex projects started in in the months of January and February 2020. If FY 2019-20 not for the pandemic, we would have ended Q4 Improve our cost position in 7-8 chemistries FY 2019-20 with the highest-ever growth People and Culture We successfully executed multiple capacity The success of our efforts to grow wide and deep increase projects and commissioned a plant for is linked inextricably to our ability to bring together one of the most crucial new chemistries needed the expertise and energy of our team members. Our for our growth journey ahead. We also initiated mission, vision and value systems are key enablers Capex that will allow us to drastically reduce costs that allow us to work with such a diverse team as well as enter additional new chemistries in the cohesively. We will continue to invest in them and coming year introduce industry-leading practices to enhance Our new product development team delivered 20 their growth and development. new products in existing chemistries in addition to Business Continuity and Making a adding a new chemistry in our portfolio. The NPD Difference to Our Communities function is one of our crucial growth engines and I am proud of the fact that even during these Dear Stakeholders, we continue to strengthen it with highly qualified challenging times we remained committed to our team members with global experience I hope you are safe and secure during this global readiness; monitored financial health; maintained higher purpose of ‘Growing together by being health crisis. The current situation is unprecedented customer connect; reached out to employees and We completed an upgrade of our ERP to SAP Spiritually fulfilled, Socially just and Environmentally in its impact and outlook on businesses and families; reinforced the technology infrastructure and S4 HANA and are one of the few companies sustainable’. Delivering on our commitments, we livelihoods. secured our plants and fixed assets. who were able to execute the final stages of the directed our efforts towards providing food and Every country and organisation is fighting on two Global Challenge upgrade with the implementation team working essentials to daily wage migrant workers and from home supported the local healthcare infrastructure. fronts; protecting lives and safeguarding livelihoods. Today, more than ever, the Indian chemical industry At Sudarshan, too, we have been working to is poised to take a huge leap forward as the world In these difficult times, we are taking all necessary Closing Note ensure that our employees are safe at our sites and looks for a sustainable as well as competitive hub steps to ensure employee safety at our sites and Our successes in FY 2019-20 have been the operating from the safety of their homes, wherever for their feedstocks. The global landscape for the conducting multiple learning and development crucial building blocks for the quantum leap we possible. pigment industry is undergoing a significant shift initiatives to keep our team engaged and envision in the future. These past months have As we all try to navigate these unchartered waters, both due to the ongoing consolidation of major motivated even as they work from their homes been challenging, yet, they have also given us the players as well as the need for a reliable pigment I would like to thank our strategic partners and Key Thrust Areas for FY 2020-21 opportunity to demonstrate our resolve as a team.