14:14 Apr 20, 2014  

Sintex Industries Ltd

HSL Code: SININD   |   BSE Code: 502742  |   NSE Symbol: SINTEX  |   ISIN: INE429C01035
17 Apr 2014 | 15:55
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We take pleasure in presenting 82nd Annual Report of the Company, together with Audited Annual Accounts for the year ended on March 31, 2013.

Financial highlights:

The financial performance of the Company for the financial year ended on March 31, 2013 is summarised below:

(Rs. in crore)

2012-13 2011-12
Gross turnover 3,059.77 2,629.65
Gross profit 435.63 421.54
Less : Depreciation 123.18 98.05
Profit before tax 312.45 323.49
Less: Provision for taxation — Current tax 62.68 64.63
MAT Credit Entitlement (62.10) (15.05)
Deferred tax 41.62 36.58
Profit/(loss) after tax before prior period items 270.25 237.33
Add/(Less): Short provisions for taxation of earlier years (1.06) (7.63)
Profit after tax 269.19 229.70
Balance of profit of previous year 1,307.81 1,157.00
Profit available for appropriation 1,577.00 1,386.70
General reserve 27.50 25.00
Debenture redemption reserve 33.27 33.27
Proposed dividend on equity shares 21.92 17.74
Tax on dividend 3.56 2.88
Balance carried to balance sheet 1,490.75 1,307.81
Total 1,577.00 1,386.70

Financial performance:

Your Company’s performance was commendable despite the Government’s preoccupation in managing multiple politico-economic issues which put economic progress on the backburner.

Your Company’s posted a gross turnover of Rs. 3059.77 crores in 2012-13 – a growth of 16.36% over Rs. 2629.65 crores in 2011-12. The growth was primarily due to the robust performance of the prefab business supported by growth in the domestic custom moulding.

The Company’s flagship business segment – monolithic construction reported a subdued performance. This was primarily due to the management’s timely decision to optimise the Company’s exposure in monolithic construction business due to a stretched receivables cycle from some projects which adversely impacted project profitability and business liquidity.

EBIDTA grew to Rs. 644.07 crores against Rs. 578.67 crore in the previous year, while Net Profit climbed to Rs. 269.19 crore against Rs. 229.70 crore over the same period. The earning per share stood at Rs. 9.46 (basic) and Rs. 9.44 (diluted) in 2012-13.

Cash plough back into the business was Rs. 525.98 crore in 2012-13 as against Rs. 468.18 crore in 2011-12 – providing an adequate cushion for funding growth initiatives.


Your Directors are pleased to recommend dividend of Rs. 0.70 per share (Previous Year Rs. 0.65 per share). The total quantum of dividend, if approved by the members, will be Rs. 25.48 crores including dividend tax. The dividend will be paid subject to the approval of shareholders at the forthcoming Annual General Meeting to those shareholders whose names appear on the Register of Members of the Company as on the specified date.

Business review and divisional performance:

Despite the external environment being plagued with high interest costs, stubborn inflation and a policy logjam, your Company’s performance was heartening. Most of the key business vertical, other than monolithic construction, registered improved numbers. A detailed discussion of your Company’s operations is given under the ‘Management discussion and analysis report.’

A. Plastics division:

The Company’s plastics business performed well. Revenue grew 19.72% from Rs. 2,161.83 crore in 2011-12 to Rs. 2,588.06 crore in 2012-13 despite a strategic decision to curtail the Company’s business exposure in the monolithic construction space. The plastics business contributed 90.93% of the Company’s consolidated revenues.

The building products division registered a subdued performance primarily due to the curtailed business exposure to monolithic construction. In this division, the prefab business was the star performer in 2012-13 clocking large business volumes from Maharashtra and Madhya Pradesh by sprucing up the educational and sanitation-related infrastructure of the states. The healthy growth largely cushioned the fall in revenue from the monolithic business. This was a result of a strategic management decision to curtail the Company’s business exposure in the monolithic construction space, to sustain business profitability and liquidity despite external adversities beyond the control of the Company.

Other businesses namely water storage tanks, sandwich panels and sub-ground structures registered considerable growth.

The custom moulding division performed satisfactorily during the year under review. The SMC business remained the key growth contributor as the Company extended its footprint into new states generating heartening volumes.

B. Textiles division:

Despite a depressed global textile sector, your Company’s textile business managed to end the year with a turnover of Rs. 471.71 in 2012-13 against Rs. 467.82 in 2011-12. This was achieved primarily due to the shift in focus from the international markets to the domestic customers. Besides, the Company undertook a number of initiatives to optimise costs and widen its reach in the domestic markets which contributed to the division’s stable performance.


The Company’s subsidiaries Nief Plastics SAS, Sintex Wausaukee Composites Inc., Bright AutoPlast Ltd, Sintex Infra Projects Ltd and Zep Infratech Limited provide infrastructure and highly-engineered custom moulding solutions. These companies work closely with each other to generate more business and enhance profitability of the parent company.

Performance of subsidiaries:

1) Nief Plastics SAS

Despite the persisting economic slowdown in Europe, the Company successfully grew its 2013 against 2012. The Company acquired two units of the German group Poschmann - one in Germany, now rechristened as NP POSCHMANN and the other in Poland, named NP POLSKA. This initiative provides multiple benefits – 1) geographic diversity, 2) access to large and globally respected brands in the automotive and non-automotive spaces and 3) expertise in thermoplastics and thermosetting polymers.

Nief has opened new opportunity windows for Sintex’s Indian operations. This European subsidiary, through technical and business assistance, facilitated the setting up of the Precitech Division of Bright Auto, Chennai, (another Sintex subsidiary) which manufactures electrical component for Nief’s customer, Schneider for their Indian operations. This new business relation has now started to generate revenue for Bright Auto in 2012-13. Going ahead, a number of such growth opportunities are expected to cascade to the Indian operations.

2) Sintex Wausaukee Composites Inc.

In 2012-13, the Company re-commissioned its Dake SMC unit which widens its opportunity canvass. It enables the Company to cater to the requirements of the food service industry. Further, the Company expanded its capabilities in thermoforming, RIM, SMC and paint technology which strengthens its ability to increase its wallet share with existing customers. In 2012-13, Wausaukee Composites Inc was renamed as Sintex Wausaukee Composites Inc., which will strengthen the Sintex visibility in the American markets. As the US operations stabilise in the next 12 months, Wasaukee’s customer relations in the US are expected to create new growth opportunities for Sintex’s domestic custom moulding segment. Bright Auto will service the requirements of the Indian operations of Wasaukee’s American customers.

3) Bright AutoPlast Ltd.

Despite a de-growth in the passenger car segment, the Company registered a significant double-digit growth with a similar increase in business profitability. This was due to the Company’s timely movement into the electrical business which derisked the Company from an overdependence on a single user-sector. To strengthen the business further, the Company established a presence in the commercial vehicle segment. The Company signed a MoU with Johnson Control, a global Tier-1 company for certain key automotive components. This JV has already secured business from Maruti Suzuki and is in advanced discussions with other Indian and MNC automotive OEMs.

4) Sintex Infra Projects Ltd.

Sintex infra Projects Ltd. is engaged in the various projects of monolithic construction and prefabricated structures under the various orders from State Governments and also private sectors across the country. The Company is also engaging into the laying of underground sewage lines, road check-posts among others.

The Company has also started executing the EPC contract that was awarded to them last year. Keeping in mind the untapped potential in infrastructure business and especially engineering, construction and contract business, the Company further would like to spread its footprints in the more high-end segments of the infrastructure business.

5) Zep Infratech Ltd.

The Company has fully diversified into infrastructure company due to a meltdown in the telecom infrastructure segment. The Company is under consolidation phase and now transitioned its operation as an infrastructural solutions provider and focuses on small-ticket projects. The current focus of the Company include PUF insulated panels for walls and roof, pre-fabricated structure, cold rooms and panels, refrigerated truck bodies, bunk houses, labour rooms, shelter for various applications.

The Company is also in process of setting the new marketing strategy to reach directly to the vast customer base across India.

Employee stock option scheme:

The shareholders of the Company had approved of its employee stock option plan (Sintex Industries Limited Employees Stock Option Scheme 2006) in February 2006. These ESOPS are administered by the Sintex Employee Welfare Trust on the basis of recommendations of the Compensation Committee of the Board. In terms of the plan, the Company periodically granted stock options to eligible employees. The Company will conform to the accounting policies specified in the guidelines as amended periodically. The details of the scheme are set out in Annexure I of this Report.

The Members of the Company in their meeting held on September 17, 2012 have approved the extension of exercise period from two years to four years of Sintex Industries Limited Employees Stock Option scheme 2006.

Fixed deposits:

Your Company did not float any deposit scheme to which provisions of Section 58A of the Companies Act, 1956 and the Rules made there under are applicable.

Qualified Institutional Placement:

Pursuant to the approval of the shareholders at the Annual General Meeting of the Company held on September 17, 2012, your Company made a Qualified Institutional Placement (QIP) in accordance with Chapter VIII of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009.

Through the QIP, Sintex mobilised Rs. 174.76 crores by issuing 2,65,19,114 Equity Shares of a face value of Rs. 1/- each to qualified institutional buyers at a premium of Rs. 64.90 per share.

The Company used the net proceeds received from the offering for part redemption of FCCBs, due in March 2013.

Issue of USD 140 million, 7.5% Step Down Foreign Currency Convertible Bonds (FCCBs) due 2017:

Pursuant to approval of the shareholders at the Annual General Meeting of the Company held on September 17, 2012, your Company made an issue of USD 140,000,000, 7.50%, with an average YTM of 5.25% p.a step down convertible bonds due in 2017, convertible into Equity Shares at a price of Rs. 75.60 per share. The bonds were issued on November 28, 2012 and listed on the Singapore Exchange Securities Trading Limited. The Company used all of the proceeds of said FCCBs for part redemption and prepayment of the foreign currency convertible bonds due in March, 2013.

Preferential Warrants Allotment:

In terms of shareholders’ approval at the Extra Ordinary General Meeting held on November 9, 2012, your Company has allotted 3,00,00,000 warrants optionally convertible into Equity Shares to Promoter Group Companies on preferential basis at a price of Rs. 69.01 per warrant (25% consideration paid upfront).

The warrants are optionally convertible into Equity Shares within 18 months from the allotment date. During the year, the Company made allotment of 1,36,00,000 Equity Shares at a price of Rs. 69.01 (inclusive premium of Rs. 68.01 per share) to Promoter Group Companies on their exercise of the options for conversion of 1,36,00,000 warrants.

The net proceeds from the preferential allotment was utilised for general corporate purpose and repayment of debts.

The full conversion of all warrants into equity shares will reinforce the Company’s networth by Rs. 207.03 crores, strengthening the capital structure.

Changes in Authorized Share Capital:

In terms of your approval in the Extra Ordinary General Meeting held on November 9, 2012, the authorised share capital of the Company has been reclassified from Rs. 65 crores comprising 50,00,00,000 Equity Shares of Rs. 1/- each and 15,00,000 preference shares of Rs. 100/- each to Rs. 65 crores comprising 65,00,00,000 Equity Shares of Rs. 1/- each by re-classifying un-issued preference share capital into equity share capital.

Changes in Equity Share Capital:

In 2012-13, the following changes were effected in the share capital of the Company:

I. Issue of equity shares to qualified institutional buyers: Allotment of 2,65,19,114 equity shares of Rs. 1/- each at a premium of Rs. 64.90/-per share.

II. Issue of equity shares upon warrants conversion: Allotment of 1,36,00,000 Equity Shares of Rs. 1/- each at a price of Rs. 69.01 per share (inclusive of a premium of Rs. 68.01 per share) to Promoter Group Companies, following the conversion of 1,36,00,000 warrants.

Pursuant to the allotment of the aforesaid equity shares, the paid-up equity share capital of the Company increased from Rs. 27.30 crores to Rs. 31.31 crores and the securities premium account increased by Rs. 264.60 crores.

The new shares issued in 2012-13 rank pari passu with the existing with the existing equity shares of the Company.

Prepayment/Redemption of FCCBs 2008:

During the year the Company had made prepayment and cancelled 574 FCCBs of the face value of US$ 100,000 each at a discount, which has resulted in savings of Rs. 21.27 crores, as per the approval/guidelines of RBI. The balance 1,676 FCCBs of the face value of US$ 100,000 each were redeemed on maturity date i.e. March 13, 2013.

Listing of shares and securities:

The names and addresses of the stock exchanges where the Company’s securities are listed are given below:

• The National Stock Exchange of India Ltd, Exchange Plaza, Plot No. C-1, G Block, IFB Centre, Bandra Kurla Complex, Bandra (East), Mumbai-400051

• BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400001

• Ahmedabad Stock Exchange Ltd., Kamdhenu Complex, Panjrapole, Ahmedabad-380015

• Singapore Exchange Securities Trading Limited, 2 Shenton Way, # 19 – 00 SGX Centre 1, Singapore-068804. (FCCB’S US$ 140 million)

• BSE Limited (Wholesale Debt Market), Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400001 (NCD Rs. 250 crores and NCD Rs. 350 crores)

The Company paid Listing Fees to all the above Stock Exchanges for FY 2013-14.

Management Discussion and Analysis:

Pursuant to Clause 49 of the Listing Agreement with the Stock Exchanges, the Management Discussion and Analysis Report for the year under review are annexed to this Report and forms part of this Annual Report.

Corporate Governance:

Sintex continues to be committed to good Corporate Governance aligned with the best practices. It has complied with all the standards set out by SEBI and the Stock Exchanges.

A separate Report on Corporate Governance along with Statutory Auditors’ Certificate on compliance with the conditions of Corporate Governance as per Clause 49 of the Listing Agreement with the Stock Exchanges is provided as a part of this Annual Report, besides the Management Discussion and Analysis.

Your Company has made all information, required by investors, available on the Company’s website www.sintex.in


Mr. Dinesh B. Patel, Chairman and Mr. Arun P. Patel, Vice Chairman of the Company had expressed their unwillingness for reappointment as Wholetime directors of the Company which was due for renewal on October11, 2012 and accordingly have ceased to be Wholetime directors and continue to act as Chairman and Vice Chairman respectively as Non executive directors.

Mr. Dinesh B. Patel, Mr. Arun P. Patel, Mr. Ashwin L. Shah and Dr. Lavkumar Kantilal, the Directors retired by rotation, but being eligible, offer themselves for re-appointment at the ensuing Annual General Meeting.

Shri Rooshi Kumar Pandya, Director of the Company has ceased to be a Director w.e.f. April 13, 2013 on account of his sudden demise. The Board placed on record its appreciation for the services rendered by him as a director of the Company. The Board of Directors in their meeting held on May 7, 2013 have appointed Dr. Narendra Kumar Bansal as Director in casual vacancy caused by the death of Mr. Rooshi Kumar Pandya.

As stipulated under Clause 49 of the Listing Agreement with the Stock Exchanges, brief profile of the Directors proposed to be re-appointed, nature of their expertise in specific functional areas, names of the companies in which they hold directorships and shareholding are provided in the Notice attached forming part of the Annual Report.

Directors’ Responsibility Statement:

Pursuant to the requirement under Section 217 (2AA) of the Companies Act, 1956 with respect to Directors Responsibility Statement, it is hereby confirmed that:

1. In the preparation of the annual accounts for the year under review, the applicable accounting standards have been followed and there have been no material departures.

2. The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period.

3. The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities.

4. The annual accounts of the Company have been prepared on a ‘going concern’ basis.

Consolidated financial statements:

The Consolidated Financial Statements have been prepared in accordance with the Accounting Standards prescribed by the Institute of Chartered Accountants of India, in this regard.


In accordance with the general circular issued by the Ministry of Corporate Affairs, Government of India, the Balance Sheet, Profit & Loss Account and other documents of the subsidiary companies are not being attached with the Balance Sheet of the Company. However, the financial information of the subsidiary companies is disclosed in the Annual Report in compliance with the said circular. The Company will make available the annual accounts of the subsidiary companies and the related detailed information to any member of the Company who may be interested in obtaining the same. The annual accounts of the subsidiary companies will also be kept open for inspection at the Registered Office of the Company and that of the respective subsidiary companies. The Consolidated Financial Statements presented by the Company include the financial results of its subsidiary companies.

Conservation of energy, technology absorption and foreign exchange earnings and outgo:

A statement containing the necessary information required under Section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, are given in the Annexure II forming part of this Report.

Particulars of employees:

The information required as amended under section 217(2A) of the Companies Act, 1956, read with Companies (Particular of Employees) Rules, 1975, forms part of this report as Annexure III. However, as permitted by Section 219(I) (b) (IV) of the Companies Act, 1956, this Annual Report is being sent to all shareholders excluding the said Annexure. Any shareholder interested in obtaining the particulars may obtain it by writing to the Company Secretary at the registered office of the Company.


All the Properties of your Company, including plant and machinery, buildings, equipments, and stocks among others have been adequately insured.


M/s. Deloitte Haskins & Sells, Statutory Auditors of the Company, retire at the ensuing Annual General Meeting and being eligible, have expressed their willingness to be reappointed. As required under the provisions of Section 224 of the Companies Act, 1956, the Company has received a letter from the Statutory Auditors to the effect that their reappointment, if made, would be in conformity with the limits specified in Section 224 (1B) of the Companies Act, 1956 and they are not disqualified for reappointment within the meaning of Section 226 of the said Act. The observations made in the Auditor’s Report are self-explanatory and do not call for any further comments under Section 217 of the Companies Act, 1956.

Cost Auditor:

The Central Government has approved the appointment of M/s. Kiran J Mehta & Co, Cost Accountants, Ahmedabad (Membership No. 00025) for conducting Cost Audit for the Financial Year 2012-13 for the Textile Business of the Company.

The Company has filed the Cost Audit Report for the year ended March 31, 2012 on January 23, 2013 within the time limit as prescribed by the Ministry of Corporate Affairs.


Your Directors wish to place on record the excellent support, assistance and guidance provided by the financial institutions, banks, customers, suppliers and other business associates. Thanks to our Company’s employees for their tireless efforts and high degree of commitment and dedication. Your Directors especially appreciate the continued understanding and confidence of the Members.

On behalf of the Board,
Date: May 7, 2013 Dinesh B Patel
Place: Ahmedabad Chairman

Annexure I to the Directors’ Report

Disclosure pursuant to the provisions of SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999

Details of the grants as on March 31, 2013
a. Total number of options covered under the plan 10,00,000
b. Total number of options granted 10,00,000
c. Pricing formula An exercise price of Rs. 45.85 per equity share shall be payable by an employee pursuant to the ESOP Scheme.
The employee can opt for conversion of the options by applying to the Trust by a written notice during the exercise period, in a specified format accompanied by payment of the exercise price and all applicable taxes.
Such notice is required to be provided by the employees to the Trust not less than 30 (thirty) days before the exercise of the options by the employee.
d. Vesting schedule All options granted on any date shall vest at the expiry of 36 months from the date of the grant
e. Options vested 10,00,000
f. Options exercised 38,500*
g. Options lapsed Nil
h. Variation of terms of options The Members of the Company at the Annual General Meeting held on 17.09.2012 have approved extension of exercise period from two years to four years.
i. Money realised by exercise of options Nil
j. Total number of options in force 9,61,500
k. Person-wise details of options granted to:
(i) Directors 10,000
(ii) Key managerial employees 9,90,000
(iii) Any other employee who received a grant in any year of options amounting to 5% or more of options granted during that year Nil
(iv) Identified employees who are granted options, during any one year equal to or exceeding 1% of the issued capital (excluding warrants and conversions) of the Company at the time of grant Nil
l. Diluted earnings per share There is no dilution of earning per share
m. Weighted average exercise price An exercise price of Rs. 45.85 per equity share shall be payable to the ESOP Scheme
n. Weighted average fair value of options Not applicable
o. Description of method and assumptions used for estimating fair value of options Not applicable

* Consequent upon sub-division of the each equity share of the company from Rs. 2/- per equity share into two equity shares of Rs. 1/- each, the employees of the Company eligible for equity of the company under Sintex Industries Limited Employees Stock Option Scheme, 2006 (ESOP 2006) be entitled to two equity shares of Rs. 1/- each, on exercise of option under the said Scheme, at an exercise price of Rs. 45.85 per equity share, as stated in the said scheme.



(a) Energy conservation measures taken: Plastics Division:

1) Replaced HP energy efficient motors against many times re-wound inefficient motors in Roto moulding department, Plastic Section and SMC Dept, resulting in saving of power consumption.

2) T-5 and LED Fixtures installed in place of old light fixtures, resulting in less power consumption at same Lumen

3) In Pultrusion Department replaced the CFL Light Fixtures in place of Old Light Fixtures Resulting In Less Power Consumption

4) Replaced A.C. Variable Drive in place of DC Motor Drive in Plastic Section Department and DOL Starter on Rock & Roll Machines in Roto Moulding department resulting in Energy Saving and Reduction in Mechanical Maintenance and downtime of machine.

5) Replaced Energy Efficient Bore well pump to get less energy consumption.

6) Installed Smart Sense instrument at Kalol Plant to see Online (Current and previous days) various parameters of electric power, i.e voltage, amp, KVA and KWH in any computer with an internet connection. Also provision of SMS alert if any value goes beyond the set parameters. The benefit is to get proper load shedding as per advance planning.

7) Installed Thermo Conductive Booster Fluid in All AC and Compressor-based Chilling Plant for Energy Saving.

8) Using the latest version of Reinhardt Machine, which lent multiple benefits like increased productivity, less consumption of fuel and man power, decrease in maintenance and more operator-friendly

9) Installed Compressed Air, Gas and Steam Consumption meter to get actual consumption.

10) Renovated Electrical Control Panel Board of FRP Tank m/c and changed all A.C. Motors in place of D.C. motors. The result is increased production and reduced break-down

11) Chilling plant replaced 5 H.P. pump in place of 7.5 H.P. pump.) in the office building. The result is less consumption of energy.

12) Renovated the screw and barrel in 120 MM Extruder m/c.

The result is an increase in the production rate.

13) Insulation of all Inlet and Outlet pipelines of Voltas Chilling Plant in Pre-moulding department was revamped. The result is increase in cooling efficiency and saving the electrical consumption.

14) Installed CCTV cameras in SMC, Roto Moulding and Various Security Points to control theft.

Textile Division:

1) Process Department, Merceriser Machine Condensate Return Water is now recovered and being used as Feed Water in Mill Steam Boiler. This water was earlier drained out as effluent.

2) Sizing Machine Condensate Water is now recovered and being used as Feed Water in Mill Steam Boiler. This water was earlier drained out as effluent. Thus resulting in a decrease in the ETP Load.

3) Humidification Plants split casing pumps are replaced with down size of mono block pumps thereby saving of electrical power of humidification plant.

4) In Omni Airjet Looms, LED type under loom lighting fixtures installed for weaving fabric quality checking on loom. This LED type fixtures consume less power compared to conventional type fixtures.

5) For Increasing the efficiency of Steam Boilers, High Pressure Jetting Wash introduced while annual inspection of boilers.

6) In IBL Steam Boilers, Common Draft of Flue Gas is divided into two individual drafts for increasing the efficiency of the IBL boiler.

7) Electronic Automatic Drain Traps installed in the Compressors Drain for minimising the air wastage through the manual drain.

8) Existing MS Water Supply Pipeline of Yarn Dyeing Department is replaced with ASTRAL CPVC line for restless water supply and it consumes the less power because of the resistance-less surface.

9) New Substation installed for converting Grid Power from 11 KV to 66 KV enabling us to draw the power at a cheaper rate from the open access.

10) In the Process Division, an overhead water tank is installed to supply water instead of a pump as used earlier. After the installation of an overhead tank, the working of the pump is reduced.

11) Modifications were carried out on the pipe line at the ETP plant, resulting in significant energy saving.

12) All the humidification plants of Spinning and Weaving sections are overhauled for maximum efficiency and the excess supply and exhaust fans of the Humidification plants were stopped for getting optimum %RH and thus reduced the power consumption of humidification plants.

13) The raw water supply is given by submerged pump instead of V-belt pump. It reduced the power consumption.

14) In the softening plant, supply of borewell water is converted into one submerged pump instead of two centrifugal pumps, reducing power consumption.

15) At Effluent Treatment Plant, the working of the aerator fans were minimised accordingly to the DO value which were continuously switched on before and thus a lot of power could be saved.

16) The blower fan used in the effluent treatment plant is staggered for optimum use.

17) Installed Energy Efficient Grundfoss Pump at Feed Water of Boiler in the place of old more power consuming pump.

18) The Steam Boiler Feed Water Tank and Piping are insulated. So that the feed water temperature of the boiler increased and ultimately increase the boiler efficiency.

(b) Additional investments and proposals, if any, being implemented to reduce consumption of energy.

Plastics Division

1) To install Smart Sense instrument at all out side plants to see Online (current and previous days’) various parameters of electric power, i.e voltage, amperage, KVA and KWH at any computer with internet connection. Also we get a text on our mobiles if any values cross the set parameters.

2) Working on replacement of remaining Street Light and Departments tube lights by LED fixtures which consume less power.

3) Renovation of Screw and Barrel of 150 MM Extruder m/c to increased the production.

Textile Division

1) Introducing Effluent Heat Recovery Skid which recollect the thermal energy from the hot effluent of yarn-dyed house and gives the hot water output for the dyeing machines.

2) Working on replacement of underloom tubelights by LED strips which consumes 50% less power than the tube light fixtures without affecting the light output for quality inspection and control.

3) Replacement of high-efficiency ring frames, power consumption reduced and productivity increased.

4) Staffy-made yarn dyeing machines are to be replaced with fully-automatic Go front-made yarn dyeing machines, which are more energy-efficient.

(c) Impact of the measures (a) and (b) above for reduction of the energy consumption and the consequent impact on the cost of production of goods.

1) In the plastics division, the impact of energy saving devices will be peripheral in the beginning. However, it will be substantial if the entire programme is implemented.

2) In the textile division, quality production is achieved by saving a considerable amount of power.

3) The above mentioned measures resulted in energy saving and a subsequent reduction in energy costs, reducing production costs.

(d) Total energy consumption and energy consumption per unit of production with respect to the Company`s products.

Details are provided in Form A annexed hereto.


(e) Efforts made in technology absorption

a) In the plastic division we were able to assimilate and develop products based on technology of Containment Solutions, USA in the field of underground tanks, manholes, wet wells among others

b) We developed several package type waste water treatment plants and septic tank models to address problems related to wastewater treatment at the site in a decentralised manner through technical collaboration with M/s. Aqua Nishihara Corporation Ltd., Japan.

c) We also developed appropriate technologies and techniques for windows, doors, SMC Products among others.

Details are provided in Form B annexed hereto.


(f) Activities relating to exports, initiatives taken to increase exports, development of new markets for products and services and export plans

In the textile division, the Company obtained ’OEKO TEX’ Standard 100 Certificate for its eco-friendly products, certified by TESTEX, Switzerland. Ongoing initiatives are undertaken to explore new markets and widen product reach, through regular meetings with customers and participation in exhibitions. These initiatives enhanced the competitiveness of our products in global markets.

(g) Total foreign Exchange used and earned.

(Rs. in crores)

2012-13 2011-12
i) Foreign Exchange earned including direct exports 36.55 34.25
ii) Foreign Exchange used 17.72 27.84



2012-13 2011-12
(A) Power and Fuel Consumption.
1. Electricity:
(a) purchased: Unit (lacs) 504.52 259.69
Total Amount (Rs. lacs) 3,881.78 1,745.91
Rate/Unit(Rs.) 7.69 6.72
(b) Own Generation
(i) Through Captive Power Plant: (M&W)
Units(lacs) 2.32 47.40
Units per liter of Diesel/Furnace oil/Gas 3.20 3.42
Cost/Unit(Rs.) 11.93 10.40
(ii) Through Captive Power Plant: (GT)
Units (lacs) 298.67 478.09
Units per SCM of Gas 2.85 3.50
Cost/Unit (Rs.) 9.22 7.81
2. Furnace Oil: (Qty. Kilolitres) 72.44 1306.91
Total Amount (Rs. lacs) 27.66 465.13
Average Rate (Rs./litre) 38.18 35.59
3. Others:
(a) Natural Gas
Quantity Consumed in M3 6,189.28 7,088.91
Total cost (Rs. lacs) 568.46 679.34
Rate/Unit(1000 m3)(Rs..) 9,184.59 9,583.22
(b) RLNG Gas
Quantity Consumed in (000) SCM 10,393.45 13,647.27
Total cost (Rs. lacs) 3,087.07 3,735.68
Rate/Unit (000 SCM)(Rs.) 29,702.07 27,373.00
(c) L.P.G
Quantity consumed (in lacs kgs) 26.67 28.45
Total cost (Rs. in lacs) 1,721.92 1,604.81
Rate/unit (Kgs.) (Rs.) 64.57 56.41


Standard Current Year Previous Year
(B) Consumption per Unit of Production:
1. Electricity (Units)
a) Fabrics on production meters basis No Specific 2.59 2.21
b) Yarn (per kg.) standard as such 5.60 5.57
Plastic Containers (per kg.) The consumption 0.49 0.58
Plastic Section (per kg.) per unit depends 0.71 0.85
Sheet Moulding (per kg.) on the Product 0.51 0.59
Thermoforming Mix 4.93 2.90
2. Gas Consumption (Textile – on production mtr.basis) 0.62 0.71
3. Others:
(a) Gas(M3)
(Textile on production meters basis) 0.25 0.17
Plastic Containers (Per kg.) 0.22 0.22
Plastic Sections (Per kg.) 0.02 0.02
(b) L.P.G
Plastic Containers (Per kg.) 0.21 0.20

The variation in consumption in power and fuel was due to a different product mix between current and previous year.



Research and Development (R & D)

1. Specific areas in which R & D carried out by the Company Prefab shops, prefab houses, kiosks, modular toilets, portable toilets, underground water tanks, underground petroleum tanks, septic tanks, package type wastewater treatment systems, bamboo houses among others
2. Benefits derived as a result of the above R & D. The Plastics Division developed various technologies and techniques in the field of plastics for the manufacture of above products.
3. Future plan of action The Plastics Division will continue to work on the improvement of major products as well as develop specialized applications on existing processes.
4. Expenditure on R & D
a) Capital : Nil
b) Recurring :
c) Total :
d) Total R & D expenditure as a percentage of total turnover.
Technology absorption, adaptation and innovation.
1. Efforts, in brief, made towards technology absorption, adaptation and innovation. Efforts are made to improve cost-effective technology for productive and quality improvement.
2. Benefit derived as a result of the above efforts e.g. product improvement, cost reduction, product development, import substitution etc. The Plastics Division has introduced a number of new products and opened up new areas of business.
3. Information regarding technology imported during the last five years. Not applicable.
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