Amal Ltd 2011-12

Amal Ltd | Annual Report 2011-12 Overview by the Managing Director Dear Shareholders, In our letter last year, we had informed you on the initiatives taken to improve the performance, such as supplying excess steam to a neighbouring plant in Ankleshwar, raising the overall capacity of the Sulphuric Acid plant and increasing the volume of Sulphur Trioxide, a value added product. However, we are yet to realise the envisaged benefits which may have significantly improved our performance. We are continuing to pursue these initiatives which will improve our manufacturing efficiency and competitiveness in the ensuing years. During the year, the price of the key raw material, Sulphur, continued to be at a high, with negligible increase in market prices of end products such as Sulphuric Acid 98%, Oleum 65%, Oleum 25%, Sulphur Trioxide and Sulphur Dioxide. As a result, contribution margins of these products have been the lowest, thus impacting the overall performance of our Company. We have also made marginal investments during the year, such as procuring additional toners of Sulphur Dioxide to cater a larger customer base and installation of a plate heat exchanger for waste heat recovery; the benefit of which will accrue in the financial year 2012-13. As we progress into the current year, the situation on Sulphur price continues to be unfavourable, resulting in severe pressure on the contribution margins of our end products. However, implementation of key initiatives, within our control, such as full deployment of steam (a by- product) and better capacity utilisation will help us to improve our performance. Besides, we are also evaluating new products which will help our Company to turnaround in these trying times. We wish to take this opportunity to thank the independent Directors for their significant involvement and guidance. On behalf of all our colleagues on the Board, we wish to thank the customers for their support and employees for their commitment and dedication. With best wishes, Sincerely, Vasudev Koppaka Managing Director