Himadri Speciality Chemical Limited (500184) Earnings Call Transcript & Summary

Dear shareholders, respected Chairman, honorable members of the Board, invited guests and ladies and gentlemen. Good morning, everyone. I'm Monika Saraswat, Company Secretary of your company. Heartly welcome you all to this 36th Annual General Meeting of Himadri Speciality Chemical Limited. I have with me Mr. Anurag Choudhary, Chairman cum Manager Director and CEO of the company; Mr. Amit Choudhary, Whole-time Director; Mr. Santimoy Dey, Independent Director; Mr. Kamlesh Kumar Agarwal, CFO of your company. We are joining this meeting from the corporate office of the company located at 8 India Exchange Place, 2nd floor, Kolkata-700 001. I will take a few moments to explain you details about this meeting. This AGM is being held virtually through video conference and other audio visual means in compliance with circulars as prescribed by MCA and SEBI circulars. Thereby dispensing the requirements of physical attendance of members at the AGM. Before we start the proceedings of this AGM, I would like to give you an overview of the process to participate at this AGM through audiovisual means. The facility to join this AGM through audiovisual means is being made available on first come first serve basis. Members attending this AGM through audiovisual means shall be counted for the purpose of quorum under Section 103 of Company's Act. The members joining this meeting are kept on mute mode by the host to avoid any disturbance arising from background noises and ensures smooth and seamless conduct of the meeting. While the question and answers starts, the names of the shareholders will be announced, who have registered themselves as speaker shareholder one by one. Thereafter, speaker shareholder will be unmuted by the host to enable him or her to speak. To start speaking, shareholders are requested to click on the video and audio button, in case they're unable to join through video, they can speak only through audio. We request the registered speaker shareholders to use earphones so that they are clearly audible and any noise in the background can be minimized. The participants are requested to ensure stable WiFi or LAN connection to avoid disturbances. They're also requested to ensure that WiFi is not connected to any other devices, no other background applications are running and proper light is available to have clear audio and video. If there is any connectivity problem at the speaker end, the host shall mute such speaker and the next speaker will be invited to speak. Once the connectivity improves, the muted speaker shareholders will be called again to speak after the speaker shareholders registered completes their turn. We request speaker shareholders to kindly limit their speech and questions to 3 to 4 minutes so that all the registered speakers will get fair time. The Chairman reserves the right to restrict the number of questions, time allotted, and number of speakers to ensure smooth conduct of AGM. During the AGM, if a shareholder faces any technical issues, he or she can contact the helpline number mentioned in the AGM notice. As you are aware that the company has provided remote e-voting facility to the members and the same has been concluded yesterday at 5:00 p.m., and the members who have not yet casted their vote through remote e-voting, and who are participating this AGM shall have an opportunity to cast their votes during the meeting through the e-voting system provided by NSDL. The book closure date fixed by the company from AGM 24 to 28 June, both days inclusive for the purpose of 36th AGM and payment of dividend. As for the Articles of Association of the company, Mr. Anurag Choudhary, the Chairman cum Managing Director and CEO of the company, will be the chairman of the 36th AGM. Since the AGM has been held through OAVM, if there's any connectivity issue, Mr. Dey or any other director will act as the Chairman for the AGM as authorized by the Board at its meeting held on 25 April '24. Introduction. Now I would like to introduce Mr. Anurag Choudhary, the Chairman cum Managing Director and CEO of the company. As the CMD and CEO, Mr. Anurag Choudhary, has led the transformation of the company from a coal tar pitch manufacturing to a global specialty chemical [indiscernible]. He is a visionary leader whose exceptional leadership has propelled the company to global dominance, led by the strict authority, Himadri has achieved market leadership in its key products and expanded into new products and markets like carbon black, lithium battery, construction chemicals, et cetera. His commitment and passion towards innovation, R&D and sustainability have positioned the company as the first union producer and pioneer of both anode and cathode materials for lithium-ion batteries. Himadri's recent acquisition of Birla Tyres reflects his strategic acumen aligning with the company's play in the electric vehicle space. He sees the transformation opportunity in electric vehicles and electrical storage space and his pioneering for the development of lithium-ion battery materials in India. Sir, welcome you to this meeting. Now I request Chairman, sir, to address the shareholders.

Thank you, Monika. Good morning, my dear shareholders. I, Anurag Choudhary, the Chairman of the company. On behalf of the company and the Board of Directors, welcome you all to the 36th Annual General Meeting of your company, being held through audiovisual means. I have joined this meeting from the corporate office of the company at 8, India Exchange Place, Kolkata-1. As informed by the Company Secretary, the requisite quorum is present. I declare this 36th AGM of the company open. At the outset, I'm deeply grateful to all the investors and stakeholders for their invaluable trust in our vision and capabilities. Now I request the company secretary to briefly introduce the honorable members of the Board who are joining us from various locations and conduct the proceedings of the AGM.

Thank you, sir. Now I acknowledge the presence of Mr. Shyam Sundar Choudhary, the Whole-Time Director of the company who has joined us from Kolkata. He has been associated with the company since its commencement. He always believes in good corporate governance and undertakes and designs various CSR activities for the company. Sir, I welcome you to this meeting.

I, Shyam Sundar Choudhary, Whole-time Director.

Thank you, sir. I acknowledge the presence of Mr. Amit Choudhary, the Whole-Time Director of your company, who has joined from corporate office of the company. He is responsible for the project expansions and implementation activities of the group. A driving force for all, under his stewardship the company underwent remarkable multiple expansion of capacities across the business verticals. This transformative growth underscores his strategic acumen and unwavering commitment to the group's advancement. He also takes on the crucial role of guiding the Human Resource functions of the company. Sir, I welcome you to this meeting. Now I acknowledge the presence of Mr. Girish Paman Vanvari, the Independent Director and the Chairman of the Audit Committee of your company. He has joined us from Mumbai. Mr. Vanvari is a chartered accountant by profession and a fellow member of ICAI and has been a rank holder across all levels. With over 29 years of consulting experience, he is the founder of Transaction Square, a Tax, Regulatory and Business Advisory Firm. He has 15 years stint with KPMG and have the National Leader for Tax at KPMG India. Sir, I welcome you to this meeting. Now I acknowledge the presence for Mr. Santimoy Dey, Independent Director and the Chairman of Stakeholder Relationship Committee and CSR committee, has joined the meeting from the Corporate Office of the company. Mr. Dey has decades of experience in the field of agricultural marketing society, co-operatives and agricultural practices. Mr. Dey is well-versed in business development projects, fertilizer business and diversification strategies. Mr. Dey was a trustee of Iffco Kishan Seva Trust, New Delhi, for 25 years and CORDET IFFCO for 20 years. Sir, I welcome you to this meeting.

Thank you.

I acknowledge the presence of Ms. Rita Bhattacharya, Independent Director of your company. She has joined the meeting from Goa. She is an Honors Graduate in chemistry and is fluent in several languages. She has a rich pool of experience in life insurance industry, having worked in office of the Governing Body of Insurance Council as Secretary General and also in various Departments of Corporation. She joined LIC in the year 1981 and finally superannuated in May 2014 as Executive Director. She was honored at the International Associate of Advertisers Leadership Awards 2012. Madam, I welcome you to this meeting. Lastly, I acknowledge the presence of Mr. Gopal Ajay Malpani, Independent Director of the company, who has joined us from Mumbai. Mr. Malpani is LLB, chartered accountant, B. Com., and he has done M.B.L. from National Law School of Indian University, Bangalore. He's an advocating practice for more than 17 years rendering advisory services on various matters pertaining to corporate laws, mergers, amalgamations, acquisitions, stamps duties and financial [indiscernible]. Sir, I welcome you to this meeting. With the permission of the Chair, I would like to mention that the representatives of Singhi & Company, Statutory Auditors of the company are present at this meeting. I also acknowledge the presence of Mr. A.K. Maitra, Secretarial Auditor for financial year '23-'24. Mrs. Arun Kumar Maitra & Company, Practicing Company Secretary. I welcome you all for this meeting. The Board of Directors have appointed Mr. Rajarshi Ghosh, Practicing Company Secretary as Scrutinizer for this meeting to scrutinize the remote e-voting process and e-voting at meeting, and to give report thereon in prescribed manner and Mr. Rajarshi Ghosh is present in this meeting. Further, I would like to inform that this meeting is duly constituted in accordance with the Company's Act 13, other applicable laws and Articles of Association of the company. All feasible efforts have indeed been made so as to enable you to participate and vote on the items being considered in this meeting. Since there is no physical attendance of members, the requirement of appointed proxy is not applicable. Pursuant to the circulars issued by MCA and SEBI, the soft copies of the notice -- of the meeting, along with the company's annual report for the '23-'24 has already been sent via e-mail to all those members, who have their e-mail IDs registered with company's registrar and the respective DPs. The notice and annual reports were also made available on the website of the company and the websites of NSE and BSE. With your permission, I take the notice [indiscernible] as right. Statutory registers and other documents as required to be kept at the AGM under Company's Act and the certificate obtained from Mr. Arun Kumar Maitra, and company, Secretarial Auditor in compliance with SEBI. Share Based Employee Benefits and Sweat Equity regulations are open for inspection during the AGM in the NSDL e-voting system itself. Statutory auditors and secretarial auditors of the company have already submitted their respective reports for FY '23-'24 and the same part of the annual report already circulated to the members. Further, there is no qualification, observations or comments or other remarks in Statutory Auditors report, Secretarial Audit report for FY '23 and '24. Now I request Chairman, sir, to brief on the current and future business prospects of the company.

Thank you, Monika. My dear shareholders, I extend a warm welcome to all of you with great pleasure to the AGM of Himadri Speciality Chemical Limited. I would like to express my gratitude to each and every fellow shareholders for having faith in your company and witnessing a remarkable growth. I am delighted to share my thoughts with you at the culmination of an eventful financial year. As we continue the journey forward, we deeply cherish the trust and support of all our customers and stakeholders. As we gather here today against the backdrop of dynamic global economy, I am filled with optimism for the future of our company and the industries we serve. Despite prevailing geopolitical challenges, the global economic landscape has shown resilience. We have witnessed a notable drop in inflation coupled with a promising rise in GDP, reflecting positive trends in both monetary policy and consumer spending. Similarly, in India, our economy continues to defy expectations, maintain its position as one of the world's fastest-growing economies. With our robust GDP growth rate of 8.2% for FY '23/'24, we are [indiscernible] for continued success in financial year ahead. The government emphasis on infrastructure development and economic reforms provide a favorable involvement for sustainable growth and prosperity. Now turning our attention to Himadri Speciality Chemical Limited performance. I am pleased to report that over the past year, we have witnessed consolidation in our position and achieve sustainable numbers. Our financial results speak volumes about our strategic vision and operational excellence. Over the past year, we have seen remarkable increase in profitability across the board. This year, we have achieved a 55% growth in EBITDA and noteworthy 98% increase in PAT. This substantial growth is a result of our continuous effort to enhance the value of our product and service offered to our customers. Our success transcends the financial metrics, it is complemented by the fortification of our balance sheet, which stands as a backbone of our financial strength and resilience with a net zero debt status and net cash of INR 142 crores. In terms of operational excellence, our sales volume continues to show a consistent upward trend, reflecting our relentless focus on expanding our business and introducing innovative products while benefiting new markets to meet evolving market demands. Looking ahead, our capital expenditure plan reflects our proactive stance towards future growth and innovation. Himadri LFP cathode vision is to produce 200,000 metric tons of lithium iron phosphate cathode active material catering to 100 gigawatt lithium-ion battery in phases with a CapEx of INR 1,125 crores allocated in the construction of LFP Cathode plant for a capacity of 40,000 metric tons in Phase I, which is patent to be operational between 27 to 36 months commencing from December 2023. We are poised to redefine industry standards and cement our position as leaders in the market. Furthermore, our expansion plan extends beyond [ waters ] with the announcement of new specialty carbon black line which will more than double our specialty carbon black production capacity taking it to 1,30,000 metric tons per annum with an estimated CapEx of INR 220 crores. This expansion project is scheduled to commence operational within 18 months positioning as the world's largest single-site producer of specialty carbon black and significantly bolstering our bottom line. In the realm of partnerships and acquisitions, our endeavors have been guided by strategic vision to expand our capabilities and drive innovation in key areas. Our recent acquisition of Sicona, an innovative Australian start-up specializing in advanced high-capacity silicon anode technology while lithium-ion batteries underscores our commitment to producing high-quality silicon-based anode material and exploring innovative technology in battery material space. With 12.79% stake secured, we are strategically poised to produce high-quality anode material and bolster our position as a frontrunner in battery materials segment. Another notable contribution that exemplifies this effort is our partnership in Invati [indiscernible] the lithium-ion battery industry. Through this transformative venture, we seek to enhance storage efficiency, charging speed and battery life spend. With the 40% stake secured, this partnership heralds a new era of progress and innovation in battery materials segment. In addition to these strategic initiatives, our acquisition of Birla Tyres Limited stand as a testament to our ambition to diversify our product portfolio and tap into high-margin niche markets. This is a strategic acquisition with Himadri as a strategic partner and Dalmia Bharat Refractories Limited as a resolution applicant positions us to engage [indiscernible] and customers of carbon value chain. Leveraging the strong brand of Birla Tyres, we aim to offer innovative products that maximize returns for our stakeholders and drive substantial growth with a strong return on capital employed. Our commitment to sustainability is at the core of everything we do. We have set ambitious goal to drive positive change, including transitioning to clean energy. We are determined to meet a significant portion of our energy needs through clean sources like solar and bit power, reducing our carbon footprint and promoting ratable energy. Through a state of our water treatment plants, we have achieved 0 discharge of liquids ensuring responsible water usage and conserving precious resources. We are leading the change in transitioning from carbon chemical company sustainable mobility and energy storage solution. This includes securing essential raw material for electric vehicles and mobile energy storage systems, contributing to a cleaner and more sustainable future. By incorporating recycling of bio source material into our product, we are reducing base and promoting sustainable consumption practices, aligning with our commitment to environmental responsibility. The main raw material for us, coal tar is a byproduct from the steel plants, which is a forward step in this direction. We are dedicated to reducing our emissions with our goal to cut Scope 3 emission by 40% and work towards achieving net zero emission by 2050. In line with global climate objectives, our sustainability initiatives have earned us applauds such as silver medal from EcoVadis. This recognition ranks Himadri in the top 23% of the highest rated companies in the world and amongst more than 100,000 plus rated companies. Moreover, we have become direct signatory to United Nations Global Compact. This recognition accounts our commitment to environmental stewardship and responsible business practices in our era of rapid transformation and social progression, Himadri is dedicated to maintaining a pioneering stance through relentless innovation. At Himadri, we always say that R&D runs in the DNA of the company. And nowhere is this more evident than in our relentless commitment to research and development. Our global knowledge [indiscernible] with experience a highly motivated techno-commercial team, a world-class laboratory, a consistent R&D and an innovative mindset. That all our people at Himadri harbor and encourage. The 5 pillars that support our R&D [indiscernible] and allow us to deliver greater value to our stakeholders. Our investments in future technology are driving groundbreaking advancements in key areas such as cathode material, anode, silicon-based anode material and Graphene. These initiatives are not just about staying ahead of industry trends. They are about shaping the future of our industry with innovative offerings such as speciality oil, [indiscernible] COLORX, BARONX, JETEX to name a few. We have added new brands with multiple grades of speciality carbon black that get us to diverse application segments. Our notable contribution and collaboration that underscores our dedication to innovation is our strategic investment in Sicona. With this cost-effective solution at the scale, we are poised to enhance battery performance and efficiency, propelling us further into realm of sustainable energy solutions, but our pursuit for innovation doesn't stop there. We are harnessing the power of artificial intelligence to optimize battery cathode materials performance. By leveraging artificial intelligence, we are pushing the boundaries of what is possible, unlocking new possibilities in energy storage technology that was unimaginable. Our journey over the last few years have been supercharged exploring new avenues, developing new technologies and entering new business and segments. All of this has been made possible by the determination and commitment of our Himadri Parivar, the team we have built over the years. Our approach towards human capital is built on a commitment to not only attract and retain the best talents, but also foster an environment where innovation, diversity, transparency and productivity is high. I extend my heartful gratitude to all our employees, shareholders and partners for their unwavering support. Let us dive into a future with confidence embracing challenges as opportunities working together to achieve greater heights and delivering sustainable growth and maximize the value of each of you. Thank you and look forward to achieving new milestones together. Now I request company secretary to carry on the AGM proceedings.

Thank you, sir. As already informed, the company has provided remote e-voting facility to all the members through NSDL to enable to cast their votes electronically in respect of all the businesses to be transacted at the 36th AGM in accordance with the provisions of the Company's Act, and pursuant to the regulations of SEBI regulations 2013. The remote cases voting facility was kept open from 9 a.m. on 16 June '24 to 5 p.m. till 19 June, '24. Further, as per Section 107 of the Company's Act, [indiscernible] circulars, there will be no [indiscernible] the AGM. Therefore, in order to enable the members present at the meeting and who have not availed the facility of remote e-voting to cast their votes, an electronic voting facility at the AGM has been arranged, and voting will be taken in respect of all the business contained in the notice. Now coming to the formal items of the agenda, there are total 6 businesses in the notice. Item 1 to 3 are ordinary businesses and item 4 to 6 are special business. Item number 1, to the notice pertains to adoption of audited financial statements, including the audited consolidated financial statements for the financial year ended 31st March '24. And the report of the Board of Directors and auditors thereon as an ordinary resolution. The objective of this agenda item is to seek approval of the members for adoption of the stand-alone and considered annual financial statements. And together with the report of Board of Directors and auditors, there are financial year ended 31st March '24 to comply with the requirements of Companies Act 2013. Item #2 to the notice pertains to the declaration of dividend of INR 0.50 that is 50% per equity share, have a face value of INR 1 each for the financial year ended 31st March '24 as an ordinary resolution. The objective of this agenda item is to seek approval of the members for the declaration of dividend of 50% per equity share of face value of INR 1 each for the financial year ended 31st March '24. Item #3 to the notice pertains to the appointment of Mr. Amit Choudhary who retires by rotation and being eligible offers himself for reappointment. As an ordinary resolution, detailed information as required in the listing regulations and Secretary Standards in respect of his reappointment has been provided in the notice convening this case. The objective of this agenda item is to seek approval of the members for the appointment of Mr. Amit Choudhary as Director of the Company who retires by rotation in compliance with the requirements of Section 152 of the Companies Act '13. Item #4 to the notice, pertains to the ratification of remuneration payable to Cost Auditors for FY '24/'25, as an ordinary resolution. The objective of this agenda item is to seek approval of the members for the payment of remuneration of INR 1 lakh to Mr. Sambhu Banerjee for his appointment towards cost audit fees for financial year '24/'25. Since the next item #5 and #6 pertains for reappointment of Mr. Anurag Choudhary and Mr. Amit Choudhary, I will request Mr. Santimoy Dey, Independent Director, to take up #5 and #6 of the notice.

Thank you, Monika, I would request the Company Secretary to carry on the AGM proceedings.

Thank you, sir. Item #5 of the notice pertains to reappointment of Mr. Anurag Choudhary as Chairman cum Managing Director and CEO, it is a special resolution. The objective of this agenda item is to seek approval of members for the reappointment of Mr. Anurag Choudhary as Chairman cum Managing Director and CEO for a period of 5 years with effect from 14 August '24 till 13 August 2029 on such detailed terms and conditions, including remuneration as set out in Explanatory Statement of notice convening this 36th AGM. Detailed information as required under SEBI Listing Regulations and Secretary Standards. In respect of this reappointment has been provided in the notice convening this AGM. I refer to Item #5 with the notice and move the special resolution for reappointment of Mr. Anurag Choudhary as Chairman cum Managing Director and CEO. Item #6 to the notice pertains to reappointment of Mr. Amit Choudhary as a Whole-Time Director. It's a special resolution. The objective of this agenda item is to seek approval of the members for the appointment of Mr. Amit Choudhary as a Whole-Time Director for a period of 5 years with effect from 14 August '24 till 13 August 2029 on such detailed terms and conditions, including remuneration, as set out in the Explanatory Statement of notice convening this 36th AGM. Detailed information as required under SEBI Listing Regulations and the Secretary Standards in respect of his reappointment has been provided in the notice convening this AGM. I refer to Item #6 of the notice and move the specialization for reappointment of Mr. Amit Choudhary as a Whole-Time Director.

Okay. I am Santimoy Dey, and now I would request Mr. Anurag Choudhary, Chairman of the meeting, to continue from here the further proceedings of the meeting.

Thank you, Mr. Dey. I request Company Secretary to carry on with the AGM proceedings.

Thank you, Sir. Now I would like to call the name of the registered speakers. He or she shall begin asking questions one by one. I request the members that their comments must be restricted to the business of the Annual General Meeting and relating only to the company and not to any other matter. I also request the shareholders that they should restrict their speech 3 to 4 minutes so that all those who have interested speakers may get equal opportunity to express their views. Please do not repeat the queries already asked by other fellow members. Now I would request speaker number #1, Mr. Alok Kumar Pal.

Okay. Good morning, everybody. Myself, A. K. Pal. It is great honor and proud privilege to me that I am a part of this 36th AGM. At the outset, I extend my heartfelt gratitude to our secretarial team for their dedicated and excellent investor service. This service is truly remarkable and praise worthy. I am profoundly touched by their sincerity, courtesy and hospitality. I have never seen such type competent and efficient secretarial team, any other company. I have no words to express my gratitude and ecstasy, only my tears could do so. Now I come to annual report. First I congratulate, Board of Directors for super performance, higher revenue and highest dividend. On my core of heart, I hope under dynamic leadership of our Chairman, company will very soon touch new height of success. Company will certainly contribute to country's growing demand of quality product and niche landmark in specialty carbon industry near future. Sir, I have 1 suggestion. Please provide 10 years financial highlights with important parameter. So shareholder can get all information at a glance and no company's performance is ascending or descending nature. Because all shareholders got enough time to read 371-page annual report. At the last, I thank all our employees, worker and executives for their unwavering commitment, support and dedication for company's growth and achievement. Thank you for presenting.

Thank you, Mr. Pal. Now I would request our next speaker, Mr. Rajender Bansal.

Good morning, respected Chairman and Director President. My name is Rajendra [ Bansel ] and I'm from Kolkata. Firstly, congratulation to whole Himadri team, Board of Directors, fellow shareholders and all employees for [ Ab ki baar 400 paar] which even Modi Ji could not achieve what your company has achieved or our company has achieved. And I would also like to congratulations the Company Secretary Department for timely sending notices, annual reports to shareholders, I have gone through the annual report and I found it to be very informative, colorful, helpful and detailed in all respects. Further, I would like to congratulate the management and the Board members on a remarkable and historical financial year '23, '24. From the annual report, I have come to know that in the financial year, the company has reached highest ever sales, PAT and EBITDA. I congratulate the entire Himadri team for making the first ever profit of INR 411 crores as compared to INR 208 crores in the previous financial year, representing an increase of 98%. And my question is what will be the company's role in the upcoming EV sector evolution. With this question, I would also take the opportunity to wish the company all the best for all of its future endeavor. Thank you, sir. Please be safe and wishing for a healthy life ahead.

Thank you, Mr. Bansal. Now I will request our next speaker, Mr. Aviruth Nandi.

I'm CEO of Group Nandi. I'm doing the conference -- attending the conference from Kolkata. So congratulations and very heartiest thanks from the shareholders' point of view for giving a supercharge performance to the entire team of Himadri Specialty with -- carrying forward with a strong corporate governance, cash profit has been huge. Really appreciate the efforts that the company is making towards creating shareholder wealth. Also, I appreciate the initiative of the management of integrating artificial intelligence and technology with manufacturing. So that will be a great approach. And I would like to know what is your current capacity utilization? And what is the expectation if the capacity utilization more than what is required? Is there any expansion or a new plant opening. And in the notice you have put six items and I support all of them, and it is -- as it is for the betterment of the company, so definitely supporting the company as per the market situation. I am very, very hopeful with the company, specifically the sector which we are into. So from my side, I'm totally confident and with the management and supporting always. This, Aviruth Nandi, signing off. Thank you.

Thank you, Mr. Aviruth Nandi. Now our next speaker, Mr. Ravi Thakur.

I'm Ravi Thakur from Kolkata. First of all, I would like to take this opportunity to congratulate the Secretarial Department Team for timely sending notice and annual report to shareholders and maintaining good stakeholder relationship. I would like to appreciate company's commitment towards corporate social responsibility and environmental, social and governance initiatives. I'm very happy to share that the company has been doing excellent work in the CSR field for 3 years. And this year, too, it has spent INR 562.03 lakhs towards various CSR projects, as mentioned in the Page #86 of the annual report. Further, I would like to congratulate the company on receiving CSR Golden Globe Tiger Award and 10th [ Greentech ] CSR India award 2023. As we can see from the Annual Report that the company has been focusing on various CSR activities like first, company's ongoing rural development project near its [ Mahistikry ] plant has brought significant benefits to several [ underserved ] villagers facilitating the construction of pukka houses in place of kutcha homes, thereby enhancing their quality of life. To further the company is committed to promoting healthcare in the communities itself and operates in. It has set up healthcare facilities, conducted medical camps and supported healthcare infrastructure development to ensure access to quality health care services for all. Three, the company also offers educational books spanning all academic levels to promote education among students from underserved communities. The company also acknowledges the accomplishments of exceptional students by bestowing them with the various prizes and sponsorships. Additional contributions have been made towards the [indiscernible] food buildings and the establishment of a library. I congratulate you on the excellent work for the society and helping sustainable development and future generation. I wish the management for all the best for future [ initiatives ] and plans. I would like to know whether the company expects lowing any new projects for its CSR activities. With this, I would like to thank all of you. Thank you, sir. Have a nice day.

Thank you, Mr. Thakur. Now I would like to request our speaker, Mr. Gautam Nandi.

Good morning, respected Chairman, Board of Directors, fellow [ shareholders -- ] very old equity shareholder of your company. Sir firstly, I'd like to give thanks to your Secretarial Department for sending me annual report, [ annual ] notice and necessary joining link through e-mail well in advance. So especially thanks to our respected Company Secretary, Ms. Monika Saraswat, very sober, well behaved and a very dynamic lady. And our assistant, Mr. Rahul Pandey, including her whole team of your Secretarial Department for rendering very good services to our minority shareholders. Sir, you are organizing your Annual General Meeting through video conference. And I find it's a grand success. Sir, I am very pleased to receive your wonderful annual report, which is very, very attractive and also very informative, which consisting 371 pages. So thanks again for the good presentation. Sir, accounts and performance [Foreign Language], everything is clear self. Sir, I'm very -- I find very, very good performance, excellent performance in every segment, even in this challenging year. Now the situation is still very tough. In this tough situation, you are paying a good dividend to our minority shareholders. We are very happy, sir. Sir, your CSR is also very, very good. So please keep it up. Sir, I'd like to know what is your road map for the next 3 to 4 years. Sir, [Foreign Language], which will be convenient to you, Sir. [Foreign Language]. Sir, I'm very -- I'm very happy sir, I got huge price appreciation in your company's stock. So I am very proud to be a shareholder of your company. I have full trust with our strong management like you -- and so along with my family, who heartedly support your all resolutions, which we have already casted through our e-voting. Sir, looking forward with a positive outlook towards our company with higher profit margin and some dividend, 1:1 bonus and return. Sir, may God bless you, stay safe, stay healthy. Thank you very much, sir. Thank you very much. Myself, Gautam Nandi.

Thank you, Mr. Nandi. Now I would request our next speaker, Mr. Ravi Agarwal.

Good morning, sir, madam, Board of Directors, myself, Ravi Agarwal, I'm from Kolkata. First of all, I would like to thanks to the management to giving the opportunity to express my view. Can you hear me?

Yes. Sir, we can hear you.

I am proud to be a part of a company which is producing world-class Carbon Black and advanced carbon material worldwide the company over the years through the research and development and develop the product across the entire product value chain. I would like to congrats the whole Himadri team and historical profit for this year, which is INR 411 crores compared to previous year, INR 208 crores. That is 97.78% more than the last year, Furthermore I would like to congrats to a Secretarial Department for too timely sending me notice and annual report to us. I go through the annual report, and I would to found this a very colorful, good design like every year and very informative. Thank you, [indiscernible] and giving the opportunity to speaker is in your company. Thank you to all. Have a nice day.

Thank you, Mr. Ravi. Now I will request our next speaker, Mr. Ashwini Singh.

Good morning, Board of Directors and Company Secretary, Myself, Ashwini from Kolkata. First of all, I would [indiscernible] thank the management for giving me the opportunity to express my view and presenting a detail colorful, nice and unique annual report and [indiscernible] with the shareholder. I would like to thank the entire Secretary team for arranging this AGM through [ OAVM ]. I am proud to be a part of a company, which is producing world-class carbon, carbon black and advanced carbon material worldwide along with tyre and battery products. I congratulate the entire financial -- financial and accounts team for consistent performance and making our company debt-free status with a net positive cash balance as quoted by our CFO, Mr. Kamlesh Kumar Agarwal, in the Page #19 in annual report. I also congratulate to R&D teams for various innovation work and testing activities done there in [indiscernible] in India and globally, doubling down and especially the carbon black production, and kick starting the production of tyres. I support all your resolutions. And with the best wishes to the management, staff and employee to this world-class product. Thank you.

Thank you, Mr. Ashwini Singh. Now I would like to welcome our next speaker, Madam Khushboo Agarwal.

Good morning, Board of Directors and Company Secretary, myself, Khushboo Agarwal from Kolkata. First of all, I would like to thank Monika Saraswat, Company Secretary and entire Secretarial Team for giving me the opportunity to express my view in this AGM of member of Himadri Speciality Chemical Limited. I also congratulate to R&D team for various innovation work and testing activity done, therein and transform the product portfolio towards high-value products from carbon black to speciality carbon black, coal tar to advance carbon material, naphthalene to sulphonates, naphthalenes, formaldehyde, advanced carbon material and other value-added facility products. The company is the largest Indian player and the first Indian procedural to pursue the lithium ion anode material in the Indian commercial. Further, I support all your resolution and give my best wishes to the management, staff and employees to produce world-class products and expecting enhanced dividend for shareholders. My question from management are what are the future plans of the company in the field of tyres business and EV sectors. Nothing to add more, I have faith in the company and I hope it will turn up to a great highest in the coming year.

Thank you so much, Madam. Now I would request our next speaker, Mr. Roshan Singh.

Good morning, Mr. Chairman sir, and Director present. My name is Roshan Singh from Kolkata. First, I would like to congratulate the entire Himadri team for their excellent work and preparing such a wonderful colorful and very informative annual report like every year. I would like to say that I am truly delighted to see that our Board has keep the [ consistency ] by paying a dividend, it is a good and also increases the rate of dividend from 25% to 50%. I have only over one question from management. Is there -- is there any plan for right share or bonus share to reward the shareholder. Nothing to add more, I have faith in the company and hope it will prove up and greater highest in the coming year. Thank you, all the best.

Thank you. These were the registered speakers who have spoken. I would request our Chairman, sir, to clarify the points raised by the members if any.

Thank you. My dear shareholders for your support, guidance and trust in the management of the company. We appreciate your views and we will try to incorporate 10-year financial highlights. The company is focused on research and development and innovation. There is a big transformation happening in the automobile space with IC engine, cars being replaced by [indiscernible] and this is where the lithium-ion battery is playing a critical role. This industry has also matured over the last 20 years. So what we are seeing in lithium-ion battery industry today is a result of dedication and capacity built up over the last 20, 25 years. It's a long journey. But now it has come to an inflection point from where you will find there will be a potential growth in EV. If you look at the government commitment towards EV, even our government has committed that by 2030, the expectation is 30% of the vehicles will be electric vehicles. Similar programs is done globally by other countries also. So there is going to be a big cost in electric vehicles in the years to come, which will result in significant demand for lithium-ion batteries. Your company is positioning itself as a key raw material supplier, key component supplier to lithium-ion batteries. So we are pleased to announce first lithium-ion phosphate plant in India to be commissioned in 27 to 36 months from December 2023. Along with this, we are doing significant research in terms of anode. We are working on all the metrics of anode, whether it's natural graphite, synthetic graphite or silicon anode. So your company is going to play a pivotal role in the future of lithium-ion battery in India and globally. We have undertaken expansion in our core business also by expanding our capacity of specialty carbon black from 60,000 tonnes to 120,000 tonnes. This is on the backdrop of full utilization in the existing capacity with a significantly lower CapEx. If we set up a greenfield projects, the CapEx would have been much higher than INR 220 crores. But because we have there able to set up a lot of utilities and infrastructure in the first phase only we have been able to reduce the CapEx significantly, which will result in significantly better ROC. For the next 3 to 5 years, the company will be focusing on raw material components for lithium-ion batteries. And at the same time, we have acquired Birla Tyres for which where -- we're targeting the special, vertical and special tasks, which is high value addition. We will start our journey with the normal tyre, which the capacity is there in Birla tyres and gradually develop upon that special tyres for agriculture and mining applications. The focus will be to use renewable energy in our expansion for the raw material in future. We have clearly outplayed our net zero goal to be achieved by 2050. The company is working significantly on all the ESG initiatives. Once again, I would like to tell all my shareholders for their support.

Thank you, sir. Ladies and gentlemen, the agenda items have already been put to vote by remote e-voting and also been put voting electronically during the meeting. The completed results of the voting and the report of the scrutinizer will be placed by the company on its website. And on the website of NSDL within 2 days of the AGM and will also be communicated to the stock exchanges, BSE and NSE, where the shares of the company are listed. Ladies and gentlemen, this concludes the transaction of businesses as illustrated in the notice conveyning 36th AGM of the company. Before I conclude, I would like to give a word of thanks to the chair. Respected Chairman, honorable members of the Board, invited guest, members persent, ladies and gentlemen. It's my privilege to vote -- place a vote of thanks at this 36th Annual General Meeting of the company. I, on behalf of the Board of Directors would like to thank all the shareholders of Hamada Specialty Chemical Limited for the unwavering trust in the company. And the companies shall take note of all the suggestions and comments as placed by the shareholders. I, on behalf of Himadri, shareholders present and entire fraternity of stakeholders, and on my own behalf, extend a very hearty word of thanks to all the members of the Board, shareholders for making this AGM successful. I wish to place my deep sense for appreciation for shareholders for the patience during and active participation at this AGM through audio-visual needs. I would like to place this opportunity to acknowledge with gratitude the consistent support of the employees, auditors, banks and financial institutions for their assistance and cooperation. We really look forward to your persistent efforts and encouragement in our future endeavors. I wish everyone the best health and safety in a year ahead. I also wish to express my gratitude to the team of [ Kalolwala ] and Associates for the beautiful design of the annual report and also thanks to the company's registrar and share transfer agents and NSDL for their valuable service. Thank you, Chairman, sir, for this whole conduct of the meeting. With these words, I conclude the proceedings of 36th Annual General Meeting of Himadri Speciality Chemical Limited. I request the Board members may please leave the meeting at their convenience. Thank you. Thank you for your participation. Thank you, everyone.