Management Comments
Over the last few years, GMM Pfaudler has transformed into a global multinational
company with 20 facilities spread over 4 continents and employing more than 2000 people.
Our successful integration of Pfaudler International shall be a case study of
successful mergers for years to come.
As we celebrate our achievements, we must also recognize the need for continuous
evolution to adapt to today's dynamic business environment To maintain our competitive
advantage, we must stay ahead of the curve regarding product quality, innovation, and
customer satisfaction. Our continuous focus on deeper integration across geographies will
help create an organization with a global mindset
The previous year was a testament to our resilience and adaptability. Despite the
challenging macroeconomic environment, we achieved a consolidated revenue of Rs.3,446
crores with an EBITDA margin of 13.8%. Our ROCE and EPS were 21% and Rs.39.80
respectively. Despite the Ukraine-Russia conflict, the subsequent rise in power costs, and
a global slowdown in the chemical industry, we could still maintain revenue and margins
and deliver a strong financial performance. I am pleased to announce that GMM Pfaudler
remains the market leader in corrosion- resistant technologies, systems, and services,
setting the benchmark for quality, innovation, and customer satisfaction.
On the business front, order intake was subdued due to a slowdown in our core chemical
and pharma industry segments. In India, we have seen a steep decline in capex in the
agrochemical sector, adversely impacting our glass-lined business. However, our
diversification strategy, which we began a few years ago, is now helping us make up for
this shortfall in orders. We have added new products and technologies that have opened
many industries for us. Last year, we received orders from industries such as
Petrochemical, Oil & Gas, Fermentation, Metals & Minerals, and Water treatment, to
name a few.
On the manufacturing front, we continued our operational excellence and value-sourcing
initiatives. Our manufacturing efficiencies and on-time delivery performance across sites
continue to improve.
We recently created a low- cost supply chain in Poland, where we can outsource
non-critical manufacturing activities. Further, our Glass- lined stock & sale program
has helped us enter price- sensitive markets.
This year, we also expanded our service network by inaugurating two new service
centers: one in Taubate, Brazil, and the other in Torre di Mosto, Italy. These service
centers will help us meet the growing needs of our customer base and align with our
strategy of growing our services business.
Our dedication to financial excellence is matched by our unwavering commitment to
Corporate Social Responsibility (CSR) initiatives.
Our work in environmental sustainability, community development, and employee welfare
is not just a part of our business strategy, it's a reflection of our core values. I want
to express my gratitude to our CSR partners - ReefWatch Marine Conservation, Shri Krishna
Hospital (Charutar Arogya Mandal), OV Patel ITI, and the Sdrdar Patel Trust - for their
invaluable contribution to improving and enriching the lives of the people in the
communities in which we operate. Their efforts are not just vital to fostering sustainable
growth and development in our society, but they also inspire us to do more.
GMM Pfaudler made d resounding impact at ACHEMA 2024, the world's Idrgest trade fair
for the process industry! Held every three years, this year's fair featured over 2,800
exhibitors from 56 nations and dttracted more than 100,000 participants. This exceptional
event was not just a platform for us to showcase our latest innovations, capabilities, and
cutting-edge solutions, but also a testament to our global reach and influence.
We closed the event on a high note, leaving a lasting impression on the global audience
and reinforcing our position as an industry leader.
I am immensely proud of the strength and perseverance that we showed throughout the
yeor. I have always maintained that our people are our most valuable asset, and their
unwavering dedication, innovative spirit, and relentless pursuit of excellence have been
instrumental in overcoming challenges and driving our success. Together, we not only met
our financiol torgets but also reinforced our position as an industry ledder.
Before I conclude, I would like to express my appreciation to the Board of Directors
for ensuring effective corporate governance and thank them for their continued support and
guidance. I would also like to acknowledge dll our employees, customers, supplier
partners, and shareholders for their support and faith in GMM Pfaudler.
Tarak Patel
Managing Director