Dear Shareholders,
Chembond completed half a century this year! To think back to how Chembond was started
by my father, Dr. Vinod D. Shah, we can truly feel proud of where we are fifty years
later. Dr. Vinod Shah started thinking of Chembond and experimenting from a small kitchen
in Lucknow. This laboratory then relocated to a balcony in Mumbai and after a
couple more years, a start-up was born. Letting go of a senior management
position and great career prospects with a MNC, at forty three (and four kids), required a
special kind of mind and bent, and the strong support of my mother, Padma.
From that moment onwards, it has been a constant whirlwind of activity. From the first
factory in a small shed in Parel to the gala in Lower Parel, then
to the Tarapur plant in 1981, and now, fifty years later, we have always kept growing,
The Chembond Way. If I think about the factors that contributed to this
longevity, in addition to the most commonly cited factors - innovation, adaptation, and
financial management - I would add greed (absence of), ethics, and passion. For a company
like ours to thrive for the next 50 years, we will not only have to continue to innovate
with continuous investment in R&D for new offerings & services, adapt to changing
markets & conditions, and strengthen financial discipline but also check the greed
instincts, work ethically, and maintain our passion to succeed. These are the ethos
imbibed in us by our remarkable founder, Dr. Vinod D. Shah, which have become part of our
DNA over the course of these years.
In recognition of his contributions to the industry, the Indian Chemical Society, at
its 100 year celebration issued a coffee table book, Chemical Heroes of the
Century. In this book, they have recognised the efforts of twelve individuals. I am
proud to say that Dr. Shah is one among the dozen innovators in the hundred years of the
chemical society in the country!
As we reflect on Chembond's fifty year journey, we become more aware of the tremendous
changes that have taken place during the evolution of our organisation. Those this year
though seem more remarkable than in the past.
One major change is that in the space of a few months, our board underwent a complete
360, mainly due to regulations. We have seen the retirement of all independent and one
promoter directors in 2024 and 2025.
Ashwin Nagarwadia, one of the founding promoters and a close friend of Dr. Vinod Shah
stepped down from the Board in May 2025 because he felt that he would like to spend more
time with his family and great grandchildren and in looking after his health. His
dynamism, energy, ideas, network, and complete confidence in all us executives have had a
great impact on where Chembond is today. His calm demeanour masked a razor-sharp business
mind. His ideas for growing the business and exploring future technologies kept us ahead
of the curve and always thinking forward.
We have to go back over 30 years to the time when Mahendra Ghelani joined the Chembond
board. This was before our IPO, before our joint ventures or acquisitions or
diversifications, and when we only had one manufacturing plant. All through this time,
Mahendrabhai helped us navigate through all the challenges that came our way with his
characteristic wit and pointed suggestions. His thoughtful discussions and healthy debates
helped not just with legal matters but also added value across finance, strategy,
operations, and more.
Sushil Lakhani joined our board in May 2010 on the recommendation of our director at
the time, Jawahar Mehta. His deep knowledge of all areas of finance and business kept our
management teams on their toes when it came to financial statements and audits. His
support and adviceespecially on direct, indirect, and foreign taxeswere spot
on and something we could always count on.
Mrs. Saraswati Shankar attained term limits in March 2025. She brought a refreshing
change to the boardadding much-needed diversity and balance. Her presence made
discussions richer and helped us view things from a broader, more inclusive perspective.
In May 2025, Dr. Prakash Trivedi reached the ten year limit as an independent director.
He was a tremendous asset to Chembond in technological and scientific areas where he would
draw on his R&D experience in large-scale companies, in start-ups, as well as his vast
network of academicians and industrialists. The best part was that he could deliver advice
with a smile and a touch of humourmaking it easier to accept and act on.
Our board meetings and AGM's are going to be quite different without the presence,
knowledge, wit, and above all, the ethics they insisted on in all affairs of Chembond.
However, I am happy to say that we have equally competent and experienced directors
joining our Board. All of us in the management team of Chembond look forward to the
discussions and participation of Jayesh Shah, Mayank Shah, Gorsi Parekh, Jaywant Tawade
and Kamal Tandon in the years ahead.
Another change for all of us is that with the approval of the demerger scheme by the
statutory bodies and shareholders, Chembond is now a more focussed organisation. Material
Technologies as well as Biosciences, are cutting edge businesses in exciting growth areas.
All of the end markets that require our products - automobiles, 2/3 wheelers, commercial
vehicles, steel, appliances, nutrition, or engineering - are going to keep growing. We
have a strong foundation and with upcoming investments in product development,
manufacturing facilities, and human capital, we can look forward to more change in the
years ahead!
Sincerely |
Sameer V. Shah |
Chairman |
30/05/2025 |