Dear Stakeholders,
The year gone by has been remarkable in many ways, not only has it
brought rapid technological progress and possibilities in usage of AI (artificial
intelligence) in day-to-day business environment, but also witness the global inflationary
issues, Central Bank responses; collectively influencing the global economic environment
and directly impacting our business as well.
Despite encountering certain market challenges, our steadfast
commitment to excellence at Udaipur Cement Works Limited has propelled us towards
sustained growth and success.
Broader Economic Scenario
While global cement demand is projected to remain flat between 2024 to
2030, notable increases are expected in regions such as the Middle East, Africa, and
particularly in India. India's cement industry is experiencing rapid growth, driven by the
country's economic expansion and the government's push for infrastructure development.
India's economy is expected to reach $7 trillion by 2030, which suggests that it will rank
third globally by 2030. This positions India behind only the US and China, surpassing
countries like Germany and Japan. Union Budget's 38% increase in spending on core
infrastructure is anticipated to drive cement demand, which is projected to grow by 9%
year-on-year to 425 MnTPA in FY24.
Sectoral Scenario
In a competitive market with major players like Ultratech, Adani and
Dalmia, UCWLs investment in technology and sustainable practices has strengthened our
position. With a 4.7 Million Ton per annum capacity, we have ample room for growth,
particularly in the housing segment, which accounts for 55% of cement demand. Government
programmes like the Pradhan Mantri Awas Yojana support this demand, providing UCWL with
significant opportunities.
Our Performance
As we look ahead, UCWL is well-positioned for further growth. Stable
cement prices and lower power and fuel costs give us a favourable opportunity to increase
profitability. Our focus on innovation and sustainability ensures that we are prepared to
take on new opportunities and challenges.
UCWLs financial performance for the year has been strong. Our total
cement production for Q4FY23-24 stood at 5.12 Lakhs MT, while our cement sales reached
6.42 Lakhs MT.
I congratulate the shareholders on the expansion of our capacity at the
Dabok plant, which now stands at 4.7 Million Tons per annum. The expansion project
involved strategic investments in infrastructure, technology and operational efficiency
measures, enabling us to scale up our output while maintaining high standards of quality
and reliability.
Our financial results for the Fiscal year 2023-24 show solid
performance and potential for growth. We've managed costs well and improved operations to
boost profitability and ensure steady progress. We have allocated a total budget of '
1,650 Crore for the capacity expansion project. These results highlight our focus on
improving efficiency and making the best use of our capacity.
Our efforts on Sustainability
In line with national efforts to address climate change, our company
now relies on renewable sources like solar and WHRS for over 43% of our electricity needs.
We are committed to inclusive growth and have been actively promoting societal development
since its inception. From initiatives like the Aarogya Project and Swajal and Swachhta
Project to the Vidya Project and other initiatives spanning preventive healthcare,
education, livelihood intervention, rural development, environmental sustainabilityand
natural resource conservation, UCWL endeavours to uplift communities and encourage
sustainable progress.
In conclusion, I extend my heartfelt gratitude for your unwavering
support. As we move forward, I am confident that UCWL will continue to lead with
innovation, integrity and excellence.
Warm Regards,
| Vinita Singhania |
| Chairperson |