Ganesh Benzoplast Ltd Management Discussions.

Economic Overview

Global economy growing at 3.8% in the current year 2017 as compared to 3.1% in 2016 which was mainly due to investment recovery in advanced economies, continued strong growth in emerging Asia, a notable upswing in emerging Europe, and signs of recovery in several commodity exporters. Global growth is expected to tick up to 3.9% this year also supported by strong momentum, favourable market sentiment, accommodative financial conditions, partial recovery in commodity prices and the expected impact of recently approved US tax policy changes. The Indian Economy lowered to 6.75 % in financial year 2017-18 as compared to 7.1 % in 2016-17 due to the impact of the Demonetization of Indian Currency in November 2016 and also implementation of Goods and Service Tax (GST) from July 2017. The Government has taken various initiatives such as resolving NPA issues with Insolvency and Bankruptcy Code, 2016 (IBC), make in India, Ease of doing business, Digital India and further liberalization of FDI, re-instating India as worlds fastest growing major economy.

Company Overview

The Company is the leading independent Liquid Storage Tank (LST) provider, specialized in the storage and handling of liquid chemicals and oil products and has storage terminals at JNPT (Navi Mumbai), Cochin and Goa. GBL is also in the business of manufacturing of speciality chemicals, food preservatives and oil additives having two factories at MIDC Tarapur (Maharashtra).


Liquid Storage Terminal division provides storage tanks which are leased on rent for storing liquid chemicals, acids, phenol, oil products and edible oils etc. The Company provides complete storage and handling solutions at 3 terminals namely JNPT (Nhava Sheva), GOA AND COCHIN, which require specialized infrastructure at terminals such as specialized berths, _re_ghting equipment, pipelines, transit storage and handling facilities and above all, safe and environmentally responsible handling practices. With more than 25 years of experience in Bulk storage and handling of liquids, GBLs total commitment to its customers success has resulted in excellent business relationships. GBLs operations are based on the principles of transparency, loyalty, commitment to its work force and mutual trust.

In LST division, the Company has a combined storage capacity of more than 3,00,000 KL, for storage of all types of Liquid Products such as ‘A, ‘B, and ‘C class liquids.

The Company has also received certain approvals for setting up a LPG terminal at its Goa facility.

The Company is continuously upgrading its storage facilities by regular refurbishment of tanks and pipelines.


Under Chemical Division, the Company is engaged in manufacturing and exporting wide range of food preservatives, lubricant additives, specialty Chemicals. GBL products are used in food & beverage, paints, automobile, pharmaceutical, lubricants industries etc. The Company markets its products through distributors in Africa, North America, North Europe, India, Australia, and the Middle East.

Your Company is the only manufacturer of pure Benzoic Acid & its Derivatives like Sodium Benzoate well known food preservative and Benzoplast a Specialty plasticizer which is a superior plasticizer as compared with other plasticizers. Sodium Benzoate and Benzoic Acid have huge demand in International Markets.

During the year, we have been able to improve the profitability, due to better capacity utilization and increased sales volume.


With the growing energy demand in India and increase in the movement of oil, chemicals and petrochemicals, there is therefore a huge potential for the expansion of pipelines, transportation and infrastructure and the Company will get good business opportunities.

The main threat to the port based liquid terminalling business arises from changes to government policies on coastal regulations and inadequate port infrastructure.

During the year 2017-18, the Liquid storage business of the Company performed well to optimum capacity utilization at all the terminals of the Company and this is the main reason behind turnaround in financials. Handling of liquids and chemicals provides an important and stable source of Group profits by way of terminalling fees. The capacity utilization at J.N.P.T. Tank Farm is 98.00 % and at Goa and Cochin capacity utilization is 50% and 80% respectively and management expects this pattern to continue in the future.

The Companys products have been enjoying consistently good brand image and loyalty from the consumers for the past several years and the Company enjoys virtual monopoly in Sodium Benzoplast in India The Company manufactures Benzoic Acid and Sodium Benzoplast in its computerized plant at Tarapur, The markets for products of the Company are well established with a good distribution network for domestic as well as export markets. The Company does not foresee any major threats to its growth and market share in the coming years. The Company does not foresee any technological obsolescence for its products.


Research and development is an ongoing process at GBL. The Company is continuously innovating and discovering methods and concepts to improve the quality of its product and achieve operational e_ciency.


The financial statements have been prepared in compliance with the requirements of the Companies Act, 2013

(Rs In Millions)

As at 31st March, 2018 As at 31st March, 2017
Revenue From Operations 1691.58 1181.15
EBIDT 529.67 412.13
Depreciation & Finance Cost 231.99 263.25
Net Profit 297.67 148.88
Reserve & Surplus 749.79 (290.82)
Earning Per share (before exceptional items) 5.75 2.87

The net cash flow of the Company is as follows:

As at 31st March, 2018 As at 31st March, 2017
Cash from operations 418.17 388.15
Cash from/(used in) investing activities (216.80) (123.66)
Cash from/(used in) financial activities (212.49) (276.25)
Net increase/ (decrease) in cash (11.12) (11.17)


The Company has an effective internal control and risk-mitigation system, which are constantly assessed and strengthened. The Companys internal control system is commensurate with its size, scale and complexities of its operations. The internal audit is entrusted to M/s V K Baheti, Chartered Accountants. The Audit Committee of the Board of Directors actively reviews the adequacy and effectiveness of the internal control systems and suggests improvements to strengthen the same. The Internal Audit is conducted on regular basis and the reports are submitted to the Audit Committee of Directors at their quarterly meetings.


As on 31st March, 2018, the Company had 177 employees. The Company has excellent combination of experienced and talented Technical, financial and marketing Managers. The Companys relation with its employees continues to be cordial. The Company always reciprocates commitment to its employees in order to motivate them to perform the best.


Risk is inherent in all kinds of business and is integral part of the chemical and liquid storage business. In the normal course of business, a Company is exposed to various risks like credit risk, market risk and operational risk. The time lines for initiation of projects are extended due to the complex process of environmental clearances and getting various Licenses and permits. However, the Company tries to overcome this difficulty and with a view to e_ciently manage the risks, the Company has put risk management practices.


Your Company is fully committed to the safety, health and well-being of its employees and to minimizing the environmental impact on its business operations. A safe and healthy environment is maintained and appropriate steps are taken with the object of minimizing the environmental impact on all processes and practices.


The statements in the "Management Discussion and Analysis Report" section describes the Companys objectives, projections, estimates, expectations and predictions, which may be "forward looking statements" within the meaning of the applicable laws and regulations. The annual results can differ materially from those expressed or implied, depending upon the economic and climatic conditions, Government policies and other incidental factors.