I am happy to once again communicate with you, for the ninth time now, through our Newsletter. My sincere thanks to you for reposing confidence in me; and electing me for another 2 year term as President of our prestigious Association, devoted to serving the Colorants industry. My sincere thanks to the Office Bearers of the Association and other Managing Committee members for their wholehearted support, enabling me to effectively discharge my duties.
Friends, we are once again witnessing volatile world economic and political events. Last quarter I had said: 'On one side there are new trade barriers and tariff wars, and on the other hand there is volatile petroleum scene with unstable raw materials prices further affected with scarcity'. Looking back at the last quarter, I find the second quarter is quite a replica! On Economic front there is big impact from global trade war, rising petroleum import bill and banking sector governance challenges. The times are for prudent management of finance and operations in business with due patience and diligence. With next general elections now due in less than a year, the domestic climate is becoming politically heated. Environment concerns continue to drive government's Swachh Bharat Abhiyan leading to banning of plastics bags and bottles.
We had a well-attended successful 68th AGM on 2nd July 2018. Our Chief Guest SHRI P. RAGHAVENDRA RAO (IAS Secretary, Department of Chemicals & Petrochemicals, Ministry of Chemicals & Fertilizers, Govt. of India), in his address, showed appreciation of issues confronting the Colorants industry, and assured working closely with us for their redressal. He also freely interacted with members and exchanged views.
So far we had 2 meetings of the International Advisory Council till September end. The experts from industry and the advisors were very participative, and gave valuable inputs during very useful discussions. On the whole, the interactions were very constructive and helpful towards making the event a grand success.
Banking Sector Challenges & Reforms
Banking sector continues to face the loan quality crisis. Frauds have further made things complex and trust wanting. Governance is under big stress and operations are scanned all the while now. The relationship between borrowers and lenders is not as healthy as it needs to be. The industry can thus lose edge to mobilise financial resources into manufacturing sector. We will have to be vigilant to get this right for our individual businesses.
Environment Protection & Regulations
The recent Government initiative on use of plastics by public at large is an unique, bold and historical decision affecting such a large consumer population. Its derived impact on many of the packaging as well as consumer products industries and trade is immense. So, there is outrage, resistance and disappointment. But herein, there is a lesson for our industry. After enough notice and writings-on-wall, if businesses do not prepare for a better and more responsible social and ecological environment, there will be surprise and shock. Our industry is already under scanner, particularly for the last few years. We are often caught unaware with closures and shutdown show-cause notices. I think it is high time we give up the attitude of compromise and adjustments. Let's be more conscious of our social responsibility. We must take steps ahead of what Government authorities have to say and do. Let's lead from the front by example. I appeal to all the members to give this top priority in their management tasks, thereby proactively making our Companies more compliant.
With my best wishes for the coming Festive Season,