CHAIRMAN'S NOTE
The timeless words of Swami Vivekananda, "...arise, awake, and don't stop until the goal is reached." echo the ethos of our organization as we stand at the threshold of a transformative future, filled with steady determination and enduring adaptability. Today, I am elated to acknowledge the remarkable journey of the Bhilwara group, where an illustrious past has seamlessly blended with our vibrant present. The future ahead shines bright, thanks to our committed and passionate team members. Together, we have set an exemplary standard of dedication and hard work, serving as a beacon of inspiration to all generations to come.
At LNJ Bhilwara, we acknowledge that our most precious asset is our human capital. We wholeheartedly invest in nurturing careers based on individual potential. Our strategies for creating corporate values are intricately woven with training and development initiatives that align with organizational objectives, enhancing our employees' skills through a myriad of programs. We constantly strive to upgrade these skills to keep our team competitive, in line with the industry's evolving demands. Our sole purpose is to empower our employees to achieve their goals, aligning them with the future objectives of our businesses, facilitated by a robust learning management system.
We firmly believe that structured mentoring programs can serve as a panacea, augmenting recruitment, improving performance, mitigating attrition, and fostering a conducive work environment. Learning and development are the cornerstones of enhancing both employee retention and the onboarding of new talents. It is our unwavering belief that these opportunities enhance employees' expertise not only in their current roles but also in preparation for future positions. This strategic approach, in turn, augments our organization's perpetual growth, productivity, and ability to attract and retain invaluable talents.
Cotton production in India has been the linchpin of our textile industry, offering employment opportunities to both skilled and unskilled laborers, thereby fortifying our nation's economy. Cotton, often referred to as "white gold," is one of the three most critical non-food crops, and it plays an indispensable role in sustaining the livelihoods of countless cotton farmers who are deeply entrenched in cotton processing and trade. India's cotton industry is colossal, accounting for 18% of global trade, and it significantly contributes to our country's net foreign exchange through exports of raw cotton, yarn, and finished textile products.
In the domain of graphite electrodes, HEG Ltd. has officially announced the successful conclusion of its expansion project, elevating its capacity from 80,000 tons to 100,000 tons per annum. This achievement positions HEG as the largest Graphite Electrodes Plant globally under a single roof. HEG takes pride in its commitment to serving a majority of the world's top 25 steel companies and exporting to over 35 countries worldwide. Graphite electrodes, crucial in electric arc furnaces integral to steel production, play a pivotal role in our operations. Notably, this process emits only one-fourth of the carbon compared to traditional blast furnaces, making a substantial contribution to reducing carbon emissions and addressing climate change concerns. While most process shops were already operational in the preceding months, the final shop commenced commercial production on November 1, 2023. The expansion project incurred an approximate cost of INR 1200 crore and spanned three years.
Despite interruptions caused by the global COVID-19 pandemic in 2020 and 2021, the company achieved this milestone in record time. HEG has meticulously invested in state-of-the-art equipment and environmentally friendly technologies, positioning the plant as the latest and most modern in the world. As the global focus shifts towards decarbonization, Electric Arc Furnaces are increasingly favored over Blast Furnaces for their greener steel production, with carbon emissions reduced to one-fourth of the latter. With the successful completion of this expansion, HEG now stands as the third-largest Graphite electrode company in the western world. We look forward to continuing our commitment to excellence and sustainability in the steel industry.
The board also approved the expansion of TACC Limited's graphite anode powder production capacity; this would enable the company to fulfill the increasing demand for cell manufacturing, with plans to expand from 10–12 GWH (10,000 MT) to 20–22 GWH (20,000 MT) in a single phase. The goal of this choice is to attain economies of scale.
In addition to our business endeavors, HEG is ardently dedicated to Corporate Social Responsibility (CSR) projects. Recently, we inaugurated an Akshaya Patra kitchen in Madhya Pradesh, where we will provide midday meals to 50,000 children in 900 government schools. Furthermore, we have completed a new school building at our CBSE-affiliated Graphite Higher Secondary School, enhancing its capacity from 1300 to 2700 students. For over three decades, our school has been a beacon of quality and holistic education for the children in our region.
India has a wealth of natural resources including geothermal, and hydropower. This presents a rare chance to lead the world in the generation of renewable energy. India has the capacity to draw in foreign businesses, develop into a global center for the production of clean energy, and increase exports of renewable battery technology and green hydrogen. India might develop a market worth up to $80 billion by 2030 for low-carbon technologies. India is dedicated to sustainable development, growing its capacity for green energy, and lowering greenhouse gas emissions in response to the urgent climate danger. However, India requires help from the international community to shift its development onto a low-carbon trajectory. The 'Make in India' initiative, efficient resource utilization, and renewable energy harnessing set the stage for a greener, more sustainable future.
Let's embark on this journey with unyielding positivity and boundless enthusiasm, shaping a future interwoven with sustainability and prosperity.
With Best Wishes
Ravi Jhunjhunwala