Dear Valued Stakeholders,
Your Company saw flat overall top line growth after growing by double
digits the past two years, but continued growth in new products that
helped offset slow down in traditional products. The Roll On format
crossed the 10cr revenue mark the first time domestically and Rs.12 cr
overall. The Roll On brand generated 10% of the overall revenue with
wide acceptance from both youth and mature users alike. The Brand grew
volumes by 30% year over year.
Your Company, which commands a 23%, Market Share in the Head Ache
segment, hopes to drive growth in this category through innovations
like Roll On. The white balm segment also showed marginal growth, which
along with Roll On overcame slowdown in the yellow balm. There seems to
be a marked shift in consumer usage away from colored balms. Your
Company currently generates 40% share of revenue from the yellow
segment with another 40% from the white. Roll On spray and others
contribute the remaining 20%.
Anothervirgin market for Amrutanjan is the body pain segment which is
expanding at a rapid pace due to traditional Allopathic brands (of
Pharmaceutical companies) entering the FMCG/OTC space. Due to the
Allopathic formulations that are fast acting, Doctor recommendations
and aggressive marketing campaigns, these brands are gaining share from
the current Ayurvedic brands. Your Company has a clear vision of
focusing on Head, Body and Congestion segments of the Rubefacient
category with products developed for each segment.
Your Company also managed to control expenditure and maintain margins
inspite of key raw material price inflation reaching the highest levels
in the last decade. Menthol which is a key ingredient tripled in value
since 2009. The Lean Cost initiative we started countered this movement
with Gross Margins actually growing in the fourth quarter. Your Company
reduced overall Packing Material usage by 5% resulting in cost savings
(annualized) of 2.5 cr and also meeting good environmental practices.
The Beverage business in the second year of operation (post
acquisition) saw increased investments in the brand and distribution.
The category overall saw a slowdown in 2012 as compared to 2011 (when
we grew 30%) but your brand Fruitnik consolidated its 3rd position in
TN, in share of market with new flavor launches and range selling. The
business bounced back to growth in the 4th quarter. The future of this
business lies in focusing on value added beverages that enjoy high
The Pain Services business saw increased consumer traction with
revenues reaching 1cr in the second year of operation. The prior year
revenues were 25L.
We are treating around 300 consumers month on month and truly
leveraging the power of the Amrutanjan Brand. Your management sees a
unmet market need for speciality Pain Clinics.
After growing for two consecutive years and 7 quarters straight in 2011
and 2012 , we came to a standstill in 2012. This is a execution gap and
we have to admit as much. We are bringing back focus on fundamentals
and have seen traction regained in the last quarter of 2013 which we
are confident of continuing into the future,
S. Sambhu Prasad