Greetings of the Season!
I take pleasure in presenting you with a brief review of the
performance of Venky''s (India) Limited in 2011 -12 and a general
scenario of the poultry sector in India.
During the financial year ended 31* March, 2012, Venky''s continued to
grow in terms of sales turnover. However, the overall profitability of
the Company was lower - the reasons were that the cost of poultry feed
was very high in the last 4 to 5 years. Poultry feed cost has more than
doubled. Also, the realisations from the sale of day old chicks and
grown up birds were lower. The Animal Health Products and Oilseed
Segments have performed satisfactorily.
During the year 2011-12, Venky''s has undertaken
expansion-cum-modernisation programme at an estimated cost of Rs. 107
crores, to augment the capacities in Poultry and Poultry Products and
Animal Health Products Segments, modernisation in Oilseed Segment and
for setting up of ''Venky''s Xprs'' outlets. The expansion-cum-
modernisation programme is funded by internal accruals and long term
loans, due to which the borrowings of the Company have gone up.
Benefits of the expanded capacities will start accruing to the Company
from the second half of the current financial year.
Not withstanding the temporary drop in profitability witnessed during
the last financial year, I am confident that the Indian poultry
industry in general and your Company in particular, will continue to
maintain a healthy rate of growth in the years ahead.
My confidence stems from the fact that thanks to the far sighted
vision, planning and dedicated efforts of our Founder Chairman, Late
Padmashri Dr. B.V. Rao, we have a strong R&D and production-
infrastructure base: we are part of an essential food production
sector, wherein the demand for our products, with an established
reputation for quality, can only move upwards. I am also confident
that the Indian economy, which went through a phase of slow growth
during the past two years, will bounce back, resulting in higher
disposable income among the middle and lower middle classes and
consequently, greater demand for protein-rich food products.
My best wishes to you and your families.
Anuradha J. Desai