Over the last six years, that the Company has been in operation, it has made substantial progress and is regarded as one of the leaders in the edible oil Industry. This would not have been possible without your unstinted support.
The edible oil industry faced one of its worst years in a decade last year. The oilseed production during kharif was adversely affected, prices rose by 30% over the previous year and volumes stagnated. The Company had to regretfully lockout the factory at Mantralayam after some industrial unrest for about eight weeks. All this affected your
Company's performance during the year. Inspite of these circumstances, your Company's performance has been better than most in the Industry.
In our effort to consolidate and strengthen the business of your Company, we have bought the Brands that your Company was manufacturing, from ITC Limited. With the Brands now being owned by your Company, we are moving towards being a full fledged marketing and manufacturing organisation. During the coming years you should see the 'SUNDROP' brand equity strengthening in the market place and becoming a mega
brand in the edible oils and related categories. Your Board stands committed to aggressively grow this business.
The Board is also proposing a Rights Issue to suitably restructure the funding mix in your Company by correcting the high level of debt skewness, thereby reducing the interest burden. The proposed issue on a Rights basis is in the ratio of one share for every one share held at a premium not exceeding Rs. 55 per share.
The Board and I will continuously seek opportunities to grow your Company and to ensure ever improving returns to our shareholders. In this endeavour, I am sure we have your unstinted encouragement and support.