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It gives me great pleasure to share with you the 42nd Annual Report of your company for the year ended 31st March, 2018. It has been an important year for us as we have successfully and consistently performed and grown from strength to strength. The introduction of GST has made this industry more organised and being the pioneers in the edible oil industry, your company has benefited tremendously out of it.
India’s economic growth has been recorded at 6.7% in the financial year 2018, which was partly due to the lingering effects of demonetisation that impacted the informal sector in the first half of 2016-17 and teething issues related to implementation of the goods and services tax (GST). The economy picked up pace resulting to 7.2% in October-December 2017 quarter in comparison to 6.5% in July-September quarter and 5.7% in April-June quarter. India is expected to be the fastest growing major economy in 2018, with a growth rate of 7.4% that is expected to rise to 7.8% in 2019 with medium-term prospects remaining positive. Going ahead, the Indian economy has the potential to clock double digits by 2020, given the uptick in the demand across segments and the huge marketplace that India offers. The government is also taking all necessary steps to achieve the double digit growth rate with initiatives such as ‘Make in India’ to support the Indian economy and provide employment opportunities.
We are glad for the solid inheritance and more than four decades of rich experience that has made who we are today. We are an enhanced business house with interests in edible oil extraction, distillery and realty. Our adventure of advancement is the declaration of our deep estimations of Trust, Commitment and Transparency that we held from time to time. We have a strong reputation of development and esteem creation, which originates from our solid assembling capacities, very much penetrated geological presence, an entire and first class item portfolio and best-in-class advancements. Our very proficient administration group, supported by a spurred workforce and a solid asset report, has strengthened our situation in the market. We are focused on turning into a highly manageable business. This year has been all about expanding our production capabilities and marking presence in the other states of India. Looking at the opportunity in the ethanol industry in West Bengal, we are looking to capitalise on it and hence in our JV with Svarna Infrastructure, we are in the process of installing and starting Svaksha distillery plant in West Bengal.
With the aim to deliver quality, value and experience to customers, we are continuously innovating and delivering high quality branded products through our brands to meet customer needs. We are proud of building our own local brand, which has helped us to serve a large customer base across North India which in turn has helped our brands to be well received by the consumers. We continue with our efforts to build our brands and are confident that over a period of time we will have our branded products reaching the consumers all over India.
Given the government support towards the domestic edible oil industry and to support the farmers, the government has levied heavy duty on the imports of edible oil. This is a great period for the industry and going forward we look forward to benefitting from it and with the increased production capacity we expect to see a higher growth from this industry. The company is also in works to shift its edible oil plant, which will save at least Rs. 120 Mn per annum on the account of power & fuel expenses and thus improves the margins.
Your company has begun the journey to mark its presence in the state of West Bengal and given the demand and supply gap in the state, we see a tremendous opportunity and look to capture a higher market share and become the leader in the distillery industry in West Bengal. With our diversified business verticals, we look to grow our branded edible oil (Homecook, Murli and Do Khajoor) and branded liquor (Country Liquor and IMFL) and mark our presence amongst the markets and consumers. We have come a long way and this would have not been possible with the confidence and support of our esteemed shareholders and we look forward to your continuous support in the coming future and grow together.
R. C. Nayyar