We are happy to report a satisfactory financial performance for the year. All our businesses have performed well with some pricing challenges in the Sugar and Hybrid Cotton business.
Our Chlor-Vi nyl business has become stronger with economies of scale and substantial improvement in power efficiencies. The planned capacity expansion has been commissioned and full capacity utilization achieved. Favorable pricing and higher volumes ensured a substantial growth of both turnover and profits. The next phase of capacity expansion is underway and the facilities will go on-stream in the next 18 m months.
Sugar business is experiencing a difficult situation, with prices significantly below cost of production. Industry has been pursuing with government for immediate support. While the government has been responsive and taken measures for short term relief, a long term stable policy is required to ensure that interest of all stakeholders, particularly farmers, is protected. The business achieved the highest sugar production and a new distillery was added. Capacity expansion for additional crushing as well as power generation is currently being undertaken and will be commissioned before the next season.
Shriram Farm Solutions continues to maintain steady performance with high brand resilience. The business is assessing new opportunities for growth.
The Shriram Bioseed business has made steady progress with introduction newer and better performing Research Products. The regulatory environment continues to remain uncertain, particular for Bio Technology innovations. -Ve are working with the government to find satisfactory solutions.
Finest registered good volume and profit growth during the year and has established itself as brand leader in this segment. Further initiatives are being taken to widen the product offering as well as grow the market.
India s growth story has remained intact, notwithstanding the impact of some structural changes. The introduction of GST and the implementation of the insolvency code are some of the most significant measures taken by the Central Government that will strengthen the economy in the medium term. Record food grain production, low inflation and steady growth in exports have aided in maintaining a stable macroeconomic scenario. However, rising crude oil prices along with subdued agricultural commodity prices remain as two big challenges. The continued government emphasis on building Infrastructure and creating a favorable business environment will ensure sustained GDP growth. We believe this augurs well for our company’s growth.
Our employees are our biggest strength. It is the company’s endeavor to develop a culture that promotes innovation, learning and development. This approach aligns with our new growth strategy. Our company continues to adopt the best standards of Corporate Governance to ensure highest levels of accountability and transparency.
As a responsible corporate citizen, we are committed to give back to society. We have substantially scaled up our support in the areas of education, sanitation, health and rural infrastructure. It gives us great satisfaction that our efforts are positively viewed by the beneficiaries. A structured evaluation of our programmes has revealed a high degree of measurable impact, especially of those pertaining to preventive health & sanitation.
We would like to take this opportunity to thank all our stakeholders — members of the board, business associates, employees, suppliers, government agencies, lenders and shareholders — who have contributed to the growth and development of our company over the years. With their cooperation, we are confident of delivering superior value to all stakeholders.
With best wishes,
(Vikram S. Shriram) (Ajay S. Shriram)
Vice Chairman & Managing Director Cha irman & Sr. Managn g