I welcome all of you who have become the shareholders of the Company
subsequent o the Initial Public Offer made by the Company. The
liquidity in the market had suddenly worsened during the week the IPO
was open for subscription in the last week of February, 2011. However
you have my sincere appreciation since, in spite of the difficult
situation, you subscribed to the IPO and became shareholders of the
company. Looking back, I am sure you must be happy that your decision
in the challenging circumstances has in fact turned to be wise. I
assure you that I and my colleagues on the Board would make earnest
effort to increase the value to you as well asall other stake holders.
The year that went by had been a very challenging one. The cost
continued to rise due to global inflationary conditions and high
interest economy. The margins continued to be under stress throughout
the year. However in spite of the odds, it was satisfying to note that
the Company could increase its presence in the market and increase its
presence in the market. This was possible due to the dedication of my
colleagues on the Board as well as in the Company at all levels. The
Company is in production for the last of four year and has been able to
grow due to the enterprising and zeal of my colleagues.
This year we have to put a lot of effort to consolidate our position.
The economy is showings signs of slow down and we have to double or
efforts to keep our momentum getting faster. We are looking at various
options - capacity expansion and its maximum utilization, trading to
complement manufacture as well looking at newer markets round the
Our plans for setting up of additional manufacturing facilities are
moving at a slower pace than planned. The property market is
declining, but at the same time the sellers are also reluctant to come
forward due to the uncertainty in the market. This has forced us to
look at new options like taking over other units that would synergize
with our capacities to make complementary products to increase our
product range as well as reduce the delay that is caused due to
selection of land for expansion. The running units would eliminate the
gestation period of setting up a plant. Negotiations are on but there
has been cautious approach from both sides to complete the deal.
This has also led us to look-ai opportunities outside India. We are
looking at setting up of manufacturing units abroad or acquirelhem
directly or through a Special Purpose Vehicle. The negotiations are
progressing well. This would be a two in one type of venture. Firstly
it would increase the product range which is both in the nature of
complementing and supplementing of our product range with established
products and market. This will enable to penetrate new markets.
Secondly it would be like a research facility that would help us
develop new products.
The thrust during the year would be to develop new products and recipes
for our clients to stay ahead of our customers'' needs. The pillar stone
of our Company is to do business by fair practices which will continue
to guide us in future. We would be thrustfull but within the rules of
the State. I am sure that as the year rolls on the positive returns
would be visibly rolling in.
I wish all of you a very rewarding year.
Chairman & Managing Director
Surendra Kumar Tibrewala
15th June, 2011