I take great pleasure in presenting you the annual report of Kamdhenu Limited for the FY 2017-18. It was yet another year that presented significant opportunities to the Company. We have progressively strengthened our brand and product portfolio and are well-positioned to benefit from the wider macro trends, influencing India’s construction and infrastructure segments.
India regained its status as the fastest growing major economy with a GDP of 6.7% for FY 201718. The year went by marked implementation of the much-awaited Goods and Service Tax (GST) and RERA (Real Estate Regulatory Authority) Act. Despite temporary hiccups in the initial days, the economy gradually started gathering momentum and ended the year on a positive note. Besides, the Government’s push for infrastructure and housing is expected to be beneficial for most of the capital goods and equipment manufacturing companies.
Recently the Government advanced its deadline for completion of 10 Million rural houses by the end of 2018 (against 2019 deadline) and 11.8 Million urban houses by 2020 (against 2022 deadline) under its mission ‘Housing for All’. Besides, the BharatMala project, the second largest highway development initiative, will involve total investment of ''6,92,000 Crores and construction of 34,800 kilometres of new roads. This initiative is crucial to build connectivity and foster economic growth.
The positive macro-economic development augurs well for our business. Say for instance, the GST and RERA has played a major role in organising the TMT bars and paints industry. Several unorganised players have shown willingness to shift their way of doing business and wanted to get associated with Kamdhenu. We have added only those players that meet our stringent franchise-selection guidelines. Our vision is to increase our annual production of franchisee business to 50 Lakhs metric tons and have a royalty income of over '' 100 Crores by FY 2019-20.
As regards our decorative paints business, we have initiated the outsourcing model for the low value products like putty. Only the value-added products and premium products are manufactured at our own manufacturing capacity. We will continue to focus on tapping the under penetrated markets, capture market share from urbanised players and improve our product portfolio and target paint premiumisation.
At Kamdhenu, ‘Make in India’ is an attractive proposition. It serves as a pre-condition for making optimal use of the country’s demographic dividend. The initiative intends to transform India into a global manufacturing hub and help foster a culture of innovation and entrepreneurship. With a strong manufacturing base, driven by local innovation and strong marketing, we are tapping all the business opportunities available in the country. Over the past 23 years of our continuous growth, we have built a strong brand. Our large scale Pan-India network of over 10,500 dealers, distributors and channels, have played a significant role in driving the Company’s growth journey. We will continue to explore new product demand and continue to develop next generation products like Kamdhenu Nxt.
Besides, bringing about a meaningful change through our products and services, we have also taken several initiatives in our bid to give back to the society. Our community development initiatives in the field of education and health management through our dedicated CSR wing ‘Jeevan Dhara’ plays a significant role in adding value to the lives of under privileged sections of the society. We are also committed towards environment protection. Our ‘Green India’ initiative mandates all our 10,500 dealers and distributors to plant at least 5 saplings each year and nurture them to complete growth.
On behalf of Kamdhenu Limited’s Board of Directors, I want to thank all our shareholders for their sustained support, and all our customers and business partners for their firm faith in our ability to deliver. Going beyond, let me also take this opportunity to thank our entire workforce, who made our growth and success in FY 2017-18 possible through their hard work and dedication. With a commitment and focus to fulfil our revamped Vision 2020, we are on mission to achieve our goals and deliver superior value to our customers and business associates. We will continue to put up a good show and achieve newer milestones going ahead.
With warm regards,
Satish Kumar Agarwal
Chairman & Managing Director