I am pleased to take this opportunity to update you on the performance of Lykis Limited.
Your Company directly operates in the business of fast moving consumer goods (FMCG), and also is engaged in the business of tea plantation and processing in its tea garden, Iringmara Tea estate, situated at Silchar, Assam. Our current operation comprises of more than 39 countries. Lykis is dealing in qualitative products by ensuring a strict check on quality control where every product undergoes close scrutiny before dispatch.
The fiscal year 2016 was a very eventful year for Lykis Limited. It presented its own set of opportunities and challenges for the Company. The opportunities reflect future growth potential, while the challenges will help the Company to further strengthen its foundations.
The revenues of Lykis Limited in FMCG segment dipped in the financial year 2015-16 due to recession in African markets which forms one of the largest consumer base for the Company. The situation of unavailability of Forex there still remain uncertain due to fall in crude prices.
With India''s largest tea growing State of Assam witnessing erratic weather condition in 2015, the production of tea in Assam plummeted considerably. In spite of such challenging scenario, Company managed to generate more revenue than the previous year in its tea segment. To develop a Tea Garden, long term strategy and planning is required and there is heavy deployment of funds in the early years. We have been investing in Plant & Machinery and extending our Tea plantation area, planting new tea bushes, with a view that we will get fruitful results year on year.
Diversified Product Portfolio
The Company is primarily engaged in marketing and trading of FMCG. The Company undertakes international trade of various products in the FMCG sector- cosmetics, personal care, OTC pharma, home care, food products, etc. This diversified FMCG product portfolio insulates the Company from any adverse event or slowdown in demand of any particular commodity.
Innovative Development Team
With the presence of analytical and innovative development team, company is able to customize the products catering to the need and requirement of the buyers with regard to sizes, variants, fragrance, etc. achieving a different stand in the global market.
The company performs a deep costing analysis before a product becomes live, in order to find out the competitive possible process and performing it in order to tracking with the respective suppliers and sub suppliers in their day to day business though maintaining and adhering to the Quality standards.
Our R&D efforts continue to be directed towards building a strong and differentiated product pipeline. These R&D efforts continue to be directed towards generating short, medium and long term cash flows. It is an integral part of Lykis''s strategy to build competitive advantage and use technology for its advantage.
I express my gratitude and wish all employees and stakeholders from across the world all the very best, as we continue to work together, to deliver great products and services to our customers, and thereby also strengthen the Lykis brand.
I take great pride in their effort, and I am as excited as they are, about our future.
I would like to place on record my sincere appreciation to the Board of Directors for their guidance.
I place my appreciation and thank you all for your continued support and faith.
With best Wishes,
Place : Kolkata
Dated : 27th May, 2016 Vijay Kishanlal Kedia