TO OUR SHAREHOLDERS
I sincerely thank our customers, vendors, and stakeholders. I am happy to convey you that inspite of uncertain business environment both in India and in the global markets, our Company remained on track with its vision of being the most trusted brand for consumers and global players who are also now operating in the Indian Markets.
The Indian economy faced certain headwinds which has compounding impact on the business. The introduction of the landmark tax reform Goods and Services Tax (GST) in July, 2017 leads to the initial hiccups, as there were challenges around clarity of rules and processes, which led to uncertainty in the day to day manufacturing & logistics operations of the business. There was a temporary disruption of the trade channel, accentuating the impact on demand that was already reeling in the aftermath of demonetization in the previous year. Nonperforming assets and a series of frauds lead to tighter credit controls by the Banks and Financial Institutions. Inspite of these challenges and changes in the business environment, your company was resilient and continued making profits due to diligent and acute control on costs and internal processes with a planned strategy. Extensive support of Technology and grass route changes in the business was the key driver for the business to stabilize quickly inspite of the challenges. These changes are almost done by us and the current year shall slowly but surely will see these benefits coming to company''s performance parameters for conducting business in our challenging space we operate in.
With our vast network across pan India, up-to-date technology and loyal work force, the Company continues to uphold its commitment towards its Customers. As always, consumer needs and requirements will be at the centre of all our endeavors and make us evaluate and challenge continuously. Changes through Innovation which suits to the fast changing business environment are something we strive to achieve and uphold.
To make our organization diversified and profitable venture in the years to come, we have strategic plans for growth of our express business and warehousing division. The construction of our new warehouse facility is ongoing at Bangalore along with our new Express & Distribution Hub, which will be operative by December this year. The company also has begun finalizing its Warehousing and new Express Hub operations in Chennai, which will ensure that the entire Southern Warehousing and Express Hubs will soon become operational. Benefits will surely accrue to our company in the years to come to take care of such issues. Needless to mention these efforts will result in considerable rent savings and will also lead to Revenue & Sales growth in the months / years to come. This will surely make a difference on a continuous basis which is the key to sustained growth for your company.
In view of development of logistics to boost both domestic and export markets, the Logistics sector has been awarded Infrastructure status by the government which will prove very beneficial for the sector for accessing funds at lower cost and easier terms, terms of which will slowly & surely be a positive for your Industry.
Going forward, the current financial year will stabilize the Indian economy although the general elections may add to the instability or stability we don''t know, but am sure the change will only be for the better in the times / years to come for your company. We are committed to taking on the changes head on and ensuring we can deliver in these trying times & uncertain environment. That is our endeavour & challenge which makes us want to grow with our Customers, Vendors and Employees alike.
I am quite certain the Companies capabilities to scout for opportunities and drive the business forward with confidence and resoluteness. We look forward to continuing our strong and enduring partnership with our stakeholders to help us achieve new milestones in the year ahead.
With Best Wishes to all of you & your Families,
Areef A Patel Executive Vice Chairman