Dear Shareholders.
I have immense pleasure in informing you that the Financial Year
2011-12 has been another milestone in the history of our Company and a
memorable year for the Organization with gross revenue from operations
crossing Rs 1000 crores. This has been made possible by the dedicated
efforts and sustained performance of the employees and unstinted
support and co-operation extended by our business associates. vendors
and valued customers. who have reposed their faith in the Company.
During the year under review gross revenue from operations was Rs
1,006.78 crores and net revenue from operations was Rs 993.63 crores
representing a growth of 36.75% over the net revenue from operations of
Rs 726.62 crores for the previous year. The Profit After Tax increased
from Rs 39.70 crores in 2010-11 to Rs 50.80 crores in 2011-12, showing an
increase of 28%. Considering the improved profitability, the Board of
Directors has recommended dividend of Rs 3.50 per share to the members
of the Company.
Your Company has completed the construction of distribution centres at
Hubli and Vijayawada during the year under review and thus completed
all the projects of the Initial Public Offer. Project relating to
construction of a state of art facility for the manufacture of Solar
Water Heater of different capacities at the industrial land acquired in
Perundurai has been completed and commercial production is expected to
commence during the Financial Year 2012-13. Other expansion projects
for the year such as enhancement of storage space available at
Palakkad, Kochi and Bangalore were successfully completed and work
relating to strengthening of the existing production unit of Electric
Water Heater and Fan at Kala Amb, Himachal Pradesh is also progressing
as per schedule.
As Your Company is operating pan India with many products, the need for
enhancing the brand awareness and recall at national level was
considered imperative for its future growth and to achieve the same,
certain initiatives were taken by the Management which has paid off
well.
To achieve the growth targets as envisaged and also with a view to
strengthen the existing systems and internal control procedures, it was
decided to implement SAP based ERP system considering the activities
and pan India operations of the Company. I would like to say that the
project was successfully carried out during the year and the
Organization will reap the benefits in the coming years.
During the year under review Your Company had organized V-Guard BIG
IDEA Business Plan Contest 2011 inviting B-Tech and B-School
students to come up with Business Plans as to what they thought the
Company should be doing for achieving its growth plans in future and to
make V-Guard a trusted household name. The basic objective of this
initiative was to know the expectation of educated youth in terms of
the products and services that the Company should offer in future and
to create awareness about the Company and its products among the young
generation, who are the prospective customers of the Company. The
contest was also intended to generate ideas for new business
opportunities for the Company, while serving the social objective of
helping the students to excel in their Engineering and Management
career by cultivating the habit of creative entrepreneurial dreaming. I
am happy to mention that the contest was a great success with
participation from some of the well known educational institutions in
the country in the field of Engineering and Management.
With a view to offer value based product to the customers, few new
products were added to our folder which includes, switch gear and
induction cook top and these products are expected to do well in the
current fiscal.
The future success of the Company depends on its ability to meet the
customer needs and aspirations and environmental challenges on a
continuing basis. Efforts shall be made to combine technology, design
skills, creativity and quality in our products and services in a manner
by which the customer can get the best value for money. To achieve the
desired growth levels the strategy of penetrating the existing and new
markets including the rural markets will be given thrust and in
line with the growth in turnover, the existing after sales service net
work will be further strengthened. Regarding introduction of new
products, action has been taken to launch V-Guard mixer grinder during
the second quarter of the fiscal. In line with the growth plans, it is
proposed to take up new projects to increase production capacity of
house wiring cables at Kashipur and production of fans & water heaters
at Kala Amb, Himachal Pradesh and to construct new ware houses at Kochi
and Hyderabad.
I would like to express my deep appreciation and thanks to the
employees at all levels for their contribution to the growth of the
Company, customers for their faith in the products and services of the
Company and also the Business Associates, Vendors, Banks, Central and
various State Governments for their continued support.
With Best Wishes
Sd/-
P G R Prasad
Chairman
