ALSA MARINE AND HARVESTS LIMITED
Ladies & gentlemen,
I have great pleasure in welcoming you all to this Sixth Annual General
Meeting of your Company. The Directors' Report and the Audited accounts
for the year ended 31st March, 1995 have been with you for some time and
with your permission, I shall take them as read.
MARINE PRODUCTS INDUSTRY
The marine products industry, which was making rapid strides during the
last few years, was affected by an outbreak of disease in the aquaculture
sector in Andhra Pradesh and Tamilnadu. As I had cautioned in my speech in
our last meeting, the problem was due to lack of a well structured national
policy in the development of aquaculture in this country While the actual
causes for the disease are being widely debated, the problem has been
broadly attributed to the "white-spot syndrome".
A national aquaculture policy which includes pollution and environment
control has now been framed Various Government and other research
institutions have been studying this problem closely and it is hoped that
the recurrence of such a disease would be controlled.
During the last year, the marine products industry has earned a foreign
exchange of Rs. 3,400 crores Sea catch being a major constituent, export of
products other than shrimps viz, cuttle fish, squids, crabs, lobsters and
other fishes formed a significant portion. Exports of a wider product range
will continue to increase With a shift in emphasis to more value added
products coupled with increased exports of non-shrimp products, the marine
products exports are expected to touch Rs. 10,000 crores by the turn of
this century. This will substantially increase India's share in the global
The Export Policy has been progressively encouraging. The marine products
industry has, however, not been given the necessary impetus, both in terms
of incentives and recognition Major benefits forming part of the Advance
Licence Scheme which have been structured to reach the exporting community,
have not really benefitted this industry as compared to other industries,
whose net foreign exchange earnings are much lesser. We urge the Government
to correct this anomaly expeditiously.
The lure of tax benefits under Section 80 HHC has drawn corporates
including multinationals with high taxable income and export commitments
under the Exim Policy to enter the scene. Being none too familiar with the
nuances of the trade and profit motive taking a back seat, such an entry
could expose the industry to adverse situations in a stabilised and well
organised raw material segment and also the international market I am
confident that the Government with a pragmatic and open-minded approach,
would effectively curb such misapplication of legal provisions and ensure
that the objective of supporting the export community is rightly achieved.
The unfortunate happenings in the aquaculture industry, have had a positive
impact on the die-hard entrepreneurs, who have hitherto been unaware of the
repercussions of improper environmental control in their urge to capitalise
on the boom in the industry Implementation of corrective measures in
aquaculture being now effected, will have a positive impact on cultured
product availability and a consequent curb on the depletion of ocean
Quality, which had been relegated to the background, has rightly returned
to the forefront. Today the entrepreneur has made quality of his product a
high point on his business agenda. This change of attitude in the present
day economic scenario could take the industry to greater heights.
Viewed in the right perspective, the magnitude of the recent happenings has
resulted in the industry pursuing a relentless search for better, faster
and long-term economic solutions to the problems currently faced. Your
Company will always strive to remain a torchbearer with its far sighted and
Your Company has once again demonstrated the importance of building up
credibility and goodwill in a demanding market. This has considerably
helped your Company to place its products on the shelf for the consumers in
Europe and Japan. Your Company has been innovative in developing the widest
product range in the industry. Significant marketing tie-ups have been
established by your Company with leading importers in U.S.A. and Europe
Alsa Marine is also the leading seafood exporter to the U.S.
Your Company has recorded a growth in sales and profitability despite
adverse conditions. Though your Company fell short of its projections, it
has been able to maintain an increase in turnover and profitability,
primarily due to a wider product base, higher capacity utilisation,
alongwith improved operational efficiency and effective controls.
Your Company has by deliberate strategy, kept its dependence on aquaculture
at a considerably low level Aquaculture contributed to 17% of our total
production of 5,317 Tons - only 3% from our own farm at Nellore and 14%
from other farms in various parts of the country. Alsa Marine's production
consists of about 51% of shrimps and the rest comprising of other marine
products. These factors have substantially reduced the negative impact of
disease on the performance of your Company as compared to what has happened
generally in the industry.
As shareholders, you will be happy to note that your Company has achieved
the turnover and profitability on a comparatively low equity base, thereby
retaining a healthy Earnings Per Share.
Rapid strides have been made in our endeavour towards globalisation Alsa
Europe has achieved an encouraging performance with a turnover of Rs. 42.71
crores in its first full year of operations. The Company has moved towards
its objectives, with a good volume of off-shore trading of not only seafood
but also a significant quantity of fruits. In the years to come, its
trading activity in other products is expected to increase manifold.
Your Company's joint venture in Dubai, Alsa Target, has commenced
production. Its factory, as widely acknowledged, is comparable to the best
in Europe and U.S.A. The cooked, ready-to-eat product from this factory
commands a good premium.
You will recall, in my last report I had mentioned that "these overseas
ventures will be harbingers in a larger scheme of globalisation" and it is
proving to be so. This has and will continue to give strength to your
Company to widen its horizon in the scheme of globalisation.
Your Company with its rich experience and understanding of the trade, borne
out by its extensive network of integrated operations within and outside
India, has embarked on a modernisation-cum-expansion project dealt with
adequately in the Directors' Report. This, together with our emphasis on
quality standards and research and development will enable us to keep ahead
of the others in the industry.
On behalf of the Board of Directors and on my own behalf, I take this
opportunity to thank our Bankers, financial institutions, Government
agencies and also the organisations we deal with worldwide and all the
shareholders, for the co-operation and assistance extended to your Company,
which have helped us perform creditably. I would like to express my
appreciation to all the employees for their sincere and unstinted efforts,
which has made it possible for your Company in turning out an impressive
Mr. Altaf pasha
Place : Madras
Date : 21st September, 1995