Dear Valued Owners
The year 2015-16 saw continuation of the growth trajectory for your company with topline increasing 13 % from 171 crores to 192 crores and the profit after tax growing 30 %from 17.12 crores to 22.42 crores. Both our OTC and beverage businesses continued to seegrowth in volumes and key metric growth. I would like to add a few points in this letteron what we are trying to achieve at the macro level before I dwelve into specifics.
Bringing high level of focus in terms of capital and managerial time in strengtheningthe core OTC business.
Creating organizational capabilities to make new launches into large sustainable brandswithin 3 years.
Investing a higher amount of Gross profits into the brand Amrutanjan and new launches.
Working on increasing distribution expansion strategies in strong (South and East) aswell as developing markets like West and North
Developing internal leadership pipelines to ensure projects and functions areefficiently staffed. The single biggest challenge facing most companies is access toquality manpower.
Working to make the beverage business self sustainable.
Expanding product development and research infrastructure to yield new pain reliefproducts.
Building a execution focused organization that delivers consistent results.
These and many initiatives have yielded a CAGR of 12 % and 30 % these past three yearsin the top and bottom lines respectively. This year on year performance is vindicationthat our strategies are in line with the long-term vision of the company.
Some salient points of the year in review:
The OTC business grew top line by 13%
Fruitnik business grew top line by 10% from 20 to 22 cr
Gross margin expansion of OTC business from 61.6 % to 64 % Gross margin expansion ofBeverage business from 23% to 24.3% Northern zone recording highest sales ever
Head Business growth: our consumer segmentation strategy rolled out in 2012 continuesto give us steady growth year on year.
Body products maintaining share of revenue of 8 % indicating growth with the companybut at the same time not cannibalizing other products
Our sanitary napkin brand Comfy doubled sales to 3.0 cr and continues to enjoy highinitial acceptance from the consumers. Our trade recievables days outstanding has shown areduction of 10% The Roll-On as a format today is Sizeable Reduction in Fruitnik freightfrom 11.8 % of sales to 9.8 % of sales due to local sourcing strategies
We are a company fully focused on fundamentals and wish to be a self aware groundedorganization focusing on investing in what is working and trimming what is not. As weenter our 125th year of existence in 2017 the Board and the management team are veryexcited about the future and prospects of our organization. Our loyal consumers have keptus in business for over a century and as long as we dont take that for granted I amconfident we will continue to thrive.
We are also fortunate to have long term focused shareholders who have been supportiveand passionate about their company throughout and the fact that we all have to add valueto their investments is never forgotten.
Last but not least giving back to the community is something our founder built intothe ethos of our organization that is continued today beyond the mandated CSR activities.Last year your company helped in supporting diverse activities like supporting educationof underprivileged girls building toilets for the needy health care delivery to tribalsin Nilgiris and supporting animal welfare. Many of these were initiated before the newregulations came into effect.
S. Sambhu Prasad