It gives me immense pleasure to present to you the Annual Report of Globus Spirits forthe Financial Year 2016-17. Globus Spirits takes pride in being a successful 3600alcobev player present across Distillery IMIL Franchise Bottling and IMFL. Our presenceacross the alcobev value-chain gives us ample opportunities to straddle across segmentsand deliver profitable growth.
During the year under review Globus Spirits commenced commercial production at theGreenfield distilleries in West Bengal and Bihar with capacity of 33 million BL and 26million BL respectively. With this your Company has now become the Largest Grain-BasedDistillers in India with total distillery capacity of 150 million bulk liters per annum.This was possible due to Company's vision of building world-class state-of-the- artmanufacturing facilities. These capacities have one of the highest alcohol recovery ratesin the country which has been achieved through continuous focus on improvingefficiencies. I am also happy to state that these facilities have a zero pollutionfootprint - a rarity in our industry.
Financial Year 2017 was a difficult period for Globus Spirits as a result of adversepolicy decisions which impacted our Bihar operations as well as not-so- conducive externalmarket environment. This was further hindered by volatile raw material prices. Having saidthat your Company reported a resilient performance during the year with revenue growthof 12% to ' 7891 million while PAT moderated to ' 90 million. Our performance during theyear was driven by healthy growth in distillery as well as franchise IMFL volumes. Thiswas further aided by steady IMIL revenues mainly from Haryana and Rajasthan whichregistered strong volume growth of 22% and 18% respectively. We expect this momentum tocontinue in both the markets as a result of host of strategic initiatives undertaken by usover the past few years.
I am glad to share that we launched our IMIL brand 'Goldee' in West Bengal in Q4 FY17and the initial off
take thus far has been very encouraging. We plan to launch more variants and brands of'Goldee' in the ensuing year. As you all may be aware West Bengal is an alcohol deficitmarket where the overall demand surpasses supplies. Therefore our foremost target herewill be to bridge the demand-supply gap and rapidly scale-up sales volume. The grainprices are lower in West Bengal compared to North India while ENA realizations are betterresulting in higher spread between grain and ENA price. We expect this should furtherimprove our profitability from this facility. Overall the West Bengal distillery is wellpositioned and we remain confident of implementing a robust 3600 Alcobevbusiness model in the state.
In the fourth quarter of fiscal year 2017 the Board of Directors appointed Mr. VijayRekhi as Additional Director (Executive Director) of the Company. Mr. Rekhi brings in fourdecades of experience in IMFL space and has played an instrumental role in premiumizationof various IMFL brands across segments. Under his leadership we propose to launch fourniche IMFL brands in the current financial year 2017-18 in the state of Karnataka andPondicherry and target premium distribution outlets to roll out these quality brands. Thiswould be done through our 100% owned subsidiary 'Unibev'.
With all the positive facets in place I expect FY18 to be a breakthrough year forGlobus Spirits in terms of growth and profitability.
I take this opportunity to thank our valued employees business partners vendors aswell as other stakeholders for their unstinted support and confidence in Globus Spirits.I would also like to express my sincere gratitude to all of our shareholders for yourcontinued support and encouragement.
Sd/- Vivek Gupta