It is my pleasure to present you with our Annual Report for fiscal year 2014-15. Thiswas a year of revival in sentiment as positive policy actions by the governmentpromulgated India as a high growth potential economy. While these policies may not havetranslated into immediate tangible ground level changes the environment has become moreconducive and impact of these policies should soon start becoming more visible.
Against this backdrop I am pleased to say your
Company reported net revenues of Rs 585.7 crore in FY2014-15 a healthy growth of 18%compared to Rs 496.5 crore in FY2013-14.
After a difficult FY 2013-14 growth picked up in both Rajasthan and Haryana key IMILmarkets for your Company. Though the competitive landscape in Haryana is still notfavourable it is heartening to see that de-growth is past us and stability is expected.In Rajasthan the IMIL industry has outperformed our expectations with solid growth of 16%at an industry level. Your Company has been able to capitalize on this trend and furtherleveraged its strong brands and wide distribution network to surpass the industry growthrate to achieve 20% volume growth.
In an important milestone your Company marked its entry into East India with launch ofIMIL in Bihar in January 2015. This is in line with our strategy to de-risk our dependenceon a few states and enter the high growth East India region. The East India states arerelatively under-penetrated and the demand for bulk and bottled alcohol is far in excessof supply making it ideal for establishing our 360 model. We have initiatedconstruction of Greenfield facilities in Bihar and West Bengal and expect to commissionplants in both states during FY 2016-17.
In the manufacturing vertical your Company's position as a reliable and high qualitymanufacturer was reinforced as ABD USL and Jagatjit scaled up their bottling contracts inRajasthan and Haryana. The exports division continued to perform well with volumestripling from the previous year partially offsetting impact of high competition/ lowerprices in Haryana. Productivity improvements helped in cost containment while the additionof a new value added by-product Distiller's Dried Grains with solubles helped to shoreup both topline and bottomline. DDGS is a promising by-product and has immense potentialin animal feed a large and growing market.
In the last two years your Company has embarked on several new initiatives includingopening up of new markets launch of high margin value added by-products brand buildingand focus on higher productivity to counter weak markets and rising input prices. Theseinitiatives are now starting to yield results reflected in robust revenue growth andimproving profitability. The expansion to East India will considerably accelerate thegrowth process and elevate your Company to becoming the only IMIL Company withmulti-region presence.
As we step in to the new fiscal year I am optimistic about your Company delivering anenhanced performance across all our businesses. I take this opportunity to thank you allfor your continuous support and belief.