On this very great moment by presenting annual report of Kamdhenu Limited I amoverwhelmed to proclaim that for the financial year 2015-16 our company has shownunswerving performance. Despite the market slump in construction sector last year was agood year for Kamdhenu Limited in many ways. Profit Margin shows that how all availableresources are being used in best manner.
Last financial year has seen a downturn in India's construction sector. Market slumpwas primarily due to distressed demand from the infrastructure sector. The three majorsectors that drive the demand for construction are steel cement and electricity. Thesesectors have witnessed a sharp fall in production growth. India's construction sector fellin the second quarter of fiscal 2016 in spite of the government's attempt to boost growththrough several measures. In its approach to elevate the growth of construction sectorgovernment started a project to develop 100 smart cities. In its most recent set ofreforms the government of India announced major FDI (foreign direct investment) reformsin various sectors in November 2015. These included reforms in the construction andmanufacturing sectors. In the construction sector the requirements of minimum area andcapitalization have been waived. This means foreign investors can now invest in very smallprojects through the FDI route. These efforts of the government are observed by theentrepreneurs as a significant step in the upliftment of construction sector in nearfuture.
Amid all the doom and gloom stories of the market Kamdhenu Limited has been able towrite a success story for last fiscal 2016. At a time when most manufacturers havestruggled to create demand for their products Company has gained a profit of Rs. 815lakhs in compare to their last year's profit which was Rs. 803 lakhs. Diminishing saleprices of the steel products brought down the sales from 1011 cr. to 885 cr. however thesales of the product in terms of quantity are almost same. Further the board of directorshas recommended dividend @ 7% on the paid up capital for the financial year 2015-16subject to approval of the shareholders.
In addition to this company has achieved a remarkable growth in its paintsegment inthe financial year 2015-16. Kamdhenu Paints' annual gross sales have also increased by 22% to Rs. 200 Cr in the financial year 2015- 16 as compared to Rs.164 cr for fiscal2014-15.
Kamdhenu TMT is the largest TMT selling brand in India. Kamdhenu SS10000 TMT is aunique double rib pattern design of steel rebar with the chemical composition and physicalproperties equivalent to British Standard B500C which would give the steel rebar/TMT Barsmore strength.
Cementing its position as a remarkable brand we are leading by providing a broad rangeof the best quality color coated Gl/Galvanized sheet products. Minimal maintenance costhigh durability corrosion resistant leak proof thermally efficient are the keyattributes of our Galvanized sheets.
Kamdhenu Paints - Colour Dreamz i.e. our paint section which offers a wide range ofsustainable products and solutions that include Exterior & Interior Emulsions Waterbased primers Wood Finishes Aluminum Paints and Textured & Designer Paints.
Being an employee friendly company we recognize that fostering a healthy sense ofwork-life balance among employees can have both short and long-term benefits.
Brands can be promoted through Ads but can lead through supreme quality. Qualityvetting measures are important part of our manufacturing process. Since inception companystrived towards building a trustful brand image among its customers with outstandingservice.
Aiming to obtain dynamic expansion across the nation Kamdhenu Limited ventured into"Franchisee Business Model". On one side this model helps Kamdhenu to generatehigh financial returns with lesser risk and on the flip side it has brought a significantchange in the way its partners operate their business. A web of 8500 dealers anddistributors supplying products to the customers and making our PAN- India operations agreat success.
Eternal brand building and brand association activities are the key factors of ourbrand promotion policy. Strategically using conventional and unconventional mediaKamdhenu Limited has been able to establish a positive image in the industry and among itstarget group. We at Kamdhenu believe that along with customer satisfaction dealers'satisfaction is equally important. Company organises overseas trips and
bollywood events for dealers as a part of its brand building activity.
Being a responsible corporate group we are committed to serve the society at large.CSR approach of Kamdhenu Group is in line with our attitudes towards mainstream businessthus we have a dedicated social wing Kamdhenu Jeevandhara.
Working on the mantra of "winning trust with best quality" Kamdhenu Limitedhas bagged two global awards in a single year. We are awarded as World's Greatest Brands2015 Asia & GCC chosen by consumers and industry. Adding another feather in our capwe achieved the award of ASIA'S MOST PROMISING BRAND 2015-16 by World Consulting andResearch Organization in the category of Manufacturing-Steel-Promising.
Concluding my words I would like to express my gratitude to all those who have playeda pivotal role in the successful voyage of the company so far. Our dealers anddistributors along with our employees showed their mettle to bring fruitful results forthe company. I take this opportunity to thank our customers as their trust is a valuableasset for the company. With a clear vision into the future we are committed to delivergreater value to our customers shareholders and other stakeholders.
With warm regards Yours sincerely
Satish Kumar Agarwal
Chairman & Managing Director