We continue to be among the largest exporters in our segment boost direct and indirectemployment and promote Make in India' concept.
It gives us immense pleasure to write to you once again. Three years ago we started astory. That of creating significant value for our shareholders. It began with our decisionto enter into the value-added segment of the business and offer innovative products andsolutions to our customers which changed our business dynamics for good. We invested inimproving our processes hiring a more experienced team and reorienting our organisationto align with our goals. We moved away from being a generalized prototype selling companyto pursuing an active interest in customized and value-added products that add merit tothe business of our clients. Over the last two years we have invested in improving muchof this. It required us to rebuild ourselves as a company of global statute with highlyskilled personnel make meaningful capital investments set-up the best of technologiesand machineries and optimize cost to the minimum.
We believe that our core values of commitment to our people and adherence to thehighest principles of customer satisfaction would help us in this transformation. It is aprocess which will be rewarding in the long run to all our stakeholders. The key to thischange was to identify within ourselves the opportunities for self improvement and in theprocess strengthen the organization. We have discussed elsewhere the idea of"transfornation". It is the mindset of Transforming the individual bycontributing to Nation building. We have remained conscious of our role in the Makein India' philosophy.
The year gone by
An assessment of the fiscal year that went by cannot be made without taking a stock ofthe economic challenges that grappled most of the developing and emerging economies in2016.
Despite the odds we registered a stable financial performance. We are proud of ourresults for the year under review; it isn't easy to emerge out stronger in a testingscenario. Our sustainable profit generation is a validation of our business model backedby cutting-edge technology efficient operations and prudent financial management. Many ofthe new initiatives that we took have started showing results although the environmentcontinues to be challenging.
How did we achieve these returns?
This year's return and financial performance should be seen in the context of long-termreturns. During the year under review we continued to scale our operations develop ourtalent pool and invest in streamlining our systems and processes. An exercise torestructure the organisation was concluded and changes in HR policies were brought in.Several key positions at the senior level that were identified as a part of that processwere filled up. Adopting improved operational practices and introducing lean manufacturingacross our departments aided the exercise. This has helped us reduce our materialwastages avoid rework and improve our quality of products.
Employee development and engagement continues to be our priority. We conducted severaltalent development programmes to boost our team morale and engage better with ouremployees. An inclusive environment that promotes positivity is encouraging and crucial tobusiness sustainability; and we tirelessly work towards it.
Everything we do is backed by our commitment towards adding value to our customers. Ourteams worked closely with our end-users helping launch some innovative customizedproducts. Our product basket now comprises garden bag covers and water-proof productsapart from the existing range. The in-house R and D team strives to continuously improveour fabric quality and focuses on new product development to address a wider customerbase.
Over the years we have nurtured our customer relationships with proactive services andtimely delivery. We have also setup a dedicated customer support team to immediatelyaddress any problems and grievances of our customers. The result: we have been successfulin adding new customers and retain our existing customers.
What makes us different?
Being in the business of B2B industry with major revenue being derived through exportswe value our deep- rooted association with our distributors. From serving customers in 6countries in 2006 today we are present in more than 38 countries catering to over 88customers. Quality is the cornerstone of our business growth ensuring our products arebenchmarked to global standards. Regular internal and external audits also ensureconsistency and higher throughput in productivity.
We have successfully divided our business profile into three main verticals: FIBC'sFabric and Multi Filament Yarn. Each one of these products caters to a different marketsegment and reaches out to different geographical regions. Not only has this helped us indiversifying our portfolio but it has also helped us in mitigating risks associated withgeo- political developments. Going forward we hope to continue with this strategy.
What is the road ahead?
Packaging industry continues to gain prominence as manufacturing companies continue toget traction buoyed by positive growth sentiments. Being among the leading bulk packagingcompanies in the world we are excited with our future prospects. Keeping to our goalsthe construction of a new unit has started at a new greenfield site in Kanpur Dehat. Theidea is to consolidate operations and bring in the best practices in lay out and methodswhich have affected us due to legacy issues in the past. This expansion and technologicalup gradation will align with our strategy of emerging as a stronger and better entity.Your company is on a threshold of a growth curve which will not only be aided by this newfacility but will also establish us in the top bracket of the business globally.
It is a certainty that many of the recent government initiatives and more particularlythe historical roll out of GST will be a big positive for the Industry in the long run.India is marching towards a change in the way businesses operate. A change that we believewill make the world look upto us. I am glad that your company is well placed to takeadvantage of that change.
We remain committed towards our transformation and thereby transforming the nation'spride. We continue to be among the largest exporters in our segment boosting direct andindirect employment and promoting the Make in India' concept.
We would like to thank our Board for their unwavering support to drive the Companyahead and look forward to another exciting year of creating further value for ourstakeholders.
Deputy Managing Director