It gives me immense pleasure in presenting to you the 33 Annual Report of the Company.Over the last many years we have run the business ably and efficiently using our keyassets - brand talent and culture to deliver sustainable business and earnings growththereby creating long-term value for our shareholders.
These are extremely challenging times for our industry and also for Lykis. The industrysaw a slow growth rate in the recent past due in some measure to Government policies andcontrol measures. Also globally we witnessed increasing pressure on the Tea & FMCGindustry regulatory and compliance issues are getting more demanding increasinglyhave become more complex and pricing pressures are intensifying. Moreover socio-economicand environmental volatility is prevalent in most of the markets that we serve across theworld.
The FMCG segment is the 4th largest sector in the Indian economy with food productsbeing the leading segment of the FMCG market. Going forward Lykis consumer productsbusiness will be focusing on research & development and innovation as means of growth.The proposed implementation of the Goods and Services Tax (GST) will have a positiveoutlook on the consumption sector.
We believe that the production of quality tea enables us to sustain our brand valueresulting in building customers loyalty as well as placing us on an advantageous position.The demand for quality remains a key driver of our industry due to increasing affluenceand evolving consumer taste for high quality beverages in coming years.
Lykis has an exceptionally talented management team. A Scheme of Arrangement envisagesDemerger of the Tea Division of Lykis Limited into Cheers Consumer Products Limited isunder process.
I am grateful to the Board of Directors for their unwavering support and guidance. Ialso take this opportunity to express my gratitude to all our consumers businesspartners employees and stakeholders who have shown their trust in us and have extendedtheir constant support.
| ||With best Wishes |
| ||Sincerely |
|Place : Kolkata ||Vijay Kishanlal Kedia |
|Dated : 12th August 2017 ||Chairman |