MANAGING DIRECTOR'S MESSAGE
Mr.Naresh Chandra Chakraborty, Managing Director, speaks about Company's performanceand the way ahead.
"In 2012-13, we further enhanced our overseas presence which resulted in ourexports increasing by over 275%."
Year 2012-13 was a year that witnessed the highest level of economic challenges. Rightfrom depreciating rupee, inflationary pressures to political instability, there was aneminent slowdown in the overall growth of the economy.
At ntc, we have a different story to say. While several companies across Indiastruggled to fight against the tide, we reported record results. While our revenuesincreased by over 15%, our post tax profit increased by over 500%.
A number of observers will be tempted to ask how we reported such a successfuldivergence when the industry is facing the threats of high placement cost, advertisementrestrictions, harsh pictorial warning on the product, increasing anti-tobacco drives and asmoking ban in public in few states.
My answer: Our 'opportunity-focused model'. This made it possible for us tomaximise profitability despite such challenges and sluggishness.
At ntc, we countered the trough in the market due to a number of initiatives that wecommissioned across the past few years.
1. Increasing focus on exports: With increasing pressure ofanti-tobacco awareness drives in the domestic market, we explored opportunities topenetrate the export markets. Our proactive thinking paid rich dividends. In 2012-13, wefurther enhanced our overseas presence, particularly in the American nations, whichresulted in our export increasing by over 275%.
2. Technological upgradation: Our constant endeavours towardsinstalling updated technologies have allowed us to reduce our operational cost on one handand allowed us to produce quality cigarettes in good finished packets at par withinternational quality standards, on the other. The Company has also invested over Rs. 500lacs as capex in last three years.
3. Introduction of new brands: We introduced new brands in the64mm segment for eliminating the taxation impact. These brands came in modern packaging indifferent segments, particularly to attract young generation smokers.
4. Research and development: We have consistently focussed onvalue-creation for our customers through constant research and development initiativesthat allow us to create quality brand, deliver quality blends and produce various sizevariants.
"We have consistently focussed on value-creation for our customers throughconstant research and development initiatives."
However, such an extra-ordinary success does not make us complacent. We are aware ofthe prominent challenges that may affect our operations in the medium to long run. Thethreat of rising raw material prices owing to supply shortage and volatile exchange ratefluctuations looms high. By virtue of our proactive business thinking, we have startedmaintaining sufficient inventory to mitigate the threats of rising prices.
We have also initiated aggressive marketing efforts to penetrate deeper into thedomestic and export markets.
This will further enhance our revenues and profitability going ahead.
As a responsible citizen, we have taken conservative steps towards our productpromotion that complies with all the specified norms, policies and regulatory guidelines.Besides, we continued to enhance the socio-economic quotient of the communities residingaround our facilities and regularly initiated various health-related activities, likeblood donation camps and eye check-ups, for their healthy and safe livelihood. We alsocontinue to follow sustained business practices to ensure that the environment does notget impacted adversely.
At the end, I would like to show my deep sense of appreciation to the shareholders,bankers, business associates, retailers, suppliers, customers, government and otherregulatory agencies for their continued support and faith in the Company. I would alsolike to thank our employees without whom this success would have never been possible. Yourcontinued trust and support has given us the courage to perform at our potential best andwe are now fully confident of taking this success to the next level.
Naresh Chandra Chakraborty