At Sangam our passion for executing with excettence fuets our targer purpose: todeliver value to our customers and shareholders. We did this by strengthening ourdistinctive brands with undying passion and exploring the potential lucrative segments.
I ndia remains the fastest growing economy in I the world with strong economicfundamentals and growing reform momentum. The economy displayed robust GDP growth of 7.1 %driven by strong consumption controlled inflation and growing FDI. Thus making India apotential investment destination for the next decade.
The growth story was temporarily disrupted by the government's demonetization'initiative. However increased government spending and pick-up in agricultural outputbacked by strong monsoon helped in quick recovery of the economic activity. The Governmentfurther introduced Goods and Service Tax (GST) for simplifying tax structure andcompliances aligning it with practices in the developed countries. I am optimistic aboutbrighter times ahead with rising growth prospect of our country.
At Sangam our passion for executing with excellence fuels our larger purpose: todeliver value to our customers and shareholders. We did this by strengthening ourdistinctive brands with undying passion and exploring the potential lucrative segments -all this with a strategic perspective to grow our presence in the industry and around theglobe.
Our growth target in 2016-17 reflects the shift to a world where being connected tothe customers is becoming ever more important. We extensively worked to provide our brandC9 with unique identity and offerings. We launched an exclusive brand outlet in Mumbai andBathinda this year to offer the latest products and trends at one place. It is presentlybeing sold through Exclusive Brand Outlets (EBO) Multi Brand Outlets (MBO) Large FormatStores (LFS) and e-commerce platform. The brand has reached more than 100 cities throughmore than 750 stores in India. We aim to grow further by expanding customer outreachthrough 2000 MBO 100 LFS and EBO in more than 200 cities to create pan-Indian presenceby March 2019. Enhanced digital presence and store network together has createdopportunities for us to penetrate further into the market.
Sangam continued on an expansion mode to augment the integrated business model. We arein the process of installing one line of 12 rope indigo dyeing 73 new and 5 old weavingmachines at Denim Unit in Bhilwara. We also have plans to install balancing and modernizedmachines in our existing units -Spinning Unit-I II and processing units. The entireinstallations under the expansion initiative would be completed by December 2017.
We continued to focus on manufacturing value- added products leading to betterrealizations and margin. Effective quality and cost control measures were employed acrossall our segments. During 2016-17. we recorded a 6% increase in net revenues from Rs.1504.40 crore in 2015-16 to Rs. 1593.64 crore in 2016-17. Adverse market conditionsvolatility in cotton prices and short-term supply issues owing to demonetization impactedthe profitability of the Company. The EBIDTA of the Company stood at Rs. 183.09 crore in2016-17 against Rs. 233.34 crore in 2015-16. The Company reported a net profit of Rs.54.60 crore in 2016-17 compared to Rs. 77.04 crore in 2015-16.
I am proud of our commitment to sustained growth despite challenging times during theyear. We have embraced innovation and value-based approach that has helped us become thetrusted brand today. With all this momentum. I am determined more than ever to ensure thatSangam remains true to the principles that made it a successful name. We will continue tolive the values that have shaped us over the past 32 years.
I would like to thank team Sangam for their passion commitment and contributiontowards strengthening the Company. I would like to express my gratitude to all ourinvestors and stakeholders for their unwavering faith in Sangam. We are looking forward toachieving greater heights to generate sustainable value for one and all.
R. P. Soni