Dear Members and stake holders of Virat Crane Industries Limited
We are pleased to submit your 25thAnnual report as a listed company.
It is very sad to inform that we lost our founder Shri Grandhi Subba Rao Garu on 24thMarch 2017.The company would like to Commemorate his achievements in brief.
Shri Grandhi Subba Rao Garu is very well known for his morals integrity generosityand vision. He started his career in 1948 at the age of 17. In 1958 he established cranebrand in which is the leader in its sector .He diversified the business into varioussectors including Infrastructure Information Technology and Communication Agro Productsand Dairy Products which are successfully running.
During the financial year our Company added its product base by introducing MilkCurd Butter Milk to its products line. I'm pleased with the progress on thebrand-extension and geographic expansion strategy along with our continued commitment toethics and strong corporate governance.
The total sales achieved in 2016-17 are Rs.71.48 Crores against the earlier year salesof Rs. 60.86 crores which means an increase of Rs. 10.62 Crores in the current year.
During the Financial year 2016-17 even after challenges faced by company by way ofDemonetization which effected whole economy of the country huge initial marketing costsfor the introduction of new products increase in the cost of raw material and cut throatcompetition in the industry our Company achieved decent net profit of Rs.2.28 crores.
During the year the Board declared dividend of 5% on face value of each equity share.
Quality inbuilt Strategy:
We believe in delivering the best quality products as our philosophy has been based onthe delivering high quality products to its consumers. Delivering best quality products isincorporated in the manufacturing process itself. We are committed to 100% customersatisfaction by identifying their specific needs and converting them into Qualityproducts.
The company strives for its continuous development and maximizing shareholder's wealthby increasing Company's revenue streams and maximizing profit.
Introduction of new products along with expansion into newer states with qualityproducts strong marketing force and strategic supply chains provides significant scopefor increasing revenue while implementing measures to help control and reducing costswhich ultimately increases the company's profitability and earnings for our shareholders.
Company's focus is on capitalizing its "Durga" brand as it has highrecognition among the people. As crane brand also enj oys esteemed brand value among thepeople management wants to deep root this Durga Brand by marketing that it is a productof Crane group.
Opportunities and Future strategy:
As informed the Company successfully introduced Curd Milk and Butter Milk during theyear which was received very well response in the market. Company aims at capitalizingthat response.
As you know GST has been introduced by the government which throws variousopportunities our management team has been constantly capitalizing those opportunitiesthrown by the GST by aggressively penetrating the new markets. The company has been usingGST as a tool for its growth of revenue without compromising products quality.
As Managing Director I stand united behind this strategy and have confidence in theteam's ability to deliver future growth. It has been a pivotal year for the companywherein strategic plans to enter into new value-added dairy products were undertaken.
During the year our Company contributed to CSR Activities and would like to continueto do so. The company philosophy is live and let live and we will continue this philosophyby developing the stake holders of the company as a whole.
During the year company has paid Scholarships to 94 needy students irrespective ofreligion and caste who excelled in their education. Company ensures that these type ofnation building activities will be continued in the future as well.
We fulfil the aspirations of the public as we observe ourselves as a good law andethics abiding corporate citizen.
I would like to thank all my shareholders staff and all other people who involved inthe activities of the company for their unflinching dedication commitment andcontribution towards strengthening the company.
I would also like to place on record my sincere appreciation to the Board of Directorsfor their guidance.
With best wishes
|G.V.S.L.Kantha Rao |
|Managing Director |