It is with great pleasure that I present to you the 49th Annual Report ofyour Company Aries Agro Limited.
During the year under review 2018-19 the monsoon was at 91% of the LPA (Long PeriodAverage) with drought condition in North East India. Only 2/3rd of the countryreceived normal rainfall and 1/3rd of the country received deficient monsoon.After a good start in June 2018 at 95% of the LPA the rainfall reduced to 76% of LPA inSeptember 2018. This was followed by severed cold wave condition in the Rabi season andpoor reservoir levels. Despite this the Company took the efforts to maintain its grossrevenues However in order to boost lifting in the second half of the year especially inQ4 additional trade discounts was offered. On standalone basis the Company's grossrevenue increased marginally by 0.13% from Rs.319.89 Crores to Rs.320.31 Crores. On aconsolidated basis international sales were suspended due to non-manufacturing in UAEfacilities
The total capacity utilization currently stands at 63% of the total installed capacityof 95400 MT p.a. in India. During the year under review import substitutes continued dueto full scale manufacturing of previously imported items at Hyderabad and Chhatralfacilities.
Aries was felicitated by Economic Times as one of the "Champions of RuralMarkets 2018-19" for having stood firm in the winds of globalization and havingconsistently served the rural market. Recognition by Insight Success Magazine in March2019 in their Annual Listing of the "10 Most Recommended Agritech Companies inIndia" that embraces new Technology to deliver various end-to-end farmsolutions on a reliable foundation of rich insights on farming. For Fourteenconsecutive years Aries Quality Management System was audited and certified as NS-EN ISO9001:2015 with zero non-compliance report showing complete adherence to internationalquality standards.
Cost control measures strengthened along with continued focus on domestic manufacturingshowed increase in profitability (PAT) by 5.29 percentage. On a consolidated basis despitethe restructuring of international operations consolidated P&L showed a slightreduction in PAT in comparison with the previous Financial Year.
Aqua based products were introduced during the financial year namely Aqua BoostAquacan Aquagold Aquamag Aquamin Plus Aquashell Aqua Zincmag Aquablend Forte andAquazin Plus.
Distributors in Nepal have put up their own manufacturing unit to support and increasesales and distribution network of Aries Products throughout Nepal.
Aries continues its tradition of carrying out a range of activities that spreadknowledge and adoption of farming best practices in the markets that Aries functions in.During the year we emphasized more on higher standard of living and sustainableenvironment.
Accordingly we had initiated two unique programmes viz. Aries greencups - an effort tointroduce urban and semi urban kids to the concept of growing food which is an uniqueconcept of soil-less cultivation taught to the students and school faculty. Aries WaterWheel is an endeavor to effectively deliver portable water over long distancesparticularly useful in areas where portable water is scarce.
In addition to the above Aries' extension team continues to strongly advocate goodagricultural practices in all states of India. The activities are conducted under thesupervision of Agronomist and Agricultural Research Institutions throughout the year.During the year around 10000 knowledge dissemination activities including farmers meetingwere undertaken impacting 128217 number of farmers. These sessions were conducted by teamof 116 extension officials spread across 26 states.
The Company also provided fees and scholarships to students in addition to series ofawards to meritorious students.
The Company's Call Centre based in Vijayawada continued to provide answers to farmers'queries on integrated nutrient management pest management soil health and post harvestmanagement. The Company also organized soil testing camps in 3 major consuming statesusing Mobile Soil Testing Kits.
The Company in coordination with Confederation of Indian Industry (CII) transportedrelief materials to Kerala for distribution to the flood affected people. The reliefmaterial included: Blankets Groceries Medicines Hygiene products Footwear etc. Thestaff also contributed upto a day's salary to the relief fund 2019 monsoons are expectedto be near normal at 96% of LPA. The Company is hopeful of achieving good growth inrevenues and profitability. The future of Aries which is embarking on its golden jubileeyear in 2019-20 is being charted by strengthening its focus areas. The Company continuedto conduct its digital flash sale this year with "App only" bookings leading toparticipation of 1431 Nos. of dealers/distributors from all states with a total booking ofRs. 510/- Crores for 2019-20 and we envisage conversion of 75 - 80% of this order.
Through its products and passion Aries continually demonstrates that it is aresponsible corporate citizen working hard to retain the delicate balance of nature andthe development of communities where it works and grows.
Dr. Rahul Mirchandani
Chairman & Managing Director