It is with great pleasure that I present to you the 48th Annual Report ofyour Company Aries Agro Limited.
During the year under review 2017-18 the monsoon recorded below normal rainfall to thetune of 95% of the LPA (Long Period Average). However July and August witnessed some ofthe worst floods in Gujarat South Rajasthan Assam Bihar parts of Uttar Pradesh andOdisha. This was followed by a long prolonged dry spell in September across India duringthe first half of the month. The tremendously erratic weather conditions led to theCompany needing to continuously modify and align sales strategies to ensure growth in allregions. With these efforts the company managed to increase its revenue (gross) by 15.40 %from Rs.277/- to Rs.320/- Crores. On a consolidated basis international sales werelimited due to suspension of manufacturing in UAE facilities and installation of likemanufacturing capacities in India.
The total capacity utilization currently stands at 61% of the total installed capacityof 95400 MT p.a. in India. During the year under review with the expanded manufacturingcapacity in Hyderabad and Chhatral facilities due to reinstallation of similar machinerieslike the UAE units the import substitution led to a significant improvement inmanufacturing cost efficiency.
Aries was awarded with an appreciation Certificate for excellence in SustainableEnvironmental Initiatives by the Bombay Chamber of Commerce & Industry. ForThirteen consecutive years Aries Quality Management System was audited and certified asNS-EN ISO 9001:2015 with zero non-compliance report showing complete adherence tointernational quality standards.
Cost control measures strengthened along with continued focus on domestic manufacturingincrease in profitability (PAT) by 19.47 %. On a consolidated basis despite therestructuring of international operations consolidated P&L showed an increase of48.48% in PAT in comparison with the previous Financial Year.
International clients are located in Bangladesh Nepal Vietnam & Taiwan.Distributors in Nepal and Vietnam have invested in branding and promotion of our range ofproducts in their respective countries. The total exports and global sales constituted8.89% of our group revenue during the Financial Year 2017-18.
As this year marks 10 years since our IPO we are pleased to brief as a part of thisAnnual Report a summary of our Financial Performance from 2006 till date. This shows ahealthy growth in our revenues of 28% Year on Year over the 12 years period working outon a year on year average of 15%.
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.
The company undertook activities focused specifically on supporting education acrossIndia by constructing washrooms and water tanks supplied benches carried out repairs onschool building provided educational kits ROs and also computers. The Company alsoprovided fees and scholarships to students in addition to series of awards to meritoriousstudents.
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. During the year under review 13351 knowledge dissemination activitiesincluding farmers meeting were undertaken impacting 91800 number of farmers. Thesesessions were conducted by team of 138 extension officials spread across 26 states.
Farmers' meeting and training programmes on good agricultural practices were conductedin almost all States across India. The unique feature of these events have been that theyhad participation on a common intellectual platform from top government officials opinionleaders academia research scholars scientists agribusiness students and farmers fromacross the states.
The Company also organized soil testing camps in 3 major consuming states using MobileSoil Testing Kits.
2018 monsoons are expected to be normal and the Company is hopeful of achieving goodgrowth in revenues and profitability. The Company conducted its digital flash sale firsttime this year with App only bookings leading to participation of 1400 Nos. ofdealers/ distributors from all states with a total booking of Rs.398/- crores for 2018-19.This marks the introduction of successful digital sales promotion techniques by theCompany. The conversion expected is 75 to 80% of this order book and expect to achievetotal gross revenue of Rs.350/- Crores.
The urban farming facility using hydroponics also became fully operational during thecurrent year with two harvests being successfully undertaken for a variety of cropsincluding varieties of Basil Pokchoi Cherry Tomatoes Lettuce Coloured Capsicum andMicro Greens. The R&D team also created specially designed nutrition solutions forsoil free farming and this have been used in our own research facilities as well as insome commercial hydroponic farms.
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 |