It gives me great pleasure to share with you the 42nd Annual Report of your company forthe year ended 31st March 2018. It has been an important year for us as we havesuccessfully and consistently performed and grown from strength to strength. Theintroduction of GST has made this industry more organised and being the pioneers in theedible oil industry your company has benefited tremendously out of it.
India's economic growth has been recorded at 6.7% in the financial year 2018 which waspartly due to the lingering effects of demonetisation that impacted the informal sector inthe first half of 2016-17 and teething issues related to implementation of the goods andservices tax (GST). The economy picked up pace resulting to 7.2% in October-December 2017quarter in comparison to 6.5% in July-September quarter and 5.7% in April-June quarter.India is expected to be the fastest growing major economy in 2018 with a growth rate of7.4% that is expected to rise to 7.8% in 2019 with medium-term prospects remainingpositive. Going ahead the Indian economy has the potential to clock double digits by2020 given the uptick in the demand across segments and the huge marketplace that Indiaoffers. The government is also taking all necessary steps to achieve the double digitgrowth rate with initiatives such as Make in India' to support the Indian economyand provide employment opportunities.
We are glad for the solid inheritance and more than four decades of rich experiencethat has made who we are today. We are an enhanced business house with interests in edibleoil extraction distillery and realty. Our adventure of advancement is the declaration ofour deep estimations of Trust Commitment and Transparency that we held from time to time.We have a strong reputation of development and esteem creation which originates from oursolid assembling capacities very much penetrated geological presence an entire and firstclass item portfolio and best-in-class advancements. Our very proficient administrationgroup supported by a spurred workforce and a solid asset report has strengthened oursituation in the market. We are focused on turning into a highly manageable business. Thisyear has been all about expanding our production capabilities and marking presence in theother states of India. Looking at the opportunity in the ethanol industry in West Bengalwe are looking to capitalise on it and hence in our JV with Svarna Infrastructure we arein the process of installing and starting Svaksha distillery plant in West Bengal.
This year has been all about growing and we're proud to record revenues of 8576 Mnduring the year with a growth of 26.8% as compared to the previous year's revenue of 6760Mn. Our diversified business segment has grown tremendously with our Edible Oil businesswhich was growing by 22% with a contribution of 62% to the revenue. The main factor forthe growth is the increase in our production capacity and with the increase in the importprices of oil seed the domestic consumption has seen an uptick and is expected to inclinegoing ahead. Our distillery business recorded a growth of 46% and contributed 37% to therevenue. With the increase in demand of ethanol in Punjab increased production capacitypresence in West Bengal and our own branded liquor we are expecting this segment to begiving us higher growth and revenues over the coming years. The real estate business alsohas performed fairly well for the company.
With the aim to deliver quality value and experience to customers we are continuouslyinnovating and delivering high quality branded products through our brands to meetcustomer needs. We are proud of building our own local brand which has helped us to servea large customer base across North India which in turn has helped our brands to be wellreceived by the consumers. We continue with our efforts to build our brands and areconfident that over a period of time we will have our branded products reaching theconsumers all over India.
Given the government support towards the domestic edible oil industry and to supportthe farmers the government has levied heavy duty on the imports of edible oil. This is agreat period for the industry and going forward we look forward to benefitting from it andwith the increased production capacity we expect to see a higher growth from thisindustry. The company is also in works to shift its edible oil plant which will save atleast 120 Mn per annum on the account of power & fuel expenses and thus improves themargins.
Your company has begun the journey to mark its presence in the state of West Bengal andgiven the demand and supply gap in the state we see a tremendous opportunity and look tocapture a higher market share and become the leader in the distillery industry in WestBengal. With our diversified business verticals we look to grow our branded edible oil(Homecook Murli and Do Khajoor) and branded liquor (Country Liquor and IMFL) and mark ourpresence amongst the markets and consumers. We have come a long way and this would havenot been possible with the confidence and support of our esteemed shareholders and we lookforward to your continuous support in the coming future and grow together.
R. C. Nayyar