Fiscal 2017 was an exciting year for your Company. Historically we touched a new highin the financial and operating performance and at the same time we also preparedourselves for the opportunities that may come our way in the future.
Before we detail you about Cupid's plan for the coming future let me take you throughthe key highlights of fiscal 2017. We reported an uptick of 36% in the operating revenuesfrom Rs.6280.47 lac in FY16 to Rs.8521.98 lac in FY17. A ramp up in business across oursegments led to the increase in the revenues and over 28% increase in the profitability.As our revenues in the female condoms has grown faster than the male condoms the overallmargins have remained consistent around 40%. This year we also commercialised our newlylaunched water based lubricant jellies and I am happy to share that the product has gonewell with the end users and the company have got repeated orders from our institutionalcustomers.
During the year we also stepped up our efforts in the brand promotion activity for theCupid range of products. This initiative has been in line with our planned foray into B2Calong with giving more brand recognition for the Cupid condoms. Unlike most of our peersour strategy in brand promotions is interactive with an objective of creating awarenessabout the benefits that our products offer. On these lines we also initiated surveys andextended our "For her" awareness campaign to various locations in the MumbaiMetropolitan Region to empower Indian women and communicate the benefits and use of ourFemale condoms along with our other products. The target audience very well received thisactivity and the results indicated many insights for us. It also complemented our firmbelief that India is a potential market for our female condoms and a successful retailforay can not only enable broad reach of our products but can also significantlycontribute towards women empowerment and wellness in the country. Throughout the year wehave also activated our channels on social medias to achieve brand promotion and furtherstrengthen our campaigns for the youth population.
Amongst the major other highlights we also featured in Forbes Asia's 200 best under abillion list which was again a rare achievement for an Indian Company. Further ourlisting on the National Stock Exchange which is a significant milestone for us and wouldallow investors a wider platform and liquidity in the stock. Overall in fiscal 2017while we strengthened our foothold in B2B space we also initiated our foray into B2C withfew initial steps.
We believe the business climate is robust and the future lays a strong opportunity fora company like Cupid. As we enter into the new financial year (FY18) we have also chartedthe course of the main strategic themes that will drive us to the next ladder of growth:
1. Strengthen our Institutional business in new territories
We have a good order visibility for the ongoing fiscal (FY18). However we also foreseeopportunities in the industry going forward. The usage of the condom is projected to reach44.7 billion pieces by 2021 from 26.5 billion pieces in 2015 and we expect the growth tocome from select markets. While we are present in most of these markets we also plan tolaunch our products in different developing countries like Brazil Nigeria TanzaniaIndonesia where there is significant demand for the products. We have already initiatedthe process and we intend to get our products registered with local authorities formarket access in the future.
2. Foray into the United States for Female Condoms
Part of our overall strategy we are in the process of seeking approval for our femalecondoms from the USFDA. While the same authority has already approved our male condoms anod for Cupid Female Condoms will complete our product basket for the launch in the majordeveloped markets. USFDA approval will also qualify Cupid for bidding for the USAID tenderbusinesses for distribution of condoms across the world.
3. India Based B2C business
We have launched our Cupid range of male and female condoms along with lubricantjellies through a well-thought-out promotional activities and a robust distributionnetwork. On the branding and advertising side we are intensifying our promotionalactivities at the ground level followed by online activities thereby creating buzz forthe brand and building a strong brand presence. From a distribution standpoint we aim toestablish a strong retail presence by appointing its super stockists who will be supportedby our marketing team. The India foray has begun with a launch in Mumbai followed by PuneAhmedabad Jaipur Calcutta and few other states. Besides these initiatives we alsointend to bolster sales through online channel and target to distribute products in 1000+towns and cities in India.
4. New product initiatives
We would continue evaluating new growth opportunities both through organic andinorganic route. Some of the identified opportunities that we are working on include thelaunch of our unique patented male condom giving extra pleasure to the user during safesex a second generation hi-tech version of Cupid Female Condom our foray into handsanitizers vaginal creams and wipes used in the slowdown of premature ejaculation.
Overall we have set the foundation for a sustainable growth going forward; we areconfident that our strategy in the B2B and B2C business is thoughtful and directed atexpanding our reach to mass markets while maintaining affordability accessibility andusefulness.
Let me thank you for your trust and support in management and for being a valuable partof the Cupid family. I also take the opportunity to thank all the employees of the companyfor their dedicated service towards Company's growth.
|BEST REGARDS || |
| ||OMPRAKASH GARG |
| ||Chairman and Managing Director |