It gives me great pleasure to share with you all that the past year has been anexemplary one and I would like to dwell on all the significant events that happened.
The Financial year 2018-19 has been a milestone for your Company and a year of many'firsts'. This was the year that your Company began its journey as a listed entity. Wehave now completed 11 months on the NS6 SME bourse. Operational Revenue mix at Rs.3930.17Lacs was the highest in our history. The year also saw your Company's entry into a newstore format of a dessert caf under the brand name Dangee Dums Yums. With three largeformat stores at Panjarapole Shyamal and Bopal in Ahmedabad (Gujarat) the format is agrowth engine for the future. Finally your Company marked its entry into the packagedproducts category with the launch of Panning chocolate product. The product is doingrobust sales and carries the potential to be carried outside of our stores in modern tradeshops. Your Company is now 8 years young but in many ways we believe that the journey hasjust begun with many peaks yet to be scaled. Our aim and ambition is to build a robustorganization with strong foundations that can create value for its stakeholders andweather challenges in times to come.
The bakery market in India continues to be fragmented and Local. While internationalplayers have attempted to establish their presence Indian players continue to enjoysignificant advantages on account of sensitivity to local tastes preferences andwillingness to spend. The industry is extremely competitive and requires consistentinvestment in flavours formats and so on. Your Company is committed to investing inproduct development that not only refreshes our presence in existing categories but alsoallows us to enter new product categories that fall within the ambit of our competence inwestern desserts. The in- house product development unit is constantly scopingresearching and evaluating product concepts and we see the efforts of this unit ascritical in keeping our brand relevant to our customers.
Like any other food service industry the bakery market has also witnessed the impactof the entry of third party food delivery platforms Like Zomato Swiggy and Uber Eats. Theconvenience and affordability afforded by these platforms has been a boon to thecustomers. For brands listed on these platforms they offer the chance for rapid customeracquisition and incremental business. The concern for the brands is that customersacquired through such platforms have a primary relationship with the third party platformand not the brand itself the cost of acquisition due to rising commission fees charged bysuch platforms as well as the customer relationship being purely transactional in natureare other concerns.
Your Company currently has 78 stores across two formats our smaller store format of 75stores serve as neighbourhood bakery shops and they enjoy strong preference overcompetition. Our three larger format stores at Panjarapole Shyamal and Bopal in Ahmedabad(Gujarat) is our attempt to showcase the best of Dangee Dums under one roof they carry awider assortment of our regular items as well as other western dessert products in a nicecomfortable setting. For us a brand a strong relationship with our customers is ourstrength and our focus will be to offer our customers better experience and value at ourown stores in order to give them a strong reason to visit them.
We are also investing in online platforms in line with the trend in the market. Alongwith the third party food delivery platforms like Zomato Swiggy and Liber Eats we arealso evaluating online grocery platforms of Big Basket Amazon for our packaged products.We will also be investing in building our own digital platforms like our website app andwhatsapp - ordering. We feel this is critical in building and sustaining a strongrelationship with our customers.
Your Company will continue to maintain an active presence in the ice-cream market weentered this market in FY 2016-17 and we have since worked on the product further andwill launch a signature range of premium icecreams in FY 2019-20. With the ice-creammarket growing at a healthy CAGR of 10-15% we feel that there are opportunities in themarket for brands that bring innovative flavours and formats to the market. We feel thatour signature range can be competitive beyond just our stores and we will exploreopportunities for the same.
Your Company is also planning to enter the premium cookies category a market growingat double the rate of the biscuit market. We feel that this market is a natural extensionof our franchise and we plan to enter this market with innovative flavours at acompetitive price all set in an attractive packaging.
I am pleased to report that in light of the above stated facts your Company isconfident to achieve new milestones in its journey towards sustainable growth throughtotal excellence. Dangee Dums Limited has pursued business excellence through passionperseverance and commitment to offer the best to its customers we feel that it is thisapproach that helped keep us cost competitive and profitable. Moreover we areanticipating that the proposed Goods and Services Tax to add a cherry on the cake as itmight prove as cost efficient and boost our growth due to reduction in various compliancecost of discontinued laws; accordingly it may strengthen the profit of the Company.
Your Company continues to keep a watchful eye on the emerging opportunities but isfully aware of the financial implications and capital commitment required to tap into thatopportunity. Notwithstanding the macro economic slowdown your Company has continued tofocus and build its brands products distribution and reach. Along with this your Companyhas over the years established high levels of governance and financial discipline. Wecontinue to stay focused on pursuing profitable growth.
Before concluding let me assure you of our commitment to create value for ourstakeholders I would also like to thank our Board of directors for their constantguidance and support. We value the trust reposed on us by our shareholders bankersemployees suppliers associates and our loyal customers.
We have tremendous conviction in our abilities to pursue the growth trajectory we havecharted for ourselves and significantly benefit from being part of this vibrant economy.With cites growing at a rapid pace and rural populations migrating to towns ourbusinesses are poised to soar rapidly. Our objective remains to continue growing at adouble-digit rate while maintaining the financial strength of our Company.
We are pleased to have you as our shareholders and I take this opportunity to thankyou for your continued trust and support on this journey.
Finally as always I would like to reiterate our commitment towards deliveringconsistent results and enhancing shareholder value.
|Warm regards |
|Nikul J. Patel |
|Chairman & Managing Director |
|(Din: 01339858) |