We are happy to report a satisfactory financial performance for the year. All ourbusinesses have performed well with some pricing challenges in the Sugar and Hybrid Cottonbusiness. Our Chlor-Vinyl business has become stronger with economies of scale andsubstantial improvement in power efficiencies. The planned capacity expansion has beencommissioned and full capacity utilization achieved. Favorable pricing and higher volumesensured a substantial growth of both turnover and profits. The next phase of capacityexpansion is underway and the facilities will go on-stream in the next 18 months. Sugarbusiness is experiencing a difficult situation with prices significantly below cost ofproduction. Industry has been pursuing with government for immediate support. While thegovernment has been responsive and taken measures for short term relief a long termstable policy is required to ensure that interest of all stakeholders particularlyfarmers is protected. The business achieved the highest sugar production and a newdistillery was added. Capacity expansion for additional crushing as well as powergeneration is currently being undertaken and will be commissioned before the next season.Shriram Farm Solutions continues to maintain steady performance with high brandresilience. The business is assessing new opportunities for growth.
The Shriram Bioseed business has made steady progress with introduction newer andbetter performing Research Products. The regulatory environment continues to remainuncertain particular for Bio Technology innovations. We are working with the governmentto find satisfactory solutions. Fenesta registered good volume and profit growth duringthe year and has established itself as brand leader in this segment. Further initiativesare being taken to widen the product offering as well as grow the market. India's growthstory has remained intact notwithstanding the impact of some structural changes. Theintroduction of GST and the implementation of the insolvency code are some of the mostsignificant measures taken by the Central Government that will strengthen the economy inthe medium term. Record food grain production low inflation and steady growth in exportshave aided in maintaining a stable macroeconomic scenario. However rising crude oilprices along with subdued agricultural commodity prices remain as two big challenges. Thecontinued government emphasis on building Infrastructure and creating a favorable businessenvironment will ensure sustained GDP growth. We believe this augurs well for ourcompany's growth. Our employees are our biggest strength. It is the company's endeavor todevelop a culture that promotes innovation learning and development. This approach alignswith our new growth strategy. Our company continues to adopt the best standards ofCorporate Governance to ensure highest levels of accountability and transparency.
As a responsible corporate citizen we are committed to give back to society. We havesubstantially scaled up our support in the areas of education sanitation health andrural infrastructure. It gives us great satisfaction that our efforts are positivelyviewed by the beneficiaries. A structured evaluation of our programmes has revealed a highdegree of measurable impact especially of those pertaining to preventive health &sanitation.
We would like to take this opportunity to thank all our stakeholders members ofthe board business associates employees suppliers government agencies lenders andshareholders who have contributed to the growth and development of our company overthe years. With their cooperation we are confident of delivering superior value to allstakeholders.
With best wishes
|(Vikram S. Shriram) ||(Ajay S. Shriram) |
|Vice Chairman & Managing Director ||Chairman & Sr. Managing Director |