It is indeed my privilege to present the 26th Annual Report of your Companyfor the Financial Year ended 31st March 2019. Growth always walks throughjounce roads and the same on facet with Flexituff. The financial year 2018-19 wasscrimping for your Company yet full of opportunities to align operations for growth.
While the Flexible Intermediate Bulk Containers (FIBC) division continued to operate athealthy margins Geotextiles division of the Company proliferated during this financialyear. However despite the high margins in FIBC business your Company witnessed pressureof sluggish global demand. Your Company also ventured into new business being developedunder the technical textile division the latest being water cleaning through itsde-watering tubes and a unique process technology of flocculation of contamination.
Despite the squeaks issues relating to delay in receivables high fluctuations in theraw material prices higher interest burden and transaction costs and stronger IndianRupee posed a challenge in achieving higher levels of competitiveness and growth.
The year 2018 witnessed huge financial scandals being exposed forcing Reserve Bank ofIndia to tighten the banking norms as well as monetary policy in the country. Banks aswell as financial institutions were asked to follow stringently 'Prompt Corrective ActionFramework' i.e. PCA framework. The said framework impacted the Indian market as well asindustry imposing liquidity crunches.
Further the economic disruptions brought about by the fall in oil prices slow downweak foreign currency lead to decline in consumption of raw material and lesserrealisation which highly impacted the Export Oriented industries settling back on breakeven status.
Among other political and regulatory changes and stringencies the Assembly & theIndian general elections lead to deferment of several projects as well as delay inreceivables from the government in domestic market which was beyond control.
Notwithstanding the 'ebbs and flows' seeing the jounces faced & working in arugged environment the Company's performance was satisfactory. Total revenue on astandalone basis for the FY 2018-19 stands at Rs. 11748 Millions.
Our Global scale of operation niche product portfolio with high quality certificationsand state of the art manufacturing facilities supplemented the Company to sustain andsuffice on Darwin's theory i.e. Survival of the Fittest".
I am happy to inform that this year FlexitufFs Geo technology earned its name in Kumbh.Further snowball effect has been felt to expand geosynthetics business as we have seen anascent development and recognition in it widening the scope of development coupled withacceptance of our new technology by the government.
Headway your Company will continue to focus on operational efficiencies and costreduction. Your Company has already initiated several steps in this direction bysuccessfully implementing 'Principle of Theory of Constraints'- a production methodologythat reduce operating expenses reduce inventory and increase throughput. Your Company isalso working towards solving debt overhang problems by switching over to financing throughlow cost borrowing schemes & capitalisation of the Company.
Our core strength is in the manufacture of Flexible Intermediate Bulk Containers(FIBC) We are standing ahead as India's largest FIBC manufacturer and the secondlargest player globally our products find a place in over 60 countries spread acrossfive continents. Apart from FIBC Flexituff is doing multiple businesses of Geo-textilecompounding injection-moulding water-cleaning through its dewatering tubes flocculationof contamination etc. contributing to growth segment of the business. It is also proposedto venture into design and solution for various infrastructure problems. Similar effortswill be carried out in upcoming years to raise the bar on performance in other Segmentsespecially Goe- textile. We are continually making efforts to augment our capabilitiesmarkets and product offerings. Aligned to this approach during the review period yourCompany successfully diversified to new geographies as well as increased the scope ofapplications of our product offerings thus expanding our addressable foreign as well asdomestic market. Leveraging our international track record we remain confident ofunearthing attractive growth opportunities in the domestic circuits as well. We expect thegeo-textile business to be a significant contributor to our revenue in the next two-threeyears. Backed by our capabilities we are bidding aggressively for projects in thegeo-textiles segment to ensure that we create a strong order book that provides robustrevenue visibility for the coming years.
As an epilogue Winning isn't getting ahead of others. It's getting ahead of yourself.Life is continuously being hungry. The meaning of life is not simply to exist to survivebut to move ahead to go up to achieve to conquer the same we perform business. As wemove ahead we are grateful to all our shareholders partners bankers lenders vendorscreditors and customers for their continued support for their faith and commitment. We aimto earn your continued trust every day. And finally sincere thanks to the Company'semployees whose proficiency and professionalism makes us the best in the industry.
Anirudh Chittaranjan Sonpal