Dear Fellow Shareholders
It is a matter of pride that our Company's KATHA brand is the most known brand in theKatha Industry in India and I would like to present the 99th Annual Report of our Company.
The year 2019 so far has been an exceptional year in exceptional times. We have reachedanother milestone Our 100th Anniversary a celebration of a Century of passion forinnovation & for quality. It is undoubtedly a moment of immense pride for all of uswho have been part of this inspiring journey. As we commemorate this very specialoccasion I would like to convey my deepest gratitude to you our valued shareholdersemployees consumers customers partners and associates- who have stood by your Companythrough this voyage of challenge.
Exceptions from IWP are changing substantially as consumers embrace New Brands Habits& Lifestyle. We see a re-shaping of the competitive environment. We are responding bysharpening our focus and strengthening our efforts to create value.
On the surface global economic growth appears robust. The world economy is projectedto expand at a steady pace of 3 per cent in 2019 and 2020. Growth rates in many developedeconomies have risen near to what is widely considered their potential while unemploymentrates have fallen towards historical lows. However a closer look below this surfacereveals significant growth. However India has emerged as the fastest growing majoreconomy in the world and is expected to be one of the top three economic powers of theworld over the next 10-15 years backed by its strong democracy and partnerships. India'sGDP is estimated to have increased 7.2 per cent in 2017-18 and 7 per cent in 2018-19.
FY2019 was a challenging year for IWP in terms of the cost of raw material unfaircompetition from unorganised segment due to generally lower compliance of GST which is 18%and revenue growth. However we have been able to provide good results despite of allthese challenges. We have witnessed excellent acceptability for our quality products aswell as our continued success in putting innovation at the heart of how we serve customersacross industries. As a market leader with exceptional quality product we are adapting tomarket changes and challenges.
would like to share some of the key business highlights as under:
Financial Highlights FY2019
EBIDTA margin of 16.8% as against the 14.8% in previous year.
Sales volume at 3844.25 MT as compare to 3403.01 MT in FY 2018.
Successfully introduction of new product line i.e. Spices in the brand name ofIWP in the Eastern & Central Uttar Pradesh region and in the State of Assam in phaseI.
Started commercial production at Indonesia in PT Sumatra ResourcesInternational a subsidiary of our JV company Agro and Spice Trading Pte Ltd.
Our stock price is a measure of the progress we have made over the years. This progressis a function of continually making important investments in good times and not-so-goodtimes to build our capabilities people systems and products. We are building afinancially sound & prosperous prospects.
In FY 2019 we have built a strong foundation for next decade. To this end we areconstantly focused on Research and Development (R&D) initiatives. We propose to launchKatha in the retail segment in several states in the coming months. It is one such benefitfrom consistent R&D at our end. I am also pleased to share that the construction ofour plant at Jammu & Kashmir is in final stage and commercial; production willcommence in the first half of FY2020. We would manufacture the finest quality of Kathafrom this facility.
IWP's spices have been well accepted by the customers. We are preparing to the launchIWP Spices in other parts of the country in a phased manner. This vertical would beamongst the major growth drivers for your company over the next 5 years.
Personally for me it is honour to be at the helm at this defining moment in ourhistory.
I deem it a special privilege. As I conclude may I once again thank you our valuedshareholders for your unstinted support in this shares journey. I on behalf of the Boardand the employees of your Company will look to you as always for your continued supportand encouragement.
Krishna Kumar Mohta
Chairman & Managing Director
(DIN : 00702306)