It is with enthusiasm and energy as I sit down and express my thoughtsto you about our performance for the year gone by and the forward journey and strategieswe are adopting in this ever-changing business environment to meet the expectations of allstakeholders.
During the year your company achieved a turnover of 803.54 crores and anet profit of 47.5 crores. The consolidated income from operations and net profit for theyear was 2444.04 crores and 58.43 crores respectively. The net profit both on astandalone basis and on a consolidated basis are the highest ever in the history of yourcompany.
Although the year started on a stable note the exports for theindustry which were at 651000 Metric Tons in 2017-18 stood at 561000 Metric Tons in2018-19 due to inventory correction and normalization by the overseas buyers. It isexpected the overall demand for castor oil will continue to improve steadily in the longrun.
Last year witnessed a sharp drop in the castor seeds crop both due tolower acreage and lower yields due to shortage of water in Gujarat & Rajasthan themajor castor growing areas. The prices of castor seeds have firmed up in response to thelower crop. We believe that the remunerativeprices will induce the farmers to increase theproduction of the castor seeds crop in the year 2020. Your company is focused on improvingthe availability and promoting the use of this wonderful natural material by working withthe farmers and the end users.
Your company continues its endeavor to develop new products and uses ofthis wonderful versatile material by investing in Research & Development. The companyalso works closely with the customers to understand their needs and to provide solutions.Your company is in the process of investing to expand its product capacities and range.
Your company faces competition from substitutes which include petroleumproducts and other vegetable oils. Being a non-feed non-food renewable bio-basedmaterial it is seen as a superior alternative besides the special qualities properties& versatility it offers due to its unique molecular structure. It is not only aneco-friendly alternative to many petroleum-based products but also complements andsupplements petroleum products enhancing and adding properties.
Your company's performance of sebacic acid has been improvingcontinuously despite strong competition from China limiting the scope and returns fromthe product. The Indo-Japanese-Korean joint venture Vithal Castor Polyols Pvt.Ltd. is sensitive to petroleum prices due to which it is facing challenges inproduct pricing and thus in utilizing its capacity. Your management along with its jointventure partners are working hard towards the product mix to achieve satisfactory capacityutilization to overcome the lack of demand due to subdued petroleum prices.
Your company continues to support farmers education for improvement inyield and income on a sustainable basis. Your company has placed its faith in the Indianfarmers particularly in the castor seed growing regions of Gujarat and Rajasthan toincrease castor seed availability in a meaningful way. It has been our endeavor to supportthe efforts of the farmers by providing them a market for their produce.
Your company has been focused on its CSR initiative. The majorattention of your company is focused on the project Pragati which is afirst-of-its-kind initiative globally developing a sustainable castor framework titled'SuCCESS' (Sustainable Castor Caring for Environmental & Social Standards). Theproject has covered over 4000 hectares and trained nearly 3000 farmers across 50 villages.
Your managements drive and efforts to maintain this rich legacy ofperformance is backed with incessant effort and dedication partnerships with like-mindedorganizations and institutions driven by innovation in every aspect of its activities andoperations. Steps are taken to create a long-term sustainable approach reflecting ourfounder's philosophy As you sow so you reap.
With Best Wishes
Abhay V. Udeshi