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JHS Svendgaard Laboratories Ltd.

BSE: 532771 Sector: Consumer
NSE: JHS ISIN Code: INE544H01014
BSE 00:00 | 08 Apr 9.24 0.78
(9.22%)
OPEN

8.89

HIGH

9.30

LOW

8.50

NSE 00:00 | 08 Apr 9.20 0.80
(9.52%)
OPEN

8.90

HIGH

9.20

LOW

8.40

OPEN 8.89
PREVIOUS CLOSE 8.46
VOLUME 7880
52-Week high 27.30
52-Week low 6.67
P/E 9.94
Mkt Cap.(Rs cr) 41
Buy Price 9.20
Buy Qty 186.00
Sell Price 9.23
Sell Qty 324.00
OPEN 8.89
CLOSE 8.46
VOLUME 7880
52-Week high 27.30
52-Week low 6.67
P/E 9.94
Mkt Cap.(Rs cr) 41
Buy Price 9.20
Buy Qty 186.00
Sell Price 9.23
Sell Qty 324.00

JHS Svendgaard Laboratories Ltd. (JHS) - Chairman Speech

Company chairman speech

WITH OVER TWO DECADES OF RICH EXPERIENCE AND EXPERTISE IN THE ORAL CARE SPACE WE ARETRANSFORMING OURSELVES 3 FROM BEING ONLY A PRIVATE LABEL MANUFACTURER TO EMERGING AS THEONLY BRANDED PLAYER WITH A FOCUS ON THE KIDS' SEGMENT.

DEAR SHAREHOLDERS

It gives me great pleasure to pen my thoughts on where we stand today and where weaspire to be.

From our financials one may feel that JHS is in a challenging situation. Well that isnot so. The loss is part of a well-contoured strategy pivoted on a single word –CHANGE. Transformation that could give us the initial unrest but holds the promise of asustainable and profitable performance over the long-term.

CHANGE! WHYRs.

Today's business volatility is unprecedented. The causes are complicated—newtechnologies and digitalization globalization blurred industry boundaries regulationenergy dynamics and other factors.

Consider this: The combined valuation of our decades-old two great luxury hotels chainsof Indian-origin (Taj and the Oberois) is considerably lesser than the valuation of arecently launched hotel aggregator.

Hence the message is clear: transformation isn't an option it's a businessimperative. Farsighted companies are launching transformations even when they are at thetop of the ladder thereby retooling themselves so they continue to stay ahead of the game.

They are challenging established business models and practices. They are looking atproblems as interesting business opportunities. They are delving deeper into establishedand seemingly cluttered market spaces to find vacant gaps that provide interestingopportunities. They are developing new products and services that have the power to changeour lives and change the world.

Aligning with this trend and armed with more than two decades of rich experience in theoral care space we are transforming ourselves - from being only a private labelmanufacturer to being a branded player.

One might wonder that taking on the entrenched MNCs and deep-pocketed domesticcompanies would be sheer foolishness. Initially we were of the same belief too. But adeeper analysis of the sector unearthed an interesting space which till now has beenlargely overlooked by all the oral care players – the kids' segment. We made our moveto become the first player to singularly focus on the kids' segment.

Our strategic shift was the reason for our loss. From my perspective this is aninvestment in our future. While a large chunk of the investment viz. getting the rightteam for this vertical developing compliant products with innovations securing kids'favourite characters licenses among others has been accomplished we will need to nurturethis vertical for the next 3 - 4 years with adequate resources to make it self-sustaining.

The lingering question would be sustaining this investment. For this we arestrengthening our presence in our flagship private label vertical. We are adding morecustomers – domestic and international; we are working with some key customers toincrease our wallet share with them. These initiatives I am confident will providesubstantial cash flow into the business to grow our new venture and deleverage theorganisation.

THE CURRENT YEAR

Fiscal 2019-20 does not appear very encouraging for India as a whole. Print andelectronic media highlight numerous indicators which suggest that India is at thethreshold of an economic slowdown. And this has impacted the FMCG sector too – thesector has decelerated by about 10% in the initial months of the current year.

The Government is cognizant of this reality. It is striving hard to kickstart economicresurgence through favourable policies and investment-attracting legislations. And whenthe rebound happens hopefully in the second half of the current year the FMCG sectorwill be the first on the uptick.

From the Company's perspective I am optimistic of our performance in the current yearowing to healthy volumes from existing and new clients. Furthermore our focus on exportsshould also generate interesting volumes in the current year.

ACKNOWLEDGEMENT

I take this opportunity to convey my sincere appreciation to all our shareholders andexpress my gratitude to the government and its agencies our eminent Board our customersemployees bankers and suppliers for believing in our vision and facilitating themanagement in taking the Company to newer heights each year.

Warm regards

Nikhil Nanda

Managing Director