Mr. Satish Kumar Agarwal
Chairman & Managing Director
I am delighted to present the Annual Report of Kamdhenu Limited for the Financial Year2016-17 which was a triumphant year for all of us. Despite the challenging marketenvironment we delivered another year of sustained growth and strong results behind asharpened focus on winning with our consumers shareholders and better utilization ofavailable resources.
Amidst demonetization and sluggish growth of the industry Kamdhenu Limited has beenable to script a success story in the last fiscal year. At a time when most manufacturersstruggled to create demand for their products your Company registered a net profit ofRs.983 lakhs compared to last year's net profit of Rs.815 lakhs. The board of directorshas recommended a dividend of 8% on the paid up capital for the financial year 2016-17subject to approval of the shareholders.
With a new dawn in the Indian economy Government came up with / presented/ proposedvarious policy reforms to address the deep needs of people. Infrastructure development isone such area taken-up by the Government keeping in mind the future growth of the Indianeconomy. We are of the view that this initiative will boost construction activity therebyincreasing the demand for steel.
India's urban population is growing at breath neck speed. This makes it imperative tostrike the right balance of urban development alongside the infrastructure growth. Towardsthis our country is foreseeing a record allocation of Rs.3.96 trillion to infrastructuresector. This will turn the spotlight on reinforced structures like ports roads and otherareas like affordable housing physical infrastructure thereby providing necessarymomentum to the steel sector to meet its growth targets.
In our country the most challenging task is to come up with technologically advancedyet affordable products. At Kamdhenu Limited innovation run through our vains and overthe years your Company has developed latest tools and technology that enable us todeliver products that meet their diverse customer requirements.
Kamdhenu TMT is the largest selling TMT rebar in the Country. Recently your Companylaunched one of its most innovative product Kamdhenu Nxt the next generation interlocksteel in the market. The product promises to deliver the best value for money to ourvalue conscious and price sensitive customers. We are already offering Kamdhenu SS10000which is a celebrated product among the premium users of double rib TMT bars.The blend ofchemical and mechanical properties of this product is at par with national andinternational standards of quality like that of British Standard B500C.
The rapidly growing diversity and choices in the market have increased the role ofbrand leadership which has significant positive relationship with product and servicequality. Your Company is committed to strengthen Kamdhenu Brand further and towards thiswe have ensured strict quality compliance for each of the products besides developingstrong work ethics. We are also taking advertising and on-ground marketing initiatives toenhance the brand's recognition and popularity among the target customers. This approachhas helped us enormously to achieve our set goals.
In order to build commanding position throughout India and overseas your Company hasinitiated "Franchisee Business Model" which helps Kamdhenu to earn high revenueswithout investing in manufacturing activity. With the help of this model we have promoteda better way of conducting business for our channel partners. I am proud to say that ourunique franchisee business model is in sync with the Government's larger goal of bringinglarge number of businesses into the formal sector.
We are committed to 'Make in India' since its inception. Under Franchisee BusinessModel we offer franchisees mainly in the un-organised sector our brand name andassistance in technology quality and consistency besides marketing support. This model isa win-win for us and our franchisees which ultimately benefits the customers who gainsthe most by getting top quality products at reasonable price. Franchisee Business Modelhas not only enabled us to scale up our steel business considerably but is also helpingfranchisee partners earn premium on their produce. We have strengthened our manufacturingfootprint by increasing our manufacturing units to 70 by the end of Financial Year2016-17.
During our 22 years of continuous growth we have built strong distribution network ofmore than 8500 dealers and distributors. Our mission is to maintain the standards thathave built our reputation develop new products to meet advancing needs and continueproviding the products and services our customers have come to trust. Towards this yourCompany has plans to prudently utilize every resource in the new financial year so as toachieve the set targets and create new demands in the market for innovative steel productslike Kamdhenu Nxt.
Our channel partners and dealers have played key role in Company's success. We treatthem as an individual and a member of Kamdhenu family. Your Company therefore incentivizeand support channel partners to ignite sales' success.
Recently Kamdhenu Paints organized a celebrity studded event called "Target KaBadshah" to encourage channel partners. Your Company also gave away attractive awardsto winning channel partners in different categories during the event.
Indian Paint industry is a growing sector and its linkage with our country's economicgrowth is strong. In order to ramp-up paints business we are focusing on secondary salessupport as well. We have set-up a registration center for painters besides installation ofmore than 1000 tinting machines at the dealers' locations across India.
Kamdhenu Limited is responsible and accountable to the society and environment itexists in. As a corporate initiative your Company has embarked upon massive CSR programmeof educational health and environmental development endeavors through Kamdhenu JeevanDhara to play a bigger role for the needy and impoverished segment of society.
I wish to conclude my words with a big thank you to all those who have played afundamental role in the successful journey of the Company. I also wish to thank ourcustomers as their reliance on our products and services has made us what we are today.With a commitment to fulfill all our dreams and a clear vision for the future goals weare on course to fulfill our commitment to deliver superior value to our customers andbusiness associates alike.
With warm regards Yours sincerely
Satish Kumar Agarwal
Chairman & Managing Director Kamdhenu Limited