I take great pleasure in presenting you the annual report of Kamdhenu Limited for theFY 2017-18. It was yet another year that presented significant opportunities to theCompany. We have progressively strengthened our brand and product portfolio and arewell-positioned to benefit from the wider macro trends influencing India's constructionand infrastructure segments.
India regained its status as the fastest growing major economy with a GDP of 6.7% forFY 201718. The year went by marked implementation of the much-awaited Goods and ServiceTax (GST) and RERA (Real Estate Regulatory Authority) Act. Despite temporary hiccups inthe initial days the economy gradually started gathering momentum and ended the year on apositive note. Besides the Government's push for infrastructure and housing is expectedto be beneficial for most of the capital goods and equipment manufacturing companies.
Recently the Government advanced its deadline for completion of 10 Million rural housesby the end of 2018 (against 2019 deadline) and 11.8 Million urban houses by 2020 (against2022 deadline) under its mission Housing for All'. Besides the BharatMala projectthe second largest highway development initiative will involve total investment of'692000 Crores and construction of 34800 kilometres of new roads. This initiative iscrucial to build connectivity and foster economic growth.
The positive macro-economic development augurs well for our business. Say for instancethe GST and RERA has played a major role in organising the TMT bars and paints industry.Several unorganised players have shown willingness to shift their way of doing businessand wanted to get associated with Kamdhenu. We have added only those players that meet ourstringent franchise-selection guidelines. Our vision is to increase our annual productionof franchisee business to 50 Lakhs metric tons and have a royalty income of over ' 100Crores by FY 2019-20.
As regards our decorative paints business we have initiated the outsourcing model forthe low value products like putty. Only the value- added products and premium products aremanufactured at our own manufacturing capacity. We will continue to focus on tapping theunder penetrated markets capture market share from urbanised players and improve ourproduct portfolio and target paint premiumisation.
At Kamdhenu Make in India' is an attractive proposition. It serves as apre-condition for making optimal use of the country's demographic dividend. The initiativeintends to transform India into a global manufacturing hub and help foster a culture ofinnovation and entrepreneurship. With a strong manufacturing base driven by localinnovation and strong marketing we are tapping all the business opportunities availablein the country. Over the past 23 years of our continuous growth we have built a strongbrand. Our large scale Pan- India network of over 10500 dealers distributors andchannels have played a significant role in driving the Company's growth journey. We willcontinue to explore new product demand and continue to develop next generation productslike Kamdhenu Nxt.
Besides bringing about a meaningful change through our products and services we havealso taken several initiatives in our bid to give back to the society. Our communitydevelopment initiatives in the field of education and health management through ourdedicated CSR wing Jeevan Dhara' plays a significant role in adding value to thelives of under privileged sections of the society. We are also committed towardsenvironment protection. Our Green India' initiative mandates all our 10500 dealersand distributors to plant at least 5 saplings each year and nurture them to completegrowth.
On behalf of Kamdhenu Limited's Board of Directors I want to thank all ourshareholders for their sustained support and all our customers and business partners fortheir firm faith in our ability to deliver. Going beyond let me also take thisopportunity to thank our entire workforce who made our growth and success in FY 2017-18possible through their hard work and dedication. With a commitment and focus to fulfil ourrevamped Vision 2020 we are on mission to achieve our goals and deliver superior value toour customers and business associates. We will continue to put up a good show and achievenewer milestones going ahead.
With warm regards
Satish Kumar Agarwal
Chairman & Managing Director