It gives me pleasure to place before you the Annual Report of your Company for thefinancial year 201718. Your Company achieved a total turn-over of INR 8584 Million(Mn.) as against INR 10505 Mn. of last year the lower turnover is on account of erraticglobal rice market conditions. The rice export value stood at INR 4609 Mn. as against INR7213 Mn. of last year. However in domestic rice segment your company has registered agrowth of 20.45% on YOY basis.
Basmati Rice Export is mainly driven by demand from some of the Middle East Countrieslike Iran Saudi Arabia Yemen Iraq UAE etc. Iran Yemen Iraq are facing variousproblems making it difficult to export and relies sell proceeds from these countries.
As you know we had acquired a new Food Processing Unit in District Sonepat Haryana inthe year 2015-16. On account of growth in demand of our food products in Ready to Eat& Ready to Cook products in the international market we have increased our in houseproduction capacity to 75000 ready meals per day from 15000 ready meals per day duringthe last year. Our focus would be on product innovation to develop healthy food productsfrom locally available raw material. We will continue to Invest Innovate and expand ourproduct range offering to add value to our Food Business Operations.
However you will be glad to note that the company has done extremely well in foodsexports and registered a Year on Year (YOY) growth of 22.3%.
Our UK operations continue to focus on profitable growth both in Rice and processedfood range of products. However Kohinoor Rice exports business grew steadily in marketssuch as Saudi Arabia Kuwait Qatar Hong Kong & Thailand in spite of variouschallenges in the respective countries.
We launched "Monsoon" brand Basmati Rice by creating and developingdistributors network in domestic market and also in international markets which iswell accepted and liked by consumers. In domestic market introduction of GST Act createdsome confusion in the marketing network on branded rice in the initial phase. We arefocusing to strengthen Monsoon Brand in India in pragmatic manner and we are hopeful thatit will become a very powerful and effective brand on the strength of quality product andvalue for money.
We further inform the members that with an objective to improve the financials of thecompany your company is exploring the possibilities such as:
a. Monetising some of the assets of the company.
b. Looking for Investor to infuse funds in the company.
c. Negotiating with the Banks for restructuring of borrowings.
The company is working aggressively on the said lines to improve its financial/businessto achieve the seemless working.
With the objective of bringing authentic Indian flavours to the people all over theworld we want your company Kohinoor Foods Ltd. to become a leading name in the foodbusiness globally as well. In pursuit of our vision to make Kohinoor the most trusted& preferred food brand in export markets we would continue to develop productsincrease operational efficiency and follow our successful strategies.
I am grateful to the Board of Directors for their unwavering support and guidance. Ialso take this opportunity to express my gratitude to all our consumers businesspartners employees and stakeholders who have shown their trust in us and have extendedtheir constant support.
With best wishes
Jugal Kishore Arora