The first word
Kriti Nutrients is securely positioned to protect its eco-system on the one hand andoutperform sectoral growth as soon as conditions improve.
The world is passing through uncertain times and it would be unfaithful to begin areview of the last financial year without a mention of it.
The abruptness of the virus incidence the speed of its spread and the extent of itsimpact represent a watershed in the history of humankind.
At Kriti Nutrients we were not affected as much by the virus impact during thefinancial year under review. As a business that is a part of the national and sectoraleco-system the spread of this virus and the lockdown that transpired thereafter have onlyreinforced our conviction that for businesses that expect to endure there needs to be adistinct strategic clarity.
An unpredictable environment as the one that we are passing through puts a premium onstrategic de-risking and the need for managed growth. This is a time when we believe thatthe
truly sustainable companies will effectively resist a sharp revenue profits andmargins downside while the going is difficult and be quicker off the blocks onceconditions revive.
So what companies are expected to endure?
At Kriti Nutrients we believe that companies that are in existence to address aspecific purpose - in our case soybean-based edible oil and value-added product solutions- will find it easier to protect their brand recall during such challenging periods.
We believe that companies that have extended beyond a generic positioning and addressspecific market segments - like Kriti Nutrients is positioned - stand a better chance ofcompetitiveness across market cycles.
We believe that companies that are faithfully aligned between overarching strategy atone end and their organisational structure at the other in terms of size speed andausterity - like we have attempted -will be better equipped to survive the downtrend andrecover fastest when sentiment revives.
We believe that there is a greater priority in being low on long-term debt than everbefore. We have
been managing our growth from the annual surplus generation and the cash sitting on ourbooks while drawing down debt which we believe is sustainable from a longtermperspective.
And lastly we believe that companies like Kriti Nutrients who are able to retaintheir stakeholders and generate superior productivity will be better equipped to provideeffective solutions that transform the business health of farmers.
The principal message then that I wish to convey to our shareholders is that KritiNutrients is securely positioned to protect its ecosystem on the one hand and outperformsectoral growth as soon as conditions improve.
|Shiv Singh Mehta Chairman and |
|Managing Director |