The year 2018-19 has been difficult for Nitta Gelatin India Ltd (NGIL) due to thefloods that ravaged the State of Kerala which severely affected the operations of ourplants there. Acts of lawlessness indulged in by some elements compounded the issue. I amindeed thankful to the strong intervention by the Government of Kerala which helpedrestore normalcy and am confident that the Company will bounce back to a healthy andprofitable growth trajectory.
The Nitta Gelatin Group celebrated its 100-years of existence last year a proud momentfor all of us. During this period we had scripted our growth story by successfullyturning every adversity which came our way into an opportunity. Based on a spirit ofaccommodation and sincerity we the members of Nitta Gelatin family are committed to thedevelopment of our business contribution to the global community and safeguarding theenvironment. The Nitta Gelatin Group has established itself as a reliable partner formeeting the requirement of Collagen based products of our customers through our globalpresence. Through our constant developmental efforts backed with our strong focus oncurrent and emerging customer requirements we will build on our market presence andstrive to enhance the value proposition to our customers The group produces healthyfunctional and value added products in its state of the art facilities that are safereliable and environment friendly.
Looking ahead demand for Gelatin and Collagen will grow with the rising standard ofliving of our people that comes with economic growth. Globalisation coupled with higherincome levels in China India and elsewhere would lead to increase in demand for wellnessand lifestyle products in the Asian region and we are well positioned to cater to thisgrowth. These market dynamics will further enhance the demand for the Company's productsin the pharmaceutical and health food markets.
NGIL is posed to play a pivotal role in the future growth of the group and will alwaysreceive the support of the Nitta Gelatin Group. By adhering to the value systems andethical practices evolved over the years I firmly believe that NGIL can emerge as astrong player in the industry as we move forward.
I look forward to your continued support.
DR. K. ELLANGOVAN IAS
(Industries & NORKA)
The year 2018-19 was extremely challenging for the Company due to the impact of thefloods that ravaged Kerala in August. The factories at Koratty and Kakkanad were inundatedand it took almost a week for the affected equipment to be overhauled and brought back online. Unfortunately the floods were followed by a sharp drop in the water level of theChalakudy river and water supply to the Koratty factory was entirely stopped when somemiscreants blocked the mouth of the canal along which water flows from the river to ourpump house. At the Company's request the government initiated strong action to dredge thecanal and water supply was restored. Normal operations of the factory commenced inFebruary 2019.
Despite the aftermath of the floods the Company was able to make alternatearrangements for supply of Ossein to sustain production of Gelatin. This however severelyaffected the profitability of operations.
Reva Proteins Limited the erstwhile subsidiary of the Company was merged with theCompany consequent to the order passed by the National Company Law Tribunal (NCLT) Chennaibench. This would bring in synergy in operations of the Company and add to optimisation ofoperational costs.
The results of the financial year 2018-19 have been restated after considering theimpact of merger of Reva Proteins Ltd. with the Company. The carry forward losses of RevaProteins Limited were merged with the financials of Nitta Gelatin India Limited witheffect from April 1 2017.
Due to the above factors the Pre-tax loss of the Company for the year 2018-19 was Rs.3.75 crs. against the pre-tax profit of Rs. 10.73 crs. in2017-18.
Chalakudy was one of the worst affected areas of the State during the floods and manyhouseholds in the vicinity of the factory at Koratty were very badly affected. Employeesof the Company worked in teams round the clock to bring succour to the flood affectedpersons by organising free supplies of food clothing medication and essential itemsapart from organising medical camps for the people there. The efforts of the Company werewidely appreciated.
Aided by the industry friendly measures launched by the Government of Kerala and clearsigns of strengthening of the economic scenario we have reasons to be optimistic aboutthe future of the Company. I firmly believe that your Company with its dedicated team ofemployees and with the all-round support of the promoters will ensure this.
Let me assure you the continued support and commitment of The KSIDC and the Governmentof Kerala to the future endeavours of the Company and wish the Company the very best inthe years ahead.
Industries & NORKA
Government of Kerala
Thiruvananthapuram - 695 001 Kerala