Let me take the pleasure in presenting you the Annual Report of your company for thefinancial year 2017-18. The Company has achieved revenue of Rs 346.23 Cr in 2017-18 agrowth of 12.13% over the previous year.
It also has posted a net profit of Rs 30.98 Cr during the current year a growth of26.30% over the previous year. During the last three financial years our net profit aftertax has grown at a significant pace of 108.30% of CAGR; the net margin also improved by655 basis points during the same period. The steady performance in financial numbers isgenerated through our consistent drive to achieve beyond the expected aspirational limitsand our incessant efforts to become a recognised force in the engineered wood productindustry. India is at the cusp of a new growth trajectory with a huge consumer market toreckon with. With Government of India focusing clearly on its Make in India'initiative the potential for growth in per capita income and in turn in consumerism andspending propensity is expected to be manifold in the near future. Assuming a conservativeGDP estimate of 6-7% a year India's consumption expenditure is expected to touch USD 4trillion by 2025 making India the third largest consumer market in the world. Risingaffluence is the biggest driver of increasing consumption. The sheer size of India's youthcombined with improved education pave the way for sustained growth in purchasing powermaking it one of the world's most encouraging growth stories for the next 20 years.
Your company is perfectly attuned to meet the dynamic requirements of affordabilitydurability and comfort of the young India population. A perfect mix of aesthetic appealalong with low maintenance and readymade array of varied product designs form the core oftoday's young generation requirements. We at RDL have positioned ourselves perfectly tomeet this requirement of our customers and grab the opportunity to grow exponentially inthe near future. With implementation of Real Estate (Regulation and Development) Act2016 the home buyers have rejuvenated with confidence on protection of their intereststhus translating into enhanced demand for homes throughout the country in sync withGovernment of India's mission to House for all by 2020'.
EMPHASIS ON RENEWABLE ENERGY
FY 2017-18 was another year to achieve great milestones for us at RDL. During thisyear your company has initiated the process of expansion of its MDF Board manufacturingcapacity with its Greenfield project in Visakhapatnam Andhra Pradesh. We expect to reapbenefits from this endeavour by the end of FY 2020. Our desire to be eco-friendly andprovide a much potent alternative to conventional engineered wood products has driven usto set up a new WPC unit in Chikmagalur Karnataka to manufacture wide variety of wood PVCpanels during the year. Let me also share my pleasure to be on board of governance ofIndian Plywood Industries Research & Training Institute (IPIRTI) representing toAssociation of Indian Panelboard Manufacturer.
CORPORATE SOCIAL RESPONSIBILITY
In its endeavour to deliver its corporate social responsibility (CSR) initiatives RDLhas taken part in several community upliftment initiatives like women and childrenempowerment sanitation programmes disaster management initiatives health andeducational programmes throughout the year. These pro-community initiatives havetranslated with significant increase in our CSR expenditure during the year demonstratingthe value that our CSR programs have been delivering to society.
At RDL we are grateful to our stakeholders for ushering in trust support andencouragement since the beginning of our journey. We will continue to meet the expectationof our stakeholders in the years to come through enriched strategic operational andproduct innovation drives to become successful in our endeavour to be aneco-friendly' leader in the engineered wood products industry with a wish to deliverdesired offerings for our customer's aesthetic requirements.
|Best Wishes |
|Krupesh Thakkar |