It gives me great pleasure to share with you an update on the performance of yourCompany for the year 2017-18. It was a transformative year with the introduction of theGoods and Services Tax (GST) an important development that has created a single nationalmarket and will benefit both consumers as well as the industry including the ConsumerGoods sector. The Company also created wealth for its shareowners and it consistentlyachieved high margins and reported robust year-on-year growth.
Creating Value for Consumers
SCL is committed to delivering superior and differentiated products that create valuefor the Indian consumer. Some of the differentiated products undergo over various tests toconform to the best international standards offering consumers and future generations asafer and better product.
The first step in setting up a business is the most difficult ones. There can be manyideas but converting them to business needs painstaking execution. The first seed ofventuring into the Soya based manufacturing business was sown by ex-Chairman of theCompany; Late Shri
Ram Narayan Agrawal; in the early 90's due to the presence of rich soya belt in MadhyaPradesh and yet not potentially explored sector till then where soya having highnutritional content. It was a move to eradicate the ongoing predicament of malnutritionamong the people of central India. The idea was well germinated and through his relentlessefforts; he successfully built the business empire in the soya segment which has beensteered into the FMCG Sector by the relentless efforts of second and third generation.Today we are evolving swiftly from being an established branded soya company to anemerging global Food Company with new strategic advancements and product developmentsunderway.
Setting this long voyage; presently the Solvent Extraction capacity of your Company is2500 ton per day and rice division with 600 ton per day capacity. During the Years we hadadded nth number of products to your Company's product portfolio ranging from Pulses SoyaChunks Soya
Flour Salt Sugar Poha Mustard Oil Rice Bran Oil Maida Suji and many more.
Your Company is foraying into direct retail by opening up company owned retail outletsunder the brand name Sanwaria Consumer Shoppe' to reach the end customerdirectly. Your Company has already opened up 25 stores at different locations of MadhyaPradesh and another 10-15 retail stores are in pipeline to - be opened shortly inM.P. and Maharashtra. It is venturing into different geographical locations throughFranchise Route. It has a plan of opening 100% subsidiary in Dubai to get the overseasmarket business of Middle East & Africa and initiate the business in Singapore through100 % Subsidi- ary which will get business from rest of the world along withcheaper finance facilities.
In addition; our products are supported with parallel brand investments. Ourconsistent efforts and investment in this direction has elevated our brand equity whichcan be further leveraged to launch newer products.
Today SCL endeavors to become one of the leading FMCG marketer in In-dia. Thistransformation of the Company has also enabled SCL to be a growing and significantcontributor to the national economy.
In this challenging business environment your Company delivered a strong performance.Our
Connected 4 Growth' initiatives have made us more agile customer centric andresponsive to the diverse and rapidly evolving marketplace. Our 4G model of growth -consistent competitive profitable and responsible continues to serve us well and2017-18 was the twenty seventh consecutive year of both topline growth and marginimprovement.
"We don't grow when things are easy; we grown when we face challenges."
We are happy to share that your Company's Profit after
Tax grew remarkably at the growth rate of 96.75% at Rs. 8651.61 Lakhs against Rs. Rs.4397.36 in the previous year and The total revenue of the SCL increased to Rs.506657.78Lakhs from Rs. 352580.71 Lakhs in the previous year at a growth rate of 43.91 %. NetWorth of the Company increased by 43.42% to Rs. 59413.04 Lakhs as against Rs. 41425.89Lakhs in the PY 2016-17.
"We don't believe in building services to make money but in making the money tobuild better services."
The global food industry finds itself passing through a period of dynamic and excitingtransformation. Growing urbanisation rising disposable incomes a growing working classpopulation and an overarching increase in health consciousness are creating a greaterdemand for value-added products. With this changing consumption pattern we are emergingas a Global Food Company. We are now pursuing strategies that involve greaterdifferentiation and allow us to create sustainable value for all our stakeholders. Tocapitalise on the growing market opportunities we embarked on diversifying our businessadding value through synergistic staples and foods business. At the same time we aim todiversify into value added products to maximize shareholders value.
Our sales and distribution system with an unrivalled national presence acrosstraditional and modern trade channels remains a key competitive advantage. We continuedto expand our direct coverage and leverage technology and intelligent analytics tosignificantly enhance our customer service and on-shelf availability. The Company alsocontinued to make significant investments in building capabilities to win in channels ofthe future and substantial progress is being made particularly in the fast-growinge-commerce channel.
We exercised our resources more productively including infrastructure branddistribution and the people. We have been successful in creating a strong overall talentpipeline to ensure highest commitment of performance. Furthermore we are working onexpanding our distribution reach not only in India but globally as well.
Our strategic objective is to build a sustainable organization that remains relevant tothe agenda of our clients while generating profitable growth for our investors. In orderto do this we will apply the priorities of renew and new to our own business and cascadeit to everything we do. Supported by strong systems and strategies we are geared to keepourselves ahead of the challenges that we continue to face. We are assertive onwardsmeeting our goals and relentlessly work towards enhancing value for all our stakeholders.
The Journey of being good to better has been gruelling enough but even that do not palethe zeal to be best from better. Such rare journey can be accomplished by the ones whocould unlock the destinies through their keys to imagination. We at Sanwaria ConsumerLimited; carry that desire motivation and commitment required to unrelenting pursuits ofgoal and a commitment to excellence.
The Board of Directors would like to express their sincere appreciation for theassistance and cooperation received from the financial institutions banks Governmentauthorities customers vendors and members during the year under review. The Board ofDirectors also wish to place on record its deep sense of appreciation for the committedservices by the Company's executives staff and workers for your continued support in ourjourney to deliver value to all our stakeholders since past 27 years.
Gulab Chand Agrawal