I write this message to you in very unusual circumstances under theshadow of the covid-19 crisis. Virtually all of humankind alive today has never witnesseda pandemic of this magnitude given that the last major pandemic was the spanish flu in1918 which was estimated to have affected one-third of the world's population andeventually claimed more than 50 million lives. With the government of india havingdeclared a complete lockdown towards the end of march this year the entire country cameto a standstill with the exception of essential services. Economic activity took a bodyblow and millions in india were stranded with no jobs and no means to return home as stategovernments scrambled to put together makeshift isolation centers and ramp up healthcarefacilities.
In these turbulent times which have tested many organisations we atSavita are immensely proud of the resilience resolve and resourcefulness of our teammembers. Individually and collectively we have demonstrated the character and strengthneeded to overcome the difficulties in our path and reconfigure to the new normal.
Our company as did many others faced unprecedented challenges. Giventhe nature of our supply chain we had multiple ships carrying thousands of tons of oilscheduled to unload at mumbai ports. With almost no service providers operational at thetime of lockdown unloading proved to be a daunting task that we had never envisagedbefore. However with the unflinching resolve and determination of our teams we were ableto successfully discharge oil from all these ships and deliver to our plants and externalstorage tanks without any delay or harm to our suppliers and stakeholders.
The new normal
Before this crisis work from home was viewed with some degree ofscepticism; however that perspective is now changing. One amongst many of the lessonsthis pandemic has taught us is that depending on the nature of work many tasks can besuccessfully carried out from a home environment as well. No doubt there is a blurring ofpersonal and professional space and time but one thing is for certain post thispandemic there will certainly be enhanced flexibility in the way organisations approachthe concept of remote working.
Even before the outbreak of this pandemic the indian gdp growth ratehad begun to fall quarter on quarter in fy 2019-20 and some sectors such as automotiveand power felt the severe brunt of this slowdown. Given our diverse product mix we stillmanaged to claw back these losses and were on track to exceed last year's sales volumes.Had it not been for the complete lockdown we would have been able to deliver growth forthe third successive year.
With the support and permission of local authorities our company beganoperating its manufacturing plants towards the middle of may in a phased manner to fulfillour commitments in international markets that had begun to open up. By june our plantswere fully functional and we had a strong bounce back in sales with june sales approachingnormalcy. On the back of a strong monsoon this year we expect to put these challengesbehind us and deliver a resurgent performance in the remaining nine months of the year.
Sustainability remains a key theme of our corporate strategy goingforward. This year we launched a unique motorcycle engine oil 'savsol bioboost' whichincorporates high- performance molecules derived from plant-based sources. This allows theproduct to deliver higher biodegradability while exceeding the performance specificationof the latest bharat VI standards. We are the first indian company to manufacture such aproduct indigenously. We have made efforts to directly take
This message to new-age consumers and bike enthusiasts who look forhigh performance yet sustainable products.
I would like to place on record my heartfelt appreciation to all ouremployees and service providers many of whom went the extra mile in uncertain andchallenging circumstances during the lockdown to fulfill their tasks and protect thecompany's interests. The learning curve has been steeper this year than ever before andbased on what i have witnessed from our teams in these unprecedented times fills me withgreat belief and optimism that we will deliver another strong performance in the comingyear.
I am also thankful to my colleagues on the board for their valuableguidance and support. Last but not the least i would like to thank all our shareholderswho have continued to support us through these challenging times. With the unstintingsupport of all our stakeholders i can assure we will emerge even stronger from thiscrisis.
Gautam n. Mehra
Chairman and managing director