SICAGEN INDIA LIMITED
ANNUAL REPORT 2008-2009
The global economic downturn of 2008-09-many commentators believe that the
worst isn't over jet-has been deemed by many as perhaps the worst since the
Depression of the 1930's. The linkages built rapidly by india with the
global economy since the 1990's have ensured that, as the global economy
has slowed. India's economy and businesses has also suffered, with earnings
and revenues of many industry sectors actually falling from FY08 levels.
That's why it gives us even greater pleasure to report that Sicagen's
revenue from sales and services rose by 10% to INR 4.21 billion from INR
3.91 billion a year ago. The profit numbers were comparable with the
previous year but for the skews of the significant rise in other income and
an exceptional loss.
The stimulus package-personal tax incentives coupled with aggressive
government spending in the rural, housing, and infrastructure sectors-
announced in the 2009-10 Union Budget should provide an upward fillip to
the Indian economy. Given that our major business of building materials
trading is a direct derivative of the infrastructure and housing sectors,
we expect growth-it may be marginal-in overall revenue.
In tough times like we currently face, our mix of businesses has actually
helped reduce concentration risk-that happens when you put your eggs in one
basket and focus only on one line of business. At the same time, we have
been quick to move proactively with market conditions; we expect that our
new business initiatives will improve our prospects in our core businesses
of trading and marketing services.
As we stand resolute in our commitment to growth by value-based management,
we would like to thank our shareholders, customers, dealers, suppliers,
employees, and business partners for their dedication and unstinting