"There you saw how the god carried you, as a father carries his son, all the wayyou went until you reached this place."
This is the quote which I have followed, believed and lived to nurture this Company. Inmy pursuit of fostering this company, I ardently believe that God fathered me and theCompany by giving me help, support and shelter as a father gives to his own children and Iam more than convinced that the Lord will extend his hand in all my future endeavors andat all times to come. With these thoughts I would like to address all my fellowshareholders
Dear Fellow Shareholders
It gives me immense pleasure to share with you the highlights of our 2012-13performance.
Until 2011-12, your company was engaged in the manufacture of apparel for men, womenand children. We were a single business company, subject to the competitive pressures ofthe countrys apparel segment.
In September 2012, your company embarked on a strategic diversification into thebusiness of fine chemicals through the acquisition of the business assets of Benzo PetroInternational Limited.
The result is that even as we were a single business company at the time we made ourpublic issues of shares, we enhanced corporate value through the inorganic addition of asecond business.
The result is that the Company is now engaged in two businesses - apparel and high-endchemicals.
Consolidated review, 2012-13
I am proud to inform you that the Company has made significant progress in achallenging 2012-13.
The key financial highlights of your company during the year were as under:
Consolidated turnover from both businesses was Rs 43,675 lacs against Rs 19,478.44 lacsin the previous year, an increase of 124% which outperformed the growth of the respectiveindustry segments.
Profit before depreciation and income tax increased 95.93% from Rs 3,539.05 lacs to Rs6,924.11 lacs.
Profit before tax increased 89% from Rs 2,001.97 lacs to Rs 3,783.39 lacs.
Net profit increased 62.71% from Rs 1,570.81 lacs to Rs 2,555.87 lacs.
I am pleased to report that each of the Companys businesses performed creditablyduring the year under review.
Apparel: Even as the prevailing economy proved challenging, your company reported salesof Rs 355 crores from this business, growing 82.7% over the previous year.
Chemicals: In the first year following the acquisition of business assets of BenzoPetro International Limited, the Companys chemical business reported a revenue of Rs80 crores. The prospect is optimistic and your Company projects a revenue of Rs 250 croresfrom this business in 2013-14.
I must assure our shareholders that we are moving in line with our vision to emerge asone of the leading garment and chemical product manufacturers in India.
Awards and recognition
The sharp out performance of the sectoral average, especially in the apparel segment,drew peer recognition and respect. I take pride in informing that your Company wasbestowed "The Emerging Textile Company of 2013" award at the fourth AnnualIndian Leadership Conclave and Indian Affairs Business Leadership Awards in June 2013.
At Sudar Industries, we are committed to enhance stakeholder value by strengthening ourbusinesses and emerging as one of the best apparel and chemical manufacturing companies inIndia.
This vision has been endorsed by our Board of Directors, bankers and employees and I amoptimistic that this will translate into enhanced value in the hands of all those who holdshares in our Company.
Murugan M. Thevar