It is my privilege to write to you and present the 10th Annual Report of your companyas the chairman of the Board. It was a transformative year for us with the demerger fromits parent company "Tinna Rubber & Infrastructure Limited" and introductionof the public shareholders. "Tinna" commenced its business of trading in Agricommodities in Early 90's and in the past has entered into strategic alliances with ADMin 1998 and then with Viterra Inc. in 2009. During this time TTL has been playing aleading role in bringing agriculture produce directly from producers to end users. In ashort period of time TTL has carved an important place in agri-business and isconsistently delivering outstanding performance. With the global takeover of Viterra byGlencore in Dec 2012 it resulted in Glencore becoming Tinna's partner and majorityshareholder. Tinna and Glencore agreed to end the JV in May 2013 and thus your companybecame wholly owned subsidiary for Tinna Rubber & Infrastructure Limited. Subsequentto the ending JV with M/S Glencore Tinna continued its business of trading inagricultural commodities primarily dealing in pulses like yellow peas green peas chickpeas lentils Kaspa peas toor and in grains & oil seed the company acted as solemarketing and exclusive agent of Vitol Asia Pte. Limited from 2013 to 2016.In 2016 whenVitol decided to exit Agri business your company entered into an exclusive marketingarrangement with M/s Lansing Inc. of USA. However in Dec 2017 Lansing decided to notpursue business in India and the agreement was terminated with mutual consent.
In order to have greater and focused participation of promoters as well as prospectiveinvestors /bankers/lenders/strategic partners in respective areas TRIL has proposed thedemerger of Agro Commodity Trading and Investments (Agro Commodity & Warehousing)Undertaking into TTL. It is expected that this restructuring of the business of TRIL willunlock value for the shareholders of both the companies- TRIL and TTL & allow a focusstrategy in operations which would be in the best interest of all the stakeholders. Postdemerger order received from National Company Law Tribunal (NCLT) dated 15th December2018 your company is now listed on Bombay Stock Exchange (BSE) & Calcutta StockExchange (CSE).
After registering GDP growth of over 7 per cent for the third year in succession in2016-17 the Indian economy is headed for somewhat slower growth estimated to be 6.5 percent in 2017-18. Even with this lower growth for 2017-18 GDP growth has averaged 7.3 percent for the period from 2014-15 to 2017-18 which is the highest among the majoreconomies of the world. The agricultural growth during the same period has seen thelargest jump for both the Rabi and Kharif seasons. In the year of 2017-18 India producedan all-time high quantity of 24 Million MT of Pulses 94 Million MT of wheat and 26Million MT of corn. This all has happened due to the good monsoon rains and an increase inthe MSP by central government to support farmers. Currently Per capital consumption ofpulses is about 40-50 Grams per day against the 70 grams during the rst decade after theindependence. It was once dipped to 30 Grams per day about a decade ago due to loweravailability of pulses. However with the growing income as the main source of proteinfor the vegetarians the consumption of pulses has increased to the current level. It isfurther expected to increase and a robust demand of pulses may be seen going forward.Wheat is the main staple food and has taken a big leap in Southern India where thepopulation has slowly changed its food habits to include wheat in an otherwisepredominantly rice eating diet. This has increased the consumption of wheat to approx.quantity of 90 Million MT per annum which is going to increase to 110 Million MT in next5 years.
Due to the higher production of the Agricultural crops and some changes in the importregulations the prices of commodities came down. This has major impact on the business ofyour company and the financial year 2017-18 has not been encouraging. But challenges aregifts in disguise. We recognize that a robust and suf ciently exible balance sheetcontributes to the delivery of sustainable long-term shareholder returns. Therefore thecompany is focused to reduce its dependence on Agri commodities and is focused ondiversifying its business activities by trading in other commodities such as naturalrubber crumb rubber steel products chemicals and other allied activities. It wouldenable us to diversify our risk away from Agri commodities and build a more sustainableenterprise.
The Company forsee good and structured Profit margins in these commodities and isexpected to enhance the contribution of these products to the earnings of the company overthe coming years. We will continue to focus on controlling costs and generatingsustainable operating and capital ef ciencies. As a marketer of commodities we canextract value from the full range of arbitrage opportunities. We are committed to operatetransparently and responsibly. We expect government spending plans such as increases toMinimum Support Price (MSP) provision of health insurance etc. to bolster ruraldevelopment and drive consumption. Normal monsoon as forecasted will help the overalleconomy.
We believe that sustainable Profitable growth can only be achieved in an organizationwhich focuses on a performance culture and where employees are engaged and empowered to bethe best they can be.
I would like to take the opportunity to thank the Central as well as State GovernmentsCustomers vendors investors bankers employees for their continued support during theyear. We place on record our appreciation of the contribution made by the employees at alllevels. Our consistent growth was made possible by their hard work solidaritycooperation and support.
Place: New Delhi Date: 17.08.2018