TIRUPATI INKS LIMITED
ANNUAL REPORT 2011-2012
Dear Fellow Shareowners,
It is a delight to address you on completion of another eventful and
successful year. FY 2011-12 has been a challenging year with unprecedented
economic uncertainty in Europe, geopolitical upheaval in the Middle East
and a slowing down of economic growth across Asia. These events had a
profound effect on demand and margin outlook for industrial products across
the world. In many ways, we are still feeling the after-shocks of the
financial meltdown of 2008 and 2009 with leading economies continuing to
suffer from low growth and the resultant adverse impact on demand for most
products and services. We have been successful in insulating and de-risking
our portfolio of business by following a prudent operating discipline and
further strengthening our rock solid foundation for investments in future
Over the last few years, volatility and uncertainty have become the 'new
normal' and the FY 2011-12 has proved to be no different. The concerns in
Euro Zone and Middle East remain unresolved and the US economy is still not
out of the woods. Despite the global volatile environment, sales of your
Company grew by 59% and profits registered a growth of 9.49% mainly on the
back of buoyant domestic demand. This performance is all the more
commendable considering that inflation surged to near double digit levels
and GDP came down to 6.9% in India during the year. This could be achieved
because of the sustained direction and working as a team at all levels.
Your Company has always focused on building strengths for the future and
continued to invest in building capabilities. Major thrust areas were
identified during FY 2011-12 to secure growth, ensure customer satisfaction
and enhance supply chain capabilities for future, using the latest
technologies. We will continue to invest our resources in taking these
Capacity building for the future is well on track. Your Greater Noida
plant, which was commissioned during the month of January, 2012 with
licensed capacity of 8400 MT per annum on single shift basis has now
commenced its operations in full swing.
While consumer demand is expected to grow stronger, business environment
will be volatile and uncertain due to the global and domestic challenges.
However, I am confident that your Company will prove its mettle in such a
dynamic business environment as we have done in the past.
With the continued support of efficient Technical team and experienced
Marketing Professionals I am confident of winning over the African and
Asian market and continue to spread and strengthen our roots in the Middle
East and European market.
In order to accelerate and thereafter maintain the momentum in growth, your
Company has decided to set up a wholly owned subsidiary at DUBAI. Saudi is
the biggest market for inks hence Dubai has to be a centre point for
capturing the Middle East market and thereby providing complete technical
We have always anticipated changes and adapted ourselves to the environment
without compromising on our core values. Your Company has always believed
and practiced high standards of professionalism, integrity and transparency
and would continue to do so. It is these values which have shaped the
character of your organization and helped in building wealth for all the
Your Company believes in growth with a human face and continues to remain
committed towards various initiatives in the areas of Health Care,
Environment and Education under our Corporate Social Responsibility (CSR)
As we continued on our journey to deliver growth and create long term value
for the shareholders. The Total Revenue from Operations have grown from Rs.
98.25 crs in FY 2010-11 to Rs. 156.05 crs in FY 2011-12 while the profits
have grown from Rs. 2.53 crs to Rs. 2.77 crs. This demonstrates that the
family promoters and professionals working together can achieve good
results for our esteemed shareholders.
Given this background, I am pleased to say that our management team showed
great degree of resilience and maturity to deal with this situation very
effectively. All our actions were aimed at achieving our corporate goals
without losing the confidence of our customers and suppliers.
We are committed to sustain a culture of operational excellence,
responsible resource utilization and creating a platform for sustainable
growth to benefit all the stakeholders.
With Warm Regards
For Tirupati Inks Limited
Executive Chairman & Managing Director.