We are delighted to report a strong set of results for FY 2018-19 which has been anoutcome of a steadfast consistency in advancing our strategic initiatives towardsprofitable growth.
FY 2018-19 was indeed a year of robust challenges as input raw material pricesincreased to unprecedented levels.
Despite that our solid results supported by significant growth placed us on track tofully realise our objectives. Our net sales stood at ' 424.62 crore during FY 2018-19rising by 73.86% compared to ' 244.23 crore sales recorded in the previous financial yearof FY 2017-18. Profit After Tax (PAT) at ' 72.39 crore was 405.51% higher during theyear vis-a-vis ' 14.32 crore in the previous financial year.
Our Strong Foothold
We have established a strong reputation in the pine chemicals industry by virtue of ourmanagement's 70 years of expertise and experience in the field. We have been visiting thePine Chemicals Association conferences across the globe for the last four decades.Numerous technical and commercial papers have been presented by our founder Late ShriRamgopal Dujodwala in the 1980s and 1990s and more recently by me in the last few years.
Our manufacturing facilities are technologically advanced and state-of the- artenabling us to manufacture products of highest quality with best yields lowest energyconsumptions and highest safety standards. During our journey of 25 years we augmentedour production quantities and increased our sales network to reach the stage at which weare today.
Our Segmental Performance
Camphor is the primary product in our "Terpene Operations" segment.
We continue to strive hard to increase production quantities increase yields and lowerour energy costs. We are working closely with customers to provide specific solutions totheir requirements. Our focus on sale of our retail brands "Mangalam" and"CamPure" is increasing as this starts to increasingly contribute largerproportions of our revenues and profitability. Going forward we believe these brands willplay a key role in driving our growth.
Historically our "Synthetic Resins" segment was contributing larger revenueswith limited profitability. Over the last few years we have reduced the range ofsynthetic resins offered and are focussing on those resins where our quality is good andour margins healthy. Although today this segment contributes a small percentage to ouroverall revenue the margins are healthy and the business is sticky.
Going forward we hope to make inroads into certain large domestic and exportcustomers and on the back of their growth journey we too will grow. Last year we alsoforged an alliance with M/s. Les Derives Resiniques & Terpeniques a world leader in"Terpene Phenolic Resins" from France used in adhesives and tyres. Our productsare presently being evaluated at various potential customers and we expect increasedrevenues to reflect in 2020.
Strategies in Play
For our "Terpene Operations" segment our key strategy is to exploreopportunities in intermediate products in the export market. This enables us to reduce ourdependence on market dynamics of a single product "Camphor" and a singleindustry the pious market. Pursuing sale of intermediates also enables us to increase ourrevenue and take advantage of margin opportunities which may arise from time to time.
Besides the above we look to gain a larger share in the export market of Camphor byobtaining certifications such as GMP IP and Kosher. This will help us make inroads tocustomers who are presently being served by Chinese manufacturers.
For our "Synthetic Resins" segment our strategy is to explore opportunitiesin the domestic market for import substitution by offering similar products which arelocally available. We look towards the export market through our alliance with DRT Franceand will nurture that opportunity to unlock the potential. Apart from this we willcontinue to invest more into R&D to make our manufacturing processes more efficientand products of higher quality to drive sales.
The growth rates of our retail brands are phenomenal. As we engage with consultantsanalyse the result of our efforts and collate our thoughts our strategies are takingshape. We are most excited about this segment for what lies ahead.
On behalf of the Management and our Board of Directors I would like to take thisopportunity to thank all our stakeholders - the Shareholders Employees and Suppliers fortheir unwavering support and trust.
We are glad to have you as a part of our silver jubilee journey and we look forwardhaving you through to the golden jubilee!
With Warm Regards