Expanding the Orbit of Collective Prosperity
Dear Stakeholders,
With great honour, I present to you the Annual Report of Kamdhenu Limited for FY
2023-24. This year, much like its predecessors, signifies our continuous thrust on
performance excellence and expansion. Our theme this year, ‘Accelerating Growth
Around the Orbit,' meticulously captures the essence of our journey through the year,
embodying Kamdhenu's strategic focus on growth, innovation, and collaborative synergy.
Guided by our unyielding dedication to instilling trust and security among stakeholders,
driven by our innovative franchise model, we reinforce our presence in the ever- evolving
landscape of the steel industry.
We remain resilient in the face of unprecedented challenges, demonstrating unmatched
adaptability, and surpassing major milestones. In FY 2023-24, we witnessed a 9% growth in
volume from the franchise route in the steel business. Our dominance in the branded
organized retail segment of the TMT bar market speaks volumes about the trust and
confidence that our customers bestow upon us. We stay committed to robust financial
management, evidenced by becoming a debt-free Company. Leveraging our asset-light business
model and extensive marketing network, we continue to cement our market positioning and
attract unbranded players to join our esteemed brand.
Navigating Global and Indian Economic Landscapes
Global economic landscape remains resilient, showcasing a steady growth trajectory,
despite facing major headwinds, including supply chain disruptions, the Russia-Ukraine
conflict, and inflationary surges. Estimates predict global growth to hover around 3.2% in
CY 2023, slightly below the historical 3.8% average due to restrained policies and
sluggish productivity. Inflation presents a rather optimistic outlook, charting an
expected decline from 6.8% in 2023 to 4.5% by 2025. Yet, the persistence of geopolitical
tensions, high government debt, and China's economic challenges continue to pose threat to
global economic recovery. However, advancements in AI and strong structural reforms
present a silver lining, offering potential productivity boosts. We, at Kamdhenu Limited,
are committed to navigating these challenges with strategic foresight, fostering a
sustainable and inclusive economic recovery for a brighter future.
India's economy stands out for its resilient performance amid global volatilities.
Strong domestic consumption, increased Government spending in infrastructure development,
and thriving private investment are driving the momentum, with the economy projected to
grow impressively at 7.6% in FY 2023-24. Further supported by key Government initiatives,
including the 'Gati Shakti Scheme', 'Make in India' and Production Linked Incentive (PLI)
schemes boasting domestic production. The nation's landscape is undergoing a remarkable
transformation with extensive infrastructural endeavors, including the development of new
ports, redevelopment of railway stations, and the ambitious plan for the construction of 2
Crore houses in the next five years.
These growth enablers pave the way for generating significant opportunities in
manufacturing sector. The Government's Rs. 11.11 Lakh Crores capital expenditure for
infrastructure and employment, along with a steel production target of 300 million tons
per annum by 2031, are propelling India towards becoming a global manufacturing
powerhouse. The planned development of over 200 airports, heliports, and waterdromes
further bolster this trajectory.
Solidifying Our Market Leadership
Kamdhenu Limited plays a crucial role in addressing the nation's increasing demand by
delivering premium products that meet the highest standards of quality and reliability.
The Indian steel sector is experiencing a remarkable resurgence, with market projections
indicating a rise to 135.81 million tons in 2024, and an impressive leap to 209.93 million
tons by 2029, clocking in a CAGR of 9.18%. This robust growth trajectory signifies a
striking recovery from the impact of the Covid-19 pandemic, ushering in a vibrant and
optimistic future driven by supportive Government policies, rapid urbanization, and
increased infrastructure spending. To seize the opportunities presented by this sectoral
growth, we are strategically positioned to expand the orbit of our capacity and meet the
escalating demand. Additionally, our innovative franchise model enables us to efficiently
reach customers nationwide, further solidifying our leadership in the market. As the steel
sector continues to thrive, we are set to capitalize on the momentum, harnessing our
dedication to excellence, capacity expansion, and strategic business foresight.
Enhancing Stakeholders' Value Proposition
Kamdhenu Limited believes in growing together, forging a journey towards collective
growth, and celebrating every achievement, large or small, as a means of creating
augmented value for our shareholders. We remain dedicated to forging enduring partnerships
and generate sustainable returns. For the financial year 2023-24, we recommended a final
dividend of Rs. 2 per equity share (20% of face value). Through these efforts, we strive
to promote value-accretive growth and progress, advancing steadily together.
Nurturing Our People and Community
Our dynamic team is the driving force behind our strategy, performance, culture, and
reputation. Prioritizing the creation of a positive work environment, we ensure that our
employees feel valued and motivated. We enforce a zero-tolerance policy towards incidents
of sexual harassment, discrimination, child labor, or any other form of human rights
violations, affirming that our workplace is safe, inclusive, and welcoming to all.
We believe in the power of actions to speak louder than words, which is why our
dedication to our community's upliftment is deeply ingrained in everything we do. Through
impactful social initiatives, including blood donation drives, skill development,
healthcare and educational programs, we demonstrate our commitment to creating lasting
value beyond our organization.
Upholding Strong Corporate Governance
As a responsible corporate entity, we uphold a stringent governance framework to ensure
the efficacy of our internal systems. Our core values revolve around effective leadership,
transparency, and accountability, driving us towards excellence in corporate governance.
With a balanced Board we strictly adhere to the rigorous governance standards.
Way Forward: Harnessing Growth Potential
As we step into FY 2024-25, Kamdhenu Limited is set for remarkable growth. To fortify
our future, we lay a strategic roadmap that includes initiatives to enhance our franchise
business, strategic capex planning, and brand positioning. Embracing an asset-light model,
we are dedicated to optimizing working capital to improve capital efficiencies. Moreover,
our focus on innovative products remains the key factor in driving our market share to new
heights.
With a Brand turnover surpassing Rs. 21,000 Crores with a CAGR of 14% over the last
decade. We continue to witness a strong volume growth, while reaffirm our position as
India's largest TMT Bar player. Anticipating an annual growth of 8-9% in the steel
business, supported by stable raw material prices, we are setting our sights on doubling
our sales in the next 4-5 years.
We maintain our sustained focus on serving projects, architects, builders, and
structural engineers to keep the momentum flowing. Further to this, the success of our
franchise model is expected to fuel our growth, with plans in place to expand franchisee
capacity.
Closing Note
Kamdhenu Limited is geared towards significant growth, leveraging our strong brand
presence for sustainable expansion. Every strategic move we make, from our recent
successes to our far- reaching plans, stands as our guide to illuminate our path. Through
all our endeavors, we ensure that Kamdhenu is not just a name but a promise of durability
and reliability. Echoing the sentiment,
Through our collective efforts, we are propelling growth to new heights, ensuring a
bright and sustainable future for Kamdhenu Limited and all our stakeholders.
With best wishes,
Satish Kumar Agarwal
Chairman & Managing Director