Dear Shareholders,
I write this letter with a sense of pride about how well your Company performed in this
year i.e. 2018-19, not just in financial terms, but also in terms what we have
accomplished for customers, employees & shareholders across the world. We have
successfully completed 28 years of establishment. The fiscal year gone by has been an
eventful year. We continued to build trust with customers & communities by being
responsible, transparent & our focus on building long term relationship. The year gone
by has been both thrilling and significant for the company. Along with growing our sales
and net revenue substantially, we also made significant increase in the net worth of the
Company. The Company also created wealth for its shareowners and it consistently achieved
high margins and reported robust year-on-year growth.
Strengthening Consumer Engagement to Drive Growth:
Customers have always been at the heart of our initiatives. SCL is committed to deliver
superior & differentiated products that create value for the Indian consumers. Our
deep understanding of consumers, a strong portfolio of brands & products have enabled
us to deliver broad based superior performance across all the divisions. We are focused
more than ever on strengthening consumer engagement to drive growth. We strive to make our
brand relatable & valuable to our consumer's lives. Some of the differentiated
products undergo over various tests to conform to the best international standards
offering consumers and future generations a safer and better product.
Business Overview
The first step in setting up a business is the most difficult ones. There can be many
ideas but converting them to business needs painstaking execution. The first seed of
venturing into the Soya based manufacturing business was sown by ex-Chairman of the
Company; Late Shri Ram Narayan Agrawal; in the early 90's due to the presence of rich soya
belt in Madhya Pradesh and yet not potentially explored sector till then where soya having
high nutritional content. It was a move to eradicate the ongoing predicament of
malnutrition among the people of central India. The idea was well germinated and through
his relentless efforts; he successfully built the business empire in the soya segment
which has been steered into the FMCG Sector by the relentless efforts of second and third
generation. Today, we are evolving swiftly from being an established branded soya company
to an emerging global Food Company, with new strategic advancements and product
developments underway.
Setting this long voyage; presently the Solvent Extraction capacity of your Company is
2500 ton per day and rice division with 600 ton per day capacity.
It has been an enriching experience to engage with & witness the evolution of
Company as it traversed many a trial & tribulation to emerge as a vibrant &
valuable multi business conglomerate.
Financial Overview:
It was a challenging year for the industry with market volatility & economic
uncertainty. In this challenging business environment, your Company delivered a strong
performance. Our 'Connected 4 Growth' initiatives have made us more agile, customer
centric and responsive to the diverse and rapidly evolving marketplace. Our 4G model of
growth - consistent, competitive, profitable and responsible, continues to serve us well
and 2018-19 was the twenty eight consecutive year of both top line growth and margin
improvement.
We hereby share that your Company's Profit after Tax grew remarkably at the growth rate
of 80.28% at Rs. 15596.84 Lakhs against Rs. 8,651.61 in the previous year and The total
revenue of the SCL increased to Rs. 531779.77 Lakhs from Rs. 506657.78 Lakhs in the
previous year, at a growth rate of 4.93 %. Net Worth of the Company increased by 9.59% to
Rs. 65115.21 Lakhs as against Rs. 59,413.04 Lakhs in the PY 2017-18. The financial for
half year ended 30th September, 2019 were not satisfactory as the Revenue of
the Company stood Rs. 223943.03 Lakhs as against Rs. 249092.22 in the previous half year
ended 30th September, 2018. Also the networth was Rs. 31942.67 as against Rs.
56938.98 in the previous half year ended 30th September, 2018. Also the Company
suffered a loss of Rs. 38472 Lakhs due to below par/low level of activity or business
operations due to unforeseen circumstances, one time provision for bad & doubtful
debt.
Industry Overview
The FMCG sector continues to be one of the largest sector contributing to the Indian
economy. The overall outlook for the FMCG industry continues to remain positive. We are
witnessing trends like increased disposal income, increased rural consumption which will
fuel the growth of the FMCG sector in the upcoming years. With this changing consumption
pattern, we are emerging as a Global Food Company. We are now pursuing strategies that
involve greater differentiation and allow us to create sustainable value for all our
stakeholders. To capitalize on the growing market opportunities, we embarked on
diversifying our business, adding value through synergistic staples and foods business. At
the same time, we aim to diversify into value added products to maximize shareholders
value.
"We don't grow when things are easy; we grown when we face challenges."
distribution system, with an unrivalled national presence across traditional and modern
trade channels, remains a key competitive advantage. We continued to expand our direct
coverage and leverage technology and intelligent analytics to significantly enhance our
customer service and on- shelf availability. The Company also continued to make
significant investments in building capabilities to win in channels of the future and
substantial progress is being made particularly in the fast-growing e-commerce channel.
We exercised our resources more productively, including infrastructure, brand,
distribution and the people. We have been successful in creating a strong overall talent
pipeline to ensure highest commitment of performance. Furthermore we are working on
expanding our distribution reach, not only in India, but globally as well.
Our strategic objective is to build a sustainable organization that remains relevant to
the agenda of our clients, while generating profitable growth for our investors. In order
to do this, we will apply the priorities of renew and new to our own Business and cascade
it to everything we do. Supported by strong systems and strategies, we are geared to keep
ourselves ahead of the challenges that we continue to face. We are assertive onwards
meeting our goals and relentlessly work towards enhancing value for all our stakeholders.
Support System
Our world-class supply chain maintained its relentless focus on driving quality,
customer service and cost effectiveness across the value chain. Our sales and
Acknowledgement
On behalf of Board of Directors of Sanwaria Consumer Limited, I would like to express
sincere appreciation for the assistance and co-operation received from the financial
institutions, banks, Government authorities, customers, vendors, Company's executives,
staff and workers, for their continued support in our journey to deliver value to all our
stakeholders since past 28 years.
Most importantly, I would like to thank you, our shareholders, for your overwhelming
trust, support & confidence in Sanwaria Consumer Limited.
Warm Regards Gulab Chand Agrawal
Chairman