Dear stakeholders,
I take pleasure in addressing you through the pages of this annual
report. I hope all of you are keeping safe and in good health
Proof of resilient business
Looking at our performance in the accounting year 2021-22, Yash Pakka
showed resolve, adaptability, agility and resilience. The company delivered satisfactory
financial performance across its key business areas, overcoming macroeconomic turbulence
and supply chain disturbances. The company's revenue from operations increased by 58.49%
YoY and net profit expanded by 128.46%
YoY. These are results to be proud of and a testimony of our continuous
improvements and strategic progress.
Although uncertainties remain as new challenges continue to surface,
including the Russia-Ukraine war, geopolitical issues such as tension between China and
the US, the year carried many positives. Externally, India is much better placed to
recover from the COVID shock and achieve high GDP growth rates which, together with the
government's focus on Atmanirbhar Bharat, Make in India,
PLI scheme, etc., bode well for the future of the industry.
Internally, we found new ways of working to deliver products and
services at the same high standard and pace as before the pandemic.
By investing in a deep culture of skilling, learning and enablement, we
created a more agile business with enhanced customer service excellence. An increased
demand for eco-friendly products, the untiring efforts of our people, our resilient
business model and strategic steer by the leadership together supported our strong
performance. I believe our achievements in 2021-22 provide a stellar example of a company
striving towards a common goal of sustainable growth at scale.
Sustainability is core to our strategy
We are committed to having a positive climate impact and leave the
world a better place. Thus, sustainability is an intrinsic part of our culture and through
our unified and concerted efforts in sustainability as one team we are calling attention
to the pressing need for change.
Sustainability is a key part of our business and value creation agenda
as we focus on responsible, regenerative packaging through our products to create degrees
of separation or competitive differentiation. We are working for CHUK to be synonymous
with sustainable packaging. Though we have covered a long way, we still have a long way to
go and I am confident that the kind of team, resources and plans we have we will achieve
progress faster than ever.
A flexible natural fibre supply chain and accessibility is fundamental
for our innovation agenda. Global megatrends with sustainability at the core call for
fossil-free materials and new applications for innovative materials.
Our customers are increasingly aware of the advantage of products that
are circular and climate-friendly. It is our job to continue to deliver solutions to meet
those needs. At the same time, consumer behaviour is changing rapidly with growing
e-commerce related to increased home deliveries of retail goods, groceries and
take-away/carry of food. All this boosts market size and demand for sustainable packaging.
Thus, we foresee strong growth potential for our products within packaging and
bio-materials innovation.
Taking strategic action for longterm value creation
Sustainable growth remains central to our enterprise and all our
actions and efforts are in this direction. We are undertaking a number of initiatives and
I'm outlining three in this regard.
One, we initiated Team Stock Option Scheme (TSOP Plan) to reward the
hard work, commitment, dedication and loyalty of our people. They performed against the
odds, especially in the face of COVID adversity and the right reward and compensation
structure through TSOP is the right thing to do. Furthermore, TSOP will catalyse better
performance, enable retention of our key human resources and help in attracting new talent
into the business. Thus, we are aligning employee interest with shareholder interest via
TSOP.
Two, we established a subsidiary company in the United States, Pakka
Inc. The reasons are multifold, including access to cutting- edge global talent and
exposure to a global environment and international trends which will boost our innovation
engine.
Over the long-term, we plan to establish a manufacturing facility
closer to the US, thus opening up new potentials and possibilities.
Three, we successfully closed the amalgamation between Yash Pakka Ltd
and Yash Compostables Ltd, which will unlock synergy in terms of distribution, resources
through common pool of critical talent and key services, and technology in terms of deep
knowledge around pulp-based products.
As a company deeply rooted in India's soil, we celebrate the spirit of
Azadi ka Amrit Mahotsav comprising 75 glorious years of India's Independence and pledge to
work for the country and society, thus contributing to the priorities, goals and
aspirations of the nation in our own humble way. In short, we are committed to growing a
sustainable future together with all.
| Best wishes, |
| Pradeep Dhobale |
| Chairman |