Dear Stakeholders,
It is my pleasure to present the Annual Report of Asian Granito India
Limited (AGL) for the FY 2023-24. I deeply appreciate the sincere support from all our
stakeholders. I am also incredibly grateful to our employees, whose tireless efforts have
been key to our Company's expansion.
The year 2023-24 was marked by exceptional economic uncertainty. While
the domestic economy remains robust and secure, the global scenario is fragile due to
ongoing conflicts in the Eurasia region, a new conflict in the Middle East and the Red Sea
crisis. Additionally, China's economy is showing signs of softening. Despite these
challenges, India's continued economic growth is noteworthy and our nation?s
substantial contribution to the global economy is commendable.
Our Company has closed FY 2023-24 on a high note, achieving improved
operational and financial results. The revenue for the year stood at Rs 1,531 Crores,
representing a moderate 2% decline from FY 2022-23. The EBITDA margin was reported at
3.33%, compared to (4.36%) in the previous year, primarily due to marginal softening in
the prices of gas and raw materials. Notably, most business segments have
experienced growth, reflecting an overall improvement in performance. Exports, in
particular, witnessed good progress with a 9% y-o-y growth.
I am delighted to share that the setting up of plants for glazed
vitrified tiles (GVT) and sanitaryware in Morbi have been completed. These plants have
also commenced commercial operations this year. With an installed capacity of 5.94 million
sq. mtrs., the new GVT plant positions us to capitalize on the growing demand for premium
tiles. Additionally, the start of sanitaryware production marks a strategic shift from
third-party sourcing to in-house manufacturing. This state-of-the-art plant, with an
annual capacity of 0.66 million pieces, reflects our ambition to replicate our success in
the tiles sector within the sanitaryware market. Leveraging the trust we have built and
our extensive marketing and distribution network, we anticipate the sanitaryware division
will achieve a turnover of approximately Rs 400 Crores within the next five years,
contributing to our long-term goal of reaching Rs 6,000 Crores in total revenue.
In a strategic move to elevate the AGL brand, the Company has signed
Bollywood superstar Ranbir Kapoor as its brand ambassador and launched the "Premium
ka Pappa" campaign.
This partnership underscores AGL?s commitment to excellence and
promises an exciting future. With Kapoor's endorsement, the brand aims to expand its
reach, particularly among the youth and drive its vision of growth and connectivity.
Additionally, this collaboration seeks to resonate with consumers' aspirations and
emotions, establishing a strong connection with both trade partners and customers through
its emphasis on premium experiences and sophisticated appeal.
Aligned with our commitment to expanding our retail footprint and
making our products more accessible, we are pleased to announce several significant
additions to our showroom portfolio. In Delhi NCR, we inaugurated a 6,000 sq. ft. showroom
offering a comprehensive range of AGL products under one roof. We also launched a 3,000
sq. ft. showroom in the vibrant market of Hyderabad. Furthermore, we unveiled AGL
Universe, a grand showroom in Panchkula, Haryana, which exemplifies our excellence in
production, technology and innovation through lavish displays and realistic mock-ups
featuring our latest collections. Additionally, we are setting up a mega display center
cum office in Ahmedabad with an estimated investment of Rs 73.80 Crores and plan to
establish a stock point for trading building construction materials.
We continually introduce new designs across all product categories,
leveraging our in-house research and development capabilities to deliver innovative
solutions that meet the evolving needs of our customers and keep us ahead of the curve.
Among our noteworthy accomplishments this year was the introduction of the Signature
Series in the Quartz segment, powered by Robotech Technology. This revolutionary
collection combines robotic precision with guided design to create eco-friendly, durable
surfaces that surpass natural stone in aesthetics and functionality. This achievement
underscores our commitment to crafting premium products and setting new industry
benchmarks.
Our Company has achieved a strong global presence in a short span of
time and we remain focused on further scaling our reach.
Demonstrating this ambition, we implemented several strategic measures
including the formation of wholly-owned subsidiaries in key overseas markets. AGL Surfaces
INC has been established as a wholly-owned foreign subsidiary to improve our market
penetration in the USA, while Harmony Surfaces Marbles TR. LLC S.P was incorporated to
cater to the growing demand for premium surfaces in the Middle East. Additionally, we
established a joint venture, Nepovit Ceramic Private Limited, to set up a wall tiles
manufacturing unit in Nepal. This initiative aims to meet the increasing demand for
quality wall tiles in the region and further strengthen our international presence.
In another strategic development, the Board approved the demerger
scheme for AGL and its subsidiaries/associated companies in August 2023, pending necessary
approvals. The proposed demerger aims to unlock operational synergies between AGL and its
subsidiaries/outsourcing companies. The demerger is progressing as planned and once
completed, will pave the way for maximizing our performance and enhancing shareholder
value.
Looking ahead, we are optimistic about accelerating our growth
trajectory. The strategic initiatives undertaken this financial year including the Morbi
expansion, establishment of overseas subsidiaries, the AGL demerger and onboarding a
celebrity as our brand ambassador, underscore our commitment to growth and our vision of
becoming a global brand. Additionally, we are expanding our product range with a focus on
high-value offerings, intensifying our export efforts, improving operational efficiency
and resource management, strengthening brand recall and growing our distribution network
for better market reach. We are confident that these measures will support our goals and
drive the next stage of our development.
We remain optimistic about the future of the tile, marble, quartz and
sanitaryware industries. The resurgence in demand across the real estate, residential,
hospital, institutional and hospitality sectors has been encouraging. Additionally, the
stabilization of natural gas prices from their peak levels has positively impacted the
industry. Our focused strategic priorities of capacity building, domestic penetration,
geographic expansion and technological innovation position us to harness these
opportunities and deliver sustained value.
Reflecting on the past year, I want to once again thank all our
stakeholders who have consistently shown faith in our Company. Your continuous support,
trust in our achievements, acceptance of our efforts and belief in our future have played
a crucial role in our journey.
Regards,
Kamlesh Patel
Chairman