" Together with our management, staff, bankers, suppliers and
other stake holders we will try to keep building and growing the company value within the
scope of its planned business activities."
Dear Valued Shareholders,
It is always a pleasure to connect with you!Last year, I spoke to you
about our ensured
continuity of the company operations while re-calibrating our business
operations to make the best of those challenging pandemic times. I am pleased to share
that your company has done reasonably well even in a volatile global environment with low
economic growths and signs of recession in various countries during the FY 2022-23. As you
are aware the global environment is going through considerable changes with the
geopolitical factors such as the continuing conflict between Russia and Ukraine, rising
inflation, low GDP and volatile commodity prices have caused slowing down of global
economic growth and created stress in the overall economic environment. Despite the above
unfavourable economic conditions in the international markets during FY 2022-23 we were
able to export to the countries USA, Europe, Canada, UAE, Saudi Arabia, Hong Kong, Korea,
Japan & Russia During the FY 2022-23, the Indian sea food exports have increased in
quantity terms by 26.73% and in rupee terms by 4.31% when compared to 2021-22. India had
exported 13,69,264 MT of seafood worth Rs 57,586.48 crore (US$ 7.759 Billion) and during
FY 2022-23 about 17,35,286 MT of sea food exported worth US$ 8.09 Billion and USA being
the largest importer of Indian seafood followed by China, EU, South East
Asia, Japan and Middle East with the Frozen shrimp retains the top
position as the major export of seafood product.
During the year your company had consolidated its business operations
by optimizing the plants and new initiatives taken up in line with the business planning
for the next 5 years. Here I am giving you the status and progress of each new initiative.
1. To optimise the cost of electricity and also to reduce the CO2 and
greenhouse gases to protect environment your company had set up a Solar Power Plant with a
capacity of 3.6MW which was installed and commissioned and using for captive consumption
for CCL plants.
2. To enhance the productivity your company is under the process of
implementation of the state of the art ERP System from a reputed International vendor Tata
Consultancy Services Limited by using TCS ION software. All the human resources of the
company are being trained to use the ERP IT system.
3 The new factory at Kakinada is operational and having a Plant with a
freezer capacity of 14MTPD with a Quick Frozen of 32 MTPD and Cooker of 12 MTPD for making
various range of Shrimp products like, Headless Shell On (HL), Peeled Deveined Tail On
(PDTO), Peeled Deveined Tail Off (PD), Pulled Vein Tail On (PVTO), Peeled
4. Un-Deveined (PUD), Butter_y and various Cooked Shrimp value added
products The CCL subsidiary Coastal Biotech Private Limited located at Parlakimidi, Odissa
which is going to produce the Ethanol is having a Plant Capacity of 198 KLPD, and the
construction is as per the schedule and is expected to be operational by end of next year
as per the business plan if other factors remains same as per the prevailing conditions.
5. Similarly to expand the shrimp production as per the coming years
demand the subsidiary Continental Fisheries India Limited at Odissa is going to be the new
Shrimp Processing Facility with a plant capacity of 12 MTPD
I'm happy to report that with the guidance of the Board of
Directors and support of the management and the dedication of our employees, customers,
suppliers and all other stakeholders continued trust in us have helped us navigate to a
reasonable position during FY 2022-23 along with the establishment of Plant III at
Kakinada which augmented Company's value-added supply.
For the FY 2022-23, year ended on standalone basis the Revenue from
company operations was Rs.347.77 Crores, EBITDA of Rs 22.374 Crores, PAT of Rs 8.95 Crores
and a Net worth of Rs Rs 264.91 Cr. On a consolidated basis the Revenue from Operations
was Rs.364.26 Crores, EBITDA of Rs 19.84 Crores, PAT of Rs 6.69 Crores and a Net worth of
Rs 244.71 Crores. The decline in income and profits for the financial year FY2022-23 when
compared to the earlier year FY 2021-22 was largely on account of un-favorable external
environment factors such as rising input costs, increase in freight charges, low market
demand for sales and the non-availability of the containers which have adversely dented
the financials and the margins.
However the Board and the Management had taken note and now in the
FY2023-24 with the improvement and normalisation in the International and Indian market
conditions and with the commitment by the Promoters by infusing equity to the tune of Rs
19.49 Crores. With these positive inputs the Board and management are optimistic to
enhance the company operations by value added products, optimising the costs and with
business development by exploring the other international markets for enhancing the volume
of sales which gives me the confidence
for the company's growth in the coming year |
FY 2023-24. Your company, with the strong |
operational and financial fundamentals are in |
a position to grow in the coming years with the |
above mentioned initiatives and growth drivers |
like New Capacities, Value Added Segment, |
R&D for the future products development and |
the Biofuel Ethanol Project leading the growth. |
I am thankful to the Board of Directors |
and Managing Director for their constant |
support, valuable contributions for the smooth |
functioning your organisation enjoys today, |
and having the confidence and trust in me |
for chairing the company. Together with our |
management, staff, bankers, suppliers and |
other stake holders we will try to keep building |
and growing the company value within the |
scope of its planned business activities. |
I look forward to your continued support in |
taking your company to greater heights in the |
coming years. |
Dr Emandi Sankara Rao |