Dear Fellow Shareowners,
The The year 2018-19 saw our economy facing some tough challenges. Highlights of the
Industrial Outlook Survey of the Manufacturing Sector for Q1:2019-20 released by the
Reserve Bank of India on August 07, 2019 -
• In the assessment of respondents, order inflows, output and employment
conditions remained tepid in Q1:2019- 20.
• Sentiments on exports remained largely unchanged from the previous quarter, but
in the optimistic zone; on imports, however, optimism waned.
• Optimism on the overall financial situation was maintained with improved
sentiments on availability of finance from banks and internal accruals.
• Manufacturers increased selling prices in Q1:2019-20 to pass on pressures
emanating from interest payments on borrowings, cost of raw materials and salary expenses,
but pessimism on profit margins continued to prevail.
• Overall business sentiment remained upbeat.
• Respondents expect modest improvement in demand conditions in Q2:2019-20.
• The outlook on the overall financial situation remains optimistic, albeit with
some moderation in sentiment on availability of finance from internal accruals and banks;
optimism on availability of finance from overseas in Q2:2019-20 rose slightly.
• With moderation expected in the cost of raw materials, manufacturers are upbeat
about profit margins in Q2:2019-20, despite moderation of optimism on selling prices.
• The Business Expectations Index (BEI) edged down from 113.5 in Q1:2019-20 to
112.8 in Q2:2019-20.
It is expected that the budget proposals will lead to ‘improving the ease of
living and reducing the pain of the citizens' as envisaged by the Hon'ble Finance
Minister.
We have always believed in a judicious mix of traditional and new business. While new
businesses, with their inherent risks, need a long lead-time to nurture and grow,
traditional businesses can provide us with stability and predictable cash-flows. All our
traditional businesses have consolidated in the past few years.
Given the current stage of growth in the Indian economy, we expect the demand for the
Company's products to rise in the coming years. As a Company, we have always believed in
building on the core.
This combined with hard work and dedication of our entire team has helped your Company
maintain a profitable path even during uncertain times.
I am grateful to the Board of Directors for their unwavering support and guidance. I
also take this opportunity to express my gratitude to all our stakeholders, who have
reposed their trust in us and extended their constant support.
With best wishes,
Sincerely,
Anand Jain
Chairman 13th August, 2019