MANAGING DIRECTOR'S MESSAGE
Mr.Naresh Chandra Chakraborty, Managing Director, speaks about Company's performance
and the way ahead.
"In 2012-13, we further enhanced our overseas presence which resulted in our
exports increasing by over 275%."
Dear Friends,
Year 2012-13 was a year that witnessed the highest level of economic challenges. Right
from depreciating rupee, inflationary pressures to political instability, there was an
eminent slowdown in the overall growth of the economy.
At ntc, we have a different story to say. While several companies across India
struggled to fight against the tide, we reported record results. While our revenues
increased by over 15%, our post tax profit increased by over 500%.
A number of observers will be tempted to ask how we reported such a successful
divergence when the industry is facing the threats of high placement cost, advertisement
restrictions, harsh pictorial warning on the product, increasing anti-tobacco drives and a
smoking ban in public in few states.
My answer: Our 'opportunity-focused model'. This made it possible for us to
maximise profitability despite such challenges and sluggishness.
At ntc, we countered the trough in the market due to a number of initiatives that we
commissioned across the past few years.
1. Increasing focus on exports: With increasing pressure of
anti-tobacco awareness drives in the domestic market, we explored opportunities to
penetrate the export markets. Our proactive thinking paid rich dividends. In 2012-13, we
further enhanced our overseas presence, particularly in the American nations, which
resulted in our export increasing by over 275%.
2. Technological upgradation: Our constant endeavours towards
installing updated technologies have allowed us to reduce our operational cost on one hand
and allowed us to produce quality cigarettes in good finished packets at par with
international quality standards, on the other. The Company has also invested over Rs. 500
lacs as capex in last three years.
3. Introduction of new brands: We introduced new brands in the
64mm segment for eliminating the taxation impact. These brands came in modern packaging in
different segments, particularly to attract young generation smokers.
4. Research and development: We have consistently focussed on
value-creation for our customers through constant research and development initiatives
that allow us to create quality brand, deliver quality blends and produce various size
variants.
"We have consistently focussed on value-creation for our customers through
constant research and development initiatives."
However, such an extra-ordinary success does not make us complacent. We are aware of
the prominent challenges that may affect our operations in the medium to long run. The
threat of rising raw material prices owing to supply shortage and volatile exchange rate
fluctuations looms high. By virtue of our proactive business thinking, we have started
maintaining sufficient inventory to mitigate the threats of rising prices.
We have also initiated aggressive marketing efforts to penetrate deeper into the
domestic and export markets.
This will further enhance our revenues and profitability going ahead.
As a responsible citizen, we have taken conservative steps towards our product
promotion that complies with all the specified norms, policies and regulatory guidelines.
Besides, we continued to enhance the socio-economic quotient of the communities residing
around our facilities and regularly initiated various health-related activities, like
blood donation camps and eye check-ups, for their healthy and safe livelihood. We also
continue to follow sustained business practices to ensure that the environment does not
get impacted adversely.
At the end, I would like to show my deep sense of appreciation to the shareholders,
bankers, business associates, retailers, suppliers, customers, government and other
regulatory agencies for their continued support and faith in the Company. I would also
like to thank our employees without whom this success would have never been possible. Your
continued trust and support has given us the courage to perform at our potential best and
we are now fully confident of taking this success to the next level.
Best wishes,
Naresh Chandra Chakraborty
Managing Director