Dear Shareholders,
As I present the Integrated Annual Report of 2022-23, I extend my
heartfelt gratitude to all the valued stakeholders for their undeterred support. I am also
immensely thankful to the employees, who have relentlessly worked hard and been
instrumental in driving the Company's growth.
Throughout the journey, the Company's business has grown hand-in-hand
with India's remarkable progress. Thus, reflecting our deep connection to theation's
development. The Company strongly believes future growth is intricately linked to India's
ascent as a global economic powerhouse.
With India's ascension to the position of the fifth-largest economy
globally, the Company is aware of the vast potential and opportunities that lie ahead. The
Company takes immense pride in its dedication to serving the broader Indian market,
addressing its fellow countrymen's diverse needs and aspirations. India's position as the
seventh-largest consumer economy is a testament to the nation's immense appetite for
growth and development. India's current per capita income of USD 2,601 expected to reach
USD 5,160 by 2030, demonstrates a promising path towards greater prosperity and increased
purchasing power among the country's population. Furthermore, the Government's firm
commitment to bolster infrastructure development will catalyze the nation's economic
growth in the coming years. This increased infrastructural push will unlock new avenues
for progress and provide a solid foundation for sustained development across various
sectors.
The year 2022-23 was an exception for the ceramic tiles industry due to
economic uncertainties, It was led by rising inputs costs, which had a widespread impact
on the industry, leading to margins being impacted across. The industry encountered this
challenge when it was experiencing relief from the pent-up demand built up during the
Covid-19 pandemic. Additionally, exports were deeply
impacted due to the rise in freight costs and the economic challenges
faced by the developed nations, resulting in low prices in the domestic market for Morbi
players. With high-cost pressures and relatively unchanged prices, Somany Ceramics'
margins were impacted for the year despite an increase of 10.4% in its sales volume for
the year 202223 as compared to the previous year.
Despite the unprecedented challenges, Somany Ceramics stood its ground
amid economic uncertainties and operational obstacles arising from geopolitical tensions
in Europe. These hurdles coincided with the ongoing recovery from the Covid-19 pandemic,
adding further complexity to the business landscape. While developed nations grappled with
rising inflation and subsequent interest rate hikes, we, in India, managed to navigate
through similar challenges with relative strength.
In the face of the challenges encountered, Somany Ceramics has
demonstrated remarkable resilience and remained strong on its path of expansion. The
Company's remarkable pace, growth potential, and effective policies shielded it from being
deeply impacted. Its determination and ambition allowed it to effectively cater to an even
larger customer base across the country. Somany Ceramics is proud to announce that it has
successfully commissioned the largest-
In our relentless pursuit of growth, we are actively progressing
towards the commissioning of an additional expansion of 4 million square meters of value
added large format tiles/slabs. ever expansion in the organisation, amounting to an
impressive 11 million square meters. This accomplishment serves as a testament to its
unyielding determination to maximize returns for its valued stakeholders.
In our relentless pursuit of growth, we are actively progressing
towards the commissioning of an additional expansion of 4 million square meters of value
added large format tiles/slabs. This forward-thinking endeavor will significantly bolster
its ambition and enhance its standing in the industry.
With increased capital allocation over the years, the Company remains
firm in its pursuit to create maximum value for shareholders.
Somany Ceramics' strategies revolve around three key aspects: capacity
building, geographical expansion, and technological upgradation. The Company is focused on
enhancing its production capabilities, strengthening its supply chain, and meeting the
evolving demands of its customers.
By establishing a strong presence in Tier-2 & Tier-3 and below
cities across India, it aims to tap into new markets and serve a wider customer base.
Additionally, the Company's commitment to technological upgradation ensures that it stays
ahead of the competition, delivers innovative solutions, and meets the expectations of the
modern Indian consumer.
Aligned with Somany Ceramics' vision for the next phase of growth, it
is excited to welcome the new generation of our family into the business. This infusion of
fresh perspectives and energy brings a renewed sense of passion and drive to propel the
Company forward.
The inclusion of the new generation also signifies Somany Ceramics'
commitment to continuity and longterm sustainability.
By combining the wisdom and experience of the previous generation with
the new generation's innovative ideas and enthusiasm, the Company strives to create a
powerful synergy that drives its business to new heights.
The dedicated employees of Somany Ceramics are the cornerstone of the
Company's continued growth and achievements. The Company prioritizes their development and
well-being by conducting regular internal training programs and seminars to enrich their
skills and knowledge. These opportunities empower the team of Somany Ceramics to thrive in
their careers, fostering a culture of continuous learning and professional growth.
Creating a safe and nurturing work environment is a top priority for
Somany Ceramics. The Company takes pride in its low attrition rate, which is a testament
to the positive and supportive atmosphere it cultivates within the organization.
Additionally, it recognizes the importance of diversity and inclusion in its workforce. By
promoting a balanced and inclusive workplace, Somany Ceramics aims to harness the full
potential of its diverse workforce and create an environment where every individual can
thrive.
Closing Note
To conclude, Somany Ceramics is excited about the potential for growth
and development that lies ahead for its organization and for India as a whole. The Company
continues to be ambitious in its pursuit of growth. It is proud to express the resilience
and commitment of its employees and partners, who have been integral to its successful
journey. On behalf of Somany Ceramics Limited, I would like to thank you all for your
continued support.
| With my best wishes, |
| Shreekant Somany, |