Dear stakeholders,
I am pleased to present the 15th annual report of Tinna
Trade Limited. After two years of Covid-related disruption, FY23 continued to see the
after effects of the pandemic. Added to this, the war between Russia & Ukraine
resulted in extreme volatility in commodity markets. We continued to see supply disruption
and erratic movement in the freight market. Black sea area has been the prominent source
of supply for food grains to the World, Russia has the largest production of crude
petroleum after Saudi Arabia. Also, Russia is the largest producer of natural gas having
full control on the supply of natural gas to Europe through pipe line. All these factors
made the commodities too volatile & brought the global inflation to the highest level
of many decades.
To combat inflation, all the central banks have been increasing the
rate of interest since last year. The policy rates of US- FED have reached to 5.25% from
0.25% about a year ago. As a general Phenomenon, higher interest rate may help cool down
inflation but at the same time, fear of recession has brought many economies on their
knees.
It all began with the pandemic induced contraction in the global
output, followed by the Russia-Ukraine conflict leading to a worldwide surge in inflation.
The IMF's October 2022 update of the world economic outlook decreased the global growth
prediction for 2022 and 2023 as a result of the high and sustained inflation. The weakness
in the Chinese economy further contributed to the weakening of global growth forecast.
The Indian economy appears to have moved on after its encounter with
the pandemic showing a full recovery ahead of many nations. Yet in current year India has
also faced the challenge of higher inflation. The steps taken by the government & RBI
along with the drifting prices, Anally managed to bring retail inflation below the upper
tolerance target of RBI. Despite this, India continued as the fastest growing major
economy at 6.5-7.0 % in FY23.
The company correctly anticipated the uncertainty and high volatility
in commodity markets and made deflnitive moves to diversify its business portfolio with
following focus-
1. To enter new businesses which are aligned with "Make in
India" theme.
2. To enter businesses/ commodities that are specialized and not
subject to high volatility.
3. To enter businesses which have high growth potential for next 1-2
decades With above criteria in mind, we entered in the steel abrasive business
approximately 3 years ago. I am pleased to see that this is a profltable vertical for the
company now with business of almost 36 crores. This is growing at a fast clip and we
expect to be among the top 3 players in the Country by FY25.
Even though the overall revenue of the company decreased by 10% and
remained at approx. 300 crore during FY 23, sales of non-commoditized business have much
increased by approx. 37%. This is the result of dedication and hard work of employees who
have worked with full sincerity and dedication. We are proud to share that your company is
supplying Steel abrasives to all the leading manufactures in automobile industries such as
Tata motors, Ashok Leyland, Mahindra, Munjal Kiriu, Ramakrishna forging, Bharat forge
& Sanmar etc. For FY24 Company aims to see the growth of 20% in the Steel abrasives
segment and reach to 6000 MT with the turnover of INR 55 crores. Aside from the automobile
sector, we expect breakthrough for our steel abrasive business in the Defence sector too.
We expect very good demand from this sector, banking on our Governments push for
"Make in India" and more self-reliance in Defence industry.
We foresee an opportunity and boom in the development of residential/
commercial properties in Delhi and NCR. Property market which was largely stable during
about one decade has started gearing up a sink with the government policy of
infrastructure development. The company intend to enter into collaboration with the land
owners for development and marketing residential and commercial units on B2C basis. This
infra boom in the country will have the solid opportunity for organised and professional
organizations like us. Our long term standing and reputation in the market will add
farther values in our marketing strategies of constructed units.
The association & representation with G3 Canada has continuously
been bringing a stable revenue stream to the company. Since the commodity business is
dynamic in nature, any Geo political abrasion may change the supply & demand situation
of many commodities. This association will become very essential for any opportunity of
trade that may arise between India & Canada in near future.
On behalf of board of directors I am thankful to all the stakeholders
& investors for their continued trust in us, I also thank to team TINNA for efforts
& continuous innovation. I thank our business associates & trade partners for
trust & cooperation.