CERA SANITARYWARE LIMITED
ANNUAL REPORT 2010-2011
CHAIRMAN`S REPORT
Dear Shareholders,
It is my pleasure to present annual report of your Company for the year
2010-11. The year 2010-11 was one in which both the world and Indian
economy remained vibrant. The Company had shown a top line growth of 27%
achieving a turnover of Rs. 243 crores against Rs. 191 crores in the
previous year. Operating profit has shown growth of 32% achieving Rs. 51
crores against Rs. 39 crores in previous year and the bottom line has
increased by 35% achieving a net profit of Rs.27 crores against Rs.20
crores in previous year. The EPS has also touched Rs.21.02 per share
against Rs. 15.75 per share in previous year (The EPS was Rs. 31.50 per
share without considering bonus shares issued in the ratio of 1:1 in
September 2010).
I have pleasure to inform that CERA`s Snow White has been voted as "Product
of the Year" in the sanitaryware category for 2011 through the Indian arm
of a 25-year old "POY" international organisation having presence in 28
countries headquartered at France, in a consumer survey conducted by
Nielsen, the market research firm.
The company over the years emerged as premium bathroom solutions provider.
Snow White is a specially developed product of CERA manufactured with
unique raw materials. The survey`s finding is a validation by consumers
that Snow White enjoys a distinct edge over other.
The company is making continuous efforts in the field of R & D to stay
ahead of competition utilizing innovative technology to get superior
quality products and cost effectiveness into production.
Continuing the expansion programme undertaken by the Company, your Company
has created an ultramodern unit by setting up a Greenfield project of
Faucetsware at Kadi. This plant is equipped to manufacture a wide range of
faucets like single lever, quarter turn and half-tum. The commercial
production of Faucets has already been started in the year under this
report and we are getting very good response from the market about the
quality of Faucets.
On successful capacity utilization of 2500 pieces/day of Faucetsware, the
Company will expand the capacity to 5000 pieces/day which an further be
extended to 7500 pcs/day Incoming years.
In this year the Company has also undertaken expansion of the Sanitaryware
production capacity to 2.7 million pieces per annum from the existing of
2.00 million pieces annually with an additional capital outlay of Rs. 60
crores funded through internal accruals/debts, which will be completed
within 24 to 30 months.
Your Company has set the sales target of Rs.500 crores to be achieved in
the next three years. Looking to the current year performances, we are
confident to achieve the targets. Your company is introducing more and more
designs and sprucing up its retail strength by opening more Cera Style
Centres, Bath Studios, apart from continuing its brand building through
media and other available sources.
The road ahead for financial year 2011-12 is full of obstacles due to
surging inflation in raw materials, inputs and fuel prices which Is putting
pressure on margins. Market condition world over are plagued with
uncertainties due to the debt crisis in the European countries and
consequent global repercussions on demand etc. These factors will bring
pressure on all aspects of business but by foresight and strategic
decisions, I am hopeful that this year also we will achieve the results
comparable to earlier years. We have designated present financial year as
"COST AWARENESS YEAR all concerned have to take stringent controls of
costs.
Success of any business Is only possible due to active participation by its
employees and others who put their efforts to increase their excellence and
it benefits the Company. Employees are greatest assets of your Company and
due to their hard efforts and being dedicated and committed to goals, the
Company is at this mark. I sincerely thank all the stakeholders including
shareholders, business partners, customers and my employees for their
continuous support and faith reposed in your company. United we can always
make wonders. Let us hope for the best
VIKRAM SOMANY
CHAIRMAN AND MANAGING DIRECTOR |