DCM SHRIRAM CONSOLIDATED LIMITED
ANNUAL REPORT 2011-2012
We are glad to report a better operating performance in the year gone by.
This performance was driven by high turnover growth in some businesses and
margin improvement in others. The Company also made substantial cost
savings in energy intensive businesses and significant operational
improvements in Sugar business.
The Chloro-Vinyl business reported significant improvement in earnings and
margins driven by several cost initiatives, higher volumes and increase in
realizations of the Chloro-Vinyl products. This business has been facing
severe increase in input costs for the last 12-18 months. The company has
taken several steps to mitigate to the extent possible, the effect of this
input cost increase.
Our Agri businesses including Bioseed and Farm Solutions delivered good
growth in turnover and earnings during the year and continue to hold strong
promise and we expect them to deliver stable earnings growth in the coming
In the Sugar business, we witnessed a better operating performance as our
intensive Cane development programme allowed us to increase our Sugar
production by ~ 30%. Going forward, the performance of this business will
be determined by the Government policies. The Government has taken some
steps in this direction. However, a lot more needs to be done, so that the
industry can regain some financial health and viability.
The Hariyali business continues to incur losses. The Company has taken
several steps over the last few quarters to consolidate and restructure the
operations which included shutting down of over 100 unviable outlets, limit
business in Commodity trading and Seeds vertical etc. We are evaluating and
taking more steps so as to achieve substantial reduction in its losses at
Fenesta continues to witness healthy growth especially in the retail
segment. The company is focused on further enhancing the share of retail in
the overall business by introduction of new products, strengthening the
brand, enhancing the distribution network etc.
Going forward, the company is focused on strengthening and growing the
Bioseed, Farm Solutions and Fenesta businesses. We are focused on improving
our cost structures in our commodity businesses. We believe these efforts
will help us in achieving healthy growth in the coming years.
We believe our people are the key to achieve our corporate goals. The
company also believes that with the volatility in the global economy,
people need to constantly improve their competencies to meet these
challenges. We continue to pay a lot of emphasis on their developments.
We have always taken our role towards social responsibility seriously and
believe in making a significant difference to the society and the
communities in which we operate.
We would like to take this opportunity to thank all the members of the
board, business associates, employees, vendors, suppliers, government
agencies, lenders and shareholders who have always supported our progress
across varied business. With their cooperation, we are confident of
delivering superior value to all stakeholders.
With best wishes,
(VIKRAM S. SHRIRAM) (AJAY S. SHRIRAM)
Vice Chairman & Chairman &
Managing Director Sr. Managing Director