CASTROL INDIA LIMITED
ANNUAL REPORT 2009
CHAIRMAN`S REPORT
Dear Shareholders,
On the heels of an impressive year on year growth in each of the years 2006
to 2008, your Company delivered a Profit Before Tax of Rs. 581 crores, a
growth of 41%, in 2009. The result was indeed heart warming as it was in
the centenary year of brand Castrol in India.
Back in 2006, Team Castrol India had made a resolve to change the future of
your Company, by aspiring to and achieving ambitious goals. The team had
declared an intent to double profits to over Rs. 500 crores by 2011. This
was underpinned by a clearly articulated Winning Strategy. I am delighted
to inform you that the goal has been significantly exceeded, two years
ahead of schedule. In addition to the in year bottom-line achievement, key
performance indicators like return on sales, return on capital employed,
productivity and business health measures show strong improvement as well.
This suggests sustainability of growth. I believe the prime reason for our
strong performance is the faithful execution of our winning strategy-
targeted segment participation and distinctive brand and customer offers,
whilst continuously driving cost effectiveness and efficiency. All this has
been possible by the Right people and the Right organization.
The 2009 results feel extraordinary in face of a very difficult external
environment during the year and we made this possible by defending margins
and attacking inefficiencies but remaining committed to our core values,
especially personal and operational safety. Key features of the 2009
performance included significant enhancement in brand investment, customer
relationships and people. Your Company increased efforts in building
organization capability and enhancing engagement with staff. It is
heartening to note that we have been recognized externally for our
excellence in HR practices and value creation for all stakeholders.
Not many brands survive, let alone remain successful or grow for a century.
We have celebrated 100 years of brand Castrol in India with our best
performance to date. We have achieved this by envisioning a bright future,
setting bold goals for ourselves and working at achieving these diligently.
Your Company is blessed with a passionate team which revels in the success
of all stakeholders: Customers, Shareholders, Partners and our People. Your
Company`s 2009 Winning Performance was celebrated with a record dividend
and a bonus issue in the ratio of 1:1.
Our success over the past hundred years in India has given us the
confidence to plan audaciously for the future and we hope to go from
strength to strength. The team at Castrol India refers to your Company`s
rise to the next level as their `Udaan` - a flight to greater heights. On
behalf of the management team and the Board of Directors, I am happy to
share with you that we are already on the way. I am confident that the best
is yet to come because today we have built a stronger brand, stronger
partnerships and a stronger team.
All this has been possible because of your unflinching faith in our teams
of yesterday and today who have tirelessly given their best to Castrol.
Naveen Kshatriya
Vice Chairman |