SANWARIA AGRO OILS LIMITED
ANNUAL REPORT 2011-2012
CHAIRMAN`S REPORT
Dear Shareholders,
I, take great pleasure in welcoming you all to the 21st Annual General
Meeting of our Company.
Sanwaria performed creditably in this challenging environment. The Company
retained its market leadership across various brands and continued to
launch innovative products supported by effective marketing campaigns. Even
as the industry environment became progressively difficult, Sanwaria
strengthened its position as one of the India`s leading household brand in
the markets of its presence.
The Company performed better in 2011-2012, Net Revenue Stood at Rs. 1433
crore and Net Profit Rs. 17.04 crore, following cost control.
Sanwaria possesses a robust foundation with around 40% of its total revenue
derived from trading of CPO, Soya Degummed Oil, Crude Sunflower Oil, Wheat,
Paddy, Gram, Soya DOC, Pulses etc through import and 60% from
manufacturing. The Company has achieved branded sales from 2% to 10% in
2012.
Over the past year the Company has continued to build cost effective
strategy to deliver affordable products to the consumers. Your Company has
evolved to a size and scale that it`s poised to address global
opportunities.
Edible oil industry in India is expanding at a pace faster than its peers
around the world because of increasing per-capita consumption that still
stands at much lower levels compared with world average. Nearly 60 percent
of the domestic demand is being met through imports. Due to rising imports,
the industry is getting increasingly correlated with the global scenario
where a lot of volatility has been seen in recent years because of
financial crisis and expanding demand for bio fuels. In the near term,
rising international prices coupled with strong demand scenario will help
keep margins of industry strong. However, if there is a substantial surge
in feed stock prices, it can impact the prices of standalone solvent
extractors.
The foremost demand of the industry is that the government should restore
the duty walls so as to support the local producer.
India`s GDP is estimated to grow at 6.9 per cent in real terms in 2011-12.
The growth is estimated to be 2.5 per cent in agriculture, 3.9 per cent in
industry and 9.4 per cent in services. There is a significant slowdown in
comparison to the preceding two years, primarily due to deceleration in
industrial growth, more specifically in private investment. Rising cost of
credit and weak domestic business sentiment, added to this decline. India`s
GDP growth for 2012-13 is expected to be 7.6 per cent +/- 0.25 per cent.
In widening our revenue spread and climbing the value-chain, we expect to
enhance value for our stakeholders more visibly over the foreseeable
future. Going ahead, the Company intends to embark on the Commission of
Basmati rice production in a couple of months.
We are augmenting our manufacturing, research and marketing base to pursue
strong and sustained growth.
Sanwaria`s attractive positioning for over two decades, Growing its
business around edible oil manufacturing and is committed to emerge as a
FMCG Company to make people healthy naturally. Sanwaria is to deliver
innovative and effective products, sustain new product launches across
emerging categories in global and Indian geographies to satisfy consumer
needs.
Let me take this opportunity to acknowledge with pride the high spirit and
sense of dedication of our employees, the support of farmers and the
enduring faith of our bankers and shareholders in our corporate strategy.
On the strength of our collective efforts and the external scenario Company
is reviving gradually but firmly.
Warm Regards
Ram Narayan Agrawal
Chairman |