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A Message From The Chairperson
Greetings of the Season!
I take pleasure in presenting you with a brief review of the performance of Venky's (India) Limited in 2012–13 and a general scenario of the poultry sector in India.
During the financial year ended 3 Ist March, 2013, though Venky's continued to grow in terms of sales turnover, the overall profitability of the Company was lower – mainly due to the unprecedented increase in cost of feed prices coupled with lower realizations from the sale of day old chicks and grown up birds. The increase in the cost of feed ingredients was the highest ever in the history of the poultry industry. While the cost of feed ingredients went up by 40% to 45%, the increase in prices of eggs and chicken was only by 20% to 25%. The Animal Health Products and Oilseed Segments have performed satisfactorily.
I am happy to inform that during the year 2012–13 Venky's has completed the expansion–cum–modernisation programme which has resulted in increase in the capacities of Poultry and Poultry Products and Animal Health Products Segments, modernisation in Oilseed Segment and setting up of'Venky's Xprs' outlets. Benefits of the expanded capacities have been reflected in the performance through increase in sales turnover.
In order to cater to the increasing demand for the Company's products, the Company has initiated another expansion programme in March, 2013 at an estimated cost of Rs. 125 crores, to further augment capacities in poultry and poultry products segment, setting up a new plant for processing of oil seeds and expanding the network of Venky's XPRS outlets. This will be funded by internal accruals and long term loans. Benefits of the expanded capacities will start accruing to the Company from the next year.
Although there was a dip in profitability during the last financial year, I am quite confident that the Indian poultry industry in general, and your Company in particular, will bounce back soon and register a robust growth in the years ahead.
Thanks to the vision, meticulous planning and untiring efforts of our Founder Chairman, Late Padmashri Dr. B.V Rao, we have built over the years, a world–class R&D base and infrastructure for production and technical support to the farmers, leading to a loyal customer base and strong customer–confidence in the quality of our products and services. These are our inherent strengths which give us a competitive edge in a rapidly growing market which has the potential for manifold growth for several years into the future. I am also equally optimistic about the growth of the Indian economy and the resultant higher purchasing power of middle–income groups and increased demand for protein–rich food products.
I wish you and your families all the best.
Anuradha J. Desai