Dear Shareholders of Apollo Sindoori Family,
I extend a warm welcome to all of you to 17th Annual General Meeting.
It is indeed to be reckoned as creditable achievement in the current scenario, of the operating results recorded during the year 2014-15.
It is no doubt a matter of great satisfaction of reflecting a steady growth over the years.
No doubt this would not have been possible, but for the dedicated efforts of all our employees and executives, customers and other stake holders.
Macro Economic Environment:
Turning to external situation, the global economy has been under continuous strains due to legacy of global financial crisis resulting in emerging economics becoming less dynamic as compared to the past.
Growth in the immediate previous year namely 2013-14 was marginally higher as compared to the previous years. During the fiscal year 2015, the expected growth is pegged at 3.5%.
Domestic Economic Development:
In the emerging global economic environment, domestic reforms would be the key in improving both manufacturing and service sector. Such approach is vital to remain competitive in the global market.
India must recognize emerging challenges from various regional agreements and negotiations which the new Government has launched.
In a globalised world, India has to become a part of global chain. To achieve this, it is necessary for the country to grow in double digit and primarily focus on manufacturing sector with thrust “Make in India” which would complement the growth of service sector.
GDP growth of 7.3% in 2014-15 is encouraging and broadly in line with expectations.
The Government has progressively planned to record good economic performance and their efforts in improving “Ease of doing Business” has helped in creating a positive sentiments over the past one year.
Indian Government is prioritizing technology as an enabler for the transformation and development of the country. Government's programme of “Digital India” is excellent platform. With these and e-biz project approaches, we do expect GDP growth to be around 7.8% in the current fiscal year.
Indian F&B Service Industry is one of the vibrant sectors that has seen unprecedented growth in the recent past and continues to expand rapidly. The investment scenario also looks bright for the sector. The establishment of “Brand – India” and the Government's e-visas initiatives have seen huge upsurge in demand on tourism and related activities.
Implementation of skill development programmes one Hundred “SMART CITIES” will widen the scope of hospitality industry.
The success of both “Make in India Campaign” and “Ease of doing business” will lend adequate opportunity to expand the horizon of hospitality sector. The State Governments are also beneficiaries of the additional revenue and domestic employment opportunities with the growth on hospitality sector. The Government should devote to improve the overall infrastructure and encourage more private investments.
Performance of the Company:
It gives me pride to share with you that your Company's turnover has increased from Rs.69 Crores to Rs.97 Crores, flaunting a healthy growth of around 40.58%.This growth in challenging circumstances is a testimony to the robustness of your Company's business strategy and innovative opportunities in service offerings that helped to capture untapped markets.
You will be pleased to note that profit Before Tax for 2014-15 is Rs.343.34 Lacs as compared to Rs.302.64 Lacs for the financial year 2013-14. Profit after Tax rose to Rs.231.23 Lacs as compared with Rs.204.45 Lacs for the last financial year, indicative of a PAT growth of 13.10%.
The Board of Directors have recommended a dividend of 30% on equity shares of the Company for the year 31st March 2015.
Your Company has invested in setting up a unit that centralized kitchen to rationalize the operating costs and the benefits of economies of scale. Your Company also planned to expand the number of Sketch outlets within Chennai city and other lucrative markets outside of Chennai. With the constant changes in lifestyle, F & B sector in general and catering operations in particular are bound to record an excellent growth.
Consequent to the sweeping lifestyle changes transpiring pan-India, we embarked on a number of long-term corporate initiatives to capitalise on growth priorities such as –brand image, margin expansion and investing in our people.
Brand Image -The intrinsic value of your company's offerings has been further strengthened by anchoring them upon clearly defined and carefully crafted, brand positions. Our flagship brand is, Sindoori and is supported by Sketch.
Margin expansion -During 2014-15, gross margins improved through better menu management, prudent pricing and product mix.
Investing in our people -Your Company provided quality employment and long term careers to more than 3500 youth as on March 31, 2015. For many of our employees, your Company is first employer, providing formal jobs opportunities that include benefits, medical coverage, training and flexibility. Our focus lies in nurturing and grooming fresh talent.
We never rest with the current achievements. We have been constantly putting our team to expand the horizon of markets. Parallelly we keep a close watch on cost aspects to remain competitive and to improve our profitability.
We also have distinguished amongst our competitors with our quality and performance.
With our Innovative approach to pricing mechanism and committed delivery, it has been possible to spread our wings gradually in different parts of our country and broad base the customers. Your Company is well positioned to growth and build up a “brand” for its quality and service.
I express my sincere thanks and gratitude to the Company's valued customers, shareholders and well wishers for their valuable benefaction towards the progress of the Company and seek their extended support and co-operation.
I acknowledge the valuable guidance, support and co-operation received from the Directors on the Board of the Company and also thankful to the Banks.
I wish to place on record, the deep appreciation of the valuable contribution of the staff, at all levels, without which the progress achieved, would have been unattainable.
With Warm Regards,