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I have great pleasure in welcoming you all to the 53rd Annual General
Meeting of your company.
GENERAL ECONOMIC SCENARIO
During the financial year 2008-09, the
industry in general was widely affected by global recession. The Indian
economy grew at a rate less than 7% as compared to the original estimate
of 9%. While the gloom in the international economy continues, the Indian
economic conditions seem to be improving as reflected by 6.5% growth in
the core sector during June 2009. However, there are causes for concerns
as the monsoon has been erratic and major parts of the country are
experiencing deficit rainfall. This is expected to give rise to shortage
in agricultural production though the demand side may see a flourish. This
will keep the pressure on the cost of living index though the wholesale
price index may be rising at a moderate rate. Taking into account all the
above factors into account, the overall expected growth for the economy
during the year 2009-10 is expected around 6.5%.
FINANCIAL YEAR 2008-09
The Annual Report for the year has already been circulated. I will
just touch upon the salient points of the Company’s performance in the
financial year 2008-09.
a. Your company quickly adapted to the general economic slowdown and
devised strategies to increase the market share. These strategies have
helped the company in achieving a growth of 22.47% in terms of sales.
b. The company registered growths in both value and volume in all its
product categories.
c. The traditional product categories namely pressure cookers and cookware
registered a growth of 18%.
d. The non-traditional product lines namely Domestic Kitchen Electrical
Appliances grew by 54%.
e. The operating profit before extra-ordinary item increased by 41.37%
i.e. from Rs.21 Crores to Rs.29 Crores.
f. Earnings per share rose by 27% i.e from Rs.15.6 to Rs.19.7.
g. Continued improvement in working capital management brought in
substantial free cash flows thus enabling the company to reduce its
borrowings by Rs.26 Crores.
h. Prestige Smart Kitchen network was consolidated and improved as per
plans. The number of outlets as on 31.3.2009 was 196 covering 19 cities
and 120 towns.
i. The total number of Prestige Kitchen Boutiques as on 31.3.2009 was 9 as
compared to 2 in the previous year.
j. Your company continued its policy of introducing new models and new
products in all its product lines.
BRAND SALIENCE
You Company continues to enjoy the recognition of “Super brand’ in the
Kitchen Appliances segment. In its traditional category of pressure
cookers, your company continues to be the preferred brand namely “Mera
brand”.
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Group Company
