MANAGEMENT DISCUSSION & ANALYSIS REPORT Saboo Sodium Chloro Limited is the largest salt refinery in North India producing Surya Iodized Salt, Tota Iodized Salt, Saboo Iodized Salt and all types of Industrial Salt. The Company is the most prominent and the largest manufacturer of salt in North India. Looking at the rapid economy growth of the Country and rising living standard there is good growth in the consumption of refined iodized salt and we feel that every year the refined iodized salt market is growing by 15%. People who are using unbranded non refined common salt are now switching rapidly to triple refined free flow iodized salt due to more awareness of health issues and television advertising. INDUSTRY STRUCTURE AND DEVELOPMENTS The Company proposed to capture the growth potential in FMCG products by entering in retailing of the same. OUTLOOK Company continues to enjoy strong support from its promoters. As the Company has entered into the manufacturing of spices and Industrial Salt arena, the business is poised to grow well in to the future. The Company is also planning to enter in the retail market by retailing the FMGC products. OPPORTUNITIES, THREATS, RISK AND CONCERNS In the current age of liberation and globalization your board consider it appropriate to explore new business areas / opportunities to broad base investment and industry brsence, to attain its main purpose of delivering long term value to the shareholders of new improved means as etc. hence your Company has diversified its line of business to manufacturing industries by commencement of new business of manufacturing the spices and industrial salt. Also looking towards the high growth in the retailing sectors in the coming years ahead the company is also planning to enter in the retail market of FMCG products. As Company planning to enter into the food item business at a large scale the business is poised to grow well in the future. Company is already setup the following projects in this financial year 2014-15:- -Solar Power Plant at Rajgarh, Kolayat, Bikaner & Nawa City, Rajasthan - Setting Up Guar Gum Plant at Gandhidham Gujarat However, due to increase in the rate of interest and lack of Government support in the food business areas, and due to the uncertainties in the Government Policies, the market of the food business is not as promising as brviously thought of. CHALLENGES Now the Company is working on building its own brand image. The Company is also setting up its own network for marketing and selling its spices and industrial salt. The brand building image will require recruitment of high quality manpower and setting up of distribution network on large scale. The management is also contemplating of taking steps for cost reduction in order to improve the financial position. INTERNAL CONTROL SYSTEM The company remains committed to ensure an effective internal control that provides assurance on the efficiency of operations and security of assets. Your company's well established and robust internal audit processes, both at business and corporate levels, continuously monitor the effectiveness of the internal control environment across the company and the status of compliance with operating systems, internal policies and regulatory requirements. The company has also undertaken steps to implement new control measures in line with best global practices. HUMAN RESOURCE DEVELOPMENT Of all the resources available to the Company, Human Resource is the only asset that apbrciates with time. In its continued efforts to nurture the best human talent, during the year the management continued with its strategy of imparting professional training to the executives and staff at various levels with a view to upgrade their competency and remove all levels of inefficiency in order to make the Company more competitive. This is not a luxury, but a necessity, if the Company has to survive in a globally competitive market, providing better product at better cost requires additional efforts to develop skills and efficiency in the new appointees to face the challenge. |