Key Highlights

There has been a continuous shift from traditional businesses to the new businesses like Aquaculture, Agriculture and sports. Fishing now constitutes only around 20% of total turnover with steady margins.

The several new products launched in Aquaculture industry received well in the market particularly in exports. The segment will continue to do well for next 2-3 years. Product development and innovation is the key in this business. The company is able to increase penetration in newer geographies which is increasing sales and margins.

On geosynthetis and defense side, things are going slow. Infrastructure activities are yet to pick up. However, given the low base, this segment should also see some growth in FY'17.

Exports which account for around 50% of total sales is expected to grow in double digit in FY'17. Company exports to more than 75 countries with North America, EU and US as prime focus. There is no impact of the Brexit on the financials of the company, as there was not much direct export to UK.

The company has sufficient capacities and latest technology to meet the growing demand in the sector. Not much capacity addition is required. More funds are required to be spend on R&D and on increasing the reach and distribution, than on capacity addition, as its more of value game than a volume.

In FY'17, management, expects the momentum to continue. However it will be more of a margin lead growth, as sales growth is difficult to predict due to lower raw material prices. The value per unit is rising which will lead to higher margins.

Overall, management expects the momentum in the business to continue and higher margins will lead to higher bottom line in FY'17.