It brings me great pleasure to provide another update to all of you after a long time. Things are moving for compostable products in the right direction. With all your support, dedication, and hard work, we are looking at closing this financial year at a near 2X revenue from last year. This probably is the highest jump in revenue in the last few years for compostables. There has been a significant improvement in our bottom line too. I would like to take this opportunity to congratulate the team members for this feat and thank them for their rigorous efforts throughout.
2022-23 was a transformative year for Pakka. It was a year in which we strengthened the business further. As this financial year comes to an end, the entire leadership team met in Goa to discuss the strategic vision for the upcoming year. Together, we defined goals for the next year and established the Annual Operating Plan (AOP). Through the tasks on LP, we will all be working to achieve the targets that have been set for all of us.
For Chuk, March was extra special because our team participated in AAHAR – The International Food & Hospitality Fair. I was there myself, and I’m ecstatic with the response that we’ve got from customers all around about Chuk products. I would like to congratulate the entire team for putting up a spectacular show. I met some key customers and various distribution partners, and the sentiment is positive.
2023-24 is set to be another exciting year for us. The energy and optimism are very visible among our team members. With all that optimism we are shooting for a much higher target in the next year. The goal is to cross Rs 120 Cr in revenue with sizeable profits. This is well over 2X growth we are eyeing. The growth will primarily stem from the expansion of our capacities, in the Ayodhya plant as well as partner plants around the country. If everything works out we are looking at starting at least one more plant with a partner for outsourced manufacturing. This will be in addition to the four plants around the country where we are trying to get into a contract manufacturing agreement to bring the immediate capacity to over 400 tonnes per month. The road ahead is clear and we are committed to achieving equitable growth that makes a positive difference to our people and our planet.
The organization as a whole is going through a lot of positive changes. All the India units are brought into one business unit. Tableware manufacturing is merged with the sales and marketing arm to be an end-to-end Compostables division. We firmly believe that this restructuring brings a greater amount of operational efficiency and cost optimization. Compostables will hopefully increase its contribution to the overall India business unit in a sizable manner this financial year.
In terms of some of the key initiatives in the forthcoming year, you will see a good amount of digitization happening across the entire business, including the customer processes on the Compostables side. A lot of emphasis is being put on enhancing our distribution partnership and their experience.
And this year is going to be great for people’s development. As a part of the larger agenda for the fiscal, we have taken leadership development as a key area. Effective implementation of YSP in compostables will be given a lot of focus.
Apart from all these, the brand supremacy we have been enjoying in the market is going to go further. We are launching a new program called Sustainability Partnerships. With this, we are looking to enhance our customers’ switch completely to sustainable packaging options, facilitated by us. A couple of pilots are targeted for this fiscal. More details on this later.
Needless to say, all of us are excited for the year ahead. A lot of new initiatives; a surmountable challenge; an expansion that is at breakneck speed! I believe we have just the right formula for an adrenaline-rush-filled year!! We will continue to draw on our collaborative spirit to transform and ensure the resilience of our Company through new challenges in the coming years. Once again thank you for all your support and dedication everyone.
