I got an email from the company which gave more information about this (see below).
Chairman’s Letter
I’m delighted to announce the 3rd quarter results, showcasing a growth of 4.3%. Our objective at KSE is to deliver value to investors. As previously mentioned in the annual report, M/s Grant Thornton(GT) was engaged to provide strategic recommendations by conducting a detailed market analysis and evaluation of the company’s internal strengths and weaknesses. The growth strategy proposed by GT comprises of segment level, functional level and corporate level recommendations which are poised to enhance our growth and presence in the market. These interventions are pivotal in emphasizing our progress and the steps taken to ensure sustained growth.
We are now going to examine the recommendations provided by GT for implementation. Following are the key highlights of the growth plan proposed by GT.
· Market expansion to new geographies, introduction of innovative products and diversification of product offering across Animal Feed, Ice Cream and Dairy segments.
· Strategic restructuring of the organisation structure to elevate decision-making processes with new positions comprising of a full-time professional CEO for Animal Feed & Oil Processing and a full-time professional CEO for FMCG products which include Dairy and Ice cream segments.
· Enhancement of cost accounting measures to clearly understand performance of all the four business units – Animal Feed, Oil Processing, Dairy and Ice cream
· In the Animal Feed segment, to achieve enhanced growth in the next financial year, phased market expansion and penetration in other states with emphasis on cost optimization through dynamic procurement and strategic pricing adjustments.
· In the Dairy & Ice cream segments, strategic pricing of portfolios, strategic positioning of the brand, team enhancement with specialized expertise and new products.
· Strengthening branding for “Vesta” as an FMCG brand of KSE to enhance its market presence and brand recall through strategic marketing initiatives.
· To enhance functional performance, initiatives are planned across five areas of People Excellence, Digital Transformation, Financial Excellence, robust Governance & Compliance, and Environmental Stewardship.
· As technology is poised to assume a central role, as part of digital transformation initiatives, the ERP systems would be strengthened and a tech-driven performance culture would be implemented.
· To instil a performance-driven culture, enhanced incentive pay structures would be implemented for marketing team across segments to drive the growth strategy goals.
Under the renewed vision, the suggested growth strategy is poised to fortify KSE’s position and pave the way for continued success in the evolving market landscape. These strategic initiatives signify our dedication to operational refinement, performance enhancement, and sustained growth. Looking ahead, we anticipate a steady growth in the upcoming fiscal year, further enhancing our top-line performance.
I thank you and solicit your continued support as we navigate these dynamic markets and pursue our growth aspirations. I will come back to you all again after examining the recommendations put forth by GT.
Disclosure: Invested (position size here, no transactions in last-30 days)