Annual Report – 2016-17 Review….
Source Natural aligning itself ready for big time growth..
– MoA & AoA change, to be inline with current business.
– Declaration of related party transaction with DIVINE SERVICES AND SUMERU TRAVEL SOLUTIONS LLP, one provides products & other services to the company.
At present these 3 business activities contributing 10% or more of the total turnover of the Company…
1 Ojasvita – 44.29
2 Shakti drops – 30.69
3 Capsules – 15.01
Increase in promoter holding during 2015-16…which is a good sign.
Sumeru Ayurveda Private Limited who is the Promoter of this company, holding was 72.95% (44.50 Lacs) in 2015 which is increased to 74.37% (47,86,891) in 2016, increase of 1.42% in last 1 year!
During the financial year 2015-16, the company has issued 3,36,891 Equity Shares of face value of Rs. 10/- each at Rs. 12.74 per share (including premium of Rs. 2.74 per share thereof) to the existing Promoter Company “Sumeru Ayurveda Private Limited” upon conversion of the Share Warrants issued under Preferential Allotment.
Company has small paid up share capital of just Rs.6,43,69,310/-
MANAGEMENT DISCUSSION & ANALYSIS REPORT
The performance of the Company has been continuously increasing in the recent years. Moving forward the Company expects and has plans to increase sales of its products helped by improvements in GDP growth, increase in disposable income.
In the financial year under review, your Company continued to promote its products. The Advertisements in TV Channels were increased in view of its potential to expand the Market both at present and in the long run.
The Company is establishing a strong marketing and sales team internally and appointing distributors and dealers across the country to develop a strong market base. The company has plans to further strengthen its sales force as well as its distribution network.
Ayurveda as of now is developed due to individual efforts of eminent personalities in the field, as also due to success stories spread by words of mouth. There is a need in most of the overseas countries, for a system to recognise it as a system of medicine/health care and allowing its qualified doctors to practice the profession.
The method adopted by Ayurveda like herbal therapy, yoga etc are catching imaginations of all very fast and is expected to be the next big thing in medical and wellness industry. The business prospects of Ayurveda are estimated to reach $5 trillion by 2050. A large portion of this market would be centred in India as Ayurveda originated from here.
With Changes in technology, rise in organised retailing, emerging E Commerce and changes in the overall environment the outlook for the Company appear very promising.
The number of permanent employees of the Company as on 31st March, 2016 was 48
Mr. Arvind Varchaswi, Managing Director is the son Mr. Narayanan Narasimhan, Non-Executive Chairman and Director.
– Ionic Healthcare Private Limited (Directors are Ramesh Chandra Agarwal, Manmohan Agarwal and Durga Bhavani Agarwal), they hold 3.26% stake in the company.
They are manufacturing and supplying an extensive range of Pharmaceutical Medicines like Tablets, Capsules, Syrups, Suspensions etc. Probably some of the manufacturing work is done by this company for Source Natural.
– Manmohan Agarwal who is a director of Ionic Healthcare Private Limited in his individual capacity holds 3.10 stake in the company.
MUKESH SURYAKANT PAREKH who is a director of Atman Health Care (https://www.atmantan.com) which runs ATMANTAN WELLNESS RESORT in Pune holds 1.37% stake in the company.
Above 3 major public shareholders are some way related to the company and it’s operation hence they hold shares from early stage.
Individual share capital upto Rs. 2 Lacs is around 11.16% or 7,18,045 share held by 3161 shareholder, it means only 7 Lacs odd shares are there in the open market to buy!
History of this company…
2000 – The Company had decided to hive-off the bulk drug unit of the company and diversify into software related activities by changing the main clause.
2005 – Company has changed its name from Invinex Laboratories Ltd. to Inwinex Pharmaceuticals Ltd.
2008 -Inwinex Pharmaceuticals Ltd has appointed Mr. Arvind Varchaswi N as Additional Director w.e.f. June 30, 2008.
2012 – Company has changed its name from Inwinex Pharmaceuticals Ltd. to Source Natural Foods & Herbal Supplements Ltd.
From 2012 the story starts…By March 2012, Sumeru Ayurveda Pvt Ltd was holding 63% stake in the company…..actually the directors of Ionic Healthcare Private Limited was running the Inwinex Pharmaceuticals Ltd company and later on sold it to Mr. Arvind Varchaswi, they continue to remain minority shareholder in the company. Even MUKESH SURYAKANT PAREKH was holding stake in this company before 2012.
In Jan 2017, Sumeru Ayurveda Private Limited has Changed its Name to Sriveda Sattva Private Limited. Directors of Sriveda Sattva Private Limited are Narayanan Narasimhan, Narasimhan Arvind Varchaswi, Zaveer Vaghani Patel and Mayank Patel.
At the Retail and eRetail Congress 2017, Arvind Varchaswi N, Managing Director, SriSri Tattva shared that over the years SriSri Tattva has grown from a brand signifying only Ayurveda to a brand offering FMCG, personal care and home care products. So, the brand has revamped itself from SriSri Ayurveda to SriSri Tatva. According to him SriSri Tatva signifies the elements and essence of purity, quality and authenticity. The brand is more of a niche mass market segment, catering to both, mass market and niche market. According to the observation, the brand expanded in the FMCG sector, namely in food, commodities, masalas, personal care that includes soaps, shower gels and understands the need of natural homecare products. The brand explores the omni-channel route, having distribution in traditional trade, modern trade and eCommerce. Arvind shared that because of digital payments, eCommerce and traditional trade are going to work together for the business to grow. Following this, Arvind spoke about business expansion in Indian and worldwide, store count and business model.