Budget wishlist- Priyagold

 

REQUEST FOR EXEMPTION ON THE CENTRAL EXCISE DUTY & VAT ON CAKES, BISCUITS & COOKIES

 

The small and medium sector biscuit industry consisting of around 150 units (besides three large firms), are facing erosion in their profitability and competitive capability due to the heavy burden of Taxation ( VAT of 12.5% & Central Excise Duty of 8%) which is a major problem compounded by additional levies by certain state governments.

 

Secondly, the steep rise in the cost of production due to sharp increase in the prices of  major raw materials, i.e. wheat flour, Veg Oil / Pamloline, Milk, Sugar and also inputs hike Fuel (Furnace Oil), Packaging, Transportation, Wages, etc. has increased the plight of the manufacturers. The Govt. should appreciate that majority of the manufacturers are in the small scale sector generating employment and thus contributing to the development of the nation.

 

Despite the tough conditions – high input price and stiff taxes - the manufacturers have been restraining from resorting to increase in prices, as this would add fuel to the inflation and adversely affect consumers as majority of the consumers coming from the poorer sections of the society.

 

Therefore, I would earnestly request the Govt. to kindly give sympathetic consideration of our Pre Memorandum Budget 2009-10 and Grant Total exemption for all categories of Biscuits from Excise as well as reduction in VAT from 12.5% to 4% and look forward to favourable decision in the Union Budget 2009-10.

 

Brief about the Company

 

Surya Food and Agro Ltd. has been involved in the business of manufacturing and selling of biscuits for the past 15 years. During this period, it has established strong   manufacturing   capabilities and invested   substantially   in   developing   consumer preference for its products.  Its  trademarks/  brands  “Hak  Se  Maango”  &  “Priyagold”  have  emerged  as  one  of  the  most powerful  brands  in  FMCG  sector. It has continued to invest in the front end on brands, its manufacturing capabilities, deliverables and distribution strength.

 

Surya Food and Agro Ltd. has 4 plants located in Greater Noida, Lucknow (U.P.) and Surat (Gujarat). Its capacities have touched the 85,000 MT p.a. It has  developed  a  distribution  channel  through  consignee  sales  agents/ super  stockists  and distributors throughout the country. Though its concentration is largely in the Northern & Central part of the country, it has penetrated into the other regions considerably. The brands now have greater availability in rural markets in Northern India and also upmarket areas in major cities across India.

 

The Company diversified into manufacturing of fruit juices through its subsidiary Surya Fresh Foods Ltd. The manufacturing facility is located at Greater Noida, UP.  It has a capacity of 130 Kilo Litres/Day and has state of art manufacturing/processing facilities, which are ISO 9001:2000 certified. It has consciously invested in creating markets for fruit juices and has established brands such as “Fresh Gold” and “Treat”. Both the brands are also well established and have penetrated into the fruit juice market aggressively by commanding considerable market share.  Recently, it has also forayed into the aerated fruit drink segment with a launch of “Fresh Fizzy”, which is launched into two flavours, Apple and Orange.

 

The Company has won the tender for setting-up of food kiosks at various Indian Railway Stations. The tender was awarded by Indian Railway Catering and Tourism Corporation Ltd. (IRCTC).

 

The Company is aggressively marketing its products in institutional category directly.  Presently, its products are being supplied to airlines, hotels, railways and organized retail outlets. For more details about Surya Food & Agro Ltd., please log on www.priyagold.com and www.freshgold.net