ANG INDUSTRIES LIMITED
(FORMERLY KNOWN AS ANG AUTO LIMITED)
ANNUAL REPORT 2009-2010
It gives me quiet satisfaction to report an improved 2009-10 for our
Company following the impact of the economic and sectorial slowdowns. This
indicates that the worst is over and the Company is poised to report a
Our revenues grew 21.13%, EBIDTA improved 34.85% and profit after tax
increased 516%, vindicating our commitment to enhance value for all those
who own shares in our Company.
A development of positive importance transpired during the course of the
year that could have a sustainable impact on our fortunes: in October 2009
and January 2010, we commissioned the boiler support structure and
container businesses, which reported an attractive order book of Rs. 3,337
lac (as on 30th June 2010) within a few months of the launch. The result is
that we are now a company with businesses covering auto-components,
boilers, structurals and containers.
There was an important reason for the addition of the new business. Our
trailer unit (designed for heavy steel fabrication) remained largely
unutilised during the meltdown, prompting us to seek alternative
applications. The result was that we entered a rapidly growing sector
(power) and selected to focus on the boiler support structures segment
requiring heavy fabrication. To reinforce our positioning, we invested in a
new facility (capable of delivering a peak Rs. 10,000 lac in topline) and
received approvals from BHEL and L&T-MHI Boilers (Pvt) Ltd within six
months of commissioning. This business generated sizeable revenue during
the year under review with an unexecuted order book of Rs. 5,000 lac as on
March 31, 2010 that is only expected to grow during the current financial
Our presence in the container business also represented a value-addition
over our existing line of trailers. Our products found acceptance among
demanding private sector customers, a testimony of our product quality.
With an annual fabrication capacity of 600-800 containers, we expect this
business to generate about 10-15% of our annual turnover, going ahead.
Our existing businesses (auto-components and trailers) grew reasonably
following growing domestic prospects, while exports also revived.
I am excited about our prospects for the following reasons:
Our products cater to thermal power plants, which comprise more than 70% of
India's power generating capacity. Private players (Adani Power, JSW Energy
and Reliance Energy) are creating sizeable thermal power generating
capacities, which is expected to accelerate our momentum. Besides, the
imposition of customs duty following the import of power generating
equipment augurs well for the growth of domestic players like us.
Growing exports and dispersed manufacturing facilities are necessitating
the movement of large volumes, which is enhancing port handling capacity
from 599 million TPA (March 31, 2010) to 860 million TPA by the end of the
Eleventh Plan. About 25 projects are expected to be initiated in 2010-11
and large private sector conglomerates are creating captive logistics
facilities across India. This, in turn, is creating a sizeable demand for
We expect this venture to offer mobile, superior passive infrastructure
(towers) to telecom operators in terms of multiple carrier capability and
rapid deployment capability of towers versus standard towers (ground and
roof) being erected in India and likely to generate sizeable revenues from
2010-11. These towers are ideal for occasions that attract large crowds,
require quick service rollout (temporary measure until a permanent tower is
commissioned) and serve as a backup option in case of tower collapse. We
expect a decent contribution from this vertical during the current year.
Message to shareholders
The current year holds significant promise and we expect to strengthen
revenues with a corresponding increase in profitability, translating into
enhanced shareholder value.