BLUE BIRD (INDIA) LIMITED
ANNUAL REPORT 2008-2009
It gives me great pleasure to invite you to the momentous 10th Annual
General Meeting of your Company. Though the inception of business of the
Company dates back to the year 1975 when it started with a proprietary
concern, this year we celebrate the 10th year of your Company.
The year 2008-09 has been a year of tremendous growth for the company in
all spheres of operations, be it in the enhancement of capacity, increase
of sales and distribution network or start up of new business segments.
Growth is success and corporate growth is driven by globalization, free
market economies and increased global competition. Through years of
expertise your Company understands how to grow a business and focus on
developing innovative strategies for business through customer research,
market penetration, growth workshops, market research, events, corporate
training, analyst briefings and growth partnership services. With these
objects in mind your Company has taken initiatives in all spheres to tap
the potential business in its segment.
During the year 2008-09 your Company expanded its network to new regions
and started 7 new sales regional offices. Your Company started a new unit
at Tumkur, Karnataka and shifted its existing unit on leased premises from
Pinnya Industrial Area, Bangalore. This expansion has added manufacturing
capacities, the result of which is visible from the financials of the
current financial year. Your Company was allotted 20 Acres of industrial
land at Pithampur Industrial Area, Dhar, M.P. (near Indore) for setting up
During the year your Company successfully started a new segment 'Trading'
of Copier Paper under its new brand 'Blue Bird's Print Magic Copier'. Your
Company also registered a 254% growth in its Exports as compared to
previous year. The Construction segment, though started by your Company,
could not gain momentum due to socio-economic scene during the year
coupled with the global slow down and reverse movement of real estate
prices, which adversely affected the housing development sector.
Overall gain in net worth during the year was Rs. 1,464.40 Lacs. The
overall financial results look comfortable but not encouraging, especially
in an environment where year-on-year profit growth at something like
twenty percent (or better) seems to have become the norm for the corporate
sector. During the year your Company has faced a resistance in the bottom
line. These are peculiar features of a growing Company. Your Company will
reap the benefits of the costs in near future. But this period of
difficulty may continue a while, longer than originally anticipated. While
the reasons are many, there is no hiding the fact that I miscalculated the
pace at which some of our initiatives might progress. At these times, it
is easy to get philosophical, and quote from books such as 'Fooled By
Randomness' or 'Why Most Things Fail', on what did us in. And while I do
believe in the messages contained in those very interesting books, I also
believe that a few of the errors made were avoidable. In my view, these
are systemic issues, which may take some time to address satisfactorily.
In spite of this it is pleasing that, given financial market turmoil, your
Company has a strong balance sheet and a diversified debt portfolio. So,
while the mid-course correction has begun, the results are not likely to
be immediately apparent. We are delighting customers, eliminating
unnecessary costs and improving our products and thereby gaining strength.
Cumulatively though, their consequences are enormous. When our long-term
competitive position improves as a result of these unnoticeable actions,
we describe the phenomenon as 'widening the moat1. Doing that is essential
if we are to have the kind of business we want in another decade or two
from now. Blue Bird continues to be at a stage where it needs to make
significant investments of time to build the foundation that can support
the growth that lies ahead.
The results of the first quarter of 2009-10 are already published. There
is a remarkable growth as a result of the efforts taken during preceding
two years. The sales recorded were to the tune of Rs. 210 Cr and net
profit of Rs. 7.11 Cr for the quarter as against sales of Rs. 119 Cr and
net profit of Rs. 5.00 Cr on quarter-to-quarter basis.
After summarizing my thoughts on the overall strategies and development
initiatives of the Company and its likely impact on the progress, I now
thank all the shareholders, stakeholders who have imparted commendable
support and patience to the Company over the decade gone by. I look
forward to their continued support in future.
Thank you once again.
Chairman and Managing Director
Date : August 22, 2009