It gives me immense pleasure to welcome you all to the 24th Annual General Meeting ofyour Company. At the outset I would like to congratulate all board members shareholdersand internal as well as external stake holder. I am extremely happy and satisfied with thecontribution of all of our people who have been directly or indirectly associated with usand contributed for our growth and sustenance year after year. Every company is ought toundergo the roller-coaster during its life cycle for sure there is no respite for ScanSteels Ltd also we have experienced tremor and not tsunami we withstand and able tostick our neck out in the cracks and cranny of market dynamics . It's only because of ourbusiness model and customised strategy to match the market undercurrents. Steel industrystill is reeling under recession topsy-turvy with demand and supply.
World steel market is not in good shape but India is making its dent and mark in worldsteel map we leapfrogged to 3rd position beating US this year may surpass Japan to besecond next to china going forward. To match the consumption and supply china plan to killcapacity which are with obsolete technology. Indian flat products really rein its valuebetter than long products. Cost leadership Technology up gradation and productiondifferentiation strategy is the mantra for survival to have leverage for organic growth.There was time when people are thinking about backward integration and forwardintegration but time has changed. Cost leadership thru technology integration andconsolidation taking the lead. Iron ores mines in India still are not full capacityutilization export has come down. There is very unique situation in Indian steelindustry only consolidation and acquisition spree is becoming the order the day.Financial anomalies forced companies to land in the cobweb of CDR SDR and finally S4Rscheme to bail out. Sick steel companies are under hammer and opportunities buyers are atadvantage. The shareholder values have been eroded like any things; small time investorshave already lost money. IBC take its way to settle matter thru insolvency way .Bigplayers with big problem. Once thing is sure once the steel business in India areconsolidated and become big players there will be lots of scope for small and secondarysteel producers like us.
Scan Steels Ltd we are happy to be small players but having good reckoning in themarket .We have our core competencies market knowledge value chain and leadership aresustaining us in the market . We become customer's delight by catering them low cost &high quality product. We know the strategic spending and costing. We have people who arewith us since last 22 years; they understand the DNA of SCAN STEELS. I wish all of them tobe part of this joyous growth of Scan Steels Ltd.
Indian love cash demonetization has affected all business including us. Small tradersand retailer in villages rely upon cash. Change in tax regime with advent of GST has alsobrought impact on business. IRR has come down and revenue operation ratios has beenincreased there is barely any leverage to meet financial exigency.
Time has come to invest on technology and product along with strengthening value chainwhich can yield result. I request all of my employees to work with professionaldisposition aligning the business strategy with tailor made approach to maintain ourgrowth trajectory.
I seize this opportunity to extend our deep thanks and appreciation to all stakeholdersand well-wishers for their constant support in our journey of growth.
| ||With kind regards |
|Place: Bhubaneswar ||Rajesh Gadodia |
|Date: 30th May 2017 ||Non Executive Chairman |
| ||(DIN: 00574465) |