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Grindwell Norton Ltd.

BSE: 506076 Sector: Engineering
NSE: GRINDWELL ISIN Code: INE536A01023
BSE LIVE 15:40 | 17 Nov 491.10 13.90
(2.91%)
OPEN

481.65

HIGH

497.40

LOW

477.30

NSE 15:31 | 17 Nov 494.50 14.45
(3.01%)
OPEN

482.40

HIGH

499.00

LOW

478.00

OPEN 481.65
PREVIOUS CLOSE 477.20
VOLUME 1536
52-Week high 500.50
52-Week low 305.55
P/E 44.04
Mkt Cap.(Rs cr) 5,437
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 481.65
CLOSE 477.20
VOLUME 1536
52-Week high 500.50
52-Week low 305.55
P/E 44.04
Mkt Cap.(Rs cr) 5,437
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Grindwell Norton Ltd. (GRINDWELL) - Chairman Speech

Company chairman speech

ANNUAL REPORT 1999-2000 GRINDWELL NORTON LIMITED CHAIRMAN'S STATEMENT 51st Annual General Meeting Ladies & Gentlemen, It gives me great pleasure to welcome you to the 51st Annual General Meeting of your Company. At the outset, let me say that I am privileged and, indeed, I am very honoured to have been elected to your Company's Board and to have been given the opportunity to serve as its Chairman. I will now speak briefly on your Company's performance and its prospects. PERFORMANCE: APRIL - DECEMBER 2000 As stated in the Directors' Report, the financial period under review was a difficult one for your Company with market conditions deteriorating as the year progressed. In particular, demand for Bonded Abrasives (including Thin Wheels) and Fused-cast Refractories was weak for the entire period under review. On an annualized basis, aggregate sales were, more or less, at the same level as last year, whereas net profit increased by 8%. Considering the strong financial position of your Company and the improvement in its profitability, the Board considered it appropriate to recommend a dividend of Rs.3/- per equity share for the nine-month period that ended on B1st December, 2000, as against Rs.3.50 per equity share declared for the year that ended on 31st March, 2000. PROSPECTS The slowdown witnessed in the second half of 2000 by industry, in general, and by many of your Company's important end- users, in particular, has intensified in the current year. In some industries (e.g. passenger cars, commercial vehicles, two- wheelers), volumes have shrunk. Consequently, demand for many of your Company's products (primarily, Abrasives) has weakened further and price levels have been under pressure. This is reflected in the 1st Quarters' Results, which showed sales and profits being lower than the preceding quarter and, more or less, similar to the 1st Quarter of 2000. At the end of five months, the trend remains the same. With the global economy also slowing down, it is best to assume that business conditions will remain subdued for the rest of the year. Under these circumstances, your Company will continue to focus on increasing productivity and on containing costs, on the one hand, while, aggressively pursuing export opportunities, on the other. More specifically, your Company has recently implemented a Voluntary Retirement Scheme at its oldest plant at Mora. This has resulted in a 25% reduction in headcount at that location. Further, as you know, the Fused-cast Refractories business has been a cause of concern (and losses) for some time. In view of the contraction of the market, the business is no longer viable and, therefore, your Company has decided to close down the manufacturing operations. Consequently, a Voluntary Retirement Scheme has also been implemented at Bangalore. I am confident that the positive impact of these and other such actions will be seen in your Company's results in the coming months. As to the future, with a strong management team, with the best technology and with underutilized capacities in all its major businesses, your Company is well placed to gain significantly from a revival in industrial activity as and when this occurs. CONCLUSION Before concluding, I, on behalf of the Board, place on record our appreciation of your Company's employees, who, not only work hard, but do so with enthusiasm and with a sense of ownership and pride. I would also like to convey our gratitude to our Dealers and Suppliers for their loyalty and their contribution to your Company's success. Finally, I would like to thank you, our shareholders, for your encouragement and your support. Thank you. GILLES COLAS CHAIRMAN Grindwell Norton Ltd. Army & Navy Building, 148, Mahatma Gandhi Road, Mumbai 400 001. 13th June. 2001.