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Gujarat Ambuja Exports Ltd.

BSE: 524226 Sector: Industrials
NSE: GAEL ISIN Code: INE036B01022
BSE LIVE 15:40 | 18 Aug 118.35 -3.70
(-3.03%)
OPEN

120.00

HIGH

120.65

LOW

116.55

NSE 15:59 | 18 Aug 117.90 -4.45
(-3.64%)
OPEN

121.40

HIGH

121.40

LOW

116.05

OPEN 120.00
PREVIOUS CLOSE 122.05
VOLUME 11804
52-Week high 146.95
52-Week low 71.95
P/E 10.80
Mkt Cap.(Rs cr) 1,357
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 120.00
CLOSE 122.05
VOLUME 11804
52-Week high 146.95
52-Week low 71.95
P/E 10.80
Mkt Cap.(Rs cr) 1,357
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gujarat Ambuja Exports Ltd. (GAEL) - Chairman Speech

Company chairman speech

GUJARAT AMBUJA EXPORTS LIMITED ANNUAL REPORT 1999-2000 CHAIRMAN'S REPORT Dear Shareholder, I am pleased to address this communication to you, the esteemed shareholder of the company. I trust this finds you and your family in the best of health and spirits. May I take this opportunity to brief you about the latest developments in our company. You may be already aware that our company is a multi-locational, multi- product company focussed in Agro Processing It has manufacturing plants at Himatnagar (Gujarat), Kadi (Gujarat) and at Pithampur (Madhya Pradesh). The Company has the thrust for exports and in Bulk. THE COTSPIN PROJECT: GAEL has set up 100% Export Oriented Unit in Cotton Spinning at Himatnagar with the capacity of 55000 spindles for Ring Spinning and 1080 Rotors for Open end spinning set up in 1994 in record time of less than 18 months and with extremely cost-effective Project Outlay of Rs.125 crores. Besides the plant is fully air-conditioned and is supported with a housing colony which houses nearly 900 of its employees, nearly the whole staff strength. It also has 2 D.G. sets of 4.5 MW each ensuring cheap, uninterrupted & good quality power. The project of this size in present terms would require minimum of three years and a project outlay of minimum Rs.200 crores to just set up. It has recently imported latest technology Combers and is importing new Autoconers to modernise its operations. The unit is spinning excellent quality yarn which is exported to more than 30 countries worldwide. THE BIO-CHEMICAL PROJECT: GAEL has set up excellent facilities of manufacturing of Starch, Liquid Glucose, Dextrose and other products from crushing of maize with the capacity of crushing 200 Tons of Maize seed Per day. This is the only project where more than 50% of the product is sold in domestic market, unlike the other projects. The products have built their market through excellent quality, Customer relationship and widely distributed Market Network. Starch, Dextrose and other products are sought after by even Multi National Companies and reputed Pharmaceutical Companies. The Company is in advanced stage or talks with a European MNC, who crushing 3000 Tones of Maize per day as against India's total capacity of 2500 T per day and who is producing value added items with values upto Rs.80 per kg against the price of Rs. 5.50 per Kg of the Raw Material viz., Maize seed. The said MNC has expressed willingness to set up JV with our company but is insisting on spinning of Bio-Chemical division into separate company, where it would invest a sum upto Rs. 30 crores for going into all value added items our Company had initially set up this project at a total outlay of Rs.35 crores in the year 1994-95. THE SOYA PROCESSING PROJECTS: GAEL has its Soya Processing facilities at Kadi (Gujarat) and Pithampur (M.P.) where it has a combined crushing capacity of 1500 Tons per day, which is third largest in India. The projects are built with mo,modern technology. The company is in the process of adding facilities manufacture Soya Nuggets and Soya Flour, which are widely in demand in India and abroad. The two units at Kadi are 100 EOU. It has received the ISO 9002 recognition for its plant at Kadi, being the first So receive such accredition. It has also recently received the award for being third largest manufacturer exporter of Soya Meal for the year 1998-99. From the company with a Net Worth of Rs 1 crore in 1991 we have reached to a net worth of approximately Rs. 200 crores in the year 2000. Besides the following is also noteworthy. (a) All its plants are equipped with imported machineries/latest technologies and own Power Generators as also the infrastructure to enable the company run its plants for full 365 days in a year. (b) The outstanding debt in the form of Term Loan from the bank or any Financial Institutions as on 31.03.2000 is hardly Rs.1 crore as against Fixed Assets of more than Rs.230 crores. (c) The book value of shares is more than Rs.81/- per share. YEAR 1999-2000: The company has achieved total turnover of Rs.319 crores and Cash profit of Rs.11 crores against all odds as against turnover of Rs.315 crores and Cash profit of Rs. 8 crores in the earlier year. YEAR 2000-2001 AND BEYOND: The Company is poised to enter excellent phase, where all its projects are doing exceedingly well. The realisations in Cotton Yarn and Soya Deoiled cakes are improving as the markets worldwide are improving. The Company has targeted to achieve a total turnover of Rs.400 Crores in the financial year 2000-2001 and with the increasing Values and Controls on costs, the bottom line is sure to improve substantially. I am also pleased to announce that the Board has recently declared interim dividends @ 5% each for the year 1999-2000 and 2000-2001. The dividend warrants shall be posted shortly. NEW VENTURES: INFORMATION TECHNOLOGY: You may have heard recently that the group has entered into Information Technology business by promoting "Jupiter Infosoft Limited". JIL has built up excellent professional team. JIL has already identified its focus area on the Internet Technologies. It has targeted on development of Portals. JIL has also started acquiring requisite infrastructures and has launched its first e-commerce site, gujarateshop.com. In a short time in the year 1999-2000 it has achieved business of Software Development as well as exports of some ASP modules. It also has a STPI registered 100% EOU. ENTERTAINMENT SECTOR: The group has promoted a new company at Mumbai to venture in the Entertainment business. It is targeting to set up its own channel in English and Hindi to be named as GTN in a very short time. BIO-TECHNOLOGY SECTOR: The Company is currently negotiating with a few MNCs having expertise on developing genetically modified seeds and one of them will be roped in as our strategic partner in short time. According to recent government concessions extended to the biotech sectors, a 10 Year tax holiday and increased weighted deduction ranging from 125% to 150% for the expenses incurred is granted,. We have plans to invest about Rs.4 crores in the Genetic Research in the next three years. The Company is in negotiation with a foreign company to set up a Bio- technology project in Joint Venture in Gujarat. Thus, the group is a fast track and is targeting subsantial growth in the times to come. With GAEL's strength in international market through its 500 satisfied clients all over the world in around 30 countries, these ventures are bound to be a grand success. I am sure, you would be delighted to see the growth nd achievements of the company. With kind regards, VIJAY KUMAR GUPTA (Chairman & Managing Director)