MAJESTIC AUTO LIMITED
Ladies & Gentlemen,
On behalf of my colleagues on the Board of Directors and on my own behalf, I
extend to you all, a very warm welcome, to this Twenty First Annual General
Meeting of your Company. The Directors Report and the audited Accounts for
the year ended 31.03.94 have been in your hands for quite some time and I
trust that you must have perused them carefully.
THE EMERGING OPPORTUNITIES:
Before I move on to the performance of the Company, it will not be out of
place to have a look at the salient features of the current economic scenario
and how is that going to be related to our business needs.
Ladies & Gentlemen, the process of restructural adjustments that started
about three years back, has started mobilizing our economy and are clearly
reflected by the buoyancy in market place. I, for one, would like to
attribute the current rise in production volumes, in demand and general mood
of stability in economy as off-shoot of the economic liberalisation process.
However, at the same time, it is going to bring the whole lot of new
challenges to the industry, and to the durable consumer industry in
particular. The quantitative restrictions on import of goods and also the
import duty are going down further,and bringing a new and more significant
era of competition with the international brands and products.
Your company, I have the pleasure in mentioning, has been gearing up to meet
these new challenges. In fact, your company plans to use this opportunity of
economic liberalisation to emerge as a global player of some significance.
Our products are well-established and we are the largest exporters of two-
wheelers in the country with nearly 40% of the total export of two-wheeler
from India. We are setting up Overseas Operations, Offices and Joint
Ventures, and I see a bright future in this area, but the domestic market
will remain our sharp focus.
The Two-Wheeler industry in India has also come out of the recession and is
now in the growth phase. It is anticipated that this year the domestic market
may grow to a close vicinity of 15%. We have geared ourselves to increase our
presence in the domestic market as well. We have as now 20% share of the
market. This will lead us to keep the tempo of growth of your Company. The
year 1993-94 saw the turnover rise to Rs.147.86 Crores showing a growth of
36% over last year. This resulted in a net profit of Rs.9.30 Crores. We are
also proud to announce that we have been successful in writing off all our
past losses this year.
The production of Mopeds has recorded a growth of 26% and the Ludhiana Unit
has introduced the GIZMO, alongwith its ALLEGRO EXERBIKE ROWING MACHINE,
STEPPER AND TREADMILL, all indigenously designed and produced by your company.
CURRENT YEAR WORKING :
It can be said with full confidence that this year would prove to be a
landmark year for your Company. The Company plans to go full throttle on
exports. We hope to achieve export turnover of Rs.60 Crores in the current
year by consolidating present avenues and exploring new markets. In order to
further our presence in the Eurpean markets work on achieving the ISO 9000 is
well under way and we are hopeful of achieving it this year.
Please allow me to take this opportunity to thank the various personalities
and institutions which have helped the company to come out of its difficult
days. The first thanks is due to the IFCI, IDBI, ICICI and UTI and Company's
Bankers for conistent financial help and support. The next thanks is due to
BIFR whih salvaged a helpful package for the company to revive itself. We
also thank the other Companies in our group, namely M/S. Hero Cycles Limited,
Rockman Cycle Industries Ltd. and Highway Cycle Industries Ltd. for timely
support extended to us. Also my word of appreciation for the employees, at
all levels, for putting in strenuous efforts for getting excellent results
for the year.
Above all, my thanks are due to the Shareholders who maintained their faith
in the Company and its Management.