MUNJAL SHOWA LIMITED
Ladies and Gentlemen,
It is a great pleasure and privilege for me to meet you all once again on the
9th Annual General Meeting of the company. I take this opportunity to extend
a herty welcome to all of you on this occasion. The Director's report and
the accounts of your company have been with you for some time and, with your
permission, I shall take them as read.
It is becoming clearly evident that it is the liberal market-driven system
that would dominate the economic philosophy of nations in the years to come.
Our Government, also, realised the importance of opening up the economy and
has been trying to integrate it with the global economy. This has been done
through a series of reforms over the last three years and the economy has
shown a marked improvement. Our foreign exchange reserves increased to $17.5
billion in july 1994 and looking at the health of the economy and the
political stability that we offer, as many as 1478 international companies
have signed up collaborations with indian enterprises.
The new economic policy adopted by the Government of india has helped in
creating an environment in which the indian enterprises can compete
internationally. At the same time, it is the industry that has to adopt a
more responsible role and continuously evaluate its strength and comparative
advantages. if our industry has to compete globally, it must not only
concentrate on catering to the global markets but, also, adapt technology and
system that would help it to compete effectively. Access to international
market has not to be seen as a one time opportunity but as a provision which
can be tapped on a sustained basis.
As you know, the entire indian automobile industry sector, went through a recessionary
phase which lasted for almost three years. The phase is over and the scenario
for the future looks extremely bright. There is, already, a surge in the
domestic demand and a reasonable degree of buoyancy is noticed in the export
market as well.
The automobile component sector accounts for an output of over Rs. 5000 crores
out of which exports account for Rs. 630 crores. It is catering to a very
wide spectrum of vehicle models produced in the country. An indigenisation
level in excess of 90% has already been achieved by the indian automobile
industry and the component sector has played a vital role in this development.
MUNJAL SHOWA LIMITED
Inspite of the fact that the entire automobile industry went through a phase
of recession, your company managed to brave the impact quite well. This was
possible as a result of the performance of our committed buyers. You would be glad to know that your company has managed to make further improvements in
its performance. During the fiscal year 1993-94 the gross sales increased to
Rs. 58.12 Crores from Rs.46.23 crores in the previous year an increase of
around 26%. Profits,too, increased. The pretax profit this year was
approximately 40% higher as compared to the previous year.
Your company has been continuously striving to develop products to cater to
the growing and fast changing automobile market. It has already made many
fresh additions to its product range during the year. This included
development of front forks and window balancers for the `Zen' model launched
by Maruti Udyog Limited and rear shockers for the `Splendor' model launched
by Hero Honda Motors Ltd. Its plans for the year include development of rear
shockers for Maruti 800CC car and Maruti Omni Van.
An expansion is, also, on the anvil with almost all major customers of your
company going in for an increase in their capacity and having chosen to
continue to rely upon Munjal Showa Limited as the OE supplier to meet their
requirements. Further,in order to substantiate its position in the corporate
world, your company has started making forays into other industries as well.
A beginning has been made with window balancers being supplied to the machine
I assure you friends, that with the steps already taken and those proposed to
be taken in future, time is not far when you will see your company
establishing itself as one of the companies that would be looked upon as a
leader not only because of the quality of its products and the market share
that it enjoys but, also, because of the efficient management and effective
systems that it has adopted.
In conclusion, I on behalf of the Board of Directors and on behalf of my
ownself, take this opportunity to express my gratitude to our collaborators
for their valuable support and guidance which we have received from time to
I would,also, like to thank the Government of India, Government of
Haryana,Haryana State Electricity Board, Bankers and Financial Institutions
for their cooperation and assistance extended to your company.
I, also, place on record my appreciation for the good work done by all the
staff and workers of your company.
Thank you, once again, ladies and gentlemen.