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Smiths & Founders (India) Ltd.

BSE: 513418 Sector: Engineering
NSE: N.A. ISIN Code: INE728B01032
BSE 13:37 | 19 Feb 0.54 0.02
(3.85%)
OPEN

0.54

HIGH

0.54

LOW

0.54

NSE 05:30 | 01 Jan Smiths & Founders (India) Ltd
OPEN 0.54
PREVIOUS CLOSE 0.52
VOLUME 9175
52-Week high 3.75
52-Week low 0.36
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.54
Buy Qty 825.00
Sell Price 0.00
Sell Qty 0.00
OPEN 0.54
CLOSE 0.52
VOLUME 9175
52-Week high 3.75
52-Week low 0.36
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.54
Buy Qty 825.00
Sell Price 0.00
Sell Qty 0.00

Smiths & Founders (India) Ltd. (SMITHSFOUNDER) - Chairman Speech

Company chairman speech

1994 SHIMOGA FORGE LIMITED CHAIRMAN'S SPEECH Ladies and Gentlemen, At the outset let me, wish you and your family members a VERY HAPPY AND PROSPEROUS NEW YEAR. On behalf of the Board of Directors and on my own behalf, I welcome you all to this Fourth Annual General Meeting of your Company. The Audited Accounts and Report of Directors for the period 1993-94 have been with you for quite some time and with your permission I shall take them as read. Economic Scenario vis-a-vis Forging Industry The present Indian Economic environment is replete with enormous opportunities for healthy growth. Indian Industry, conscious of such opportunities, is adapting to the requirements of liberalised business. Foreign investment has started trickling in and it will not be long before this trickle becomes a regular inflow. As the Indian economics picking up, the Forging Industry is definitely emerging as one of the fastest growing industries. With the fortunes rising in the domestic Engineering sector and India becoming a sourcing point for Global giants, it is foreseen that, the current manufacturing capacities shall prove to be grossly inadequate. The overseas demand itself could exceed the current domestic market size. Therefore, it is hightime for the Indian Industries to enhance their capacities and to go Global. Performance The project for which your Company brought out its maiden public issue, commenced in May 1994. There was a delay of six months in the commencement of the project due to delay in shipment of Machinery, caused by natural calamities. Inspite of this set back, your Company has made profit. A strong foundation for a quantum leap has been laid. The unique strength of your company is in focussing on niche markets of Small, Precision and Intricate Forgings. During the period under review, your Company has forged relationships with many new customers and successfully developed many products. As a direct result of this, the current order book position exceeds the turnover of the period under review. In addition, orders exceeding 50%, of the installed capacity are under negotiations. The overall performance of the company has been good. Prospects The estimated size of the world market for forgings is over US $ 5 Billion. The price competition is forcing the automotive manufacturers to source the forgings from the most economical source. Due to stringent environmental laws and expensive labour, manufacturing forgings in developed countries has become both expensive and difficult. Global scouting teams from Mercedes Benz, Cummins, Rockwell International, General Motors, Volvo, Ford, Volks Wagon, Renault have evinced interest in India as a sourcing base. Your company is, at present processing Export enquiries of trial nature, which are expected to translate into regular offtake during the current year. Your company has drawn concrete plans for expansion of installed capacity by 50%, which is proposed to be funded by internal accruals and institutional borrowings. The land for the expansion project has already been acquired. In addition to this, active negotiations are concurrently on, for acquiring one more production unit, for which the funding pattern is being worked out. I am, confident that your company will experience rapied growth in the years to come, creating significant gains for the shareholders. Acknowledgements The success of a company, eventually hinges not only on dynamic leadership but certainly on the hardwork and commitment of its employees. Your Company has a highly motivated and committed team of employees. I thank each one of them for their sincere service. I thank our Customers for their continued patronage; our Vendors and Suppliers for their valued contributions and the Company's Bankers for their confidence and support. I convev my sincere thanks to, various departments of Central and State Governments and all those, who have, directly or indirectly, contributed to the growth of your company. Above all, I convey my grateful thanks to all our share holders, for their understanding and unstinted support. Thank you. S. Suresh Chairman and Managing Director