LETTER TO THE SHAREHOLDERS
It gives me great pleasure personally to communicate with all of you to present to ourShareholders a brief on the important events during the last financial year (2018-19)ending on 31st March 2019.
1. Most importantly our company Aartech Solonics Limited is now listed on Bombay StockExchange on their SME Platform (BSE-SME -542580) since 27th March 2019.
Thanks to our compliance team led by our CFO Mrs. Arati Nath & our CompanySecretary Mr. Tanuj Reddy along with the team from our Merchant Bankers M/s SwastikaInvestmart Limited Indore we could finish the formalities related to company records fromAugust 1982 onwards till date meticulously to list the company before our self setdeadline of 31st March 2019. Thanks are also due to the Bombay Stock Exchange SEBIRegistrar of Companies Gwalior Secretarial firms M/s P.K.Rai & Associates & M/sAPVN & Associates & our Auditors M/s SPARK & Associates & Peer AuditorsM/s Baheti & Company for their timely guidance and support to bring the issue withinthe deadline of 31st March 2019.
The Shares of Face value of Rs. 10 each were offered @ Rs. 34 each including a premiumof Rs. 24 per share for a lot size of 4000 shares totalling to Rs. 136000 per lot. Theshare price has remained relatively stable between Rs. 33.10 to Rs. 36.00 each during thepast five months. The Full Market cap of the company is currently valued at Rs. 24.78 Cr.
I am happy to state that despite the current bleak economic scenario our Share priceshave remained stable and the Market cap is steady and expected to rise slowly but surely.
2. Our Parwanoo Unit manufacturing Bus Transfer Systems has now switched successfullyits hardware platform to TOR 300 (A Numerical Microprocessor based advanced Relay platformfrom Relemetika Russia) with many specialised features & many Input- Outputcombinations with latest IEC 61850 Communication protocol. The unit has executed ordersfor over 100 Bus Transfer Systems during the year under review and earned a record profitof over Rs. 4 Crores. Further developments of new features are under active discussionswith Relemetika management for development of Relays suitable for Indian Market.
3. Our Control & Relay Panel division is now on a stabilised path and selectivelyquoting for good profitable jobs. Efforts are on to get selected profitable jobs for SCADApanels. This division will pick up pace once we settle the Relay manufacturing facility inIndia with Relemetika Russia.
4. During the year a developmental order for Fault limiter panels was taken from our USassociate M/S G & W for designing and executing Fault Limiter Panels that arespecified to be Arc Fault tolerant for 40 KA 0.1 Second fault level apart from other typetests applicable to 33KV systems. The order is currently under execution and while sometests are successfully completed we await further test dates from Testing Authority atCPRI Bhopal.
After successful execution of this order we expect selected orders from G & W forthese speciality panels incorporating Fault Limiters that are manufactured world wide onlyby them apart from ABB Germany and no one else worldwide. This product line is expected togive good profits during the time to come.
5. Aartech has diversified into manufacturing a large variety of Automatic OrganicWaste to Manure machines to process 25 to 1000 Kg Organic waste per batch in a cycle timeof 24 hours. These are being increasingly specified under "Swatchha BharatYojana" by both Government & Private Sectors in large numbers. We are gettingreasonable response locally and from states of Haryana Himachal & Rajasthan apartfrom M.P. & Chhattisgarh. Other associate products such as chip producers from emptyPlastic Bottle and Incinerators are being developed considering regular demands fromcustomers all over.
6. Our Start up Incubator backed up by NITI Aayog AIC- Aartech Solonics Private Limited( our 100% owned subsidiary) is now settling down. Our Start ups from a variety of fieldshave shown good traction and AIC- Aartech holds a small equity in most of them. Some ofour Start ups have won recognition internationally i.e. Khadigi's Umang Shridhar is oneamongst the under 30 Forbes Social Entrepreneur of this year and is getting great tractionfrom Corporate houses and Fashion Designers nationally and internationally as well.Aartech has invested in her equity selectively and expects great returns over a timeperiod of 5-6 years. Many selected business proposals are being considered by Aartechmanagement by associating with our Start ups in marketing production & purchasingactivities to earn good profits from these selective associations.
7. Our another 100 % owned company Faradigm Ultra capacitors Private Limited is now onway to develop & manufacture India's first Acquous Electrolyte based Ultra capacitors.We hope to develop our first prototypes this year. The Ultra Capacitor business isincreasing in India slowly and with EV introduction it is expected to grow rapidly.
Faradigm has recently entered the field of Fuel Cells with a collaborationunderstanding with a Hong Kong & a German company and expects entry in defence andother related field in the coming years.
The products from Faradigm Ultra capacitors are currently marketed by Aartech to numberof process industries Power plants and OEMs such as BHEL for cranking Emergency D.G.Sets Fire pumps & Locomotives. Our footprints in different industrial sector aregradually increasing.
8. During the year we had formed a joint company M/S Enerqual Technology PrivateLimited where Aartech is a 30% minority Shareholder with Mr. Amit Jain a Solarprofessional and a US citizen of Indian origin.
9. Apart from offering special services to Solar installations this company hasdiversified into offering Engineering design services to US based clients in the EPCactivities of Large & small Ground &
Rooftop Solar plants. The scope of offering these services is very high in the USmarkets and needs rapid expansion.
Aartech is involved in this activity by providing paid services and managing executionof these projects apart from being a 30% equity holder. From strength of 10 Engineers thecount is expected to reach 50 numbers within few months. Aartech expects to earn a decentprofit from this company in the following years apart from getting a getting valuableexperience in this sunrise sector.
10. Attempts are also on to increase our export business abroad in Oman UAE as well ascertain European countries. We participated in two Exhibitions at Bangladesh & Nigeriato introduce our products to the purchasing authorities in these countries. Development inthis regard shall be separately reported as and when some definite business is booked.
11. Our R & D activities under AAR centre for Industrial Research & Development(IRDD) are approved by Department of Science & Technology (DST) for carrying outspecified research. We executed a Research project with grant of approximately Rs. 30lacks from DST spread over a period of two years for a project titled UPLIFT that dealtwith development of a new Energy saving and an Automatic Rescue Device (ARD) forcommercially operating passenger lifts using Ultra Capacitors and associated PowerElectronics. The project is now successfully complete as of date and submitted to DST.
Our associates in this Project were IIT Mumbai & Johnson Lifts Chennai a leadingmanufacturer of Passenger lifts in India. Efforts are on to promote & produce productssuitable for Indian markets in Smart Cities being developed all over the country.
Concluding Aartechies (that includes the management and our staff as well as ouroperators) are continuously trying their very best to pivot into new activities and newroles to produce long term results and stability.
We are conservative with our resources to ensure long term profitability and yes we arecarefully selecting our arena of activity in line with Global trends and India specificGovernment spendings. Our recent association with NITI Aayog also helps us to thetransformational steps India is taking. Thereby we are also ready to take the calculatedrisks that one has to take during the rough & tumble of the transformational process.
We are ready to change to be flexible and to adapt new ways new technologies&'new avenues for the new India that is awakening every day.
We need our shareholder's support all the way and we are confident that after aboutthree years when we enter the main exchange we shall be a value script and offer ourshareholders a great value for their investment for the confidence they have shown intheir Aartechie team.
On a personal note I shall be retiring next year as I turn 75 from the active day today management of the company. So the ensuing AGM on 30th September shall be my last AGMas a CMD. I want to assure our shareholders that my association as a founder Promoteralong with my wife and co- founder Mrs. Chhaya Raje shall continue as ever.
I also wish to share a Vision & Mission Document that I had drafted at the start ofthis year but not finalised so far as to how I envision Aartech to grow in the time tocome. I earnestly hope that the future management shares this vision and mission statementwith due modifications whenever necessary and that becomes the guiding path of Aartech.
We often say in our organisation "Once an Aartechie Always an Aartechie" andthis holds good for all those who have worked with us for a short or a long time as theyall remember their Aartech days with pride and happiness.
We have now a fair share of competent & experienced Aartechies. I would recommendyou to visit our website : www.aartechsolonics.com under the heading "aboutourselves" to check the current flavour of our next generation that is now ready totake over with good experience and great plans for Aartech & it's associate companies.Please join me in wishing our next generation a grand success all the way.
Thanks & my very Best wishes for the exciting times to come.
|Sincerely yours |
|Anil Anant Raje |
|Chairman and Managing Director |