At BKM Industries we see this year as a new beginning.
Following a business de-merger a few years ago the Company emergedwith a stronger focus on its longstanding strengths in the packaging business of cap andclosure manufacture.
We believe that the de-merger empowered the Company to deepen itspresence in its core business on the one hand and liberated it to seek wider andsynergistic opportunities on the other.
In line with the new-found hunger to grow the business the Companyre-branded itself away from the erstwhile Manaksia Industries Limited to become BKMIndustries Limited. The new name captures the initials of the Company's promoter on theone hand and showcases the Company's new personality on the other.
BKM Industries is a future-focused company with enhanced confidence toaddress new sectors business and geographies. The reinvented company will make a moreextensive use of its people practices knowledge and infrastructure to enter adjacentbusiness spaces (as in the manufacture of PET bottles caps and closures) providinghigher value-addition and the opportunity to extend beyond products to solutions. TheCompany intends to utilise its assets more optimally (as in the steel business)generating incremental revenues and a higher return on employed capital. Besides theCompany intends to enter completely new verticals (agro trading) with a large operatingleverage in terms of the number of products and the long-term potential in the business.At BKM Industries we are focused on shareholder value accretion. We believe that duringthe current year the Company should be able to commission new facilities or reactivateexisting businesses with the objective to enhance revenues and surpluses. The Company isdiversifying its packaging operations across Bangladesh Africa and Sri Lanka withmanufacturing facilities expected to be commissioned by next year. In Africa the Companyplans to enter the manufacture of PET bottles
ROPP caps and crown closures. The Company's steel operations in Georgiaare scheduled to commence in 2018 capitalising on improved market conditions. The Companyplans to make fresh investments in its marine business and emerge as one of the mostefficient marine units in Eastern India. The Company is also seeking opportunities in thedesign and manufacture of fish trawler barges and tug boats. Besides we believe that ouragro-trading business will generate positive returns from 2018-19 onwards the first fullyear of the business. The interplay of these initiatives is expected to kick start growthand translate into robust business sustainability.
Our economy is robust. Our nation has emerged as the fastest growingmajor economy in the world is expected to be one of top three economic powers in the next10-15 years. This growth in the Indian economy is being backed by a proactive government.
The secret to change is focusing all energy not on fighting oldsystems but building new ones. In the past couple of years there have been a lot ofchanges in the Indian economy. The single largest reform has been the implementation ofGST. This game changing reform has benefited the economy greatly. Besides simplifying thetax structure it has increased demand and supply of goods and widened the nation's taxbase. From BKM's perspective GST has been highly beneficial to us. It has initiated ashift of power from the unorganised to the organised players which have enhanced therevenues of our packaging division.
On an ending note I would like to say we are extremely optimistic aboutthe coming year and the new initiatives and businesses that we have undertaken shouldtranslate into healthy margins and enhance value of all our stakeholders.
Basant Kumar Agrawal