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BSE: N.A. Sector: N.A.
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan
NSE 05:30 | 01 Jan

. () - Chairman Speech

Company chairman speech

BLUE BIRD (INDIA) LIMITED ANNUAL REPORT 2008-2009 CHAIRMAN'S REPORT It gives me great pleasure to invite you to the momentous 10th Annual General Meeting of your Company. Though the inception of business of the Company dates back to the year 1975 when it started with a proprietary concern, this year we celebrate the 10th year of your Company. The year 2008-09 has been a year of tremendous growth for the company in all spheres of operations, be it in the enhancement of capacity, increase of sales and distribution network or start up of new business segments. Growth is success and corporate growth is driven by globalization, free market economies and increased global competition. Through years of expertise your Company understands how to grow a business and focus on developing innovative strategies for business through customer research, market penetration, growth workshops, market research, events, corporate training, analyst briefings and growth partnership services. With these objects in mind your Company has taken initiatives in all spheres to tap the potential business in its segment. During the year 2008-09 your Company expanded its network to new regions and started 7 new sales regional offices. Your Company started a new unit at Tumkur, Karnataka and shifted its existing unit on leased premises from Pinnya Industrial Area, Bangalore. This expansion has added manufacturing capacities, the result of which is visible from the financials of the current financial year. Your Company was allotted 20 Acres of industrial land at Pithampur Industrial Area, Dhar, M.P. (near Indore) for setting up manufacturing facility. During the year your Company successfully started a new segment 'Trading' of Copier Paper under its new brand 'Blue Bird's Print Magic Copier'. Your Company also registered a 254% growth in its Exports as compared to previous year. The Construction segment, though started by your Company, could not gain momentum due to socio-economic scene during the year coupled with the global slow down and reverse movement of real estate prices, which adversely affected the housing development sector. Overall gain in net worth during the year was Rs. 1,464.40 Lacs. The overall financial results look comfortable but not encouraging, especially in an environment where year-on-year profit growth at something like twenty percent (or better) seems to have become the norm for the corporate sector. During the year your Company has faced a resistance in the bottom line. These are peculiar features of a growing Company. Your Company will reap the benefits of the costs in near future. But this period of difficulty may continue a while, longer than originally anticipated. While the reasons are many, there is no hiding the fact that I miscalculated the pace at which some of our initiatives might progress. At these times, it is easy to get philosophical, and quote from books such as 'Fooled By Randomness' or 'Why Most Things Fail', on what did us in. And while I do believe in the messages contained in those very interesting books, I also believe that a few of the errors made were avoidable. In my view, these are systemic issues, which may take some time to address satisfactorily. In spite of this it is pleasing that, given financial market turmoil, your Company has a strong balance sheet and a diversified debt portfolio. So, while the mid-course correction has begun, the results are not likely to be immediately apparent. We are delighting customers, eliminating unnecessary costs and improving our products and thereby gaining strength. Cumulatively though, their consequences are enormous. When our long-term competitive position improves as a result of these unnoticeable actions, we describe the phenomenon as 'widening the moat1. Doing that is essential if we are to have the kind of business we want in another decade or two from now. Blue Bird continues to be at a stage where it needs to make significant investments of time to build the foundation that can support the growth that lies ahead. The results of the first quarter of 2009-10 are already published. There is a remarkable growth as a result of the efforts taken during preceding two years. The sales recorded were to the tune of Rs. 210 Cr and net profit of Rs. 7.11 Cr for the quarter as against sales of Rs. 119 Cr and net profit of Rs. 5.00 Cr on quarter-to-quarter basis. After summarizing my thoughts on the overall strategies and development initiatives of the Company and its likely impact on the progress, I now thank all the shareholders, stakeholders who have imparted commendable support and patience to the Company over the decade gone by. I look forward to their continued support in future. Thank you once again. Nitin Sontakke Chairman and Managing Director Place: Pune Date : August 22, 2009