ANNUAL REPORT 2000-2001
BOROSIL GLASS WORKS LIMITED
Ladies & Gentlemen.
I welcome you on the Thirty-eighth Annual General Meeting of your Company.
The Directors' Report and Annual Accounts are in our bands and with your
permission. I take them as read.
As you are aware. since last twelve months or so. the global economy is
passing through a recession and this has affected the growth of Indian
economy as well.
The developments in the aftermath of terrorist attack in USA and resulting
scenario in our neighbourhood is also likely to impact economy of our
country in general and industries in particular.
As I had mentioned last year. in the laboratoryware and scientific
apparatus segment. whereas there is not much growth, dumping of goods by
foreign suppliers continue unabated. There is also the problem of spurious
goods sold by small scale converters and the company has been taking steps
to identify and prosecute them.
In the Consumerware segment. however. there is considerable growth and the
company has tied up on an exclusive basis with five of the world s leading
manufacture,rs' in this field and is marketing their products in its own
brand name as well as co-branding them. Consequently, the publicity
programme has been considerably expanded.
In view of uncertain market conditions, on account of substantial imports,
the operations at Marai Malai Plant are at a minimum level. Pending clarity
on the product mix, the decision of rebuilding that furnace is kept in
abeyance. Meanwhile, the fixed cost of that plant is to be absorbed by the
other existing operations of the company.
Furnace No. 1 at Marol has run its full campaign and now due for rebuild.
The company's taking this opportunity to upgrade and modernize it.
Negotiations are on with world's top consultants in this respect and are
shortly to be finalized.
A Rehabilitation Scheme for Gujarat Borosil Ltd., (GBL) has been approved
by the Board for Industrial and Financial Reconstruction (BIFR). GBL has,
however,made representations to the Operating Agency i.e., ICICI Limited
for modifying the said Scheme as well as reducing the period of
implementation and there are positive indications ,from the Tern Lending
Institutions. Further actions are being taken in the matter.
Before concluding, I like to take this opportunity t hank our Shareholders,
employees. Bankers, Distributors, Lenders. Suppliers as also our customs
for their continued support.
I, now propose the resolution concerning adoption of Accounts,Directors'
and Auditor's Reports thereon.