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Elantas Beck India Ltd.

BSE: 500123 Sector: Industrials
NSE: DRBECK ISIN Code: INE280B01018
BSE 00:00 | 17 Feb 3083.35 -60.50
(-1.92%)
OPEN

3052.00

HIGH

3155.60

LOW

3040.00

NSE 05:30 | 01 Jan Elantas Beck India Ltd
OPEN 3052.00
PREVIOUS CLOSE 3143.85
VOLUME 1672
52-Week high 3199.00
52-Week low 1899.00
P/E 45.82
Mkt Cap.(Rs cr) 2,445
Buy Price 3040.00
Buy Qty 2.00
Sell Price 3099.00
Sell Qty 1.00
OPEN 3052.00
CLOSE 3143.85
VOLUME 1672
52-Week high 3199.00
52-Week low 1899.00
P/E 45.82
Mkt Cap.(Rs cr) 2,445
Buy Price 3040.00
Buy Qty 2.00
Sell Price 3099.00
Sell Qty 1.00

Elantas Beck India Ltd. (DRBECK) - Chairman Speech

Company chairman speech

Annual Report 2000-2001 SCHENECTADY-BECK INDIA LTD. Chairman's Speech Ladies & Gentlemen, On behalf of the Board, I welcome you to the 45th Annual General Meeting of the Company and thank you for your attendance here today. The 45th Annual report for the year ended 31st March 2001 has been with you and I take it as read. Your directors have asked me to chair this Meeting as Mr.Wallace Graham is unable to attend. The financial results are well covered in the annual report, and the Directors' Report attached thereto has carried detailed statement on current and future outlook of the Company. I would like to share with you the business status of the Company and the specific steps being taken to improve the turnover and market spectrum of the Company. First let me outline the status of the electrical industry and the power sector, and I quote from my address to you a year ago, "The electrical industry has been in a state of recession for the past 3 years and this situation continues. Electrical equipment manufacturers are facing lack of demand and electrical equipment and white goods are heavily discounted in the market place. This is attributed mainly to slack capital expenditures in the manufacturing sector, over capacity in the electrical industry and the poor financial situation of the state electricity boards which has restricted new investments in the power sector. Substantial imports of electrical products such as motors and compressors and consumer durable such as air conditioners, refrigerators etc., have exacerbated the situation". The situation I have described still prevails which reflects in static sales volumes and compressed margins in the domestic sector of our business. Our response to this is broadly as follows In terms of new business opportunities, your Company is pursuing the following: 1. The Lote Parsuram plant of Schenectady India Ltd., is undergoing a major modification at a cost of Rs.60 mio to manufacture Phenolic Resins for the tyre industry. The technology for this has been provided by Schenectady International, Inc., which is a market leader for these resins, and we have high expectations from diversifying into these products in India. 2. The thrust in Construction Chemicals is gaining momentum in terms of sales growth and your Company has further diversified into Putties and Adhesives for household use to be sold through retail shops. In the next few years, we will be taking active steps to build up the Beck Bond brand through advertisement etc., in order to support our foray into Construction Chemicals. 3. Your Company is in the process of establishing alliances for export of electrical insulation to the China market, which has large potential. Your Company is in a phase of modernising and de-bottlenecking its production plants in order to achieve cost reduction, productivity, quality, consistency and improved environment and safety standards. Taking advantage of the recession, we are able to achieve this at extremely competitive quotations from machinery manufacturers and contractors. E-Commerce initiatives started last year have started yielding results and orders from distributors are now being received through the Internet, cutting down processing time. In today's business environment, there is a trend towards commoditisation of brands, which we are acutely aware of, and therefore, our objective is to prevent this in so far as our product range is concerned by improved production processes and measures to enhance quality standards. I am pleased to inform you that the Hon'ble High Court, Mumbai has passed suitable orclers approving the Scheme of amalgamation of Schenectady India Ltd with your Company. With this, the integration process of Schenectady India into Schenectady Beck started in 1998 will be completed giving your company an excellent site to launch the phenolic resin business. The Company is in an active learning phase to understand this business and has already undertaken market seeding activity. I am confident that your company as well as the user industry both will reap the benefits of manufacture of phenolic resins indigenously. Consequent to the approval of the scheme of amalgamation by the High Court, the shareholders of Schenectady India Ltd. would be entitled to shares of your company. The Scheme provides for payment of pro-rata dividend in respect of period after 1.1.2001. A suitable resolution enabling the directors to discharge their responsibility in this regard is being proposed in the course of this meeting for your approval. As is already known to you, by acquiring the shares held by the Mahindra Group Schenectady International has reposed confidence in the strength and growth prospects of your company. After giving effect to the scheme of amalgamation, the holding of Schenectady Group in your company will increase to 82.71 per cent. Your Company continues to pursue quality management and is geared up to adopt the revised version of ISO 9001 which is ISO 2000. Long term plans are being made to adopt Six Sigma- an advanced technique in total quality management. Schenectady Group all over the world is practicing the approved Environment Management Systems and is always diligent in compliance of its obligations under pollution control laws. Your company continues to be recognised and certified under ISO 14001 system and we believe that complying with safety, health and environment management norms is going to benefit the company in the long run. Your company has taken necessary steps well ahead of the statutory deadline to implement the Corporate Governance in line with the requirements of Listing Agreement. You will find a detailed report on Corporate Governance attached to the Directors' report. Coming to the current year, I do not see a revival of electrical industry. While initiatives to diversify into construction chemical business and phenolic resins are being taken, significant part of the turnover will continue to come from electro- insulation business. The turnover during the period April to August 2001 was Rs. 323.6 Mio against Rs 296.1 Mio for the corresponding period in the previous year. Your Company has made arrangements for dematerialisation of the shares and many institutional and individual shareholders have availed of the facility and I encourage all shareholders to demat their shares, for their own obvious benefits. Before I conclude, I would like to express my sincere thanks to my colleagues on the Board. I also wish to place on record our appreciation for the cooperation received from all our employees and all of you for your continued interest in the affairs of the Company. Thank you, M.Tandon SCHENECTADY-BECK INDIA LTD. Registered Office: 'Arcadia,' 10th Floor, 195, Nariman Point, Mumbai 400 021