ANNUAL REPORT 2009-2010
2009 was a year when many remarkable global changes have taken place. Post
Lehman brothers, banking reforms were seen and economy of many countries
saw a phase which they had not seen since few decades. This did impact
global economy and recovery is now visible. However, Indian economy was one
shining star globally. This obviously saw us moving as closer to the world
recognising how India will be a catalyst in economic recovery of many
countries. Every country now will have India strategy and it is clear that
India has capability to play important role in helping global economy to
recover. These are long term sentiments and not short term euphoria.
Indian economy faced similar situation as global economy was facing but
regulated central bank proved how to manage stimulus package and bring back
growth on track. India could recover its path by second half of 2009-2010.
Even then, it did leave scar on slow growth in first half when
manufacturing industry like ours suffered and pace of growth for year was
overall slow. Your Company's performance under the circumstances was
While our strategy is to remain focussed in the T & D segment of power
sector, challenges on competition and execution front including margin
pressure are evident. The Industry is facing acute shortage of skilled
manpower in EPC business specially in Transmission line stringing area
which has impacted overall Industry's performance and your Company's too.
However, your Company is taking continuous steps to overcome these
challenges by improving efficiency, productivity, execution capability and
enhancing skills of human resources by a continuous process of learning &
development but at the same time also see its impact in short term.
We are optimistic about the future prospects for the power industry and
those for your Company. India's very need of the hour is power and other
infrastructure as repeatedly pointed out by all big economists and
industrialists. Infact, India is expected to add a generation capacity of
62,000 MW on certainty basis in the th 11 five year plan, out of the
planned target of 78,577 MW. If one goes by the actual implementation of
the plan so far, the country will have to go for capacity addition of
around 37,000 MW in the remaining two th years of the 11 plan. This offers
remarkable opportunities to Companies like EMCO. Your Company has emerged
as a formidable force in providing turnkey transmission solutions (400kV-
765 kV extra high voltage segment) in the dynamic power sector in India.
To stay ahead of time and match the pace of change, your Company always
endeavours towards inculcating a culture that encourages innovations and
work on fresh technology perspective. Your Company has well equipped
corporate R&D Centre, staffed by a team of specialists and professionals
working passionately on innovative development projects synergic to the
Company's business interest.
In order to protect intellectual property rights and to create further
wealth for our shareholders, your Company has also filed few patents.
During the year, your Company has achieved various milestones and some of
* First transformer manufacturer in the world to have successfully tested a
315MVA, 230 kV Generator Transformer for Dynamic Short Circuit Test at the
world-renowned KEMA High Power Test Lab, Netherlands.
* Only Indian Company selected to present a technical paper at CIGRE in
* Appreciation Certificate from Hon'ble Union Minister for State for Power
for the Product- 'Eco-friendly Dielectric Fluid for Transformer' for the
Best Product Contest at ELECRAMA-2010.
Your Company sold one of its subsidiaries EMCO Energy Limited, which was
setting up a thermal power project, in order to unlock the value to pursue
larger opportunities in the power generation business. The Company, in
order to fuel its power generation plans, had perceived this strategy after
taking into consideration the changing scenario in the power sector in
which the emphasis is essentially on large size projects to become
competitive, cost efficient and environmental friendly. The decision has
earned good return on investment and increased your Company's networth and
risk taking capability against future unforeseen events. However, the
Company has only sold a Project and not the business and therefore, entire
core team and knowledge remains with the Company.
While pursuing growth in business, the Company does not neglect its social
responsibilities. Every year, it contributes minimum1 per cent of its net
profit to health, education and environment protection activities, which
are handled by EMCO Foundation.
Finally, let me express my personal gratitude for the confidence that you
have always bestowed on us. I sincerely hope that you will continue to be
our strength, so that, together, we can reap the benefits of the phenomenal
opportunities unfolding in front of us and become stronger and successful
in the coming years.
Rajesh S. Jain