Ladies & Gentlemen,
I have great pleasure in welcoming you on behalf of the Board to the Thirty-
second Annual General Meeting of the Company. The Notice for this Meeting,
the Annual Acounts and Directors' Report for the year have already been with
you for some time now and with your approval, I would like to take these as
During the year 1993-94, the country took some very concrete steps towards
integrating its economy with the rest of the world. This is a very exciting
process and the possibilities for an enterprise to exploit the opportunities
being thrown up are immenses. Your Company, in anticipation of the
forthcoming challenges began a process of consolidating its position in the
market-place by acquiring its position in the market-place by acquiring a new
Glass Fibre Unit an doubling its capacity. With this acquisistion we become
the dominant players in the domestic market. Glass Fibre products have a very
low penetration in the Indian market compared to the developed world and
therefore the potential is good. As against a market size of 6 lakhs tonnes
in the USA, the size of the market in India is only 8000 tonnes. As we
integrate with the world and as the products get more sophisticated within
the country, Fibreglass Reinforced Plastics will follow the trend of
substitution as has happend else where in th world.
It is heartening to note that in the last two months, the international
prices have firmed up and we have been able to able to increase our selling
price by 10% recently. This international price increase has also relieved us
to a large extent of the problem of dumping faed last year.
During the year the production was 5324 tonnes and sales were 5563 tonnes.
This was possible due to a major breakthrough in the market for large
diameter reinforced plastic pipes. This market has a very large potential
since pipelines for municipal water, oil movement etc. which are presently
made from mild steel or cement can be replaced with GRP Pipes. Other
promising applications are windmill bades as generation of power from
windmills in the country is likely to take off in a big way. Our custmoers
have also got trial orders for underground petroleum tanks which are a major
item of use in advanced countries. The market for engineering plastics has
also revived with pick-up in industrial activity and the growth of these
products is further strengthened with entry of multinationals such as GE
Plastics into the business.
Our Export thrust has also been encouraging with significant increase
involumes and we have consolidated our position in Middle East, New Zealand
It is very encouraging to note that we have pushed up our capacity
utilisation from around 60% to about 90%. The Company continues to suffer
under disproportionate debt which has put a pressure on the profits. W hope
to correct the imbalance in the Financial structure. Production is showing an
upward trend as illustrated by volumes sold in September 1994 and October 1994, which are 634 tonnes and 645 tonnes respectively, compared to 434
tonnes and 485 tonnes for the corresponding months in the previous year.
The Meeting this year has been delayed due to problems that we faced with the
acquisition of new undertking and consolidation of accounts and I would seek
your indulgence towards for bearance with this delay.
I acknowledge with gratitude the guidance of the Board and the contribution
made by all the employees of the Company, who continue to work with
dedication and commitment. I am also happy to report that industrial
relations at Plants are satisfactory. I am grateful to the Shareholders for
their continuing support. I am confident that your Company will make rapid
progress in the future.