It gives me immense pleasure in welcoming you all to the 106thAnnual General Meeting of the Garden Reach Shipbuilders & Engineers Limited and Ithank each one of you for attending the meeting in the Virtual mode.
This is my maiden address to the shareholders of the company and I amindeed delighted to do so considering that this is a special occasion as we Indians arecelebrating 'Azadi ka Amrit Mahotsav - to commemorate 75 years of our Independence'. Thejourney of GRSE over the years has been glorious with the shipyard evolving & settingnew benchmarks in shipbuilding and engineering excellence. While the clarion call for'Make in India' has been resounding across our Nation in the last few years "Make inIndia" has been in our DNA for the last 60 years and with 788 marine platformsincluding 107 warships delivered as on date GRSE today epitomizes "AtmaNirbharta" in warship building.
Further our diversified product portfolio is our USP (Unique sellingpoint) and this provides us an edge amongst all listed Indian Shipbuilding Yards.
The year gone by was challenging considering the fallout of thepandemic and its aftereffects. Despite being a labourintensive industry with highdependency on supply chain management the company effectively managed these challengesand progressed operations with agility business resilience & determination and cameout with flying colours both in terms of financial & production performance.
Your Company has posted the best ever performance in the history of theShipyard and recorded the highest ever turnover of Rs 1750 Crore for FY 2021-22reflecting YoY growth of 54%. The profit after tax grew to Rs 189 Crore as against Rs153.47 crore in previous year. A detailed review of our revenue and margins is elaboratedin the Directors' Report.
I am glad to inform you that the Board of your Company has recommendedfinal dividend @ 8.50% of paid up capital i.e. @ Rs 0.85/- per share subject to approvalof Shareholders in this Annual General Meeting in addition to the interim dividend @49.50% of paid-up capital i.e. Rs 4.95/- per share already paid. You may also note thatyour company has been paying dividend consistently for the last 29 consecutive years.
On the Production performance front too we have met the projectmilestones despite the challenges of the pandemic. In December 2021 the first of fourSurvey Vessels (Large) 'INS Sandhayak' with the ship at nearly 40% physical progress ofconstruction was launched. Further the keel of the third P-17A ship for the Indian Navywas laid and construction of all the three ships of this prestigious project isprogressing smoothly. In the beginning of the last financial year 'SCG PS Zoroaster'built by your company was handed over by the Hon'ble Prime Minister of India to thePresident of Seychelles.
Ship repairs have been a focus area for your Company and the GRSE-KPDDunit (Khidderpore Dry Dock) took off last year a new gateway for "Ship Repair &Refit" as a structured business vertical for the Company. During the year yourCompany has carried out refits of total four (4) ships including the refit of CGSBarracuda for the Government of Mauritius.
The Bailey Bridge division has been provided a fillip with new products& "go to market strategies" in the Single & Double Lane Portable Bridges& signing a historic MoU with DGBR for supply of 27 bridges for difficult terrains inthe North East region of India.
The Engine Division has successfully completed FATs and delivered the 1stshipset of the 1 MW Diesel Alternators for the P17A project a key achievement of lastyear.
Our orderbook stands at a very healthy Rs 24103.60 crore as on 31stMarch 2022 and on the shipbuilding front six (6) projects are currently under executionwith three projects comprising of fifteen (15) ships for the Indian Navy one (1) FPVproject for India Coast Guard and two export projects an ocean-going passenger cum cargoferry for Govt of Guyana and six patrol boats for Govt. of Bangladesh.
Going forward considering the production maturity of the ongoingshipbuilding projects our revenue is expected to grow significantly during the next threeyears. I am also happy to inform you that your company has been declared L2 in an RFP forconstruction of Next Generation Ocean Going Patrol Vessels (NGOPV) for the Indian Navyand as per the tender conditions the L2 shipyard will be awarded a contract forconstruction of four (4) ships. We have also concluded a contract in Jul 22 with the Govtof West Bengal for construction of a Next Generation Electric Ferry. Both these projectsare expected to boost our orderbook position with the Next Generation Electric Ferryproviding a fillip to our "Green Initiatives" in this promising and sunrisesector of new revenue stream within the shipbuilding industry.
Our "Ship Repair & Refit" operations also will be a focusarea and I expect revenue growth in this segment too especially from the GRSE-KPPDfacility.
The Bailey Bridge Division is on an upward growth trajectory with ourmajor customers the Border Roads Organisation (BRO) National Highways InfrastructureDevelopment Corporation (NHIDCL) and the Indian Army continuing to repose faith in ourcapability and providing us fresh orders.
Apart from harnessing our core competencies gained over the years inwarship building key priorities envisaged revolve around renewed focus in R&D withan emphasis on Green Technology and Autonomous/Unmanned Vessels. Your company is well onits way towards implementing a much- awaited roadmap in ushering Green Technologystarting with reduction of the carbon footprint on the Hooghly river with the impendinginduction of our New Generation Electric Ferry. Your company is also engaged with theIndian Navy and designing unmanned surface vessels to meet their aspirations to minimisethe risks of putting the lives of our fellow countrymen in harm's way. The UnmannedVessels of the not- so-distant future would be capable of undertaking bathymetry studieshydrography survey mine hunting at the lower end of the spectrum whilst aiming toundertake combat roles with delivery of modularised payloads at the higher end. Yourcompany has firmly set its course for a future bejewelled with opportunities and rewards.
Exports - Focus Area
Exports continue to be a thrust area of your company with us focusingon Europe SAARC ASEAN African and Latin American countries where we are deployingaggressive business development & marketing strategies to pursue export opportunities.We are currently executing two export orders an Ocean-Going Passenger cum Ferry Vesselfor the Cooperative Republic of Guyana and a six (6) Patrol Boat project for the Govt. ofBangladesh. Your Company has also exported 14 Bailey type Portable Steel Bridges (TenBridges to Bhutan and Four Bridges to Nepal). We are actively engaging with potentialcustomers to exploit the upward trend in demand for newbuild ships especially in theshort sea shipping sector.
These forays are reflective of our expanding global footprint andreach we hence align on the business front to provide maritime platforms that fulfill ourNation's aspiration to contribute to peace in the Indian Ocean region and our Company inthe process harnesses business revenue and opportunity in the bargain.
Technology Adoption &
Core groups have been constituted at GRSE for evaluating processes andhow to make them more efficient by leveraging technology. Whilst your company has beenswift in adopting Artificial Intelligence towards improvement of its design and productionprocesses. GRSE is also committed to maximising productivity and 'bang for the buck' byrigorously auditing its internal processes with the aim to further shift towardsdigitalisation. We are focused on efforts at ensuring an efficient supply chain process toreduce costs and we are driving efforts towards a leaner and cohesive workforce whilstretaining core competencies. It is my pleasure to inform you that the AI enabled NDTFacility for Welding X-Ray Evaluation (IWI) and HR Chatbot "Anvesha" werelaunched by our Hon'ble Raksha Mantri on 11 Jul 22.
Indigenisation & Intellectual Property Rights (IPRs)
With the recent impetus from Ministry of Defence on indigenisationGRSE has become one of the key contributors towards Atma Nirbharata. You will be happy toknow that your company has 31 items listed under DPSUs Positive Indigenisation List outof with 22 items are already indigenised. I am pleased to inform you that your company hasfiled 100 IPRs as part of Mission Rakshya Gyan Shakti (MRGS) out of which 62 IPRs havebeen granted.
Growth with Governance
Your Company takes proactive steps to ensure sound corporate governanceand has complied with the Guidelines on Corporate Governance framed by the Department ofPublic Enterprises (DPE) and SEBI Listing Regulations except for the appointment of therequisite number of Independent Directors.
Your Company is always committed to social responsibility andundertaken various programmes and projects towards integrating our social and businessgoals in a sustainable manner in line with schedule VII of the Companies Act 2013. Anamount of Rs 410 lakh has been spent under CSR in the Financial Year 2021-22 to completeall the targeted projects.
I took over as Chairman & Managing Director of the company from mypredecessor Rear Admiral VK Saxena IN (Retd) who superannuated on 28 Feb 2022. We areindebted to him for guiding us during his stint and taking GRSE on a trajectory ofprogress. I have been with Team GRSE since 2016 and had the good fortune of receivingsupport and guidance from my seniors and colleagues. I am confident of sustaining ourperformance in the coming years with the support of our team the Board of Directors andMinistry of Defence.
I take this opportunity to extend my sincere gratitude to the Ministryof Defence Central and State Government Authorities and Indian Navy & Indian CoastGuard authorities for their unstinted support and valuable guidance. I would also like totake this opportunity to convey my gratitude to all our esteemed shareholders for theircontinuing faith and confidence they have reposed in us for whom we aspire to continue tocreate more value. Last but not the least I appreciate Team GRSE for their untiringefforts and unflinching commitment to achieve the goals of the Company and the Board ofDirectors who have supported and guided the Company to place it on a path of acceleratedgrowth.
|Jai Hind |
|Cmde PR Hari IN (Retd) |
|Chairman & Managing Director |