It gives me immense pleasure in welcoming you all to the 104th AnnualGeneral Meeting of Garden Reach Shipbuilders & Engineers Ltd.
This is the first AGM in the history of the company to be held throughvirtual mode and I am thankful for your participation and extend my gratitude to all ouresteemed investors for their confidence in our company which is further reflected byincreased market capitalization over the previous year.
COVID - 19 Pandemic
The world is going through an unprecedented crisis of COVID 19 pandemicand we are evaluating our company's performance and future at the middle of thisbiggest crisis which we have never seen before in our lifetime. The pandemic has affectedthe entire humanity and plunged the world into an economic recession and disrupted severalbusinesses across the globe. However
I believe that like any challenge the present one also bringsopportunities to innovate and think out of box in the face of adversity. This is the timeto reassess redefine and relook at exploring new ways of working.
We need to Reform Transform and Perform with new normal.
Commitment to self-reliance - Atmanirbharata.
ommitment to self-reliance through indigenous development is a subjectof the larger objective of combat readiness of our defence forces. Govt of India is givinghuge impetus to Atmanirbhar Bharat with numerous initiatives & policy decisions inthis direction. Recent announcement by the Hon'ble Raksha Mantri ji declaring 101 items innegative list of imports over next five years which also includes variety of warshipsthat would be constructed only in India augurs well for the Indian shipbuilding industry.
The defence shipbuilding segment continues to look promising on accountof ambitious ship acquisition plans of the Indian Navy and Indian Coast Guard in thisdecade. This is reflected in the form of a number of RFPs for different class of warshipswhich have been floated over last one year and more are expected in near future. Yourcompany has thus been responding to all these RFPs. Having won major orders on competitivebidding for Survey Vessels (Large) and ASW-SWC projects of the Indian Navy in recentyears GRSE's technical and commercial competitiveness should help us to do well infuture bids as well.
Your company continues to set new benchmark in Atmanirbharata inwarship construction. GRSE has created a record of delivering 105 warships to Maritimeforces till date which includes delivery of 4th and the last ship of prestigious AntiSubmarine Warfare Corvette (ASWC) programme of the Indian Navy in Feb 2020. Theindigenization achieved onboard Kamorta class ASW Corvettes built by GRSE the firstwarship built in the country with indigenously developed warship grade steel DMR & 49Aand eventually earning the distinction of achieving 90% overall indigenous content. TheLanding Craft Utility (LCU) ships designed inhouse by GRSE have also achieved thesimilar distinction of over 90% indigenous content onboard ships. Your company hasdelivered 7 such LCUs Mk IV ships to the Indian Navy and the 8th and the last is gettingready for delivery very soon.
Shipyard is having a strong Order book for construction of 15 warshipsof the Indian navy pertaining to 03 Projects Stealth Frigates (P17A) Survey Vessel(Large) and ASW Shallow Water Craft (ASW-SWC) over next 6-7 years. To accomplishconcurrent construction of such complex warships your company has been strengthening itsinternal processes systems infrastructure and cost effective measures to improve thebottom line of the shipyard which is continuously reflecting on the financial performanceof the company.
Industry 4.0 Practices
In tune with latest technologies our strategies revolve around smartmanufacturing (Industry 4.0) with sparked innovations in automation robotics andindustrial internet of things. Introducing Artificial Intelligence Data analyticsMachine Learning Interoperability and secured connectivity enabling real time monitoringcontrol and optimization of processes resources and systems shall enable workloadconsolidation across Design Planning Production Quality and Supply Chain Managementsignificantly in the future across all units of the company.
Design Excellence and R &D.
GRSE's in-house design capabilities remains its major area ofstrength with the multi-disciplinary 100 plus members design team working towardsdeveloping various concept designs for current and future projects. Introduction ofstate-of-the-art Virtual Reality Lab has further added to our design capabilities. Entiredesign of both the ongoing projects of Survey Vessels (Large) and ASW (SWC) won oncompetitive bidding is being done in-house by our Design Team. Your company's Designand R & D Department got further boost to its efforts when it was recognized by theDepartment of Scientific and Industrial Research (DSIR) Min of Science & TechnologyGovt of India.
The Bailey Bridge division of your company is also keeping pace withship division in its R&D efforts of designing and developing new products. During theyear 2019-20 this division developed and completed successful trials of three newproducts 30ft Portable Pedestrian Assault Bridge made of light weight carbon fiberreinforced composite material for the Indian Army 140 feet Double Lane (7.50 m wide) and190 feet Single Lane modular bridge both being 70R class load capacity and made of 7 feetpanels.
Having achieved the capacity of building 20 warships concurrently postphase II Modernisation of the facilities at our Main Unit we are now moving forward withcapacity building at Rajabagan Dockyard Unit.
This 31.5 acre unit promises a great potential for building small andmedium size platforms. The marine infrastructure and other allied shipbuilding facilitiesare being modernized augmented and rejuvenated with an aim to increase yourcompany's overall capacity to 24 warships construction in next 3-4 years.
As part of the Atmanirbhar Bharat week celebrations a State-of-the-artindigenous CNC Underwater Plasma Plate cutting Machine and two modern Hull BlockFabrication complexes at the RBD Unit were virtually inaugurated by Hon'ble RakshaMantri Shri Rajnath Singhji on 10 Aug 2020. Both these facilities at RBD will go a longway in enhancing the production capacity of the shipyard.
At GRSE we are driven by an empowered team of dedicated and experiencedemployees who are aligned with our core values and company's vision. Competencybuilding developing managers to assume leadership roles and enabling them to embrace newdisruptive management techniques through tools of Industry 4.0 are the new focus of our HRinitiatives.
The performance of the company continued to be strong during the year2019-20. Revenue from operations registered a growth of 3.38% from Rs 1386.42 crore in FY2018-19 to Rs 1433.30 crore in 2019-20 and Profit After Tax has also increased by 48.70%from Rs 109.94 crore to Rs 163.48 crore. I am pleased to inform you that the company hasdeclared its highest ever dividend of 71.40% per equity share of face value of Rs 10/-each. Your company has already paid interim dividend of 57.40% per equity share. The Boardhas also recommended a final dividend of 14% per equity share of face value of Rs 10/-each to be paid after approval of shareholders at this Annual General Meeting.
Thrust on Export.
Having built and delivered over 780 vessels including wide array ofwarships to the Indian Navy and Indian Coast Guard GRSE has all the potential to pursueexport opportunities to increase its global foot prints. Towards this we are giving hugethrust for exports and realigning marketing strategies to match with the dynamic globalenvironment.
With an aspiration to become part of global value chain your companyhas signed an MoU with M/s Kongsberg Sweden for manufacture & assembly of Water Jetsused in the propulsion system of marine vessels. We also signed MoU with M/s BERDPortugal for Design Support to manufacture next generation modular portable bridgesolutions in India.
Committed to Develop Strong Ecosystem.
GRSE is consciously engaged towards developing a robust ecosystemaround its area of operations and has been putting in sincere efforts to foster businesspartnerships and aid MSME Vendors in joining hands towards delivering Maritime &Engineering products to the nation and to friendly foreign countries.
Our consistent thrust on developing vendor base in the Eastern Regionand across India with strategic focus in engagements thus created with existing andprospective business partners through regular vendor meets and interactions has helpedincrease our vendor base considerably. During the year we have achieved 38% of the totalprocurement from MSME Vendors much above the minimum threshold of 25% stipulated by GOI.
Skill development is one of the thrust area of our CSR objective. Yourcompany continues to do extensive work towards skill development in line with the SkillIndia Mission by facilitating vocational training for improving employability andentrepreneurship opportunities for the youth and to bridge skill gaps.
This annual report also comes with our first Business ResponsibilityReport which gives a framework of our environmental social and governance initiatives.During the year the company spent Rs 221 lakh towards various social developmentinitiatives under our CSR outlay.
I would like to conclude by saying that we are at the cusp of a majortransformation facilitated by our operational capabilities gained over the yearsGRSE's brand equity a healthy balance sheet and our dedicated Team GRSE. We aredetermined to move forward and meet the future challenges with passion for change.
I express my heartfelt thanks to Ministry of Defence Central and StateGovernment Authorities and Indian Navy & Indian Coast Guard Authorities for theirunstinted support and valuable guidance. I would also like to take this opportunity toconvey my gratitude to all our esteemed shareholders for their enduring faith andconfidence they have reposed in us. Last but not the least I appreciate the entire teamat GRSE for their untiring efforts and unflinching commitment to achieve the goals of theCompany and the Board of Directors who have supported and guided the Company to put it ona path of accelerated growth.
|Jai Hind || |
| ||V. K. Saxena |
| ||Rear Admiral IN (Retd.) |
| ||Chairman & Managing Director |