Hope you all are safe and healthy
It is my immense pleasure to share that in these hard time of globally spread COVID-19your company not just strongly survived but performance of the company was far better thanthe overall performance of Indian Machine Tools Industry( as per IMTMA data).
You may know that Personal Protective Equipment suits (PPE suits) are the first andforemost crucial line of defence against the novel corona virus for the frontline coronawarriors. In the earlier stage where corona virus declared as pandemic by WHO PPE suitsused by these corona warriors were not much protective as sewing part of PPE suits werenot sealed effectively and possibility of virus transmission from this part were muchhigher and it was need of the hour to make this PPE suits protective by sealing the sewingpart. These kind of machines were not manufactured in India and had to import from chinaat higher prices and delivery time was around 4 to 5 months. Due to this Indian MedicalAssociation (IMA) approached your company to manufacture such machine which makes the PPEsuits protective and resist virus. and so we accept this challenge to help the society inone or other way and in very short period of time during the lockdown with the permissionof local authority we have resumed the work and manufactured the HOT AIR SEAM SEALINGMACHINE for PPE suits FIRST TIME IN INDIA. Your company has delivered thismachine across the India.
After successful manufacturing of HOT AIR SEAM SEALING MACHINE Your Company has thenmanufactured FASTEST FULLY AUTOMATIC N95 MASK MAKING MACHINE with Japanese controlwhich has capacity to produce 50000 masks per day under the medical engineering horizon.
Your company came into Capital Market for expansion plan in March 2018 and this yearyour company has completed two years of listing and also completed its object of backwardintegration expansion and In-house machining of components. During this year your companyable to develop In-house spindles manufacturing capability Separate 11 tank powdercoating unit and Fabrication shop.
Dear Shareholders before IPO the constructed area of your company was around 52858/-sq. ft and after IPO your company add new construction of around 70029/- sq ft and nowthe total constructed area is around of 122887 sq.ft.
Backward integration enables company to make almost 85% of the Machining of componentsin-house. Backward Integration and in-house infrastructure facility leads to decrease oflogistic cost and logistic time rejection and rework and simultaneously assembly timegets reduce and company able to deliver world class machines and saved substantialman-hours.
Because of backward integration company has been able to deliver
ALL NEW FIFTH GNERATION 2020 MACHINE SERIES.
Having state of the art mother machinery with your company assembly time gets reducedand your company substantially able to achieve higher production capacity by producingaround 1200 machines per annum from earlier around 600 machines per annum without addingadditional manpower. and this is to note that present production capacity is with singleshift of man-hours and so this capacity can be increased with additional shifts ofman-hours accordingly.
This is the second consecutive year where your company gets MSE 1 rating for HighestFinancial and operational Strength in SME segment by CRISIL. We have declared dividend forthe past two consecutive years but this year board has not recommended dividend so as toplough back the earnings for future growth of the business of the company. Your companyhas no debt and so it's a debt free company.
This is to note that average realization price of the machine will be increased byfocusing and selling of higher values machines like HMC and VTL.
During the year your company has dispatched total 404 machines to various sectorswhich include Defence sector Education sector Research sector and exported machine toNigeria.
You must be aware of present economic conditions of our country. This year Indianeconomy struggles and as per the RBI data The GDP growth for the full financial yearreached 4.2% YoY after growing at 6.1% in the previous year. In the last quarter offinancial year GDP rate recorded at 3.1% which is lowest growth recorded sinceJanuary-March 2009. All the 23 industrial groups within the manufacturing sector recordeda negative growth this year.
Dear Members this is to inform you that due to the present bilateral situation ofcountry with China and resulting policy change by government of India to make our countryself-reliant in manufacturing of the goods domestically by promoting the ATMANIRBHARBHARAT INITIATIVE we are expecting huge demand from the Defence sector aircraftISRO DRDO etc. for tender business. As it is evident that government has already startedto take related policy decisions such as :
a) Banning bidding of foreign bidders/imported items in tenders less than 200Cr value
b) Adding domestic preference clause in all tenders
c) Identifying 101 items of defense to be manufactured locally
d) MSME department working on leveraging the MSME sector by various initiatives.
The result of these actions is also started getting realized in terms of speed incompleting the evaluation of tenders and floating of new tenders. We have already receivedorders for more than 12 Cr for this financial year and at present around more than 176 Crof tenders are under evaluation.
This is to inform you that as on today for current financial year we have receivedtotal of 440 machine orders from domestic market having value of 60 Cr. Approx. andreceived advance of 6 Cr. Approx. for the said order.
The objective of Central Government's "Make in India" intuitive is to ensurethat manufacturing sector which contributes around 15% of country's Gross DomesticProducts to increase up to 25% in next few years and this will also boost the morale ofthe entire Manufacturing industry including Machine Tools Manufacturing industry at alarger scale.
Manpower and its progressive team rmly believes in hard work dedication and very muchassure about the future growth of the company.
Your company always believes in creating value for each and every stakeholders of thecompany.
I would like to take this opportunity to thank all the stakeholders I thank all theBoard members for helping me in creating good governance culture across the organizationand full filling the responsibilities of the Board. I would like to place on record thesincerity hard work commitment and dedication of all the employees.
It will certainly be our endeavor to put in our best efforts for sustained growthexpansion and prosperity of the Company benefitting all stakeholders.
Thank you and Jai Hind! Regards
|Rupesh Mehta |
|Chairman & Managing Director |