I have the pleasure of addressing you on the Annual General Meeting on completion of 57years of business of McNally Bharat Engineering Company Limited. The company started witha humble beginning way back in 1961 and has completed more than 5 % decades and hascontinued its operation in spite of many hurdles. The company has never looked back on itsobstacles rather has tried to grab the opportunities even in the worst eventualities. Iremember a quote of Allen Breed Chairman and CEO of Breed Technologies INC (1995) whichreads -
"I never met a rich pessimist Entrepreneurs are people who understand littledifference between obstacle and opportunity and are able to turn both to theiradvantage."
No doubt your company has faced a serious setback in the last 5/6 years but I am morethan confident that this company shall be able to bring back its past glory.
Your company has experience and expertise in multiple fields be it core industry orinfrastructure and therefore a strategic business plan has been chalked out to usecompany's resources and talents in the fields where Government is planning its investmentwithin the next few years to come.
Based on drastic reduction in Government's spending in core sector industries i.e.Steel Thermal Power Cement Mines & Minerals and massive Govt. investment focused atinfrastructure building such as Highways Smart Cities Railways Environmental controlyour company has aligned its business strategy to diversify their operations in thesesegments of business. In line with Govt.'s new initiative "MAKE IN INDIA Defence andRailways are the sectors where all manufacturing companies are being facilitated foracquisition of technology and absorption thereof your company is gearing up to diversifytheir manufacturing facilities to meet such demands.
While the business strategy is focused at diversification to areas of Government'sspending and adopting policy changes of the Government to shift towards: "MAKE ININDIA" initiative your company has also planned to augment its financial resourcesand restructure the Balance Sheet to meet the financial requirements of the company forits existing operation as well as the new initiatives.
All of you are aware that 550 crore of capital has been infused in the previousfinancial year & in the current financial year 445 crore has been recapitalized toprotect the shareholders' fund. Company is also exploring the possibility of furtherrecapitalization during the current year by way of QIP/FPO/strategic investor and ifnecessary by selling noncore assets. The company is also in the process of deleveragingthe Balance Sheet. This exercise is expected to be completed by the financial year 2018-19to enable substantial improvement of financials of the company reduce borrowing cost& improve ratings.
You all are aware that company was not able to complete large number of projects due tovarious constraints which has resulted into serious discontentment in the mind of ourcustomers and erosion of goodwill. With concerted efforts and injection of resources itis expected that most of the projects shall be completed by June/September 2019. Thisinitiative has brought back the confidence of the customers to a great extent. Thebenefits of our initiatives are visible on the ground.
The action of your company in taking steps for completing the old projects has alsocreated a great sense of satisfaction in the mind of few important customers who havestarted awarding contracts which has resulted in securing nearly 1500 crore of orderswithin the last one year.
No doubt during the last few years most of the things were going against the companyyet with the determination of all the stakeholders the company has started reviving witha forward look.
"When everything seems to be going against you remember that aeroplane takes offagainst the wind not with it"
Last but not the least; I must express my sincere appreciation to all the employeessuppliers contractors customers and all other stakeholders who have patientlyco-operated at all times.
Chairman McNally Bharat Engineering Co. Ltd.