MSL INDUSTRIES LIMITED
At the outset I must thank you all for having been the members of this
small family for the last several years. In this Golden Jubilee Year of our
Nation's Independence and the Silver Jubilee year of your Company, permit
me to share with you some thoughts on the past and the future of your
During the last 50 years, our Nation has made tremendous progress in
several areas to become one of the leading economic and industrial powers
in the region. Let us all unite and dedicate our services to our Nation
towards its speedy development and eradication of poverty.
25 years ago, your Company made a modest beginning to meet the basic needs
of our country. We identified products in the area of import substitutes
and focussed our activities on the Telecom Sector & Packaging Sector which
have yielded excellent benefits to your Company. With this objective the
Company played a pioneering role in the development of its products to
become a market leader in the following areas:
(a) Galvanised Steel Strips
(b) Hi-Tech Polymer Compounds and
(c) High Tensile Steel Strappings.
The financial results of your Company have always presented a bright
picture of sound financial health and constant growth.
Last year, the Company came out with a Rights Issue for which it received
your overwhelming support notwithstanding a very depressed market for which
we are sincerely thankful to you.
In 1996-97, the country witnessed substantial upheavals on the political
and economic fronts. The Telecom fiasco had severe repercussions on the
Telecom Cable Industry. DoT was unable to release any orders for virtually
four to five months. Despite these set-backs, your Company has been able to
generate higher profits in an effectively shorter operating period and has
recommended dividend @ 35% (tax-free), the highest in the Company's
We had proposed to set up a Plant to manufacture Hi-Tech Polymer Compounds
used in the manufacture of Power Cables. The Power Sector was at that time
and is even today, on top priority in the country. The Government of India
has budgeted over Rs. 40 billion for investment in this sector. This would
have meant a sharp increase in the demand for Power Cables and consequently
for the proposed products. Unfortunately, the proposed fast-track projects
have failed to take off and all the State Electricity Boards are in a sorry
financial state. The demand in the Power Cable Industry has failed to
materialise and the fortunes of this Industry have undergone a sea-change
for the worse. Under these unfortunate circumstances and political
uncertainties, your Board of Directors has thought it fit to put on hold
the implementation of the project for the time being. The Industrial Front
is sure to take a turn for the better with some more political stability at
the Centre after some time.
At MSL growth through expansion, modernisation, diversification and forward
integration projects have been, and will continue to be, an on going
Manufacturing materials of quality to conform with international standards,
servicing the end-users and building meaningful relations have helped to
engender "Trust" in the company. Its happy relationship with all the Banks
& Financial Institutions deserves special mention.
Over the years the Company has built a very strong and dedicated work-force
to form an integral part of the Company. This has helped to bring the
Company to its present level of strength. Despite the industrial
sluggishness prevailing during the year, MSL is well poised to emerge ever
stronger in the years to come. The future is certain to be bright.
I thank you all once again for your kind co-operation and support in the
years gone by. I sincerely hope to continue a long-lasting and mutually
rewarding partnership with you in a Company in which QUALITY, SERVICE &
PROSPERITY is the motto.
(H. K. Modi)
Chairman & Managing Director