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MSL Industries Ltd.

BSE: 513242 Sector: Industrials
BSE 05:30 | 01 Jan MSL Industries Ltd
NSE 05:30 | 01 Jan MSL Industries Ltd

MSL Industries Ltd. (MSLIND) - Chairman Speech

Company chairman speech

1997 MSL INDUSTRIES LIMITED CHAIRMAN SPEECH 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 Company. 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 history. 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 process. 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. JAI-HIND Yours sincerely, (H. K. Modi) Chairman & Managing Director