ANNUAL REPORT 2006-2007
India's growth prospects continue to be very positive. By registering a
12.3%, double digit growth in industrial production and 9.2% GDP growth in
the year under review, India has clearly proven that it is accelerating
towards becoming one of the world's leading economies.
Your Company is India's leading speciality steel long products
manufacturer, engineering to perfection and meeting the exacting standards
of domestic and now global customers, mostly automobile and auto-component
manufacturers. It has also emerged as one of the leading suppliers of
Electric Overhead Travelling cranes. The emphasis of the Company over the
years was to meet the requirements, in the above two areas, of the domestic
market but in the recent years the Company is broadening its customer base
to include the international markets as well.
The economic growth in India has spurred new investments in infrastructural
projects and capital goods. This phase of higher growth is likely to
sustain for many years to come. The Company has planned strategic tie-ups
with global brand leaders to become their preferred supplier of speciality
steel. The time has now come for your Company to be a supplier in different
areas of this expertise on the world map. Let me assure you that the
Company has the mental aptitude and experienced people to take it to these
Your Company is now in the midst of a sizeable investment programme,
results of which shall be visible from October this year. The investment
has not only been planned in increasing the manufacturing capacities but
also in backward integration to create stability in the costs of major
inputs like coke and power.
A number of quality up-gradation, value addition and forward integration
steps have also been initiated to enhance our global competitiveness. More
importantly, while recognising the importance of human resource development
to attract and retain the best talents, the Company has introduced a gain
sharing mechanism with its employees based on their improved performance.
Emerging successful from the few years of troubled times, your Company has
lived up to its personality and values, which is defined in the new logo
'MUKAND - Infinite resolve'.
Your Company is now on an accelerated growth path. The Board of Directors
has recommended payment of dividend of 10% on equity shares.
I join the shareholders in their sense of optimism for the Company's