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Munjal Auto Industries Ltd.

BSE: 520059 Sector: Auto
NSE: MUNJALAU ISIN Code: INE672B01032
BSE 15:00 | 16 Nov 57.15 -0.55
(-0.95%)
OPEN

57.75

HIGH

58.35

LOW

57.00

NSE 14:54 | 16 Nov 56.95 -1.00
(-1.73%)
OPEN

58.30

HIGH

58.35

LOW

56.75

OPEN 57.75
PREVIOUS CLOSE 57.70
VOLUME 3968
52-Week high 97.60
52-Week low 49.30
P/E 15.74
Mkt Cap.(Rs cr) 572
Buy Price 57.10
Buy Qty 16.00
Sell Price 57.30
Sell Qty 50.00
OPEN 57.75
CLOSE 57.70
VOLUME 3968
52-Week high 97.60
52-Week low 49.30
P/E 15.74
Mkt Cap.(Rs cr) 572
Buy Price 57.10
Buy Qty 16.00
Sell Price 57.30
Sell Qty 50.00

Munjal Auto Industries Ltd. (MUNJALAU) - Chairman Speech

Company chairman speech

Annual Report 1999-2000 GUJARAT CYCLES LIMITED Chairman's Statement Dear Shareholder, Your Company has ended the financial year 1999-2000 with a deep sense of satisfaction as for the first time since it went on stream, it has posted a positive bottomline figure of Rs. 282 lac. In the last few years, your Company has been through some rather difficult times. It not only had to grapple with the uncertain and highly competitive international bicycle business but also to bear the brunt of certain inherently disadvantageous factors of manufacturing bicycles at the existing location. The Company was declared as sick under the provisions of Sick Industrial Companies Act (SICA) in 1994 due to persistent loss incurrence and a scheme of revival was evolved and implemented under the aegis of Board for Industrial and Financial Reconstruction (BIFR) in 1996. Despite the implementation of the revival scheme which contained some reliefs and concessions and a huge infusion of funds from the promoter Hero Group, the Company could not come out of the woods, its operations remained sub-optimal and the losses continued to mount. In 1999, entire business strategy and operations of the Company were re-examined while reviewing the revival scheme's implementation and it transpired that the bicycle business continuance was not a viable proposition any more for the Company. There was a need to shift the business focus out of bicycle manufacturing and instead find and concentrate on some other related business area. After lot of deliberations and thanks largely to the tremendous support your Company was able to muster from its promoter Hero Group, it identified auto components manufacturing for two wheelers as the future mainstay of the business. New plans were worked out in the year 1999 and with the approval of BIFR, your Company has shifted, during this year, its focus of business to auto components manufacturing by utilising its existing infrastructure at Waghodia factory as well as setting up new manufacturing facilities at Binola, Haryatna State. At Waghodia, the Company is equipped to make sheet metal/plated/painted components and at Binola, it has set up facilities to make cold and warm forging components - both being important parts of motor cycles. Your Company has now become an important ancillary unit to Hero Honda Motors Ltd., (HHML), the largest manufacturer of motor cycles in India. The motor cycle industry in India and in particular, HHML is growing at a healthy rate and as per the current indications, the trend is likely to remain this way or become even stronger in the coming years. Your Company's change in the focus of business has thus been fructuous as can be gauged from this Annual Report document in your hand. With the new strategy of business having been put through successfully and strong growth prospects of business of auto components for motor cycles, let me assure you that your Company is poised to reap its benefits in the future years. Whilst promoter Hero Group's unstinted support and commitment to your Company formed a bedrock of the turnaround of its fortune, the continuing patience of you - the shareholders has been a comforting feature in the period of trials and tribulations it underwent in the last couple of years. What propelled us to keep trying harder and keep going was your this tacit support and underlying it all our essential belief that we serve an important constituent: our shareholders. I would also like to acknowledge the efforts of GCL Team which kept working hard to meet the challenges with true display of spirit and grit that helped the Company stay afloat amidst trying times. Let's look back at being able to put through those difficult times with a sense of gratification and look ahead with a sanguine belief in ourselves and let us together rededicate our efforts and energy in pursuit of a more rewarding and exciting future of your Company. SATYANAND MUNJAL CHAIRMAN