On the outset I thank all the members of Omax family for choosing me as the newChairman of the Company. I also thank all stakeholders for being supportive to themanagement through its journey of over 35 years. As the Chairman of the Company this ismy first communication with you through the 35th Annual Report of the Company; I feelprivileged and take this opportunity to share my understanding of the Company and ourfuture road maps for the growth of the Company.
While reviewing the history of the company I found Omax has a great history ofbusiness growth and sustainability. After its incorporation in 1983 the Companyestablished its first manufacturing unit in 1985 and after that there was no lookingback. During the period from 1985 to 2008 Company added one unit almost every two-threeyears. The Company added many new products & customers to its portfolio. New customerslike TVS Honda Tenneco Tata Ashok Leyland were added which spanned acrossgeographical regions. Till 2012 Company witnessed rapid growth both operationally andfinancially; and reached many milestones. The total revenue which was around Rs. 430 Cr.in 2004 tripled to reach Rs. 1297 Cr in 2012. However it seems somehow we lost steamafterwards. The revenue has been hovering around Rs. 1100 Cr. for last 5-6 years.
When we introspected we realized that while we were growing we did not put much focuson certain risk factors which later became sore points for us. We realized that ourbusiness has been predominantly dependent on 2W OEMs. Further in this segment also wewere majorly dependent on a single customer. Hence with de-growth of business with thiscustomer the overall business of the Company also got affected. Further this businesswas predominantly based in northern part of the country. There was not enough geographicaldiversification in this business segment. Hence we could not reach many importantcustomers who were operating from other geographical areas. Another issue was thatmargins in the businesses wherein we were primarily engaged were not high. Which alsoaffected our business growth.
But I am very happy to know that the management of the Company has again pulled up itssocks and resolved to bring back the past glory to the Company. Now it has redesigned andrealigned its vision Ft focus and is striving to develop Omax as an Engineering companywith high-end skills on R&D process industrial and value engineering Fortunatelythe Company had started laying seeds in other business areas in the past which have nowstarted bearing fruits. Customers in other categories viz. Commercial Vehicles &Passenger cars have all shown growth in business and have tremendous business potential.The Indian Railways as a customer has been growing exceptionally well. The turnover fromRailways almost doubled in the previous year compared to the preceding year. All thesebusiness areas have comparatively better margins and will strengthen our profitability andbusiness growth going forward.
Currently management has a vision to double the turnover of the CV PC & Railwaybusinesses in next 3-4 years. To attain this vision management has taken many strategicsteps. It has refocused on skill development of its work force. Further efforts are beingmade to ensure business is market and growth driven rather than internal business driven.
The CV business was predominantly based from one location and was manufacturing oneproduct category i.e. Frame. To diversify the business the Company has already enteredinto cabin part business and planning to do a turnover of Rs 40-50 Cr. of in the currentfiscal and with further expansions in coming years. The Company is also exploring otherproduct categories. In addition it has started to focus on ALand Pant Nagar as alocation. It is adding more process in the location. In south talks are going on withDaimler/AL Hosur to expand the business. In PC business efforts are being made toidentify and enter into high end machining items with high market potential. Currentlythe Company has two products where it has good share in Indian market viz. Piston Rods andAxle shaft. Company is now expanding and going after global markets. In addition talks aregoing on to add few high end products.
The Board of directors has already announced expansion plans for Railway business.Capacity expansion for manufacture of heavy fabrication products is in pipeline whichwill be implemented shortly. All these efforts are expected to bring fruits incomingtimes.
At this juncture the management needs your support. I as the Chairman of the Companywould give my full support & guidance to the management to bring back the Company toits earlier growth path. Let us join hands to achieve this common goal which will bringprosperity and happiness to all of us.
Last but not the least I take this opportunity to thank all the customers vendorsand shareholders for their unstinted support to the Company. Wish all the stake holders avery happy and prosperous festive season ahead.