You are here » Home » Companies » Company Overview » Orient Press Ltd

Orient Press Ltd.

BSE: 526325 Sector: Industrials
NSE: ORIENTLTD ISIN Code: INE609C01024
BSE 12:55 | 22 Feb 148.90 -0.10
(-0.07%)
OPEN

163.50

HIGH

163.50

LOW

148.90

NSE 13:02 | 22 Feb 145.95 9.85
(7.24%)
OPEN

143.95

HIGH

146.95

LOW

127.80

OPEN 163.50
PREVIOUS CLOSE 149.00
VOLUME 20
52-Week high 445.95
52-Week low 143.60
P/E 236.35
Mkt Cap.(Rs cr) 149
Buy Price 134.15
Buy Qty 25.00
Sell Price 146.00
Sell Qty 19.00
OPEN 163.50
CLOSE 149.00
VOLUME 20
52-Week high 445.95
52-Week low 143.60
P/E 236.35
Mkt Cap.(Rs cr) 149
Buy Price 134.15
Buy Qty 25.00
Sell Price 146.00
Sell Qty 19.00

Orient Press Ltd. (ORIENTLTD) - Chairman Speech

Company chairman speech

1996 ORIENT PRESS LIMITED CHAIRMAN'S STATEMENT It gives me great pleasure to welcome you. all to the 9th Annual General Meeting of your Company. The Annual Report with the Audited Accounts and the Directors' Report for the year ended 31st March, 1996, as already sent, must have been received by you. May I, therefore, have your permission to take the same as read. INDIAN ECONOMY : AN OVERVIEW The 1990s is now the acknowledged age of consumerism. The entry of multinational corporations in every segment of industry only bears this out. Even in the printing and packaging industry, this has raised levels of competition, on the one hand, and on the other hand, higher standards of sophisticated packaging on the part of the consumer. Your Company, in the past year, faced these challenges boldly and with renewed commitment and the results are before. you. The economy during the fiscal year 1995-96 performed extremely well, with an impressive growth in GDP. Agricultural production grew by only 0.9%, whereas industrial production showed a robust increase of 12.4%. This caused a perceptible fall in inflation from double digits to less than 5% in June, 1996. There has been a sustained growth in exports and the current account deficit as a GDP proportion reduced considerably. During the previous five years there has been a noticeable increase in, direct foreign investment. This augurs well for the Indian economy. However, the increase in prime lending rates and real interest rates ruling in the range of 18% to 21% may retard the creation of capital assets and consequently industrial production. The first Budget presented by our Hon. Finance Minister of the multi-party alliance government of the United Front, has reaffirmed the faith that economic reforms of the previous government would be continued. The pragmatic budgetary proposals reducing the corporate surcharge to half the rate, bringing down of long term Capital Gains Tax rate and fiscal incentives given for development of infrastructure industry have rekindled hope among corporate circles and are expected to give a boost to the economy. YOUR COMPANY'S PERFORMANCE The year 1995-96 was one of mixed results for your Company. Despite a glut in the capital issue market, your Company did not lag behind but instead bagged the top ranking position amongst public issue stationery printers in the country for a record 7th consecutive year. Not content with this, your Company also reached a premier position amongst Rights Issue Stationery Printers in the country, the ranking having been started for first time by PRIME, the data collecting agency. The net worth of the Company has doubled during the previous two years at Rs. 3,513 lakhs with Book Value per share of Rs. 58.55 on 31.03.96. Similarly, net fixed assets have increased five-fold from Rs. 990 lakhs on 31.03.94 to Rs. 5,238 lakhs on 31.03.96, showing a strong asset base of the Company. The Printing Division of your Company showed a satisfactory performance with a turnover of Rs. 2,889 lakhs and Gross Profit of Rs. 1,253 lakhs. Your Company has achieved this significant success due to its continuing accent on producing quality products. In fact, last year alone, your Company's quest for quality printing of Annual-Reports for almost 130 quality conscious corporates added to its income. Security printing of share and debenture certificates and MICR instruments continue to be yet another forte of your Company's product range. Another division of your Company - Flexible Packaging Division - produces flexible packaging products. Although in the previous year the sales could not rise to the desired level, the order book position as on the day enthuses me to inform you that this division is expected to make profit from the current year onwards. This Division has procured substantial orders from clients such as Hindustan Lever, Britannia, Brooke Bond Lipton, Tata Tea, Smithkline Beecham, Dabur, Godfrey Phillips, etc., whose demand is for international standard quality. This project has been implemented fully with state-of-the art machinery and process technology. Production, quality and market penetration have stabilised. This augurs well for substantial growth in the next two years. NEW PROJECT It gives me immense pleasure to inform you, ladies and gentlemen, that your Company has successfully implemented. a project for manufacturing Multicolour Paper Board Cartons at Silvassa (U.T.) in just 11 months. Commercial production commenced here since 14.09.96. This new project, with an outlay of Rs. 1,635 lakhs has been funded through internal accruals and loans from IFCI. State-of-the-art machinery for this project has been imported for the first time by any Company in the country. PROSPECTS FOR THE CURRENT YEAR Sales for the current six months' at Rs. 2200 lakhs (based on five months' actual and one month's forecast an increase of 80% as compared to last year) gives us reason to believe that the working results of your Company for the current financial year are satisfactory. You, our valued shareholders, must have noticed a very significant growth in the issue of debt instruments (Security Bonds) by financial institutions and corporates during the recent months. Your Company, renowned for its quality products, procured sufficient business from this segment to offset any deficiency from the primary market of capital issues. You will be happy to know that your Company has printed bonds and related stationery for ICICI SCICI, IFCI, TISCO, L&T and GLFL. Further, in the coming months, your Company will be printing bonds and shares - related materials for corporates like Bharat Petroleum, Dena Bank, Modern Threads, Maharashtra Krishna Valley Corporation, IPCL, Nuclear Power Corporation and Konkan Railway. With the existing infrastructure, your Company is capable of taking up many mega issues in the next six months. During the current year, your Company was empanelled by the Indian Railways and has already undertaken printing of railway tickets for Central, Western and Eastern Railways. The Railway timetable for the Western Railway is also being printed by your Company. Further, your Company expects all-round growth in its various divisions and to double its turnover in the current year. FUTURE AHEAD Your Company, equipped with three projects manufacturing diversified products, is focussing on the printing & packaging business and is now consolidating its position. Already having attained a stronghold in the printing business by ranking No. 1 in the country, your Company is confident of reaching a significant level of profitability in the Flexible Packaging Products business too. The business prospects in the allied line of paper board cartons' manufacture appear to be very bright as the customers for these products come from the Company's established business line of printing and flexible packaging products. As all the product diversification plans of the Company undertaken at substantial capital expenditure and debt financing in the last two years will be fully operational high rates of growth in turnover and earnings are expected in the next two to three years. Upon consolidation of existing business lines, your Company will take up expansion of its Multi-colour paper board carton project and identify suitable opportunities of growth in related areas. ACKNOWLEDGEMENT I sincerely appreciate the support, trust and continuous cooperation reposed by you in us, our esteemed co-owners, employees, Company's bankers, financial institutions and agencies of the Government. Thank you. R.V. Maheshwari Chairman & Managing Director Place : Tarapur Dated : 30th September, 1996