ORIENT PRESS LIMITED
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 :
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
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
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
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.
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.
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.
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.
Chairman & Managing Director
Place : Tarapur
Dated : 30th September, 1996