PENNAR ALUMINIUM COMPANY LIMITED
It gives me great pleasure to welcome you to the Annual General Meeting of
During the last four years, India has introduced major reforms to expand
the productive capacity of the economy. However, there has been a liquidity
crisis in the Indian economy during the year. This has affected the growth
of the industry in particular and the economy in general. The new
Government's commitment to continue the economic reforms and liberalization
and reducing import duties has removed the economic barriers and the
Indian Industry has to operate against strong foreign competition. Your
Company is gearing itself to withstand this competition. The rates of
Import Duty on Aluminium Semi-fabricated Products have come down from 105%
during 1991-92 to 20% by 1996-97 which,has major implications for Indian
Aluminium Semi-fabricated Industry.
The Company's emphasis on product quality continues. The Company's Strip
Division achieved a significant milestone in this area by being certified
for ISO 9002 by RWTUV, Germany in April 1996. You are aware that the
Company's Conductor Division is already the holder of ISO 9002
certification from June '95. However due to the recession being faced by
the industry, the performance of the Company showed only marginal
improvement over the previous year. The concentration on value added
products and the international quality certification obtained by the
Company would enable the Company to improve the exports during the coming
I take this opportunity to thank banks, financial institutions, suppliers
and customers for their sustained support to the Company.
I would like to thank all the shareholders for the support and cooperation
they have extended to us.
Place : Hyderabad
Dated : 14th August, 1996.