Protchem Industries (India) Ltd.
||ISIN Code: INE819D01019
05:30 | 01 Jan
Protchem Industries (India) Ltd
05:30 | 01 Jan
Protchem Industries (India) Ltd
Protchem Industries (India) Ltd. (PROTCHEMINDSI) - Chairman Speech
Company chairman speech
PROTCHEM INDUSTRY (INDIA) LTD
It gives me great pleasure to extend a warm welcome to all of you for the
Seventh Annual General Meeting of your Company. The Director's Report and
the Audited Accounts for the year ended 31st March 1994 have already been
with you for some time now and wish your permission, I shall take them as
Your Company's Performance
You would have noticed from the report of your Director's that your Company
had to work under very difficulty conditions during the year under review.
Continuing demand recession, steep fall in prices of products due to dumping
of sub-standrad quality porducts by producers from the Republic od China,
shrp increase in input costs and interest on borrowed funds impacted
adversely on your company's operation at a time when it had overcome all its
process and equipment related problem through its own intensive in-house R &
D efforts and was poised to operate its plant facilities at very high levels
of capacity utilisation.
It is often said that Tough Times do not last but Tough Prople do. I am glad
to say that you have a tough and courageous management which could overcome
all these problem with characteristic foresight, planning and resolution.
In this task, they were ably assisted by a highly porfessional and involved
Board of Directors.
I am also glad to say that the current years operations tend to slow a
significant improvement. By virtue of superior quality of its products your
Company could create a 'niche' market in quanlity conscious and
discriminative buyer's from Europe and Japan. As a result of this, the
prices have started to show an important trend.
On the other hand, operating costs, are being contained through productivity
increase and energy conservation measures. Sales revenue will increase
further through development of new products, improve quality and market
orinted selling. Your Companys request for reduction in interest rates on
borrowed funds are also under the active consideration of Financial
Institutions. The impact of all these favourable development will be
reflected in a significant improvement in the bottom line of your Company's
operations during the current year.
Through vigorous in-house R & D efforts, your Company could succeed in
developing a high value Hydrolysed Vegetable Protein (HVP) product for ahich
there is a large and growing market in Europe. To further refine the process
technology, to meet the stringent international standards of quantity and
facilities entry into the European markets your, Company has entered into a
Mamorandum of Understanding with M/s HACO Limited, Switzerland, a world renowned manufacture of food products. The porduction of this products will
maximise the utilisation of the Spray Drier and facilitate operation of all
its facilities at high levels of capacity utilisation with beneficial effects
on costs. It is a recognised fact today that success in the global market is
not based on a nation's natural resources or cheap labour but on deliberate
choices of right technologies to effective complete in the international
market. Constant improvement and innovation in product design, process
technologies and management methods have become key variables which define
competitiveness of corporations. A key feature of the manufacturing
environment of hte late 1990s would be emphasis on quality, design,
flexibility, process technology and management methods. Considering the
above and to effective make a significant entry inot the international
market, your company has planned to get ISO 9000 certification bt 1956-96.
As afirst step your Company has sought the assistance of a professional
The Economic Environment
Globaliation as a term has not only gained universal currency, it has also
brought about brough about a radial shift in the structure and functioning of
contemporary industry and business. Globalisation has come to define the
competitive advantage of nations in terms of their ability to complete and
survive in the global market, going beyond National, Political and Cultural
boundraies. In other words one of the most enduring tests of an ecnomy's
comparative advantage is its ability to be a global player, which it can
sustain only by exports ot the global market.
To stand up to this Indian Companies should anticipate what is likely to
happen in the future and take advance action to prepare themselves for
meeting the sitution. They must continuously diagnose and analyse their
relevent environment and design their strategic in the light of that. They
need to define fro themselves a global vision and develop strategies coherent
with vision. They have to build the muscle to lift themselves by their
bootstraps to complete head-on with the world's best. In a sence, the
various difficulties your Company faced during th past served to toughen the
will and the muscles of your management team which is a tough core already.
I am happy to say that your Company is now adequately equipped to stand up to
the emerging situations and shows vastly improved results in the years to
I would like to thank my collagues on the Bound for their valuable guidance
and support. My sincere thanks to Canara Bank and Financial Institution and
by IDBI, the Governments of hte Union Territory of Pondicherry and at the
Centre and the Development Commissioner Madras for their co-operation
guidance and support.
Despite the difficult conditional we have gone through during the year under
review our Executive, Staff and Employees at all levels have responded
positively and spontaneously to the one our demands placed on them. And I
would like to thank them for their commitement and contribution.
Finally I wish to thank each and every one of you our shareholder, for having
steadfastly stood by the Company over the years, ever supporting and encouraging I look forward to your continuing support guidance and
encouragement to our plans and programmers aimed at taking your Company to
higher levels of performance and profitability in the years to come.
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