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Taneja Aerospace & Aviation Ltd.

BSE: 522229 Sector: Engineering
NSE: TANEJAERO ISIN Code: INE692C01020
BSE 12:14 | 22 Jun 42.30 0.15
(0.36%)
OPEN

43.00

HIGH

43.50

LOW

41.75

NSE 05:30 | 01 Jan Taneja Aerospace & Aviation Ltd
OPEN 43.00
PREVIOUS CLOSE 42.15
VOLUME 6080
52-Week high 76.70
52-Week low 40.00
P/E 705.00
Mkt Cap.(Rs cr) 106
Buy Price 41.80
Buy Qty 125.00
Sell Price 42.30
Sell Qty 73.00
OPEN 43.00
CLOSE 42.15
VOLUME 6080
52-Week high 76.70
52-Week low 40.00
P/E 705.00
Mkt Cap.(Rs cr) 106
Buy Price 41.80
Buy Qty 125.00
Sell Price 42.30
Sell Qty 73.00

Taneja Aerospace & Aviation Ltd. (TANEJAERO) - Chairman Speech

Company chairman speech

TANEJA AEROSPACE AND AVIATION LIMITED ANNUAL REPORT 2004-2005 CHAIRMAN'S REPORT Dear Shareholders, It is indeed very gratifying to note and review the performance of the Company in the last year ending March 06. The turnover of the Company increased from Rs.13.46 Crore in 04/05 to Rs.22.24 Crore in 05/06. During the same period the net Profit increased from Rs. 3.12 Crore to Rs. 6.03 Crore. This heartening rate of growth reflects the convergence of a variety of positive factors - the efforts and investments that TAAL has made through trying times, the diversified technologies and capabilities that it has developed and, of course, the economic environment which is now vastly more conducive to the growth of the aircraft industry than in prior years. More importantly, it reflects the competitive strengths that the Company has been able to develop and the foothold that it has managed to secure in a number of growth sectors of the aviation industry. Given this positioning and given the robust foundation that has been laid, we believe the Company has every reason to look forward to a bright, exciting and rewarding future. As most of you would be aware, TAAL is present in three principal business segments, the manufacture of Aerostructures (aircraftparts and assemblies), aircraft sales (currently including P68C and Cessna aircraft) and aircraft maintenance, repair and overhaul (often referred to in the industry as MRO). In each of these areas, within India, TAAL enjoys certain competitive advantages be it in terms of infrastructure or be it in terms of a set of unique capabilities resulting from a first mover advantage. Going forward TAAL's growth strategy hinges on using these advantages to establish itself as a 'Centre of Excellence' or as a Leader in each of these sectors. On the aerostructures front the principal growth drivers are the Offset Policies proposed by the Ministry of Commerce and the Ministry of Defence (whereby foreign suppliers of aircraft are required to offset their supplies with purchases of aeronautical products from India) and the increased impetus to outsouyce by domestic organizations such as ISRO and HAL. As one of the first private sector entrants in this sector TAAL enjoys a substantial first mover advantage in terms of capabilities, relationships with customers and industry knowledge. Over the next six months your company intends to roll out an ambitious plan to capitalize on these opportunities and advantages and establish itself firmly as a global player in this arena. The excitement and the growth in the MRO segment stems, as you would expect, from the rapid and sustained growth in the airline industry. TAAL's key strengths in this area include its past experience and the infrastructure that the Company owns. TAAL's airfield at Hosur has recently been upgraded to be able to accept an Airbus A320 or Boeing 737 class of aircraft. Simultaneously, a hangar has been built that can accommodate such aircraft. Recently the Company has entered into an agreement with a leading courier company for the maintenance and operation of their three BAE ATP aircraft. These aircraft have now arrived in India and are ready to enter service. This year the Company shall also launch an Approved Service Center for Cessna Citation Business Jets. TAAL is currently in discussions with a number of potential partners for setting up a full fledged MRO, facility at its airfield. We expect the outcome of such discussions to be known within the next six months. The interest in business aircraft continues to be strong and with the economy on a stable footing we expect this trend to continue. Increasingly, companies as well as individuals are beginning to place value on their time and are therefore beginning to realize the benefits of a private aircraft. As the sole Indian representative of the Cessna Aircraft Company for their Citation range of Business Jets and the Caravan aircraft, TAAL enjoys a very strong positioning in the market and is therefore certain to benefit from the tailwinds in this sector: To facilitate all of the above TAAL has embarked on an aggressive HRD initiative. A number of executives have been recruited at middle to senior levels and they now form part of a very motivated and diverse team that will be responsible for driving the Company into the future. In short, the future looks exciting and every effort is being made to convert this excitement into real growth. We look forward to the continued support of our customers, banks, financial institutions and shareholders in bringing these aspirations to fruition. Thank you, Salil Taneja Pune, June 30, 2006 Chairman