TRANSPORT CORPORATION OF INDIA LIMITED
TO THE SHAREHOLDERS
Ladies & Gentlemen,
It gives me great pleasure to welcome you all to the 29th Annual General
Meeting of the company.
SUCESSFUL PUBLIC-CUM_RIGHTS ISSUE
At the outset, the Directors and myself take this opportunity to thank all
shareholders and investors for the overwhelming response to your company's
Public-cum-Rights Issue. The Public Issue was oversubscribed by over 25
times. This was despite a cap of 10,000 PCDs per application. The Rights
Issue was also tully subscribed. The issue was floated to linance the
purchase ot conventional trucks, relrigerated trucks, cars tor Wheels Rent-A-
Car division, land, buildings, computers and other assets to strengthen the
infrastructure of the company.
A Significant Year of Performance
The year 1993-94 has been another promising 350 year for your company. The
gross revenue of the company for the year ended 31st March, 1994 records a
phenomenal 37% growth and stands 300 at Rs. 266 Crores as against Rs. 194
Crores in the previous year. Net profit after tax also increased by 19%, from
Rs. 3.41 Crores to 50 Rs. 4.07 Crores. Your Directors are pleased to
recommend a dividend of 21% maintained at 200 earlier level even after
enhanced capital on account of Bonus Issue last year.
The Changing Global Scene
The Indian Economy is undergoing rapid changes. The transport industry is
witnessing a major boom largely due to the liberahsation of the economy and
unprecedented growth in exports and coming in of MNCs. As long as the exports
grow and Industrial development prospers, the transport sector considered as
the backbone ot the industry will be required to service the need tor quick
and reliable communication and distribution. This is in consonance with the
changes in the global scenario. On account ot such far-reaching changes,
companies are today restructuring their plans with a greater vision, vigour
and vitality. Indeed the Indian Industry is now more competitive and market
oriented than ever before with the revolution taking place in the economy.
The transport industry in India will certainly see tremendous growth.
However, there are major issues to be addressed to by the government for the
transpon industry, primarily the enhancement of funds for building and
maintenance of roads which is only 35% ot the revenue earned from transport
related taxes & levies as compared to 95% in the U.S.A. Classification ot the
road transport sector as industry has still not been done despite the tact
that this is an over Rs. 10,000 Crores estimated industry.
Also the highway patrols need to be strengthened as losses due to theft and
pilterage lead to huge tinancial losses to the industry as a whole and cause
customer dissatisfaction .
PROVIDING THE RIGHT RESPONSE
In this fast changing context, your company has sought to redetine its
targets and game plans. Such efforts would consolidate the business and
expand its operations to more areas ot the competitive market and with the
inbuilt management philosophy ot ethical business practices and constant
adaptation to change.
Your company is endeavouring to exploit new opportunities for growth and
success in chosen fields.
This calls for offering multiple service options, aggressive Customer Service
and a competitive edge.
DIFERSIFYING FOR GROWTH
Your company has stood the test of time tor 36 years and has established
itselt as a multi-taceted and multi- locational organisation.
TRANSPORT DIVISION: has recorded a 19% increase in turnover despite two
nationwide transport strikes. As a leading name, your company has embarked on
a plan to modernise its fleet ot 400 trucks. It is also venturing into the
refrigerated cargo transport sector.
SHIPPING DIVISION: has recorded an impressive 23% increase in turnover over
the previous year. With the acquisition of its tourth vessel, its earnings
are poised to grow turther in the coming years.
GATI: Your company's small cargo specialist division has strongly established
itselt as the leader in the market. The organised express industry in India
estimated at approximately Rs. 350 Crores per annum with a projected
annualised growth rate ot 35% is also witnessing the winds ot liberalisation
and a future full of promise. It is anticipated that the industry will touch
a turnover of Rs. 1,000 Crores before the turn of the century and Gati is on
the tast track to meet the challenge of this industry. Today the Gati
network spans over 450 locations all over India.
Wheels Rent-A-Car / Transcorp Bureau D' Exchange:
With liberalisation of our Economy and coming ot MNCs we also see a boost in
tourism industry which has a direct tollow-on our Rent-a-Car division which
is growinq steadily and the company's money changer division, Transcorp
Bureau D' EIchange which has rapidly expanded its business operations. It is
currently operational in six cities - Delhi, Calcutta, Bangalore, Hyderabad,
Jaipur and Bombay.
FOREIGN EXCHANGE EARNINGS
Your company has put up a remarkable performance in its toreign exchange earnings for the year 1993-94 which amounts to Rs. 4.47 Crores.
With an eye on the future, your company has drawn up comprehensive plans to
propel the organisation to greater heights through induction of new
technologies, resource acquisition, improvement of infrastructural
facilities, modernisation plans ensuring customer satisfaction and above all
enhancing skills of our people by extensive training inputs and creating a
work atmosphere highly conducive to growth. All efforts are being made to
implement these changes within the fixed time schedules so that funds raised
are efficiently and expeditiously utilised.
TCI continues to capitalise new opportunities and ride into a glorious future
with confidence. Before I close I would like to extend my thanks to
shareholders and investors for their constant support. I would also like to
thank our Customers, Financial Institutions, Banks and employees for their
S N AGARWAL