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Technocraft Industries (India) Ltd.

BSE: 532804 Sector: Metals & Mining
NSE: TIIL ISIN Code: INE545H01011
BSE 00:00 | 17 Feb 315.75 0.85
(0.27%)
OPEN

312.55

HIGH

322.00

LOW

309.60

NSE 00:00 | 17 Feb 315.35 -1.05
(-0.33%)
OPEN

311.75

HIGH

328.00

LOW

305.00

OPEN 312.55
PREVIOUS CLOSE 314.90
VOLUME 950
52-Week high 581.00
52-Week low 281.00
P/E 7.60
Mkt Cap.(Rs cr) 772
Buy Price 315.75
Buy Qty 69.00
Sell Price 329.00
Sell Qty 1.00
OPEN 312.55
CLOSE 314.90
VOLUME 950
52-Week high 581.00
52-Week low 281.00
P/E 7.60
Mkt Cap.(Rs cr) 772
Buy Price 315.75
Buy Qty 69.00
Sell Price 329.00
Sell Qty 1.00

Technocraft Industries (India) Ltd. (TIIL) - Chairman Speech

Company chairman speech

TECHNOCRAFT INDUSTRIES (INDIA) LIMITED ANNUAL REPORT 2007-2008 CHAIRMAN'S REPORT Dear Shareholders The Indian economy continued to register impressive GDP growth, although the rate of growth declined marginally over the previous year, reflecting inflationary trends driven by the increase in the cost of energy and raw material. The level of industrial activity has also begun to decline as a result of fiscal constraints imposed on money supply and the raising of interest rate along with sub prime crises. Despite of these adverse factors, your company's performance has been satisfactory. I am pleased to report that your company continues to perform on sustained basis and it has enabled to demonstrate its robust business model with strong, satisfactory results for the year 2007-2008. The company aims to tap the Chinese market of drum closure and scaffolding. Company is setting up a new plant in Anhui, China for manufacturing of steel scaffolding systems in the first phase and then drums closures in the second phase. A new wholly owned subsidiary company has been set up for this called Anhui Reliable Steel Technology Co in Anhui province near Nanjing. We have already acquired 35000 sq meters land and construction of factory building is under progress. Production is schedule to start in the first quarter of 2009-10. Amalgamation of Danube Fashions Limited, with the company rests pending with Hon'ble High Court, Mumbai. On application of the company, Registrar of Companies, Mumbai has granted two months extension to hold Annul General Meeting for year ended 2008. Yarn Division I am pleased to inform you that almost all our projects as envisaged in our IPO prospectus are well within the time schedule as well as within the budgeted costs. The second Yarn Mill consisting of 25,000 spindles has already been commissioned in August 2007. The Mill is equipped with most modern equipment from world's leading suppliers like Trutzschler, Toyota, Murata, etc. The production of yarn increased from 6307.75 M.T. to 8579.70 M.T. during the year 2007-2008. The new Yarn Mill is likely to add about Rs. 70 crores annually to the top line of the company. Since the mill is located in the existing premises, we expect a substantial saving of overheads through greater efficiency and cost reduction. Scaffolding Due to severe volatility in steel prices, tube and scaffolding division passed through some testing times. I am pleased to inform you that we are able to procure reasonable stocks of steel in order to tide over sudden spurts in steel prices. The project for increasing the capacity of scaffolding has also been implemented. This has resulted in substantial increase in conversion of steel tubes into value added high precision scaffoldings. The forging plant for manufacture of in house forged components has been commissioned. These projects will improve the bottom line of scaffolding division substantially. Your company has made a breakthrough in the US and Latin American markets and has started supplying to the biggest scaffolding contractor in the world. This will give us a strong foothold in these markets. Drum Closure: Your company continues to be the pre-eminent global player in drum closure and continue to stand as the 2nd largest manufacturer in the world. Upgradation and expansion of drum closure division has almost been completed. Power Division 15 MW power plant is ready but due to some civil disturbance, the commissioning is delayed. We are in the process to resolve the problem with the local authorities and other concern people, to start the operations of plant. Once it is done, it will not only save substantial cost but also the income from the power division will be tax-free. We expect to add about Rs. 10 crores to the bottom line of your company after commissioning of power plant. Friends, we consider you as our partners. We would very much appreciate your views and guidance on our projects and possible growth opportunities. I am sure, as a team, we can create grow and prosper together. Before I conclude I would like to convey my heartiest greetings and very best wishes for Diwali and prosperous New Year Best Regards, M.D. Saraf (Chairman)