I take great pleasure in extending a very warm welcome to all of you, to
the Thirtythird Annual General Meeting of your Company.
The reforms launched by our Government in 1991 with a view to stabilizing
the economy, increasing competitiveness and accelerating economic growth
have largely stayed on course during the past five years. Although some
adjustments and further acceleration may be necessary as the situation
evolves, what is significant is the continuing and strong commitment shown
by the general polity to reform and liberalisation of the economy.
Coming to your own Company, the year under review has been an year of
intense activity and significant achievements, the fruits of which will be
apparent in the years to come. The total income of Rs. 105.47 crores
recorded during the year showed only a marginal increase, due particularly
to the long term nature of project work undertaken by the Company.
I am happy to report that, as a result of its unremitting marketing
efforts, the Company had an order book of over Rs. 320 crores at the
beginning of this year, which is the highest ever, in the history of the
The Company's Product Group received certification under the ISO 9001
standards, and efforts are on to get the certification for the Project
Group. The relevance of quality is more pronounced today than ever before
and the stated policy of your Company is to achieve competitive dominance
in its business through continuous improvement in quality and skills.
The Company's plans for product development and technology upgradation made
marked progress during the year. The Company entered into a collaboration
with Messrs. Italimpianti, Italy, well known throughout the world for bulk
material handling equipment, with special reference to heavy and mobile
equipment like stackers, stacker-reclaimers, barrel reclaimers,
shiploaders, ship unloaders etc. The Company also signed a collaboration
with Messrs. Aubema of Germany for upgradation of its crusher range. As a
result, the Company now has access to a whole range of the state-of-art
technology and equipment in these areas.
The Company signed a Memorandum of Understanding with Messrs. Babcock
Material Handling Division GmbH of Germany (BMH) for Coal Dust Injection
System for Blast Furnaces and has recently been awarded two major orders
for such Systems from SAIL Bokaro and Bhilai respectively. This is yet
another diversification area which the Company has entered during the year.
The diversification area of manufacturing Stamp-Chafging-Pushing Machines
for Steel Plant Coke Ovens is also progressing satisfactorily with a
further order from Tata Steel currently under execution. The collaboration
agreement with Messrs. Saarberg Interplan of Germany for this technology
tie-up, has been renewed for a further ten years. The second phase of the
Steel Service Centre project, aimed primarily to cater to Tata Steel's
requirements, is coming up at its new location at Bara in Jamshedpur.
Tata Material Handling Systems Limited (formerly Tata MAN GHH Limited) have
considerable technology and expertise in the area of Material Handling
Equipment including Port Terminal Handling Facilities. In order to have a
synergy of operations in this area, it is considered advantageous to effect
a merger of TMHSL with TRF. The matter is under study and the details of
the scheme are being worked out. These will be placed before the
shareholders in due course.
The vital need today is to gear up with new capabilities and improved
competitive edge to grasp the opportunities and meet the challenges that
are emerging. The underlying focus as always should be to bring about a
qualitative improvement in the Company's responsiveness towards customers
I am sure that as a result of the above initiatives, the Company can look
forward to the future with greater optimism. I would like to compliment
the Managing Director and his team of executives and employees at all
levels for the progress achieved. I would especially like to thank the TRF
Labour Union for their supportive and constructive role. I wish to convey
my grateful thanks to our esteemed customers, Shareholders and bankers for
their continued support.
In conclusion, I wish to place on record my sincere gratitude to my
colleagues on the Board for their invaluable advice and guidance.
K. C. MEHRA
Date : 11th July, 1996.