TEXMACO LIMITED
ANNUAL REPORT 2008-2009
CHAIRMAN'S REPORT
The financial year 2008-09 has seen an unprecedented slow down of the world
economy. In the ensuing depressing scenario, the two largest countries of
the world - India and China - are expected to assist global recovery by
achieving growth rates in excess of 6-7%. India's fundamentals are strong.
Fortunately, India has voted for stability in the recent elections through
a decisive mandate in favour of the UPA
The national economy is expected to grow at over 7%, going up to 9% by the
terminal year (2011-12) of the current 11th Five Year Plan. The Plan
provides for an outlay in the region of USD 80 billion for the 'Dedicated
Freight Corridor' project for movement of high speed trains with advanced
technology.
Government, which would lead to accelerated economic reforms. A series of
measures already taken by the Government have been serving to boost the
incomes in rural India, which is providing a sustained stimulus to the
domestic demand and spurring all-round growth. The Government, by all
accounts, is fully committed to massive investment in infrastructure,
including power, road and rail transport etc.
This is an ideal setting for Texmaco, an infrastructure company, which is
suitably positioned to address the emerging reality with its leadership in
the Rail sector over several decades. Texmaco is the largest wagon
manufacturing facility with a comparative advantage of outstanding
Texmaco, being in the Rail and Hydroelectric Power sectors, inter-alia, is
poised for continued growth primarily on the strength of the rolling Indian
economy.
infrastructure in the industry, supported by an integrated State-of-the-Art
Steel Foundry. The Company is set to embark on major product
diversification into EMUs & Metro Coaches, Locomotives through Joint
Ventures with global leaders.
The prospects of the Company's Hydro-mechanical business too appear
attractive. There is a growing preference for renewable energy sources; and
a high national priority* to maximise the potential out of WM available
natural resources while reducing the import of hydrocarbons. As a result,
the development of India's Hydro-mechanical business is not only seen as a
vote in favour of a greener world but also a means to strengthen India's
energy security.
India is today recognised as a most competitive manufacturing destination
in the world with its large reservoir of trained engineers and skilled
manpower. This augurs well for the future growth and diversification of
engineering industries like Texmaco.
In this backdrop, the Company is aiming to capitalise on its inherent
strength built over seven decades, and take a strategic route to leap into
the big league to exploit the new challenging opportunities.
In order to prepare itself for the future, the Company has decided to raise
equity resources, and a Resolution is being placed before the shareholders
in the forthcoming Annual General Meeting of the Company. These funds will
be used for speedy expansion and diversification of the activities of the
Company.
Finally, I take comfort from the fact that Dr. K.K. Birla, Founder
Chairman, was active till the end and lived his life with integrity, values
and principles. These WM values will guide ouri future destiny in Texmaco.
S.K. Poddar,
Chairman