Mr. Vinay Uchil
Chairman and Executive Director Marine Electricals (India) Limited
Dear Shareholders,
I am lled with gratitude and a sense of accomplishment. The financial
year 2022-23 has been a period of immense challenges and remarkable achievements. The
beginning of the year 2022-23 started on a positive note, with signs of economic recovery
after the cataclysmic impact of the pandemic. However, this optimism was short-lived as
the Russia-Ukraine conflict unleashed a wave of global uncertainties resulting in
disruptions in the supply chain, surging commodity prices, heightened in ationary
pressures, and escalating interest rates. Despite the global economic uncertainties and
other challenges, your Company has delivered competitive, pro table and responsible
results. I am pleased to share with you on behalf of our Board of Directors an update on
your Company's performance for FY 2022-23. Our current order book position standing
at Rs. 4820 million approximately at end of FY 2022- 2023 as compared to Rs. 3562 million
in the FY 2021-2022, with the increase in portfolio of products to our customers we
anticipate a further increase and robust order booking for FY 2023-24 as well. The
Company's total revenue for the year stood at Rs. 3974.05 million as against Rs.
3283.88 million in the previous financial year. The net profit for the year increased by
56.47 % to Rs. 195.06 million as against Rs. 124.66 million in the previous financial
year. Our continued focus on R&D on new product developments & indigenisation and
innovative and creative adaptation to emerging situation and adaptive scal discipline to
sustain, deliver, survive and grow should help us in maintaining our sales revenue and
order book position growth
The core business of Marine Electricals is directly or indirectly
impacted by the demands & opportunities, developments & investments, govt policies
& Initiatives and visibility in the foreseeable future. As evident from the current
GDP growth and ‘Advantage India Factors' we have reasons to look forward to a
positive business growth impact in the coming financial year as well. The Government of
India has identified the power sector as a key sector of focus to promote sustained
industrial growth. Electri cation in the country is increasing with support from schemes
like DeenDayal Upadhyay Gram Jyoti Yojana (DDUGJY), Ujwal DISCOM Assurance Yojana (UDAY),
and Integrated Power Development Scheme (IPDS). In the current decade (2020-2029), the
Indian electricity sector is likely to witness a major transformation with respect to
demand growth, energy mix and market operations. India wants to ensure that everyone has
reliable access to sufficient electricity at all times, while also accelerating the clean
energy transition by lowering its reliance on dirty fossil fuels and moving toward more
environmentally friendly, renewable sources of energy. Future investments will benefit
from strong demand fundamentals, policy support and increasing government focus on
infrastructure.
The Indian Navy is one of our premier clients for both defence and
marine businesses. The "Make In India" movement of the Government has also
catalyzed the shipyards and DPSUs to enhance the degree of indigenization in shipbuilding.
More and more equipment are being brought into the indigenization umbrella. Enhanced
percentage of indigenous content is also being encouraged. The vision of a 200 strong
combat eet by 2027 is also a catalyzer. In wake of the naval vision, warship construction
has witnessed an unprecedented growth. This has been one of the significant growth impetus
for Marine Electricals as well.
Marine Electricals' agship equipment such as Integrated Bridge
System, NAVCOM systems including navigation radars, Main Switchboard, assorted control
panels, integrated monitoring and control systems and a host of data aggregation control
systems for re, ood and auxiliary machinery control systems are needed by all above ships.
This forms a significant established business segment for the naval division of Marine
Electricals. Our portfolio of Integrated Platform Management System (IPMS) is also
expected to expand after impanelment of IHQ MoD (Navy) for warships.
With data consumption on the rise, cloud adoption accelerating, and
technology demand soaring higher than ever before - Indian corporations are investing in
massive leaps forward to meet an estimated 6 million square feet of required data center
services development over the next three years. The government is ramping up its digital
activities to improve the environment for data center services. An important goal of data
localization is to keep 75% of data inside the nation. The Ministry of Electronics and
Information Technology (MEITY) saw potential in the industry. So it developed a strategy
for data centers in 2020, elevating them to a higher "infrastructure status" as
roadways, rails, and electricity. This policy aims to streamline the approval procedure
for data center services Your company has been providing critical power solutions to major
players in the industry and is a preferred partner with many prominent data center
operators in the country.
The rising fuel costs and growing climate change awareness is pushing
individuals to go for greener mobility options provided by electric vehicles (EVs). The
Government has also been actively promoting EV adoption through subsidies. As a result, EV
sales are increasing at a high pace breakneck speed in India. With growing EV adoption,
the Company is pioneering through its next-gen EV charging solutions which plans to cover
segment of home, workplace, eet, and captive charging (including e-Bus charging) through
different model and approaches. It is also actively evaluating opportunities in the
electric 3-wheeler and 2-wheeler charging market. During the year, the Company undertook
several initiatives to promote EV charging solutions through its subsidiary Evigo Charge
Private Ltd. The Company has entered into new collaborations with several Government and
private bodies for EV charging solutions.
People continue to be the fulcrum of your Company's operations. We
have continued to drive organisational transformation and strengthening, in terms of
talent at all levels, systems and processes and workplace culture. As part of our
commitment to better corporate governance as well as professionalising the management.
Further, as a responsible organisation, we continue to work towards
empowering communities near our operations by creating livelihoods, promoting health,
wellness and education and social inclusion. We ensured sustained engagement with all
stakeholders including employees, value chain partners and communities.
I thank all our stakeholders for their continued support. I am con dent
that we will achieve remarkable success in our future endeavours and I am certain that we
will maintain our longstanding track record of superior performance, ultimately creating
value for all our stakeholders.
Best Regards,
Mr. Vinay Uchil
Chairman & Executive Director