Dear Shareholders,
I present the 48th Annual Report of your Company for the financial year
2022-2023.
TIL suffered yet another difficult year marked by multiple challenges.
While having a strong order book for cranes, reachstackers and defence equipment, the
production bottlenecks, delivery delays, abysmal supply chain issues, intense pressure on
cash flow and crunched resources formed a vicious cycle. This in turn took a heavy toll on
the overall performance. That said, it was also another year that saw the sheer resilience
of team TIL in navigating the continuing adversities - instilling anew my pride in team
TIL. The support and confidence demonstrated by the management, staff and workers were
exemplary and what case histories are written about.
The Management Discussion & Analysis (MDA) section of the Annual
Report has detailed out the issues and challenges that affected your Company's business
performance. The financial statements and notes to accounts sections in the Annual Report
also provide the detailed analysis. Notably, in spite of the negative performance, cash
flow challenges, production and delivery impediments, TIL still remains the preferred
choice of customers. This was further reinforced by fresh orders in the year under review
and the total order book as on 31st March 2023 stood at Rs. 233.70 Crs. In the day and age
when loyalty most often is unpredictable, the consistent trust and goodwill of our
customers are cherished assets for which we are truly grateful. The customers are eagerly
awaiting a speedy solution to the current situation, as evident from the growing order
backlogs.
In order to mitigate the stressed situation, revive the business
operations and ensure financial stability, your Company decided to induct a strategic
investor with the purpose to infuse funds and to take over the management of the Company.
This decision also stems from the fact that after me there is no successor to continue
your Company's business operations.
It was announced in the EGM dated 23rd December 2022, that Indocrest
Defence Solutions Private Limited, a part of Gainwell Group has been identified as the
strategic investor. It has the right synergy with TIL's current product line, possesses
domain expertise in selling and servicing infra equipment and has the best sectoral and
customer fit. I am optimistic that the strategic measure will herald positive tidings and
offer substantial opportunities for the revival of your Company. The new investor
Gainwell Group had earlier acquired the Caterpillar dealership back in
2016 and has been running the business commendably. They have retained most of the current
employees having rich experience and expertise. In other words, the new investor will hit
the ground running.
Looking at the macro environment, India shines on as beacon of
optimism, amidst uncertain global growth outlook. The whole world today is bullish about
our nation and its indomitable spirit. It is extremely encouraging to see that the
Government's focus on creating infrastructure driven growth is gaining momentum. The
National Infrastructure Pipeline (NIP), PM Gati Shakti, National Master Plan, Public
Private Partnerships and Atmanirbhar initiatives are laudable measures that have
significantly accelerated infrastructure development, driving the country to higher growth
trajectory.
The Construction Equipment (CE) sector too is showing an upward trend
with the ongoing and upcoming project pipeline. The Government has undertaken a slew of
measures to give a fillip to the road sector growth, removing pre-construction bottlenecks
and expediting project execution. The Centre has already targeted an increase in highway
construction in the current fiscal and the National Highways Authority has planned to
award 6,000 km in 2023-24 under HAM and EPC modes. There is also a strong focus on
leveraging the full potential of
the port sector. The Sagarmala project, Maritime India Vision 2030 are
playing key roles in developing port infrastructure. This in turn is expected to strongly
position your Company to capitalize on the opportunities in the Infra, CE and Port
sectors.
Defence having a crucial national significance is another potential
area for your Company. The Government's efforts to reducing import dependency, encouraging
self-reliance are very positive signals on the defence front. Your Company is proud to
have been associated with Indian defence since several decades - emerging as a preferred
choice of our nation's defence sector. As outlined in the MDA, the defence orders received
by your Company is more than 50% of the total order book and TIL continues to put laser
focus on leveraging the defence opportunities.
Going forward, TIL with the new investor in place will be strongly
positioned to continue its 79 years of legacy, ensuring revival in the business
performance and expansion that will benefit all stakeholders.The induction of Gainwell
will also make sure that TIL remains a trusted and preferred partner in the domestic and
global infrastructure landscape.
On behalf of the Company, I extend my gratitude to the Directors of the
Board for their guidance and encouragement. I also take this opportunity to express my
gratitude to all our customers, employees, bankers and suppliers for their enduring
support. And finally yet importantly, I extend my sincere appreciation to all our
shareholders for their continued support and trust reposed in us.
Warm Regards,
Sumit Mazumder
Chairman & Managing Director