DEAR SHAREHOLDERS,
Over the past few years, the industry that your company
operates in has revived substantially and your company's performance is on the verge of
transformation which is evident with the growing inquiries and order inflow from domestic
as well as international markets. The industry revival is largely on account of several
factors such as government's capex plans, capacity addition in power plants in India and
around the world, major infrastructure development, etc. which has provided the
much-needed boost to our industry and for transformer manufacturers like us. We have been
able to overcome the industry challenges, sustain ourselves in the world of transformers,
develop our niche and are positive to achieve growth over the coming years.
Our progress is exemplified by our ability to meet the
needs of our employees, vendors, and our customers at large. I take great satisfaction in
these initial results, and I wholeheartedly thank all stakeholders, including our Board,
Management, Staff, Customers, and Suppliers for their immense contribution. The company is
poised with ample confidence, determination, strength, prudence and is confident to
deliver to the best of our abilities. We look towards the future with a renewed vigor and
confidence as the efforts that we are putting in have laid a solid foundation for a
promising future.
The external environment continues to be supportive, with a
healthy flow of enquiries and orders across our key product offerings. The demand from the
government is expected to increase during the current capital expenditure cycle, while
favorable commodity prices clubbed with comfortable inflation bode well for the future.
In line with our future growth strategy, during the year,
with support and guidance of our team, we have initiated the implementation of several key
strategies within the organization: (1) expansion of capacity in renewable segment, (2)
increase concentrated focus on exports, and (3) focus on being fully backward integrated
(4) optimize operational excellence and resource mobilization (5) imbibe technological
advancements. We believe that these strategies will complement our vision and will fuel
the next phase of our growth.
The first strategy aims to capitalize on the expected
demand in the renewables sector. The requirement for specialized renewable transformer is
expected to increase manifold going forward and your company is well placed and possess
the required technical knowhow, design expertise to provide engineered solution to the
sector demand. In lieu of this, we have initiated a capacity expansion plan of setting up
capacity to manufacture transformers catering to renewables sector by December 2024.
For the second strategy, we are developing the roadmap to
increase our position and presence in the exports market. We have a dedicated team
managing the function and are confident that we can increase the revenue contribution from
exports to 25% over the next 2 years.
The third strategy is to focus our strengths on being fully
backward integrated within next two years. We already have backward integration by and
large in place which we intend to extend to critical components.
The fourth strategy is to optimize our plants, operations,
rationalize the costs, mobilize our resources, etc. so as to benefit from the operational
efficiencies being derived by undertaking the said efforts. We are confident to achieve
better profitability by improving our operational efficiencies.
The fifth strategy is focused on continually upgrading
ourselves from technology, design perspective so as to continue our niche in being one of
the only transformer manufacturer manufacturing high voltage class transformer across
different product categories catering to multiple end use industry applications. We have
grown organically during our journey of over four decades with our in-house technology and
design strength being our prime growth engine. With this I conclude my remarks and express
my gratitude for your continued trust & patronage and invite you to partner with us in
co-creating a more diverse and a global company.
Thanking you,
JITENDRA MAMTORA, CHAIRMAN.