The Indian economic scenario in last financial year continued to be
fraught with challenges because of tough external factors like slow
down in the Country''s economic growth, political uncertainties, policy
inertia etc. Major economies witnessed slower growth and were full of
un-certainties. Business environment remained difficult and operating
in such a testing environment proved challenging. As you all know, our
economy is going through a difficult phase as a result of which
recorded one its worst periods in 2013. The volatile market situation
has affected the overall growth of the industry.
Slowdown in the Indian economy which was primarily attributable to
weakness in industry (comprising the mining and quarrying,
manufacturing, electricity, gas and water supply, and construction
sectors), which registered a growth rate of only 3.1 per cent and
(-)1.6 per cent in 2012-13 and 2013-14 respectively. The Manufacturing
sector registered a growth rate of (- 0.8) percent during 2013-14. The
rate of gross domestic product (GDP) growth in full FY 2013 -14 was at
a decade low of 5 per cent.
Financial year 2013-14 was a challenging one for the construction
industry in particular, which was required to absorb higher interest
rates, inflation, slower order book accretion, lengthier land
acquisition schedules and slower receivables. Lack of policy
initiatives in the infrastructure projects have impacted all and your
company as well. Infrastructure plays a key role in stimulating the
economic growth. The growth of construction equipment manufacturing
industry is interlinked with the growth of Infrastructure, and
indirectly with the growth of Indian Economy. Consequently demand for
all products decreased due to delay in overall government spending on
highway construction, standstill of various Power Projects, maintenance
and other infrastructure projects. Adverse foreign exchange
fluctuations continued to impact the business process. Global economic
slowdown and reduced domestic demand continues to be concern areas
during the year. However this can''t continue for long and the new
government is taking cognizance of this and we are sure that the
construction equipment industry will revive soon and we will again grow
at a healthy pace, as done in the past. ACE battled successfully
against these tough market conditions.
We believe that the worst is over for the Indian economy and that it
will soon start to recover by virtue of policy reforms and investments.
We are of firm opinion that India has a unique opportunity to surpass
the world and participating and investing in India''s infrastructure
growth has been the fundamental principle of ACE evolution.
Notwithstanding this difficult environment, your Company continues to
invest in R&D, commit to its human resource development and training
programs and do significant CSR activities. We continue to introduce
new application based, high-end machines, which not only suit the local
applications but which are comparable with any latest international
machine in terms of designs, engineering, productivity and safety. Our
R&D team continues to focus on innovative products which will cater to
the customers present and future needs.
In spite of the economic slowdown all over the world, your Company has
performed reasonably well during the financial year of 2013-14. The
Company held it''s fort by fighting the situation with courage and
conviction. We took this opportunity to increase our customer base &
did product improvements to provide our customers quality equipment at
a most competitive price. We have made plans to leverage opportunities,
realizing our growth potential.
We are confident of the basics which we have put in while making the
Company i.e. to satisfy our customers by providing them quality
equipment at a most competitive price whatever be the situations and
conditions are. We believe that we have key strengths which have
ensured us to stay healthy even in tough times. We are committed
towards investing in ACE''s future. We are confident that our dedicated
efforts and continuing R&D programme will enable us to take full
advantage of our market leadership positions and achieve our growth
Company concentrated on cutting cost wherever possible, to remain
profitable. Several cost cutting measures have been taken during the
year including areas like value engineering, materials, manpower, and
closure of Plants to bring synergies in operating cost etc. These
savings are likely to be giving more results during FY2014-15.
In the Agri segment; Company is looking at significant product
expansions and focusing on improving its market share. Timely
availability of agricultural credit at reasonable rate, especially for
small and marginal farmers is crucial for agricultural-sector growth
and we are, accordingly, focusing on providing customers a complete
range of crop solutions.
The out look for 2014-15 seems promising with the new stable Govt at the
centre; the overall economy is expected to grow in the range of 5.0 to
6.0 per cent in
2014-15. For FY 2014-15 Priority of the government will be to speed
implementation of stalled projects. There will be focus on
infrastructure development and to reactivate various stalled projects.
This will be an opportunity to the Company and Company will encash
The Company''s brand has emerged as brand for reliability and has been
able to win the customer loyalty in all these years. The Company
desires to continue its successful stint in the industry, through
providing complete customer satisfaction by way of reasonable pricing
and good product quality. Although this time seem to be tough times,
but the times are meant to be changed. With this I am particularly sure
of continuing the wonderful and successful journey of the Company.
I would like to thank all our colleagues for their hard work and valued
contribution during 2013-14. Together we have much to look forward to as
we strive to make our company even stronger.
I am grateful to the Board of Directors for their unwavering support
and guidance. I take this opportunity to express my gratitude to all
our stakeholders, who have reposed trust in us and extended their
With best wishes,
Chairman and Managing Director