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Action Construction Equipment Chairman's Speech > Engineering - Heavy > Chairman's Speech from Action Construction Equipment - BSE: 532762, NSE: ACE
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Action Construction Equipment
BSE: 532762|NSE: ACE|ISIN: INE731H01025|SECTOR: Engineering - Heavy
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Chairman's Speech (Action Construction Equipment) Year : Mar '13
Dear Stakeholders,
 
 Last financial year was an extremely challenging year for the Company
 because of tough external factors like slow down in the Country''s and
 global''s economic growth, political uncertainties, policy inertia etc.
 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 3.5 per cent and 3.1
 percent in 2011-12 and 2012-13 respectively. The rate of growth of the
 manufacturing sector was even lower at 2.7 per cent and 1.9 per cent
 for these two years respectively. The rate of gross domestic product
 (GDP) growth in full FY 2012- 13 was at a decade low of 5 percent.
 Growth in agriculture has also been weak in 2012-13, following lower-
 than-normal rainfall, especially in the initial phases (months of June
 and July) of the south-west monsoon. ACE battled successfully against
 these tough market conditions.
 
 Financial year 2012-13 continued to be a difficult one for the
 construction Industry. 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
 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 government is taking
 cognizance of this and we are sure that the construction equipment
 industry will revive soon andwewill again growatahealthy pace,asdonein
 the past.
 
 Notwithstanding this difficult environment, your Company continues to
 invest in R&D, commit to its human resource training programs and do
 significant CSR activities. We continue to introduce new application
 based, highend machines, which not only suit the local applications
 but which are comparable with any latest international machinein
 termsofdesigns, engineering, productivity and safety. Our R&D team
 continuestofocusoninnovative products which will catertothe 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 2012-13.  The
 Company held it''s fort byfighting the situation with courage and
 conviction.We took this opportunity toincrease 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
 ensuredustostay healthy evenin tough times.
 
 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
 interest. These savings are likelytobeseen duringFY2013-14.
 
 Dueto our innovative sales and marketing techniques, the new
 productsofCompany have successfully penetrated into the market.
 
 In the Agri segment; Company is looking at significant product
 expansions and focusing on improving its market share. Recently the
 government allowed FDI in retail, which can pave the way for investment
 innew technology and Agriculture Equipment. 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. As I said in my last speech, your Company has started
 productionofCombine Harvester, Rotavetor, Bailer and Rice Trans
 planter.
 
 The outlook forFY2013-14 seems similaras FY2012-13, keepinginviewofthe
 various uncertainties, macro and micro domestic and global economic
 factors; the overall economy is expected to grow in the range of 5.0 to
 6.0 per cent in FY 2013-14. Of course, these projections assume a
 normal monsoon, further moderation in inflation as expected to induce
 further relaxation of the tight monetary stance and mild recovery of
 global growth as anticipated. For FY 2013-14 Priority of the government
 will be to speed implementation of stalled projects.  According to the
 ministry''s estimate, Rs. 7 lakh crores of projects are stalled at
 various stages due to reasons such as political reluctance, environment
 clearances, and land acquisition issues. This can be an opportunity to
 the Company and Company will encash these opportunities.
 
 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 meanttobechanged. With thisIam particularly sure of
 continuing the wonderful and successful journey of the Company of both
 organic and inorganic growth.
 
 Vijay Agarwal
 
 Chairman & Managing Director
Source : Dion Global Solutions Limited
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