Action Construction Equipment Chairman's Speech > Engineering - Heavy > Chairman's Speech from Action Construction Equipment - BSE: 532762, NSE: ACE
Action Construction Equipment
BSE: 532762|NSE: ACE|ISIN: INE731H01025|SECTOR: Engineering - Heavy
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« Mar 13
Chairman's Speech (Action Construction Equipment) Year : Mar '14
Dear Members,
 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
 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 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
 constant support.
 With best wishes,
 Vijay Agarwal
 Chairman and Managing Director
Source : Dion Global Solutions Limited
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