Container Corporation of India

CONTAINER CORPORATION OF INDIA LTD. (A GOVT. OF INDIA UNDERTAKING) 2ND
 FLOOR, Le Meridien commercial Tower, Raisina Roa, New Delhi - 110001
 Website : www.concorindia.com
 
 CHAIRMANS SPEECH DELIVERED AT 16TH ANNUAL GENERAL MEETING HELD ON 20th
 SEPTEMBER, 2004.
 
 Ladies and Gentlemen,
 
 On behalf of the Board of Direcftors I extend to all of you a warm and
 cordial welcome on the occasion of the 16th Annual General Meeting of
 your company. This is my first meeting with you as chairman of your
 company. I would like to use this opportunity to deliberate on the
 performance of CONCOR during the financial year ended 31st March 2004.
 I would also like to outline in brief the business strategy to be
 adopted by your comapany in the coming years.
 
 The audited annual accounts for the financial year 2003-04 along with
 the Directors Report, Auditors etc., have already been circulated to
 you. With your permission, I take them as read.
 
 Your company has continued to sustain improved performance during the
 year. Let me briefly share the achievements of the company:
 
 * Volumes handled by the company have grown by more than 15% from
 13,83,163 TEUs to 16,02,119 TEUs (Twenty Equivalent Units).
 
 * Income from operations increased from Rs.1,483.4 Crores to Rs.1764.4
 Crores registering a growth of 19%.
 
 * Net profit increased from Rs.273 Crores to Rs.368 Crores registering
 a growth of 35%.
 
 * EPS has increased from Rs.41.98 to Rs 56.56 registering a growth of
 35%.
 
 * The company has completed the expansion of existing facilities at 18
 locations and 5 new facilities at Agra East Bank, DCT-Santnagar,
 Combined Terminal at Raipur, Rail linked facilities at Dadri and road
 based facilities at Ankleshwar.
 
 * 540 high speed wagons were added to the existing fleet.
 
 * Dedicated and reliable communication network through VSAT has been
 extended to 21 additional locations bringing the total coverage to 47
 locations at the end of the year.
 
 * Enterprise Resource Planning (ERP) based Terminal Management System
 for domestic terminals, 75 adhoc locations and the coverage of Export
 Import Terminal Management System (ETMS) also extended to 32 EXIM
 terminals during the year.
 
 Keeping in view the financial perforfence and also the future prospects
 of growth of business, your directors have recommended payment of
 dividend @ 125% of the paid up share capital. In line with
 diversificatrion into allied areas, CONCOR has entered into joint
 Ventures/Strategic Alliances with the following assocaiates:
 
 * J.V with Transworld Group of Companies for setting up a J.V.-CFS at
 Dadri.
 
 * J.V. with Maersk A/S for setting up Gateway Terminal (container
 handling terminall at 3rd Berth of JNPT).
 
 * J.V. with Indian and Nepalese Partners for Management and Operation
 of Rail Container Terminal at Birganj, Nepal.
 
 * J.V. with APL Group of Companies for setting up JV-CFS at Dadri.
 
 Your company will not be complacement because of its excellent
 performance in the past. The company has business plans for future. I
 am sure you are aware that there is an upsurge in the economy
 particularly in the international trade. The market opportunities
 offered by the trade have been captured by CONCOR.
 
 CONCOR is taking innvative measures to maximise asset utilisation and
 ensuring quality of service to maintain its leadership in the market in
 providing logistics services to the customers. As a part of the overall
 strategy ti increase market share, CONCOR will also look to provide
 multi-modal transportation and logistics consultancy services to its
 potential users. These could be shippers directly, or intermediate
 agencies such as shipping lines, forwarding agents, terminal operators
 etc.
 
 A major aspect of both international and domestic business will involve
 the employment of the hub and spoke system to serve the customer
 completely at his doorstep, while optimizing the internal logistic
 chains within the organisation. In the effort to move from being a
 service integrator, CONCOR will move towards becoming a Third Party
 Logistics (3PL) Service provider by expanding the core business into
 areas such as warehousing, refrigerated cargo storage and movement, and
 the provision of a large number of other value added services.
 
 Before concluding, I would like to express my gratitude to all our
 valued customers for their continued support to CONCOR. Your company
 has always considered human resource as its invaluable asset. All the
 members of CONCOR parivar have contributed towards the progress of your
 company. For this, they deserve our sincere gratitude and appreciation.
 I acknowledge the support extended to CONCOR by the Ministry of Railway
 and other Ministries.
 
 I am grateful to my colleagues on CONCORs Board for their wisdom,
 guidance and advvice which have steered this company onto the path of
 progress. Your Directors look forward to receive your support and
 cooperation in future years years too.
 
                                                           Thanking you,
                                                                    Sd/-
                                                                 R.N.AGA
                                                                Chairman
 New Delhi,
 Dated : 20.09.2004
 
 Note : This does not purport to be a report of the proceedings of the
 Annual General Meeting.