2009 was a year when many remarkable global changes have taken place.
Post Lehman brothers, banking reforms were seen and economy of many
countries saw a phase which they had not seen since few decades. This
did impact global economy and recovery is now visible. However, Indian
economy was one shining star globally, This obviously saw us moving as
closer to the world recognising how India will be a catalyst in
economic recovery of many countries. Every country now will have India
strategy and it is clear that India has capability to play important
role in helping global economy to recover. These are long term
sentiments and not short term euphoria.
Indian economy faced similar situation as global economy was facing but
regulated central bank proved how to manage stimulus package andbring
back growth on track, India could recover its path by second half of
2009-2010, Even then, it did leave scar on slow growth in first half
when manufacturing industry like ours suffered and pace of growth for
year was overall slow. Your Companys performance under the
circumstances was definitely impacted.
While our strategy is to remain focussed in the T & D segment of power
sector, challenges on competition and execution front including margin
pressure are evident, The Industry is facing acute shortage of skilled
manpower in EPC business specially in Transmission line stringing area
which has impacted overall Industrys performance and your Companys
too. However, your Company is taking continuous steps to overcome these
challenges by improving efficiency, productivity, execution capability
and enhancing skills of human resources by a continuous process of
learning & development but at the same time also see its impact in
We are optimistic about the future prospects for the power industry and
those for your Company. Indias very need of the hour is power and
other infrastructure as repeatedly pointed out by all big economists
and industrialists. Infact, India is expected to add a generation
capacity of 62,000 MW on certainty basis in the 11th five year plan,
out of the planned target of 78,577 MW. If one goes by the actual
implementation of the plan so far, the country will have to go for
capacity addition of around 37,000 MW in the remaining two years of the
11th plan. This offers remarkable opportunities to Companies like EMCO.
Your Company has emerged as a formidable force in providing turnkey
transmission solutions (400kV- 765 kV extra high voltage segment) in
the dynamic power sector in India.
To stay ahead of time and match the pace of change, your Company always
endeavours towards inculcating a culture that encourages innovations
and work on fresh technology perspective. Your Company has well
equipped corporate R&D Centre, staffed by a team of specialists and
professionals working passionately on innovative development projects
synergic to the Companys business interest.
In order to protect intellectual property rights and to create further
wealth for our shareholders, your Company has also filed few patents.
During the year, your Company has achieved various milestones and some
of them are:
- First transformer manufacturer in the world to have successfully
tested a 315MVA, 230 kV Generator Transformer for Dynamic Short Circuit
Test at the world-renowned KEMA High Power Test Lab, Netherlands,
- Only Indian Company selected to present a technical paper at CIGRE in
- Appreciation Certificate from Honble Union Minister for State for
Power for the Product- Eco- friendly Dielectric Fluid for Transformer
for the Best Product Contest at ELECRAMA-2010.
Your Company sold one of its subsidiaries EMCO Energy Limited, which
was setting up a thermal power project, in order to unlock the value to
pursue larger opportunities in the power generation business. The
Company, in order to fuel its power generation plans, had perceived
this strategy after taking into consideration the changing scenario in
the power sector in which the emphasis is essentially on large size
projects to become competitive, cost efficient and environmental
friendly. The decision has earned good return on investment and
increased your Companys networth and risk taking capability against
future unforeseen events. However, the Company has only sold a Project
and not the business and therefore, entire core team and knowledge
remains with the Company.
While pursuing growth in business, the Company does not neglect its
social responsibilities, Every year, it contributes minimum 1 per cent
of its net profit to health, education and environment protection
activities, which are handled by EMCO Foundation.
Finally, let me express my personal gratitude for the confidence that
you have always bestowed on us, I sincerely hope that you will continue
to be our strength, so that, together, we can reap the benefits of the
phenomenal opportunities unfolding in front of us and become stronger
and successful in the coming years,