In adversity lies opportunity, and in opportunity the strength of any
Company. The year 2008-09 was a prime example of this philosophy, that
enabled your Company to effectively tackle and survive the various
challenges of a difficult economic scenario. I am pleased, indeed, to
state that on the back of its superior strengths and execution
capabilities, and the cooperation and support of its employees and
partners, your Company has emerged from the recessionary storm that
swept the world this year as a much stronger entity, ready to take its
growth to the next level.
Despite the adversities that impacted businesses around the world, your
Company, with its focused approach and pro-active strategy aligned with
the needs of the changing environment, continued to hold firm to its
Our foray into the high-potential Ports/SEZ sectors, the various
projects we garnered for development of IT parks, slum rehabilitation
and residential apartments, the increase in our land bank, the various
strategic alliances that we entered into - these are a clear
vindication of the inherent soundness of our business model and
As a result of its focused strategy, your Company’s consolidated level
of turnover and profitability during the year under review is the
highest level of performance achieved by Om Metals so far. Your Board
of Directors have thus decided to recommend an interim dividend payout
@ 10% as a final dividend, and sincerely hope that you would approve
the same to secure the best possible returns on your investment in this
During the year, Om Metals imported a huge quantity of raw materials to
meet the requirements of its new projects in view of the surging steel
Further, the facilities at Siliguri (WB), Kathua (J&K), Kolkata and
Jaipur (Rajasthan) have been made fully operational to execute 15000 MT
capacity at a given point of time.
Your Company has been speedily progressing in execution of Hydro
Mechanical works for Teesta Low Dam HE project (Stage-IV), Uri-II HE
project, Parbati HE project, Chamera HE project - all from NHPC,
Tapovan Vishnugarh HE project from NTPC and Sri Pad Sagar (Andhra
Pradesh). The projects, all valued at Rs. 500 crores, will be executed
over the next three years.
The Company also forayed into the Ports sector - to develop the small,
shallow Puducherry Port into a deepwater port to handle container,
general, bulk and liquid cargos.
Om Metals has also initiated projects for IT parks, corporate parks,
slum rehabilitation and residential apartments in Jaipur, Mumbai, and
The construction of residential township in Kota is running in full
swing and a substantial portion has already been sold even in this down
The Company is strengthening its niche by joining hands with
world-renowned players in the arena to jointly take on the growing
Indian market. A significant progress has already been achieved in this
That we were able to achieve all this is, in large measure, a result of
the far-sighted vision of the Company’s management and the immense hard
work and faith reposed by our employees. The diversity of our business
mix was also a key factor in ensuring that we were able to sustain
ourselves in the face of the trials and tribulations of these times.
With the overall economic scenario much improved since the first
quarter of fiscal 2009-10, and the Indian economic growth trajectory
firmly back on track, the sectors of our presence are also showing
strong signs of a turnaround. This augurs extremely well for your
Company, which is all geared up to take on the new opportunities
unfolding in the space of its businesses.
Going ahead, we aim to further de-risk our business and focus more on
the fast-growing sectors of the Indian economy that, notwithstanding
the temporary setback, continue to have a long-term growth potential.
With a mixed portfolio of projects across three high-potential business
divisions, the Company is confident of delivering higher levels of
profitability, leadership and measurable results to its customers,
business partners and stakeholders.
In the Hydro Power sector, for instance, there has been substantial
improvement on the ground, including greater public consultation with
people affected by such projects; better monitoring of the
environmental and social aspects of projects; and improvements in
resettlement policy and practice, to tackle the various challenges. The
Government has also ensured that the methodology used by Central power
agencies to select sites has improved, as has the capacity of various
Hydro Power developing agencies to deal with complexities in project
identification, engineering and design.
With more and more projects coming now, and with robust market share,
the Company is confident of taking on the burgeoning opportunity of the
Rs. 10,000 crores market in the next 10 years.
While there has been a sharp downturn in the housing market recently,
and residential construction is likely to remain subdued for some more
time, we hold a distinct advantage due to the strategic and ideal
locations of our properties and the low cost of our land banks, which
is sure to give us handsome profit margins, going ahead.
On a parting note
I gratefully acknowledge the valuable guidance, counsel and support
received from the officials of the Ministry of Power and other
Ministries/Departments of the Government of India, along with the
learned officials of PSUs like NTPC and NHPC and state electricity
boards. Your Company is moving into the next millennium with confidence
placed in its most valued asset of human resource, afloat as well as
ashore, who have ceaselessly contributed to the growth of the
organization. I am sure that they will continue to serve the
organization with the same dedication.
I express my deep sense of gratitude to all of you and the other
shareholders, bankers, financial institutions, contractors, suppliers
for their continued faith and confidence in Om Metals. I extend my
sincere appreciation to my colleagues on the Board for their wise and
matured counsel for the smooth functioning of the Company.
And with your continued support and cooperation, I am confident we
shall remain firm on our planned growth odyssey and shall, in fact,
exceed our targets over the coming year.
T. C. Kothari