It gives me great pleasure to share with you that your Company has
seized the initiative and made significant progress to emerge as the
key national player in the opportunity provided by the Indian defenses
Following the adoption of its new identity as Pipavav Defense and
Offshore Engineering Company Limited (PDOC), your Company actively
pursued the openings in the country''s defenses, heavy engineering and
offshore oil & gas exploration and production assets construction
This was in the backdrop of a year that saw many of the challenges of
last year continuing. The Eurozone debt crisis required emergency
support across several countries, uprisings across the Middle East and
oil prices affected the global economy. The world economy grew by just
under 4% in 2011, due to a serious slowdown in the developed world and
prospects for global growth remain muted this year as well.
India''s economic growth too was impacted by a combination of factors,
both external and internal.
Despite a gloomy global environment and a challenging Indian one, we
have made progress and aim to continue to grow and build PDOC into
India''s finest defenses enterprise.
The financial year 2011-12 has been an eventful year as your Company
delivered Panamax vessels of 74,500 DWT each, the largest vessels of
their class ever built in India and for the first time, a private sector
company i.e. your Company was awarded the contract for construction of
five Naval Offshore
Patrol Vessels for the Indian Navy. Your Company has also performed
reasonably well on the profitability front and is on a growth trajectory
to emerge as an integrated defenses, heavy engineering and of shore oil
and gas assets construction player.
We believe that creating an environment where public and private sector
grow together will enable defence capabilities of our nation to grow
faster. With the collaboration between public and private companies,
India is enhancing its capabilities, thereby contributing to realize
India''s goal of attaining self-reliance in defence production and
moving a step further towards achieving maximum indigenization. The
Government is shifting gears and welcoming private sector
participation. With a view to furthering the objective of achieving
substantive self-reliance in the defence sector, the Government of
India issued Guidelines for establishing Joint Venture companies by
Defence Public Sector Undertakings.
In accordance with these guidelines, your Company was selected by
Mazagon Dock Limited, Defence Public Sector Undertaking owned by
Government of India (''MDL), as a Joint Venture partner, on the basis of
its world-class infrastructure, state of the art engineering facilities
and its inherent strengths. Your Company has signed the Shareholders''
Agreement with MDL for forming a joint venture company for the purpose
of building surface warships for the Indian Navy. This is a landmark
achievement for your Company. The joint venture company will complement
the activities of MDL in the years to come.
Your Company expects in addition to present and direct defence orders,
sizable orders from MDL through the JV company mechanism.
Your Company also marked its impression in Repairs Segment by
undertaking repair/refurbishment of jack-up rigs owned by global majors
in Of shore Oil & Gas Exploration and Production sector.
Your Company''s of shore yard has been qualified by ONGC for fabrication
and load out of of shore oil and gas modules like jackets, bridges and
topsides such as decks, process gas compressor modules, gas turbine
generator modules, living quarter modules, d-oxy tower, heli deck
modules and of shore cranes etc. Armed with this, your Company is
actively following up opportunities in heavy engineering and of shore
oil and gas exploration sector at a brisk pace.
Going forward, the ultra modern engineering facilities of your Company
will also be optimally utilized for customers in heavy engineering
industry such as BHEL, Nuclear Power Corporation etc.
As I look at these developments, I see PDOC at an inflection. I
envision a rising order book with a strong defence flavor.
I also for see our execution capabilities getting strengthened and our
capacity getting further increased post construction of the second dry
dock. This all would mean a growing order book, enhanced revenues and
During the financial year 2011-12, as stated earlier, your Company has
built and delivered Panamax vessels of 74,500 DWT each, the largest
vessels of their class ever built in India. Capacity utilization of
our infrastructure will keep increasing as we build momentum of our
operations. Going forward, we see sustainable expansion of both
revenues and profits.
We are dedicated to generate distinction and value for all our
stakeholders. We possess the advanced capabilities and strategic
advantages to harness domestic and global opportunities. We continue to
form formidable partnerships to enhance our core competence, technical
know how and gain access to international markets.
I would like to congratulate the Government of India for the continuous
improvement in the Defence Procurement Policy and an effective Offset
Policy, both of which are positives for the domestic industry for
producing military hardware indigenously.
On behalf of the Company, I take this opportunity to thank you - our
valued shareholders, every government agency, our employees, our
bankers, our partners and vendors - for the continued support.
Thank you once again.
Look forward to welcoming you at the 15th Annual General Meeting of