We all are experiencing highly changing and challenging times like
never before. Adapting to such changing scenario and responding fast
and effective to the challenges are the keys to success. With our firm
belief in creating long term value, we have successfully stood up to
the situation and it is a pleasure sharing with you that we have had a
healthy year of business recovery, reiterating the capability of your
Concerted efforts by us to unleash our potential and turnaround the
Company have paid rich dividends. Our resurgence can be attributed to a
host of initiatives like reinforced focus on core businesses, expansion
of our production capacity and product portfolio, widening of our
geographical reach, continued concentration on fiscal discipline and
innovative management principles.
But more importantly, we are building structures for collaborations
across functions, empowering employees to offer faster and better
customer satisfaction. We are building a corporate culture that
encourages and supports performance and leadership. Systems and
processes are being continuously evaluated to establish best in class
practices in our operations. Keeping pace with changing times, we have
brought in new ideas and new competencies into our operations. We have
infused highly experienced and competent new talent into the
organization. In the midst of a modern day knowledge economy, we are
laying increasingly greater emphasis on Knowledge Management to help us
innovate and lead the market of future.
In today's Global Market place we have to be Globally Competitive for
which we aim to Excel. We know that in the years to come our domestic
market alone cannot accommodate the growth we are looking for. The
mandate is clear: to spruce up share of exports in our businesses.
Today, farming practices are being made commercial with increased
government support. Lip-gradation of infrastructure and easier
availability of complementary facilities are making a difference.
Private capital with enterprise is creating the front end of market
with opening of retail outlets. All these will culminate in the
farmers' prosperity which will have a direct impact on their enhanced
investments in tractors and farm mechanisation equipment. The growth of
Agri economy provides substantial opportunity for your Company's
Indian Railways is on a modernisation spree with a focus to increase
freight and passenger capacity, run faster and safer trains. Escorts is
a major manufacturer and supplier of equipments to Railways including
brakes, couplers, suspension products, rail fastening systems,
composite brake blocks and vulcanized rubber parts, all essential
upgrades the rolling stock would require. With our new manufacturing
plant set up at Rudrapur, in addition to capacity enhancement, we will
also be substantially adding to our existing product portfolio.
In the domestic market, we are witnessing a fast growing automotive
sector and with it the rising demand for Auto Suspension Products. This
sector is on a steep growth path and is expected to further grow in the
coming years. Apart from meeting the growing domestic demand, a
substantial export market development will provide us with growing
revenues in this business.
A spectacular boom is taking place in real estate development and
expansion in industrial investment. Both the sectors have a high
dependency on material handling equipment like cranes, forklifts and
loaders. Your subsidiary company Escorts Construction Equipment Limited
(ECEL) has an established product range of such equipment. The
government's focus has also resulted in an accelerated pace in the
roads and buildings construction, nationwide. There is a surge in the
demand for road compaction machines for which ECEL is rightly placed.
With the right product mix for the sector, ECEL is comfortably placed
with a healthy order book. To effectively meet the demand, ECEL is
setting up a large manufacturing facility in Ballabgarh (Haryana) which
will be completed in 12 months.
With a lean cost structure, focused lines of business and all out
efforts to make the best of people and processes, Escorts seems to be
well poised for exciting days ahead. We are confident that all our
initiatives will be instrumental for us to regain a leadership position
in our areas of operation. But changes of the magnitude we are looking
at will require substantial efforts on our part and continued faith of
yours. Our determination and your continued support give us the
optimism to take the organisation to a new altitude of business
efficiency. We are extremely grateful to you, dear shareholders, for
your continued faith in us. The future looks bright and promising and
it is with the hallmark of a leader that we humbly take up the
challenge to surpass your expectations.
My sincere thanks to our employees, who are the real source of our
prowess and our growing inspiration, to the members of the Board for
their advice and guidance and to all our customers, partners and
well-wishers who have been with us all along and have provided us with
their valuable advice and cooperation all these years.
Chairman and Managing Director