I am honoured to present the Annual Report of Garware-Wall Ropes
Limited (GWRL) for the financial year 2011-12.
At the outset, I must express my thanks to all of you and the Board of
Directors, for the faith and confidence shown in me, by appointing me
as the Managing Director of your Company and electing me as Chairman of
I am pleased to report that your Company recorded revenue of Rs. 580.82
crores, which marked an increase of 15.9% over the previous year.
Compared to the previous year, export sales rose by 38.2% and accounted
for 42.3% of the total revenue. Noteworthy growth was achieved in the
extremely competitive North European and North American markets. The
local fishing season was sluggish and fish catches went through a
cyclical low. Hence, demand from this sector, which is our core
business area, was affected. Likewise, sluggish growth in the domestic
infrastructure sector impaired growth of the geotextiles business. We
also adopted a cautious approach while pursuing new orders, considering
the cash-flow situation of potential clients.
The overall rise in turnover was not matched by corresponding rise in
profitability. This was due to inflationary factors and time-lag in
passing on increased costs to the market. In particular, we had to bear
higher wage, interest, power and fuel costs, as did many companies
operating in a similar environment.
Under these circumstances, your Company could maintain the previous
year''s profitability level. We earned profit after tax amounting to Rs.
24.01 crores. With a view to maintain a steady dividend, and keeping in
view the financials, your Board of Directors has recommended a dividend
Providing innovative, application focused solutions to enhance value
of customers globally is your Company''s mission, and in FY 2011-12, we
took significant strides on this front. For example, for the fishing
industry, we introduced several innovative products that will help
customers net higher returns, by saving fuel and increasing catch. For
the aquaculture sector, we developed pioneering solutions for customers
in India and abroad. Our solutions have helped our customers in Canada
and North America meet environmental requirements and reduce their
operating costs. In the sphere of geotextiles, we introduced solutions
for ensuring long life of roads and expressways. Working closely with
defence research organisations, we developed many solutions for
specific requirements of the nation''s armed forces.
Leveraging our expertise in various kinds of technical textiles, we
also made a well thought-out entry into two new business segments:
agritech and coated fabrics. We expect good growth in these segments,
which will increase our resilience to cyclical depressions in other
Overall, we expect product innovations made in 2011-12 to bear good
dividends in the years to come.
Looking ahead, I must state that, like most manufacturing companies, we
face challenging times against the backdrop of a worsening
international economic environment, declining growth rate in the
domestic economy, and inflation. Europe is the largest global market
for your Company, and hence the situation in the European economy is
being watched closely to mitigate risks.
We will use all our expertise and abilities to handle these challenges.
Our focus would be on reducing operating costs without compromising on
quality; improving productivity; and using our flexibility to respond
to dynamic market conditions. This would be coupled with efforts to
work closely with customers, to seek new avenues within our established
lines of business.
I would like to take this opportunity to acknowledge the support we
received during the year from all stakeholders. With continued support
and advice from the Board and our experienced team of professionals and
support from all of you, I am confident that your Company can reach new
heights of performance and excellence.
With warm regards,
V. R. Garware
Chairman & Managing Director