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Nahar Industrial Enterprises

BSE: 519136|NSE: NAHARINDUS|ISIN: INE289A01011|SECTOR: Textiles - Composite Mills
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Chairman's Speech (Nahar Industrial Enterprises) Year : Mar '11
Dear Shareholders,
 
 I write to you at the end of yet another successful year at Era Infra
 Engineering. Let me take you through some of the key events that
 transpired during the year under review. After a short dip in growth
 rates, the Indian economy bounced back to robust growth rates in the
 year 2010-11.The GDP of the country grew at the rate of 8.6%, revealing
 the resilience and the sustainability of the Indian economic growth
 story. Sustaining this high growth will call for an enhanced
 infrastructure, new economic initiatives and a more liberalised
 economic regime.Today, we stand poised in front of an unprecedented
 opportunity to join the ranks of developed countries in a few decades
 and at the same time we are plagued by a dismal infrastructure, bottle
 necks in the economy and a flawed economic landscape.
 
 Making this transition will require conscious efforts in redrawing the
 economic landscape, removing infrastructural bottlenecks and further
 liberalising the economy. Thus, the Government has identified
 infrastructure as one of the leading engines of growth and development.
 
 Against this backdrop, your Company and its subsidiaries as an
 integrated infrastructure development organisation would work
 synergistically to build physical assets that will pave the way for the
 future. Our business activities are organised around three divisions-
 EPC, Design & Engineering, Equipment Management Divisions coupled with
 two subsidiaries Era Infrastructure and EraT&D.
 
 Financial Review
 
 It is with immense pleasure and satisfaction to report the robust
 growth achieved by your Company. With our focused efforts the year
 2010-11 concluded with sales revenue of Rs.3828.90 crores and net profit
 of Rs.246.83 crores. Fresh order inflows and the quantum of the Order
 Book always determine your Company''s ability to thrive and grow.
 Results on both these counts have been significant as your Company
 achieved an impressive growth in order inflows for FY11. Consequently,
 the order book position stood at an impressive Rs.10,422 crores. This
 gives the Company clear revenue visibility over the next couple of
 years.  Margins have, yet again, registered an improvement and your
 Company is hopeful of sustaining margins at a level close to this,
 despite volatile commodity prices and competition.
 
 Division Review
 
 Engineering Procurement & Construction
 
 Today, with the Government''s cumulative spending of Rs.2,14,000 crore in
 the infrastructure development domain, there is a palpable sense of
 optimism in the industry. This optimism is reflected in our increasing
 EPC order book position which includes orders across diverse sectors
 such as power, roads/highways, aviation, railways, metro, refinery,
 social infrastructure and industrial construction.
 
 Now we seek more projects from the metro line development, large scale
 housing projects, power transmission and distribution projects. In the
 year under review, apart from procuring several big ticket orders your
 Company bagged its biggest order. Valued at Rs.1723 crores, it is an EPC
 contract for 4 laning of Bareilly-Sitapur section in Uttar Pradesh
 under the DBFOT pattern.
 
 Looking forward, we seek to expand our EPC contract to foreign shores
 and are actively scouting projects in Middle East and Africa. Apart
 from our traditional emphasis and presence in the power, urban
 infrastructure, commercial complex, housing and industrial as well as
 institutional sectors, we have laid emphasis on expanding our presence
 in the domains of steel, healthcare ad oil and natural gas, each of
 which are vital to India''s future development.
 
 Design & Engineering Division
 
 Design & Engineering is an integral aspect of everything that we do in
 our business. Our Design & Engineering division acts as a central pool
 that handles the entire Group''s work in these areas. It is staffed by
 senior, experienced and exceptionally talented top management, and
 supported by a dedicated team of middle management and engineers. The
 division will not only provide state-of-the-art solutions to all the
 engineering challenges within the Group but at the same time will
 function as an independent profit centre, by providing solutions to
 clients across the globe. Pre-engineered buildings, heavy steel
 structures, highways & bridges, power plants, metro projects, RCC
 structures & multi-storied real estate projects would form the key
 focus areas for this division.
 
 Equipment Management Division
 
 The increase in the infrastructure development automatically triggers a
 demand for construction equipment both in the internal as well as the
 external context. Builders and construction companies are constantly
 seeking to expand their capabilities, and leasing equipment for a build
 project is a lucrative option as compared to investing in capital
 expenditure. For companies with a large equipment bank like ours, this
 is an ideal way to encash idle machine time and earn revenues. The
 equipment leasing business of your Company has been a robust revenue
 
 earner and would continue to do so in the years to come.
 
 The division has been able to encash on the burgeoning demand for
 equipment from the North and the East of the Country and it has entered
 into several long term tie-ups with companies such as Shapoorjee
 Pallonji & Co., L&T EEC Division, McNally Bharat Alpine, Samsung and
 ACC to name a few.
 
 Looking forward, your Company seeks to make significant investments in
 this division with a perspective to capture accelerated growth.
 
 Subsidiary Review Era Infrastructure
 
 As India''s infrastructure related ambitions grow, the Government finds
 it increasingly difficult to fund the slew of projects that are
 required. Current thinking is in favor of BOT projects that are done in
 the nature of a Public Private Partnership. This leverages the power of
 the private sector to raise funding and handle large projects. Your
 Company''s BOT subsidiary is a dedicated unit that was set up to handle
 these kinds of projects.
 
 Era T&D
 
 With an increased thrust on the power generation sector, there is a
 need for Transmission and Distribution network to grow simultaneously
 to deliver more power to the people. Era T&D undertakes turnkey
 projects that help lay power lines which will prove to be the lifelines
 for future development.
 
 Proactive in service of our stakeholders
 
 We seek to proactively manage our relationships with our stake holder
 communities to mutual benefit. To our shareholders, we are committed to
 deliver ever increasing valuations and returns, to our employees we
 offer enhanced career building opportunities, to the communities we
 deliver infrastructure for a better tomorrow and to the industry and
 business in the geographic areas we operate in we offer the possibility
 of a bright future.
 
 I end this note by reiterating our whole hearted commitment to this
 vision and would take this opportunity to thank our Board of Directors
 for the advice, guidance and mentoring they have provided us in our
 attempt to build the lifeline for tomorrow.
 
 H.S. Bharana
 
 Chairman & Managing Director
 
Source : Dion Global Solutions Limited
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