On the outset, I thank all the members of Omax family for choosing me as the new Chairman of the Company. I also thank all stakeholders for being supportive to the management through its journey of over 35 years. As the Chairman of the Company, this is my first communication with you, through the 35th Annual Report of the Company; I feel privileged and take this opportunity to share my understanding of the Company and our future road maps for the growth of the Company.
While reviewing the history of the company, I found, Omax has a great history of business growth and sustainability. After its incorporation in 1983, the Company established its first manufacturing unit in 1985 and after that, there was no looking back. During the period from 1985 to 2008, Company added one unit almost every two-three years. The Company added many new products & customers to its portfolio. New customers like TVS, Honda, Tenneco, Tata, Ashok Leyland were added, which spanned across geographical regions. Till 2012, Company witnessed rapid growth, both operationally and financially; and reached many milestones. The total revenue which was around Rs. 430 Cr. in 2004, tripled to reach Rs. 1297 Cr in 2012. However, it seems, somehow we lost steam afterwards. The revenue has been hovering around Rs. 1100 Cr. for last 5-6 years.
When we introspected, we realized that while we were growing, we did not put much focus on certain risk factors which later became sore points for us. We realized that our business has been predominantly dependent on 2W OEMs. Further, in this segment also, we were majorly dependent on a single customer. Hence, with de-growth of business with this customer, the overall business of the Company also got affected. Further, this business was predominantly based in northern part of the country. There was not enough geographical diversification in this business segment. Hence, we could not reach many important customers who were operating from other geographical areas. Another issue was that, margins in the businesses wherein we were primarily engaged, were not high. Which also affected our business growth.
But, I am very happy to know that the management of the Company has again pulled up its socks and resolved to bring back the past glory to the Company. Now, it has redesigned and realigned its vision & focus and is striving to develop Omax as an Engineering company with high-end skills on R&D process, industrial and value engineering, Fortunately, the Company had started laying seeds in other business areas in the past, which have now started bearing fruits. Customers in other categories viz. Commercial Vehicles & Passenger cars have all shown growth in business and have tremendous business potential. The Indian Railways as a customer has been growing exceptionally well. The turnover from Railways almost doubled in the previous year compared to the preceding year. AH these business areas have comparatively better margins and will strengthen our profitability and business growth, going forward.
Currently, management has a vision to double the turnover of the CV, PC & Railway businesses in next 3-4 years. To attain this vision, management has taken many strategic steps. It has refocused on skill development of its work force. Further, efforts are being made to ensure business is market and growth driven rather than internal business driven.
The CV business was predominantly based from one location and was manufacturing one product category i.e. Frame. To diversify the business, the Company has already entered into cabin part business and planning to do a turnover of Rs 40-50 Cr. of in the current fiscal and with further expansions in coming years. The Company is also exploring other product categories. In addition, it has started to focus on ALand Pant Nagar as a location. It is adding more process in the location. In south, talks are going on with Daimler/AL, Hosur to expand the business. In PC business, efforts are being made to identify and enter into high end machining items with high market potential. Currently, the Company has two products where it has good share in Indian market viz. Piston Rods and Axle shaft. Company is now expanding and going after global markets. In addition talks are going on to add few high end products.
The Board of directors has already announced expansion plans for Railway business. Capacity expansion for manufacture of heavy fabrication products, is in pipeline which will be implemented shortly. AH these efforts are expected to bring fruits in comingtimes.
At this juncture, the management needs your support. I, as the Chairman of the Company, would give my full support & guidance to the management to bring back the Company to its earlier growth path. Let us join hands to achieve this common goal which will bring prosperity and happiness to all of us.
Last, but not the least, I take this opportunity to thank all the customers, vendors and shareholders for their unstinted support to the Company. Wish all the stake holders a very happy and prosperous festive season ahead.