1994
MID INDIA SPINNING LIMITED
Chairman,s speech
Chairman, Mr. R.P. Ganediwal's speech at
SPINNING COlON INTO MEGA PROFITS
It is my proud privilege to address the MID INDIA FAMILY at the Third Annual
General Meeting of your Company. I am happy to report the commencement of
commercial production in January 1994 and you wlll appreciate that the
company's performance was quite satlsfactory to earn ant profit of Rs.56.22
lacs in eighty operational days, despite several adverse factors which are
highlighted as under:
1.The year under review had witnessed an erratic movement in cotton prices
causing a lot of market uncertainties as far as economics and competitlveness
Mr. R.R Ganediwal, Chairman were concerned and we had to bear the
resulting cost disadvantage.
2. We could have otherwise, operated at 100% capacity but for certain delays
beyond the control of management, in installation of machinery we could
operate at only 60% capaclty.
FUTURE OUTLOOK:
With an expected bumper cotton crops of 150 lacs bales in the current year,
your company would be able to increase margins handsomely on account of a
considerable savings in raw material cost. Through technical upgrdation and
better product mix we will be achieving 100% capacity utilisation by October
1994. These factors will lead to a sizeable growth in your company's
profitability. Very shortly, we will be commencing.the second phase of
expansion, increasing our installed capacity from the existing 12,500
spindles to 25,000 spindles. As a part of our forward Integration thrust we
plan to install knitting facility to produce five tonnes of knitted fabric
per day thus, will enable us to produce 35,000 pcs. of garment. Such garments
have a ready international market and considerably enhance your company's
profits.
The product of your company has been well accepted by its overseas customers
because of strict adherence to quality control measures resultin(1 in a
quality of yarn superior to that of our competitors. We have already made
our presence felt i; the Asian Markets and are nolv concentrating on
penetrating the European Markets because f the general shift in manufactures
of textiles from European and other advanced countries to Asian locations.
These factors will herald a new era for the entire Indian spinning
industryand your company will not spare any effort to capltalise on this.
Barring unforseen circumstances we are quite optimistic of rewarding our
shareholders by declaring a maiden dividend in the immediate future.
Your company recognises the fact that employees are its inherent strength and therefore attaches great importance to human resource development. Proper
training i9 being imparted to all employees which would lead to highly
skilied and fully motivated manpower including the management.
I would like to assure you all that your company is managerially strong and
e'ffective with a team of dedicated and motivated orofessionals and is
therefore confident of achieving impressive growth.
R.P. GANEDIWAL
CHAIRMAN
Place : INDORE
Dated : August 12, 1994