CHAIRMAN
Dear Shareholders,
It is indeed a pleasure to reconnect with you at the end of another nancial year
wherein your Company, through its mantra of "looking beyond challenges", is
trying to navigate through the slow economic environment. With our 1.5 MTPA integrated
steel manufacturing facility at Raigarh, Chhattisgarh and upcoming pit head thermal power
plant of 1050 MW (2 units of 525 MW each) in Angul, Odisha, we are looking at a new phase
of growth for the Company.
The economic growth during the year, ended at an extremely disappointing level of 5%.
The expected growth and investment in infrastructure such as roads, highways, airports,
ports and manufacturing facilities was slow thereby resulting in considerable low demand
for steel.
Having said that, your Company demonstrated strong nimbleness and resilience to face
challenges head-on, as evident from our satisfactory levels of pro tability under tough
prevailing circumstances. We embarked on proactively realigning our business to adjust to
current market conditions, enabling us to maintain revenue from operations to Rs.1979.62
Crores in FY 13, up from Rs.1897.38
Crores in the previous scal. However, pro t decreased from the earlier level of
Rs.288.86 Crores to Rs.250.32 Crores in the year under review due to pressures on margins
in the industry.
Progressing into the next scal, we are extremely optimistic about enhancing our pro
tability. Our 1.5 MTPA integrated steel plant at Raigarh will produce structural steel,
longs
(TMT Bars) and ats (Plate Mill Plates PMPs) to cater to the rapidly growing
infrastructure & construction industry. The integrated facility would reduce cost and
would help in optimizing operations very competitively. We would also be for the rst time
entering the consumer markets and would be introducing our rebar under "Monnet Steel
TMT" brand. The branded steel is expected to improve margins further.
Additionally, in line with our business strategy to diversify business operations and
strengthen position, the Company through its subsidiary Monnet Power Company Limited
(MPCL) is building its power generation capabilities as an Independent Power Producer. The
expansion of the 1050 MW power project at Angul, Odisha is well on track. This power
project, envisaged as amongst the lowest cost generating units in India, makes us
optimistic about generating robust pro tability from our power operations.
BUSINESS STRATEGY
By systematically approaching the value proposition in every aspect of what we do, we
at Monnet leverage our competitive advantages and maximize our value to all our
stakeholders.
A key element of our business strategy is to operate as a low cost producer in a highly
competitive business environment. At our plants and sites we employ the latest equipment
and technology and advanced manufacturing facilities to achieve ef cient production rates
and conversion costs. We remain sharply focussed on driving shareholder value by
concentrating on sound operational performance, strategic growth initiatives and balanced
capital allocation. We also continue to be disciplined in pursuing additional acquisition
opportunities that are highly synergistic and meet our return on capital requirements
while maintaining a stable nancial position.
OUTLOOK
As we look forward, we remain encouraged by the long-term macroeconomic fundamentals
supporting our businesses. We expect the economy to return on the path to recovery thereby
pushing investments in the infrastructure and construction sector and generating increased
demand for steel. Through further investments in technology to improve ef ciencies and
through acquisitions to expand our footprint, we are optimistic about enhancing our pro
tability and maximizing returns to our stakeholders.
CSR
Being a part of the community is prime to our business at Monnet. Through Monnet
Foundation, we continued investing funds for local community initiatives and social
infrastructure in and around areas of our operation. Our solidarity to the game of boxing
remains unchanged and by providing impetus to the game and the players both at grassroot
and higher levels, we aspire to create many more sporting icons who will de nitely bring
glory to the nation.
Earlier in the year, Monnet felicitated Olympic Bronze medallist MC Mary Kom and the
entire boxing contingent for having put up one of India’s best performance ever in
boxing at the Olympics. Under the aegis of our commitment of infrastructure development,
we have taken up the assignment of beauti cation and landscaping of airports in
Bhubaneswar, Kolkata and Raipur.
WITH 1.5 MTPA INTEGRATED STEEL MANUFACTURING FACILITY AT RAIGARH, CHHATTISGARH AND
UPCOMING PIT HEAD THERMAL POWER PLANT OF 1050 MW (2 UNITS OF 525 MW EACH) IN ANGUL,
ODISHA, WE ARE LOOKING AT A NEW PHASE OF GROWTH FOR THE COMPANY
CONCLUSION
Monnet is ideally positioned to respond to the challenges and capitalize on the
opportunities that lie ahead. We appreciate the efforts of our employees and their
on-going commitment to meet the challenges that are inherent in our highly competitive
business. On behalf of the Board, I would also like to take this opportunity to express my
gratitude to our investors, bankers and stakeholders for the trust they have shown in our
capabilities. Monnet is con dent of scaling greater heights in the years ahead and we look
forward to your support in this journey.
Sandeep Jajodia
Chairman & Managing Director