Overview
My communication to you last year indicated that your company was at
the cusp of a new growth phase.
The opportunities facing the Indian manufacturing sector now indicate a
sizable opportunity for your company. There will be growing capital spend across a range
of sectors, resulting in the increased downstream demand for products and solutions
delivered by your company.
Your company's Japanese parent recognised this prospect and
responded with initiatives leverage long-term prospects. The parent company transferred
the technology to manufacture a larger range of products that would be consumed by
downstream sectors in India. Besides it will also empower the company to manufacture a
wider range of products in India for international market. The parent company increased
its stake in the Indian constituent by 4.62 per cent following an equity infusion of Rs.
63 crore during the last financial year. This provides your company now adequate growth
capital to accelerate its momentum.
Following the pandemic, the western world is seeking to reinforce its
supply chain with the induction of alternative non-Chinese manufacturers located proximate
to their consumption centres.
India is expected to capitalise on this reality. The country possesses
a broadbased manufacturing base, attractive manufacturing economies, rich engineering
talent to customise products and solutions, and a deep metallurgical cum engineering
pedigree.
There is a growing priority for downstream players to engage with
ESG-driven vendors. I am pleased to communicate that your company has been ESG-respecting
from the time it went into existence. This commitment has been consistently marked by
responsible stakeholder practices, deep environment respect, complete alignment with
prevailing compliance requirements, strategic consistency, operating transparency and a
focus on enhancing consistent value.
We are engaged in building our company for the next round of growth and
we are attractively placed to grow more consistently with responsibility, profitability
and sustainability.