29 Jul 2016 :Chairmans Speech at the 25th AGM
CHAIRMAN’S ADDRESS TO THE MEMBERS OF
ASTRA MICROWAVE PRODUCTS LIMITED
At The Twenty Fifth Annual General Meeting Held
Swagath-De-Royal Hotel, 2-36, Kothaguda X Roads, Kondapur, Hyderabad on Friday, the 29th July, 2016 at 12.30 P.M
Ladies and Gentlemen,
On behalf of all of us here, it gives me great pleasure to extend a warm and hearty welcome to you all to the 25th Annual General Meeting of your Company. I also take this opportunity to thank you on my behalf and on behalf of Board of Directors of your Company for your interest and your presence here today.
Results of Operations
The Company performed credibly during the year despite sharp decline in sales. Exports which has driven growth in the last two years have declined as the projects involved got completed during the year. Export business is primarily driven by Defence offset policy of government of India which is project based and lumpy in nature.
India’s defense Industry, which has grown substantially in recent years, seems headed for even better days. Government has a clear vision for an indigenous defense industry and the Defence Procurement Policy (DPP, 2016) announced recently reinforces that intent and commitment. However indigenization is going to be slow incremental process.
As the Government emphasizes on indigenous defense capabilities and gives impetus to the Make in India initiative, companies with a strong technology background and proven track record are bound to have a strong case for further growth.
Being in the industry for more than 25 year and well established as Tier 2 supplier in the critical technology areas of RF and Microwave domain, our company is poised to leverage growth in the sub-system and component market as an important supplier of critical products to DRDO and DPSU’s. Our company is also well positioned to move up the value chain as we have started development activity to build small systems which will be suppled directly to the Indian armed forces, homeland security establishments etc.,
The company has raised about Rs.112 cr through a mix of debt (Rs.50 cr) and equity during the year as against proposed Rs.170 cr. This money was raised to expand in the product chain, setting-up of joint venture companies with foreign OEMs and setting-up of own R&D facilities in Bangalore. The Company has started all the stated objectives and is at various stages of implementation.
The Company has proposed to spend about Rs.42 cr during the year to augment existing operations which will be funded by internal accruals, funds raised during last year and through term loans from Banks.
Awards and Recognitions:
We are happy to share with you that during the year, the Company has been awarded :
(a) for outstanding achievements in Business Excellence for the year 2014-15 from ELCINA Electronic Industries Association of India, New Delhi.
(b) received an award from Deloitte Technology Fast 50 India 2015 programme.
I would like to conclude by saying we had a good year, and the coming years are going to be more promising.
If you have any questions, we will be glad to answer them after Presentation of Statutory Auditors report.
(Dr. Shiban K Koul)