30 Jul 2015  :Chairman speech at the 24th AGM

CHAIRMAN’S ADDRESS TO THE MEMBERS OF

ASTRA MICROWAVE PRODUCTS LIMITED
At The Twenty Fourth Annual General Meeting Held at Swagath-De-Royal Hotel, 2-36, Kothaguda X Roads, Kondapur, Hyderabad on Thursday, the 30th July, 2015 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 24th 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 maintained steady growth during the year with exports contributing in a major way. The Company exported critical sub-systems for Radars under Defence offset obligations and fully completed two contracts well within the agreed delivery schedules.

 The Company’s wholly-owned subsidiary has supplied critical inputs required for exports which were hitherto outsourced from third parties thereby retaining major value of export business within the overall entity.

 The company has recorded a modest growth of 19% over the previous year sales and over 175% during the period of 24 months. In keeping with the increase in sales, the company has recorded increased quantum of profit. We are proposing to distribute the enhanced profit by way of matching dividend and it is awaiting your approval.

 Business prospects:

India’s defense Industry, which has grown substantially in the recent years, is likely to perform still better in the ensuring years. Growth in the domestic demand should continue to be robust.

As the Government emphasizes on indigenous defense capabilities and gives impetus to ‘Make in India’ initiative, companies like ours with a strong technology background and proven track record are bound to have a strong case for further growth. We believe that we are poised to see good compounded annual growth over a period, though individually viewed year on year growth may not be very impressive.

Business plans to sustain growth

We plan to leverage continuous growth at sub-system and component level where we are well established.  We will leverage our proven capabilities in R &D to form right partnerships with domestic and foreign players to gain additional growth from new avenues.

We have started MMIC design and development activities through wholly owned subsidiary in Singapore in order to access the Global market and also to gain efficiency in operations by being closer to the semiconductor hub.

We have started an exclusive R&D Centre in Bangalore targeting Radar Systems and special projects division for EW and communication systems in Hyderabad with an objective of direct participation in system level orders as applicable. Business development center was set-up in Delhi for establishing customer relationships at end user level.

Astra recognizes the need for forming Strategic Partnerships with Foreign Players to meet the objective of driving long term growth and moving up the value chain.We are working to add complementary strengths in the form of JV’s with experienced OEM’s to drive further growth and move up the value chain.

 Expansion programmes

The company is planning to raise about Rs.1700 millions through a mix of debt and equity to expand in the product chain, for setting up of joint venture companies with foreign OEMs and develop R and D facilities further in Bangalore. The members will be kept informed of the developments at regular intervals as we progress towards implementing these expansion plans.

Awards and Recognitions:

We are happy to share with you that during the year, the Company has been awarded for outstanding contribution in R&D - Aerospace and Defence Awards 2015 and Deloitte Technology Fast 50.

I would like to conclude by saying we had a very good year, and the coming years are more promising.   If you have any questions, we will be glad to answer them after a short video presentation on the Company and Presentation of Statutory Auditors report. 

 

 (Dr. Shiban K Koul)

Chairman