Download - Jindal Group of Companies

Chairman's
Statement
Dear Shareholders,
The world economy has seen lots of turnarounds in various sectors. In the last one
year steel industry has witnessed the heights and also the changed trend. Maharashtra
Seamless continued its path on the progress with the Gross Turnover of Rs.879 crores
in the financial year 2004-05.
With our established product range upto 7” of Seamless Pipes and Tubes we are now
all set to accept all requirements upto 14” in Seamless as our new mill has already
gone into production in this higher dia range. Now we would meet the requirements of
the entire range of Pipes in all alloy and non-alloy grades. With the committed teamwork
we are confident to meet the challenges in the times to come in any market scenario.
However, we will not stop here. We are fully committed to enhance the scale,
competitiveness, efficiency and the productivity at all levels and in all areas. With this
motive only we have already decided to setup our own steel plant in Orissa, which will
basically feed all of the raw material requirements of Maharashtra Seamless Ltd.
In line with the growth of the Indian Economy, your Company is also on its way to
achieve its mission of growth and prosperity. The track record of consistent & impressive
performance posted by the company year after year speaks about such growth.
Total Quality Management (TQM), Cost Control and aggressive marketing have become
integral part of the systems of your company. Currently, the market for Seamless &
ERW Pipes is growing at a rapid pace. With more emphasis being given on exploration,
drilling and laying of cross country Line pipes, pipe Industry is having a very promising
future outlook. The company is confident that with the combination of market growth
and the expansion project, the company would be able to garner the major chunk of
the growth in Pipe Industry.
There is competition from International players like China and East European countries.
Reduction in Import Duty on pipes and tubes may pose some threat to Indian
manufacturers in the coming years as Government may go for lower tariff structure in
the future. Your company is ready to face this challenge. When the competition intensifies
with price playing a major role, cost management which we are practicing continuously
can contribute effectively to profitability. The ultimate challenge will be to manage intense
competition and optimize the benefits of productivity and profitability improvement
measures.
Our long-term goal is to maximize returns on shareholders' wealth for our esteemed
shareholders, which is reflected in the financial performance achieved by the Company.
We hope to receive the continued support and patronage of all of our associates, which
will add to our determination to achieve spectacular results in the coming years.
3
D.P. Jindal