Annual Report 10/11 - ACL Cables PLC

ACL Cables PLC Annual Report 2010/11Managing Director's ReviewGroup was able to establish a distinct identity for its portfolio of brands as a direct result of beingone of two companies to offer fire rated cables for all building wires, thereby offering unmatchedsafety and protection.ACL continued its pursuit of new markets throughout the year under review, which contributedto our enhanced business volumes. The favourable economic climate prevalent in the countrypresently is stimulating greater construction activity, which will have beneficial consequences inthe form of enhanced sales of our products.Product InnovationThe Company invested in launching new products and applied innovation throughout 2010/11,and implemented technology improvements along with the installation of new equipment in aconcerted effort in the year under review.ACL Cables PLC has always maintained strong ties with its consumers and pre-empted evolvingcustomer demands. In keeping with our customer-centric philosophy, customized products to suitindividual customer needs were introduced during the year, which further heightened the visibilityof ACL cables in the market.Industry ChallengesWhile we are optimistic about future prospects for the economy, there are certain macro economicchallenges that could impact the industry adversely. The future course of government policies,taxes, legislation, etc., could impact the business in the months and years ahead. The governmentpolicy regarding the granting of duty-free facilities to the CEB for import of cables for foreigncontractors has the potential to become a serious threat to the local industry, as this deters ourcompetitiveness as foreign contractors offer lower prices. This policy is skewing the level playingfield unfavourably and we sincerely hope that authorities take note of this status quo.The government should instead support the local industry in terms of including local materials andlabour on contract projects. In this manner, even if contracts are awarded to foreign contractors,ACL Cables PLC has always maintained strong tieswith its consumers and pre-empted evolving customerdemands. In keeping with our customer centricphilosophy, customized products to suit individualcustomer needs were introduced during the year.10