Annual Report FY 2010-11 - Pipavav Shipyard

Dear Shareholders,
It is with great pleasure, I
extend, on behalf of the Board
of Directors of the Company and
myself, our heartfelt appreciation
for your consistent support
and the confidence you have
maintained in your Company.
As you are aware, Pipavav
Shipyard Limited has been
renamed as Pipavav Defence and
Offshore Engineering Company
Limited. The new identity
captures important capabilities
of the Company to emerge as
an integrated defence, heavy
engineering and offshore oil
and gas assets construction
Company.
While the developed economies
in the West continue to battle
with recessionary pressures,
higher unemployment levels etc.,
geopolitical tensions in the Middle
East have posed new challenges
before the world economy.
Nevertheless, the Indian
economy has grown at 8.6% until
now, and in the coming years it
is expected to continue to grow
at more than 8% on the back
of increasing investments and
effective Government policies.
As far as the defence sector
is concerned, India is shifting
gears and welcoming private
sector participation. Currently,
the country imports around 70%-
75% of its defence hardware
requirements from foreign
nations. However, the Indian
Government aims to decrease
its dependency on such imports.
Policymakers have hiked the
defence allocation for the fiscal
year 2011-12 to approximately
Rs. 164,415 crore. Certain key
drivers such as global aspiration
of India, a need for a strong
defence set up to maintain
national security and stability in
the region, emerging threats in
the region as well as economic
growth and prosperity are
expected to support growth
momentum in defence space.
During the fiscal year 2010-11,
operating margins and net profits
have seen significant growth.
During the year, your Company
was awarded the Warship
Production License giving it
the first mover advantage in the
defence space. Your Company
now has the capability to bid
for the construction of diverse
naval vessels including Aircraft
Carriers, LPDs, Submarines,
Destroyers, Frigates, and
Corvettes etc. Your Company
has completed construction of
two Panamax vessels, the largest
to have ever been constructed in
India.
India
India’sfirst
15