directors - Colombo Stock Exchange

ManageMent report
Performance
Dimo has done extremely well in the construction and mining equipment
business, achieving targeted unit sales and market shares during the year. In
all, turnover increased by over 135% during the last two financial years.
The year saw us supply customers with some of the largest Komatsu
machines available: PC600-8R and PC 450LC-8R excavators, a WA 470-3A
wheel loader and a WB 97S-5EO backhoe, the last of these being supplied to
a major project in the Republic of Maldives. Also of interest was the supply
of four Komatsu PC35MR-3 mini-excavators modified for use as de-mining
machines. The modification was entirely designed and implemented by
technical staff of Dimo.
New Products
Komatsu’s new 20-ton PC200-8 excavator, with its eco-friendly Tier 3 engine
and Bomag’s single-drum ten-ton compactors were the products launched
this year. The latter is very competitively priced and targets the emerging
soil-compaction market.
Outlook
Our immediate plans are to consolidate the market leadership achieved by
Komatsu in the construction and mining-equipment market by the end of the
current year.
Holcim Project
Dimo and Komatsu have been key partners of Holcim (Lanka) Ltd. since 2004,
when the Company signed a full maintenance contract for maintenance
services on the fleet of Komatsu mining equipment deployed at its open-cast
limestone quarry north of Puttalam. On satisfactory completion of the first
agreement in December 2008, a new one was signed, covering a further five
years effective 1st July 2009.
The maintenance contracts covers sophisticated technical services, with
targets set for 90% minimum machine availability at all times throughout
the year.
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B u s i n e s s p e r F o r M a n C e
construction, agricultural &
Material handling Machinery
ANNUAL REPORT 2009/10 DIESEL & MOTOR ENGINEERING PLC
Fluid Management Systems (FMS)
The FMS business unit serves two major markets: the building-service sector
and National Water Supply Network. Our lines include KSB pumps and valves,
Siemens water-treatment plants and Siemens process instrumentation.
With increased urbanisation, Sri Lanka’s thirst for piped water continues
to grow, further driven by consumer lifestyle changes and the expansion
of commercial and industrial activity. The NWS&DB provided 80,060 new
connections during the year under review, bringing the total number
of connections in the country, including industrial and commercial
establishments, to 1.3 mn.
Several major water-supply schemes were in progress in 2009. These
included the Greater Kandy water supply project (Phase I, Stage II), the Towns
South of Kandy water supply project, the Nuwara Eliya District Group Towns
water supply project, the rehabilitation and augmentation of the Kirindi Oya
water supply project, the Towns North of Colombo water supply project
(Stage II), the Kelani Right Bank water-treatment plant and the Greater
Colombo water rehabilitation project.
New Products
Siemens process instrumentation business and water-treatment plants were
officially launched during the year.
Key Events
In operations, we installed Sri Lanka’s largest booster-pump station at
the Customs Headquarters in Colombo, and the country’s largest vertical
turbine pump for the National Water Supplies & Drainage Board (NWS&DB)
at Baddegama. We also secured an order for Sri Lanka’s largest-ever
water pump by capacity, also from the NWS&DB, to be used at Ambathale
Purification Plant.
Future
Supply of safe drinking water has always been a priority level investment
in the country and this is expected to steer this business into another year
of success.
Agricultural Machinery
Dimo markets Mahindra tractors and CLAAS harvesters - high-quality
products tested in the huge and demanding Indian market - to Sri Lankan
farmers. The performance of this business unit is linked to the health of the
agricultural sector.
Financial highlights 05 Operational highlights 06 Chairman & CEO's Review 10 Board of Directors 14 Group Management Committee 18