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WIMCO LIMITED
ANNUAL REPORT 2009-2010
MANAGEMENT DISCUSSION AND ANALYSIS
COMPANY PERFORMANCE:
The Company's turnover, which stood at Rs. 215.74 Crores,. registered a
growth of 19% over the previous year on account of higher unit realization
in the Matches business and an improved performance in the Engineering
and Agro Forestry businesses of the Company. During the year under review,
the Company, however, incurred a net loss of Rs. 16.24 Crores.
Continued escalation in the prices of raw materials like wood, splints,
paperboard and key chemicals brought the margins under pressure.
Availability of critical raw material like wood at competitive prices and
technological induction in manufacturing is crucial for the long-term
sustainability of this industry. Your Company is currently focusing on
reducing cost, improving efficiencies and quality Towards this end a
contemporary, state-of-art match manufacturing line has successfully been
installed at the Kolkata Unit during the year. Several other steps are
under way to rationalize costs and improve margins in this highly
competitive business. The Engineering business of the Company registered a
growth of 25% over the previous year as the investment climate improved
towards the second half of 2 year with customers confirming orders for
packaging machines. The Agro Forestry business of the Company is supplying
high quality poplar ETPs (Entire Transplant) to farmers in north India
thereby not only providing employment and livelihood to many but also
helping in improving the green cover in the region. The supply of ETPs at 4
5 million during the year registered a growth of 28% over the previous
year.
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