b p ergo ltd Management discussions
BP ERGO LIMITED
ANNUAL REPORT 2006-2007
MANAGEMENT DISCUSSION AND ANALYSIS
RESULT OF OPERATIONS
(Rs in Crore)
Year Ended Year Ended
31.03.2007 31.03.2006
Sales, Income from
Operations & Other Income 180.99 147.73
Gross Profit 15.20 14.17
Depreciation 2.64 2.60
Profit before tax 12.56 11.57
Provision for taxation 4.75 4.07
Profit after tax 7.81 7.50
BUSINESS & OUTLOOK
The total income of the Company for the year under review was Rs 180.99
crores, a 22% increase over Rs 147.73 crores in the previous year. Profit
after tax held firm despite competitive pressures and a steep rise in
several input costs such as steel and aluminium.
As retailing takes off in India, so do the furniture needs of the retail
chains. During the year, the Company entered the shop fittings market by
developing several new products for this promising new sector. These
include check out counters, customer service desks, back office and front
office desks and storages, as well as display units. These can be adapted
to several store formats. In addition to shops in India, Carlton showrooms
across several countries including Holland, Norway, Italy, France,
Hongkong, UK have been fitted with BP Ergo shop fittings.
New office space across the country, renovation of current office space,
and SEZ developments are drivers of systems furniture growth. This demand
has encouraged several new competitors (Indian and international) to enter
the market. However, given our innovative and large product portfolio,
branches and showrooms in key cities, and expanding dealer network, we are
well positioned to take advantage of these growth opportunities. The Ergo
brand is widely recognized as Indias premier office furniture brand, and
the first choice for over 500 architects across the country.
DESIGN & PRODUCT DEVELOPMENT
Since its inception fifteen years ago, BP Ergo has focused on ways to
improve both the work environment and organizational performance. Our
pioneering research into the needs of the Indian work space combined with
the adoption of world class modular design resulted in several path-
breaking products, including Element. Element today remains the exemplar
for the modern office.
The right office furniture, such as our desks with adjustable heights, can
avoid and reduce back pain as well as aid healthy posture. Some jobs
require teams to work together. Our products from the Totem range enable
effective and dynamic team co-operation. Some jobs require more a more
personal space for reflection. Our wide range of partitions and tiles,
including acoustic tiles, afford both partial and complete privacy even in
a buzzing office. Our latest research into behavioral patterns in Indian
workplaces has been integrated with design to offer a new range of value
added ergonomic furniture: Alfa 2 and Connect 75.
Alfa 2: An open desking system with concealed wire management, Alfa 2 has
the slimmest frame in the market. It is most suited for organizations
preferring a light look for their workspaces (such as IT and ITES
companies, media houses and banks) yet require an effective and efficient
cable management system is equally essential. Unlike other desking systems,
Alfa 2 has an option of panels extending upto floor level or upto knee
level. The wire management is concealed both horizontally (through cable
beam and tray) and vertically (through mast).
Connect 75: Its a line which arguably possesses the most extensive wire
management in BP Ergos wide range of systems. Connect 75 is suitable for
offices with large footplates / floor spaces having immense wiring needs,
and which need to be set up in minimum time. Connect 75s thoughtful design
- based on privacy without enclosure - lends itself to a relatively open
office design in which teamwork and transparency are important aspect of
the working environment.
BRANDING
Totem, a product range introduced in 2005 which won the Business World-
National Institute of Design Award, continues to make waves. Totem Curves
was selected by the makers of the movie, Lahe Raho Munnabhai, as a
reception desk in the block-buster, and the entire Totem Tycoon suite for
the CEOs office scenes. Some scenes were shot in the corridors and
conference room of the Mumbai office.
INDUSTRIAL RELATIONS
Industrial relations remained cordial throughout the year under review.