besco ltd Management discussions

BESCO LTD MANAGEMENT DISCUSSION AND ANALYSIS REPORT FOR THE YEAR ENDED 30TH SEPTEMBER, 2002. RAILWAY PRODUCT DIVISION: The year under review was another tough year for the wagon Industry. Indian Railways have cut down procurement of wagons. Intense competition and lack of capacity utilisation has led to an overall depression in the profitability and turnover of the Company. As announced in the Railway Budget for 2003-04, in order to improve its market share of Freight Business, Indian Railways need to invest substantially in Rolling Stock particularly in wagons and it is hoped that Railway will step up its procurement of wagons this year and future outlook seems to be better. FOOD AND FLAVOUR BUSINESS: Company is in the process of developing Its own Brands. However In this type of market considerable time is required for a brand to establish itself. Company is also exploring possibilities of strategic tie up as well as Including setting up of distribution network for the products. REAL ESTATE DIVISION: The Company has developed a small portion of Its land at Kolkata for Residential Flats Construction, and by the end of the accounting year, 75% of the Flats under development had been sold. The response has been encouraging. In view of enthusiastic demand, the Company has initiated steps to develop another plot of Land in Kolkata with further improved features in construction, which is targeted to be completed within a years time. ROLLED PRODUCTS DIVISION: The TMT process has been implemented and the Rolled Products Division has shown an increase in output. The products now made have been accepted by the market. RESEARCH & DEVELOPMENT: Your Companys entrepreneurial drive has always been the Inspiration for developing new products and advanced and new application of existing products. Your Company accords highest priority to Research and Development and believes that Innovation and technology are the foundations of growth. During the year, the R & D Centre continued to make regular Improvements and Innovations In the manufacturing process, product design and product development. Signed on : 4th March, 2003.