Message from the Chairman
It gives me immense pleasure to write to you and welcome you to be a part of the larger
family the Murugappa Group. The last one year has been an exciting time for me personally,
commencing with the conclusion of the agreement to purchase 44.12% of the shares of your
Company to being involved in shaping its direction and future.
At the outset, I would like to record my appreciation of Mr. P Subramanian for
creating, growing and guiding this Company over the last four decades and being
instrumental for the Company being acknowledged as one of the best in the industry. I also
wish to express my gratitude to the members who served on the Board of Directors of
Shanthi Gears Ltd for their guidance and counsel over the years.
Since the acquisition, building customer relationships and improving operational
efficiencies have been the key focus of the new team. This helped us post a turnover of
Rs. 146 crores and a Profit before Tax of Rs. 22 crores in FY2012-2013. The year was
marked by a significant reduction in demand due to the depressed business conditions
prevailing in the industry. The investment climate was also not conducive leading to
delays in execution of large projects thereby impacting off-take.
As we embark on a new path leveraging brand Shanthi, adopting and
integrating best practices, augmenting our product range and improving our service we hope
to enhance the value proposition to all our stakeholders. Towards this, Shanthis
main focus will be in the National market and key Industry segments like Steel, Cement,
Mining, Construction and Metro Rail. Shanthis strength lies in its engineering and
design capabilities, a large skill pool, state-of-the-art manufacturing infrastructure and
the ability to innovate and re-engineer to provide solutions to our customers. The Company
intends to leverage these to serve the standard and customised gearbox product segments.
Needless to mention, people make the difference and the team at Shanthi Gears, led by
Dr. Sreeram Srinivasan, through its commitment and diligence is making this possible. I
thank all our employees and stakeholders for their contribution and support and remain
confident of their continued passion, enthusiasm and co-operation as we progress into the
I also thank my colleagues on the Board for their valuable contribution and guidance to
take Shanthi to new heights of achievement.
Finally, my grateful thanks to you, the shareholders, for your continued support and
confidence in the Company.