My greetings for the Year 2017. May the year bring all the cheer and happiness! I take this opportunity to share, our performance so far in FY 16-17 and tasks ahead for us, to make it more eventful and memorable. GSL continues in its onward march with steadfast commitment and relentless pursuit of excellence, amidst constantly evolving market scenario, with more and more private yards, nibbling the business pie.
It is indeed a matter of singular pride, that post registering an impressive financial turn around in FY 14-15, FY 15-16 has been very rewarding. The yard is on cusp of exciting growth prospects, going forward. GSL’s ‘focus on execution’ with resultant reduced ‘build periods’, ‘timely deliveries’ at ‘Fixed cost’, coupled with Quality construction, nil / limited D448 liabilities and sensitivity towards customer requirements are some of the key differentiators, that make GSL a ‘Preferred Shipyard’ with its clients.
In the last one year, GSL has delivered three OPVs of 2400T each to Coast Guard, 1FPV and 11FIBs to Mauritius and few other vessels/ projects have been completed, all ahead of the schedule.7700T annual delivery attained by GSL is the highest annual delivery achieved by any other DPSU shipyard in the country. Nearly 30% (one-third) of the turn over in last FY, has come from exports. The company has achieved excellent all round results on financial front in FY 15-16, wherein operational profit has moved up by 349% wrt previous FY. We have transitioned to the ‘Fastest Growing DPSU Shipyard’ in the country with Value of Production (VoP) of Rs 726 Cr, registering 27%annual growth over the last FY.
GSL is racing ahead with completion of infrastructure up gradation projects. Shipyard has already invested over Rs.700 Cr and further over Rs 600 Cr will be invested in next three years. Phase 3A Modernisation facilities were completed in Aug 2016 and same were dedicated to the nation by the Hon’ble Prime Minister of India Shri Narendra Modi on 13 Nov 2016 in a impressive function at Goa. The yard is gearing up for the construction of MCMVs and all actions required in this regard are well on track.
As a corporate citizen, yard is focusing on increased Indigenization, Outsourcing, Skill India, Swachh Bharat Abhiyan, CSR and other initiatives of the Gol. Increased emphasis is being given to the development and implementation of new governance policies and training of our employees to prepare them for the challenges of the future.
We look forward to 2017 as a year in which GSL will continue to set new benchmarks, incorporating the latest technologies and expanding its capabilities to meet the needs of the nation’s defence sector. We are confident of clocking over 40% growth in turnover along with corresponding increase in our bottom line, on the strength of reduced ‘build periods’ and higher productivity. The positive momentum on the back of new strategies will yield very positive results in years to come. Our best is yet to come.
RAdm Shekhar Mital, NM, IN (Retd)
Chairman & Managing Director