Message from MD

Welcome to our website everyone.

We have successfully and profitably grown our business by focusing on the two most critical ingredients for human survival and progress. Power and Water. These two resources touch almost all spheres of human life; and in a developing society like India with a billion-plus population the ability to provide adequate power and water to a large proportion of the population will determine the nation's socio-economic wellbeing for the long term.

The Indian Economy

The Indian economy has reported one of its most sluggish performances in recentyears. While the country grew attractivelyin the first two quarters of the year underreview, there was a marked decline ingrowth indices starting from the third quarter onwards.

This decline was triggered by a prominentcompany in the country’s non-bankingfinance sector being affected by a liquiditycrunch. The effects of this were feared toextend not only to depositors and otherNBFCs but across the entire economy.The result was a liquidity paralysis within the economy during a major part of the second half of the financial year underreview. As consumer sentiment wasprogressively affected, there was a declinein the offtake of automobiles and otherhigh-ticket products. There was a relatedtrickle-down in impact across other sectors as well, pulling down the national growth average to 5.8% in the last quarter, one ofthe lowest reported by the economy in anumber of quarters and comparable to theimmediate post-demonetisation phase. The result was that the Indian economy grew 6.8% during the year under reviewcompared with 7.2% during 2017-18. .

Sectoral Background

Even as the long-term outlook of India's infrastructure growth story continued tobe positive, there was an interruption inthe government's infrastructure spending related to the power sector during the year under review. There was a slowdown in thegovernment's investment in new powertransmission lines. As per an unofficialestimate, the quantum of orders issuedby the Power Grid Corporation of IndiaLimited (PGCIL) for the commissioning of new electrical transmission towers declined by 70% during the year underreview. This affected the Company's orderbook, which declined from a year-startfigure of H26,270 million to H24,600 millionat close. The order inflows during theyear under review declined from H19,340million to H13,330 million,We believe that this decline is temporaryin view of the vast infrastructure underpenetration in India’s transmissionsector. Now that the general electionsof 2019 have been concluded, the newgovernment will seek to ensure a larger and quicker infrastructure rollout across the foreseeable future. We believe thatthis will strengthen our order book,revenues and business surplus across thefore seeable future.

Skipper's Repositioning

At Skipper, we repositioned our business with speed during the financial yearunder review with the objective to remainrelevant and competitive. The Company strengthened its customer focus through the reinforcement of aservice-driven mindset and higher servicebenchmarks. The result was a greaterpropensity to manufacture completeproduct batches, as opposed to the largestvolume of the highest selling products,and a greater focus on providing completesolutions to customers.The Company graduated from being adependable vendor to a trusted partnerthrough the anytime-any quantity and anywhere product delivery, helping customers enhance their working capital efficiency. The Company repositioned itself as a one-stop and broad-based engineering solutions provider through the manufacture of towers, fasteners and monopoles, coupled with in-house testing facilities, widening the value chain on the one hand and strengthening its unique global positioning on the other. The Company replenished its revenues by seeding new products like monopoles and railway structures, which would account for a larger proportion of prospective revenues. The Company responded to the prevailing environment through the implementation of the Theory of Constraints concept in its PVC business. It focused on valueadded products mix and has transferred all the capacities from its satellite plants to its parent plant in Uluberia. All of these capacities are expected to be installed as well as utilised within FY 20. The Company protected its financial foundation by staying relatively under-borrowed, where a moderated working capital outlay will enhance competitiveness. The Company widened its global footprint through a growing presence in focused markets with increasing potential. The Company strengthened its business sustainability through a stronger compliance with global and Indian regulatory and quality benchmarks.


At Skipper, we believe that our repositioning should translate into a stronger competitiveness. Even as we account for a sizable share of the Indian market, there is a growing focus on carving out a larger share of the customer’s wallet and extend into contiguous spaces. Even as we are a preferred choice among customers, we seek to graduate to become a ‘must work with’ partner. Even as we remain profitable, there is a movement towards enhanced profitability and sustainability across market cycles. Even as the focus is on remaining viable, there is a greater focus on creating a larger business with fewer resources (working capital). Even as we are one of the most respected players in our niche the world over, there is a movement to strengthen our compliance with a wider range of global accreditations facilitating our entry into more markets. Even as we strive towards continuous growth, we will protect our profitability and strengthen our projects bidding, product mix and trade terms.

Our people are the real champions behind our success, who have consistently embraced challenges and forward. I thank all members of the Skipper family for helping us deliver on commitments in all these years. I am also grateful to all stakeholders for their continued encouragement and support took the business.

Sajan Kumar Bansal
- Managing Director