In a report to the shareholders, the directors have noted that the Indian market is sluggish with price cuts affecting all the products.In addition, one unit has stopped operations because the entire management and unionised staff has accepted the voluntary retirement scheme. Alstom T&D Distribution Transformers Ltd, which was merged with Alstom Ltd, stopped operations since July last year. The order book position of the transformer unit in the current year is "not very encouraging", and the unit continues to be affected by overcapacity. Alstom Ltd has a history of selling either investments, assets or businesses over the years, since fiscal 1993-94. The company has convened its 48th annual general meeting on August 22, to adopt its accounts among other issues.

There have been a few changes on the Alstom board. Executive director VF Banaji, who came aboard on March 1, 1998, for a three-year term, has resigned on November 1, 1999. The company has trimmed the number of joint managing directors who were functioning in addition to the managing director KK Moradian. Instead of three joint-managing directors - JP Fesson, NJ Rao and K Vasudevan - the board will have only one joint-managing director in Fesson. Both Rao and Vasudevan - who resigned on July 4, 1999 and March 31, 2000 - will continue as non-executive directors.

Another director, PA Chell, resigned from the board on June 28, 2000. The company has entered into two new collaborations agreements with Alstom T&D SA of France for manufacturing two models of circuit-breakers. It has started exporting motors to Sri Lanka, Dubai and Malaysia and has reported a sales of Rs 1.6 crore. Exports of MV Switchgears and CDG Relays are expected to cross Rs 8 crore and Rs 6.1 crore, the director report says. In fiscal 1993-94, the company made a profit of Rs 5.67 crore from the sale of a chunk of investments in Hill Properties Ltd, The Indian Transformer Ltd, The East India Clinic Ltd, The English Electric Company Employees' Co-operative Stores Ltd, The Sholapur Spinning & Weaving Co Ltd and Unit 64 of Unit Trust of India. In 1994-95, it sold Magnet House, a prime property in Calcutta, for a profit of Rs 12.95 crore In 1995-96, GEC Alsthom transferred its wholly-owned furnace division to GA Danieli of Italy The company sold a property in Chennai during fiscal 1997-98 and made a Rs14.90 crore profit In 1998-99, it sold the low voltage division for a profit of Rs 48.76 crore.