As another accomplished year passes by, I feel extremely elated to reconnect with you through our annual report. We have witnessed a paradigm shift by pursuing excellence towards achieving our economic, social and environmental goals. In FY17, wherein the global economy has witnessed uneven growth, Indian economy
has been on the path of robust growth trajectory.
FY17 has been a difficult year for us, as your company faced several challenges such as demonetisation and volatile steel prices which created a negative impact on our volumes in the second half of the fiscal, but our strong business acumen has helped us to successfully sail through it.
Even though demonetisation has perturbed our growth trajectory momentarily, however post demonetisation, Indian economy has evolved stronger than before providing thrust to digital India initiative and reviving the banking sector through surplus cash inflow. The key macroeconomic factors such as rising FDI, strong domestic demand, projects related to infrastructure development and easing interest rates were the catalyst to fuel the growth of Indian economy. In fact, India’s long-term growth outlook looks promising which is fuelled by the government’s drive towards economic liberalisation and impetus on social sector spending for building both hard and soft infrastructure of the country.
These critical initiatives have strengthened India’s position on the global map, making it as one of the most preferred destination for foreign investments. Indian steel industry is encouragingly watching these significant developments and scaling up its capacity to be future ready for building the nation with technologically advanced as well as globally competitive products and services. Although, in past few years the global steel industry has been radically effected by matters such as oversupply in some countries, declining demand in developed geographies, overcapacity, volatile currency movements and falling spreads between steel prices and raw material prices. However, these issues don’t pose any long-term impair to the industry. With the positive growth projections, India will certainly emerge out to be the world leader in ERW Steel Pipes category in years to follow.
Strategic initiatives such as the implementation of national Steel Policy 2017, preference by the government to Indian manufacturers through the government backed Make In India initiative will provide impetus to the overall economic growth and development. further, the implementation of GST will negate competition from
un-organized players in the steel sector. This initiative will help us in leveraging upon the additional business share from un-organized players as well as strengthen the industry operations.
ERW steel pipes industry is leveraging on the growth with the increased usage in unconventional sectors such as construction of malls, airports, bus body, metros, gym equipments, furniture, real estate etc. The growth will be further stimulated by the increasing usage of ERW steel pipes in the end user segments.
Our well thought moves to strengthen our technical capability and operational efficiency will negate the competition upto 15 years. Our other key strategic decisions include the upcoming greenfield plant at Raipur (Chattisgarh) to cater the rising demand of eastern and central India. This will place India as the only ERW steel manufacturer with pan-India presence. We also have plans to garner revenues from Europe and uS to enhance our shareholder wealth.
Our relentless pursuit to foster sustainable development is imbibed in the culture of APL Apollo. We are constantly evolving to create a sustainable brand through best in class operational practices. We are constantly seeking to make significant contribution in the society through community development programmes and best environmental conservation practices through the usage of renewable energy resources for company operations.
With our Vision 2020, we endeavour to create APL Apollo as the most preferred brand by customers, a pro table business space for our shareholders and an exemplary organization for our respective stakeholders. The essence of our paradigm shift is already being reflected in our constant growth and we are constantly striving to leave the footprints of our legacy for the upcoming generations to follow.
On behalf of the board of directors of APL Apollo and its group companies, I will thank the senior management team for steering the company to newer heights and all our employees for their passion and dedication towards the company. I will also extend my sincere gratitude towards our stakeholders for their continued support and patronage towards our path of pro table yet sustainable development.