Bharat D. Shah Chairman
Growth through new models and robust localisation.
The Indian economy finished on a good note in the fiscal year 2015-16. We enter thenext fiscal year with a stronger projected growth rate of 7.3%. The UN World EconomicSituation and Prospect 2016 report states that India will be the world's fastest growinglarge economy forecasting 7%+ level GDP for the next few years. A strong foundation for avibrant India was laid by the Government at the Center through pro-market reforms tamingof inflation rates and rising foreign investor confidence which has had a multipliereffect on inclusive development. More importantly a conscious effort to build a strongidentity as a developing power is visible with India today being the brightest spot inan otherwise soft global economy. The challenges are huge yet I remain optimistic to saythat India has never had a better chance than today to make the big change forgenerations to come.
3M India has leveraged on the long term optimism of the Indian economy while carefullymanaging the environmental challenges. With a firm eye on productivity your Company hasposted excellent results for the year 2015-16 registering an annual turnover growth of14.3% accompanied by an increase in profitability of 85.4% over the previous year. Theoperating margin for the current year was at 16.94% compared to 11.73% for the last year.
There have been several trends in the economic environment during the fiscal year whichprovided exciting opportunities for 3M India to tap into. With the decline in I PI 3MIndia shifted focus by following opportunities in Government driven initiatives such asthe Smart Cities Mission and Make in India. The Make in India initiative with its accenton electronics defence and automobile manufacturing has been helping 3M India deploy itsmanufacturing strength. Your Company has been at the forefront of developing the marketfor smart cities through collaborations with various relevant stakeholders with similarinterests.
Private consumption remained strong and expanded at the fastest pace in the last oneyear. 3M India has benefitted from increased focus in the consumption business with theadoption of new business models especially in the areas of automotive care and healthcareand has increased investment in new digital initiatives. Your Company also laid down thefoundation for a robust ecommerce plan to drive the sales of its products and solutions.
A strong performance of any organization is always enabled by the aspiration will andefforts of its employees. 3M India and its employees are committed to building a biggerbolder and smarter company which never loses sight of its customers. I am happy to sharethat the initiatives during the year under review demonstrated this bigger bolder andsmarter thinking which is based on strong customer insights.
Your Company has also invested in building the competencies of its peoplestrengthening the new product commercialization process and localization efforts acrossall its manufacturing facilities with products to align with the key growth engines of theIndian economy.
As a responsible company 3M India has substantially increased its communityinitiatives with projects under Education Social Innovation and Women Empowerment byinvolving its employees as well.
I applaud the efforts of the 3M India team and congratulate them for executing the planwith such rigour and resilience.
I am also grateful for the opportunity to execute my duties as Chairman of your companyand thank my colleagues on the Board for their support and collaboration to guide 3M Indiatowards a solid growth path over the next year.