I feel honoured and privileged to present you with the 27th AnnualReport. There is an old saying that a journey of a thousand miles begins with a singlestep. For us being unique is about being continuously focused on adding value atcustomer's end. We ensure we understand our customer's requirements delve deepinto their pain and improvement areas and provide unique solutions. As a result we haveestablished long-standing relationships with our customers across Mining Cement and PowerSegments.
In the Mining Segment we cater to different mineral ores like Ironore Copper ore Platinum ore Gold ore Lead ore Zinc ore and Bauxite ore amongstothers across different mill types. We have been constantly investing to enhance ourpresence in this segment. The growth prospects are primarily emanating out of the largeannual replacement market of 2.5 to 3 million tons in this industry. Out of these HCMIaccounts for just about 15% of the demand. The Company is strategically poised to leveragethe conversion opportunity from conventional mill parts to our high chrome wear parts.
Over the past few years we have been progressively adding majorcustomers in the Mining Segment across the globe with a stronger focus on major miningcentres like North America Latin America Australia Africa and the Far East Asia. Whileour current focus is on the mining segment outside India we will capture incrementaldomestic mining demand as and when the industry expands in India.
In the Cement Segment the global demand continues to remain sluggishin the key markets of North America Latin America Western and Eastern Europe and Africa.However certain specific markets in Asia Africa and South America may see capacityenhancements and increasing utilization. In India the average capacity utilization of thecement companies have started improving on the back of Government's impetus towardsimprovement in infrastructure especially Road and Port segment. This will provide amuch-needed stimulus to the industry. The results will be visible in the near term. Wewill be an immediate beneficiary to serve the additional requirement from the increasingcement production going ahead.
The strength of AIA Group stems from a strong manufacturing footprintincluding a full-fledged design shop which uses 3D technology for drafting pattern shopequipped with latest CNC machines and state-of-the-art manufacturing facilities located inand around Ahmedabad Nagpur Bangalore and Trichy in India. I would further like toconvey that the Company's effective capacity reached 340000 MT after successfulcommission of Phase I of Kerala GIDC brownfield expansion project during 2016-17. We areon track for of implementing second phase of capital expenditure plan at GIDC Kerala inAhmedabad. It involves augmenting the capacities by further 100000 MT (expected to becommissioned in FY 2018-19) taking the total installed capacity to 440000 MT.
We will continue to serve our customers through our well-balanced teamand a network of subsidiaries/warehouses situated at strategic locations globally. We arealready servicing world's major mining and cement groups and will continue to addcustomers and make further inroads in our chosen segments. The consolidated steps takeneach day will bring us closer to our vision.
I would like to thank all our stakeholders for their continued faithand support. We look forward to your continue patronage in the Company's next levelof growth.
|Best Wishes |
|Bhadresh K. Shah |
|Managing Director AIA Engineering Limited |