At Amara Raja fiscal 2015-2016 was marked with a drive for consolidation ofcompetencies of internal efficiencies and an aggressive gearing up for market leadership.The Company continued on its growth path recording an upward graph of 11% inrevenueand19%innetprofits.
Global economic growth for the year stood at a very moderate 3.1%while the Indianeconomy recorded a growth of 7.6% riding on the back of strong domestic demandprogressive Government policies and expected reforms in the core sectors of banking andindustry.
The Central Governments Make-in-India initiative a focus on Rural developmentdrawing the blueprint for Smart Cities the digital India driveand programs for Urban upgradation offers immense opportunities for businesses toexplore. Opportunities that Amara Raja is also eager to pursue in its vision to be aglobal leader.
The market for automotive batteries a core business stream of the Company is poisedfor exponential growth. The Governments Automotive Mission Plan for the period of2006-2016 to turn India into a global automotive hub has really redefined the industrywith the country becoming a destination of choice for leading global OEMs and automajors.
With the phased capacity augmentation of the new two wheeler and four wheeler batteryplants to 11 million and 8.25 million units per annum and plans to further expand AmaraRaja is well positioned to mine the growing demand both in the domestic and overseasmarkets.
During the year the Automotive batteries business consolidated its market leadershipwith differentiated strategies. New product innovations focused branding initiativeschannel partnering and deeper market penetration helped the business to consolidate itsindustry ranking and establish Amaron and Powerzone as preferred brands both in the OEMand replacement market.
The industrial batteries business another important arm of the Company is alsowitnessing good demand for critical applications in core user industries. Cutting edgeproducts and customer-centricity has established Amara Raja as a PreferredSupplier to major telecom equipment manufacturers and service providers IT &ITeS Infra UPS manufacturers Indian Railways Power and contributed to steady growth inmarket share.
The Central Governments policies to transform the Indian Railways making itenergy efficient and expanding connectivity with increased metro rail networks offers newavenues to explore. Amara Rajas sectoral leadership by virtue of its pioneering workin innovative power back-up products and bespoke solutions for the Railways lends it acompetitive edge. An edge the Company is determined to leverage as part of its growthstrategies.
The telecom industry with its large data explosion and the drive for energyoptimisation by Tower Companies offers immense potential for the industrial batteriesbusiness. Client focus and best-in-class products and service has established Amara Rajaas a dominant player in energy solutions for the telecom industry.
During the past year Amara Rajas customer service beyond the call of dutywith teams working under very difficult conditions to restore communication lines andreplace batteries inundated by the unprecedented floods in Chennai Tamilnadu has enhancedits ranking not only as a battery manufacturer of repute but also as a trusted businesspartner and a socially responsible corporate. Reiterating Amara Rajas commitment tocustomers and underpinning its value based business philosophy.
The Power Sector in India is on the cusp of a transformation. Amara Raja as always iseager to stay ahead of the curve with innovation-led products that span the spectrum fromlarge Grid Level Energy Storage solutions to small mobile energy devices.
The Governments focus on renewable energy particularly solar energy offers newopportunities. In line with this during the year a new tubular plant was commissionedto cater to the burgeoning demand in renewable energy.
Looking ahead the future offers great promise. At Amara Raja as we gear up formarket leadership we have our blueprint clearly mapped out to foray into emergingtechnologies expand into new geographies build world class capabilities and acceleratethe growth momentum. Future bound strategies while large in scale and scope are yetfirmly centred on the Companys focus on stability and shareholder value creation. Westrongly believe that the journey ahead is full of opportunities and Amara Raja willsurely power ahead through an exciting growth corridor ready to lead.
On behalf of the Company we take this opportunity to convey our sincere appreciationto all our shareholders and express our gratitude to the government and its agencies ourjoint-venture partner Johnson Controls Inc customers employees channel partnersbankers and suppliers.
With warm regards