FY16 was an excellent year for our Company. Despite challenges in the industry andsharp decline in the steel prices our company outperformed the industry and reported anoutstanding growth. Consolidated Sales for FY16 grew by 34% YoY to Rs. 4214 crore whichwas primarily driven by our market leadership and new products that we introduced duringthe year. There is a distinct shift in demand from unorganised players to organisedplayers like us. Our EBITDA increased by 57% to Rs. 292 crore driven by the improvementin operating margins from 5.93% in FY15 to 6.92% in FY16. This was largely driven by adecline in raw material prices better product mix and operational efficiency. Over thelast 2 years we have launched many products which are getting good response from themarket and helped us grow our sales and improve our margins.
One of our product lines: door & window frames has been an outstanding performer.The door frame replaces traditional wooden door frames resulting in a saving of 30% incosts with a similar finish. We expect these products will form a much bigger part of oursales mix in the coming years and help us improve our overall margins.
During the year we rolled out our VISION2020 plan to become the largest ERW player inthe world with a production of 2.5 million tonnes in 2020. We further aim to become debtfree and a leading brand of steel products out of India. We will keep launching newinnovative products and build our brand with an aim to achieve volume growth of 25%annually. We are improving our corporate governance by getting independent directors withstrong credentials and we have already appointed Deloitte Haskins and Sells LLP asStatutory Auditors.
The Company has planned a Capex of Rs. 500 crore in the next 3 years which will befunded through internal accruals. The additional capital would go towards setting up a newplant in Raipur with 3 Lakh TPA a new plant in the UAE with a total capacity of 3 LakhTPA as well as a green field unit for manufacturing precision tubes for automotiveapplication in Bangalore with a capacity of 1 Lakh TPA.
We also plan to set an In-line Galvanizing plant of 1 Lakh TPA capacity in Bangaloreapart from ordering 8 lines of new HSU technology mills which will help us add about 4Lakh TPA at the existing sites in FY17. APLs aim has always been to be a technologyleader and hence we have always relied on the latest mills from across the world. We havestrip Galvanizing Lines Cold Saws High speed mills from Europe and unique Rotary sizingmills. I am personally very excited about the new
Direct Forming Technology that we are bringing in India for the first time.Direct Forming Technology has multiple benefits as it will save 3-10% of raw material forthe same cross sections and can service small orders with customized sizes. Thistechnology will also open new market for us and we can launch new products forAgricultural Implements Gym/Sports Equipments Solar Power Plants Truck & BusBodies Metros/Airports
Infrastructure Construction Equipments Prefabricated Structures Warehouses etc. Wehave expanded our reach throughout India with 26 branches & warehouses 600distributors & 40000 retailers. In order to have a pan India manufacturing footprintwe have forayed in Eastern/Central India with a Greenfield plant in Raipur. To increaseour penetration in the market we have made a strategy of CAP i.e New Customers New Areasand New Products.
We focused on branding during the year which helped us in growing in Tier II and IIIcities where we have emerged as a preferred supplier among fabricators and plumbers. Weaim to spend over Rs. 10 crore on branding during this financial year.
Our focus is to continue improving our Return on Equity and margins and become theleading Steel Products manufacturer out of India with a presence across the globe.
I would like to appreciate our employees for their relentless efforts in helping usgrow to become the leading player and thank all our shareholders for their continuedencouragement and support.