As another accomplished year passes by I feel extremely elated to reconnect with youthrough our annual report. We have witnessed a paradigm shift by pursuing excellencetowards achieving our economic social and environmental goals. In financial year 2016-17wherein the global economy has witnessed uneven growth Indian economy has been on thepath of robust growth trajectory.
It has been a difficult year for us as your company faced several challenges such asdemonetisation and volatile steel prices which had a negative impact on our volumes in thesecond half of the fiscal. But our strong business acumen has helped us sail through it.Although demonetisation perturbed the company's growth trajectory momentarily in thelonger term it will help strengthen the Indian economy providing a solid thrust to theDigital India initiative and reviving the banking sector through surplus cash inflow. Thekey macroeconomic factors such as rising FDI strong domestic demand projects related toinfrastructure development and easing interest rates were the catalyst to fuel the growthof Indian economy. In fact India's long-term growth outlook looks promising which isfueled by the government's drive towards economic liberalisation and impetus on socialsector spending for building both hard and soft infrastructure of the country. We haveformulated a longterm growth strategy to cash on the benefits from favorable economicfactors by augmenting our capacity from the existing 1.3 to 2.5 Million MTPA by financialyear 2019-20.
APL APOLLO serves as a 'one-stop shop' for a wide spectrum of steel tube productscatering to multiple sectors including urban infrastructure automobile constructionhousing energy irrigation solar plants greenhouses and engineering. Increased focusfrom the Government of India towards boosting consumption patterns across these keysectors of the economy coupled with initiatives such as 'Make in India' will help to drivehigher growth which in turn bodes well for your Company. Further key reforms like GSTwill benefit organised players like APL APOLLO in a highly unorganised steel tubeindustry.
Over the last few years we have been leveraging on our innovation capabilities toexpand our product offerings with an aim to improve our market reach as well as create adistinct mark for our Brand. I am pleased to share that APL APOLLO is the first company tointroduce the latest global technologies including Direct Forming Technology (DFT) inIndia. DFT will supplement APL's presence in the existing product categories while alsocreating new avenues of growth through customised manufacturing which cannot be usuallydelivered through conventional technology. In addition we are confident it will unlock avast potential across OEM (Original Equipment Manufacturers) and Export markets.
During the year we started commissioning a Greenfield plant in an underpenetratedmarket like Raipur chattisgarh which will be fully operational by september 2017. Thismarks a key milestone for us as the Company has now truly emerged as the only brandedsteel tubes manufacturer with pan-India presence. We believe we will be able to rapidlyramp-up utilisation levels given the robust untapped demand and potential in Central andEastern markets.
We are constantly evolving to create a sustainable brand through best in classoperational practices. We continue to drive a focused branding approach across marketsenabling higher visibility and stronger market gains. During the fiscal the Companyundertook many steps to further help diversify the 'APL APOLLO' brand reach and drivehigher growth. The change is visible across all the levels through the adoption andimplementation of latest business practices and technology at every stage.
With our Vision 2020 we endeavor to create APL APOLLO as the most preferred brand bycustomers a profitable business space for our shareholders and an exemplary organisationfor our respective stakeholders. Our aim is to expand contribution from value-addedproducts through innovation strengthen our balance sheet and enhance overall corporategovernance by facilitating high level of transparency within the organisation.
The essence of our key business decisions is already being reflected in our constantgrowth. With the Paradigm Shift in our business operations we have created an impressivepresent and are constantly striving to leave the footprints of our legacy for thegenerations to follow in future.
On behalf of the Board of Directors of APL APOLLO and its group companies I thank thesenior management team for steering the Company to newer heights and all our employees fortheir passion and dedication towards the Company. I also extend my sincere gratitudetowards our stakeholders for their continued support and patronage towards our path ofprofitable yet sustainable development.