I foresee a substantial improvement in our performance starting this current financialyear.
I am pleased to state that Asian Granito India Limited is at an inflection point in itsexistence.
The inflection point is not only for reasons within the company; this inflection isalso on account of various positive changes that are transpiring in India today.
At Asian Granito we have always been convinced that there can be no case for corporatebullishness without a positive national story. As a company aligned with nationalpriority we are attractively positioned to capitalize on the macro realities enjoyed byIndia.
Primarily let me start with fundamentals that are enduring in nature: the size of theIndian population the large number of consumers graduating from one economic orbit intoanother the growing proportion of young earners rising incidence of home pride and smallquantum of tile spending as a proportion of home acquisition. We believe that thesefactors will be long-lasting providing forward-looking manufacturers with adequatetraction to build their businesses.
Now let me come to realities that are relatively short-term in nature that could have along-term influence. The Indian government announced a Make in India policy that isexpected to translate into a number of transformations: enhanced business ease decline inthe number of controls and moving India towards a progressively lower cost structure thatenhances its global competitiveness.
Some of the other policy changes comprise the landmark Housing for All by 2022 whichis expected to accelerate the nationwide construction of 60 million homes. The SmartCities Mission will catalyse tiles demand from offices and residential spaces. The SwachhBharat Abhiyanaims to build 60 million toilets by 2019.
In India there is never a bad time to invest in property. Earlier youngsters used tobuy their house at the average age of 32-35 years which has come down to 28-32 years.This is a positive trend for our industry. Renovation and redevelopment are other two bigdrivers as people desire their homes to be innovative.
Besides we foresee a decline in the cost of funds in India which will enhanceresidential affordability. Both these realities are expected to widen the market forinterior infrastructure products like tiles.
The big question: will this impending boom in the demand for tiles translate intoincreased offtake of India-made products?
And here I must state that two things have happened in the last few years thatencourage the optimism that the rise in the level of water will raise the level ofdeserving ships. One the Indian government has been proactive in responding with thetimely imposition of anti-dumping duties on Chinese vitrified tiles facilitating growthof the Indian tiles industry. Two the Indian tiles has emerged from the shadows to becomea prominent global tile provider marked by adequate quantity on the one hand and thehighest quality standards on the other.
At Asian Granito we are happy to communicate that we are a competitive andquality-driven tile manufacturer. Over the years we strengthened our brand through theperiodic introduction of tiles of different sizes textures and finishes; during the lastfinancial year we concluded amalgamation with a tile manufacturing company that willenrich our brand positioning and portfolio further.
We are aiming to increase our exports this year especially to US and Canada while weexpand our presence in GCC countries.
We intent to strengthen our retails presence by adding EXCLUSIVE stores and also SIS(Shop-In-Shop) concepts like Tiles Xpress for B C & D class towns. This will help uswiden our presence in remote areas with better visibility of our products and display atour channel partners.
In view of these realities I foresee a substantial improvement in our performancestarting this current financial year which should translate into enhanced value in thehands of our shareholders.