The financial year 2015-2016 has proved a challenging one for capital goods and thepower sector at large. Today the manufacturing sector contributes over 15% to IndiasGDP. To stimulate and grow this sector the Prime Minister has launched the Make inIndia initiative which is expected to start yielding results soon. However demandfor capital goods is not growing at a fast enough pace and demand must be generated if thepitfalls over supply are to be avoided.
The Transformer business this year has achieved a huge milestone in production our factory has produced at the highest level ever seen in the Company. We alsobooked the largest order ever received by us from a state electricity board. Price levelsand therefore margins unfortunately remain depressed. To combat this we have increased ourpush into the industry vertical and doubled our marketing and sales efforts. As a resultour enquiry levels have risen by over 20%. Our presence in the fast growing renewableenergy sector has also increased. The Motor business has seen the overall marketshrink in terms of numbers and mega watts. This has led to severe price erosion. To combatthis we have focused on reducing our working capital and increasing our marketpenetration. Despite the tough market we have increased our market share. We are alsohappy to announce the development and launch of a super premium efficiency motorconforming to international standards.
The Project business has seen a decline in the topline. This is because we havechosen to stay away from risky projects with unviable margins. We will focus on privatebusiness where project risk is substantially less. This strategy has worked well for usand all new projects have been completed within budget and on time. We have re-establishedourselves in the 220kv segment by commissioning a cement substation for one of the largestcement companies in India and bagged a prestigious wind power project. The Drives andAutomation division has seen a 30% increase in EBITDA despite sales being flat. Thisis a great achievement in increasing efficiency of our business. We have plugged a hole inour portfolio by launching a new product that will cater to general purpose industrialapplications. The coming year we will endeavor to make inroads into the Textile Metal andPackaging segments. The Elevator Systems Division has been renamed The MagnetTechnology Machines division. We have witnessed 7% growth focusing on top tiercustomers. In a recent breakthrough we have received clearance on our quality andprocesses from a large and reputed elevator manufacturer. We are hoping to capitalize onthis and generate business from them.
The Brexit has left an already sluggish world economy in an even more edgy state andcredit might be tighter in years to come. The IMF World Economic Outlook Update predictsthat India will grow at 7-7.75% in the coming year despite uncertainties in the globalmarket. More initiatives like Make in India and Digital India arerequired to sustain and push growth forward. Indias upper house passed the biggestreform to taxes in decades. The goods and services tax bill aims to simplify the system byreplacing a number of tax rates with a single levy. This is a great and long overdue stepbut several implementation challenges lie ahead as the transition may not be as smooth aswe may like. Nevertheless ease of doing business will increase. We look forward to moresuch reforms and regulatory changes and remain optimistic in the long run.