The financial year 2016-17 has been an eventful one. We have witnessed severaldevelopments both internationally and in our country concerning geo-political economicand social sectors. The US Presidential elections verdict and BREXIT were amongstthe two major global developments. Globally it seemed like a recurring theme to lookinwardly and strongly promote national manufacturing and service offerings in order toprotect and create jobs locally. This of course is in strong contrast to the opinions byother international leaders who were stressing importance of global trade and cooperation.
India went through quite a significant transformation with the announcement andimplementation of Demonetisation Re-monetisation Goods and Service Tax (GST)Insolvency & Bankruptcy Code and Real Estate (Regulation & Development) Act. Thesereforms will have a long lasting impact on the Indian economy although the impact mightbe negative in short run. Against this backdrop India witnessed reasonable GDP growth of7.1% in 2016-17.
India has also gained some ground with respect to next generation technologies such asInternet of Things (IoT) Artificial Intelligence (AI) and Automation. The adoptionand penetration of such technologies will fundamentally alter the way products andservices are conceived designed manufactured delivered consumed and paid for. Theseadvances in technology will undoubtedly throw many challenges whilst creating excitingopportunities. The winner will clearly be the one who is able to anticipate and be readyfor such transformational disruption.
As for Bosch Limited the Company was well prepared for a nation-wide transition toBharat Stage (BS) IV. The Supreme Court judgement directing the switchover of sales to BSIV effective April 01 2017 has been a definitive milestone causing some logisticaldifficulties for the industry. Your company was ready and prepared to offer solutions toall its customers that made this transition smooth and effective. As for BS VI theGovernment of India has announced the transition directly from Bharat Stage IV to BharatStage VI by 2020. This is for the first-time in the country perhaps even globally that acountry would be leap frogging from BS IV to BS VI skipping the entire stage of BS V. Itis collectively agreed that skipping an entire stage has put the Indian automotiveecosystem under tremendous pressure. However we at Bosch Limited are preparing ourselvesto meet this challenge through appropriate investments in technology and capacitybuilding.
Bosch Limited is committed to growing its business beyond mobility portfolio. In orderto achieve the Governments ambitious target of 100 GW of solar power generation inthe country by 2022 your Company is committed to play its part. The 4MW ground mountedsolar project at New Mangalore Port Trust is amongst the first sea port projects for Boschin India with more success stories to come. Business units such as Bosch Energy andBuilding Solutions (BEBS) Security Technologies and Power Tools among others havesuccessfully been able to offer products and solutions tailored to cater to requirementsof the local market.
The future is full of challenges yet each challenge offers an opportunity. This hasbeen the driving force behind our fascination for the future and pursuit of innovation tobuild a better tomorrow. India plays a key role in Boschs global success and we arecommitted to identifying new opportunities and providing solutions that bring customerdelight. Our continued investment in facilities across the country will enhance our marketreach and complement Indias growth story. While doing this we continue to offer ouremployees an enriching career and forums to enhance their skill sets and capabilitiesmaking them ready for the future. Being responsible fiscally and environmentally issomething which shapes our identity and secures our future.
On behalf of Bosch I take the opportunity to thank all the shareholders for theirsustained support. Over last 10 years your company has been successful in increasing theshareholder wealth by approximately 21% CAGR in addition to two buyback during the years2008 and 2016. We are committed to enhancing shareholders value and remain humbled by thetrust and support extended by you over these years.
Chairman - Board of Directors