Let me begin by thanking Jean Jouet my predecessor for the expertise and direction thathe brought to CMI FPE through his impeccable leadership during one of the most turbulenttimes your Company witnessed during the last few years. We are all thankful to him for hisguidance and wish him all the best in his new assignment.
The year 2016-17 indeed has been a year of many surprises. Firstly the meteoric riseof the charismatic Prime Minister Narendra Modi and his government followed by thedemonetisation gamble and the various policy implications. These choices I believe willreflect on Indias focus on development for the coming 12-18 months. On the globalfront the theatrics were no less different Britains vote to exit the European Unionfollowed by Trumps dominant win in the US only added more to the fickleness of themarket.
The year 2016 was marked by a 0.8% increase in world steel production and backed by anexpected revival in consumption Worldsteel the international steel association alsoforesees a resumption in demand for steel in 2017-18 but the long-term outlook is lesspositive.
However the Indian market is more optimistic. Indias finished steel productsoutput is likely to register an increase of 5.7% in 2017 as a result of a growing economyand increasing urbanization. Additionally the steel production in India is expected tofurther grow in the coming years due to a new and dynamic steel policy that the governmentis working on and which will give concrete shape to the vision and plans for increasingsteel usage in housing and for other construction projects.
The year 2016-17 was dedicated to bring organizational approach to concrete stage. Tomake this operational a dedicated One Industry team was put in place based onthe principle one face to the customer with Taloja and Hedavali workshops beingused to their maximum potential.
The year also brought us some good orders and I can safely say that we are now slowlyand steadily building a robust sales pipeline and are confident that our order entry willlook very positive in the future.
During this years second edition of the CMI Awards a Group competition dividedinto three categories (Health & Safety Innovation Environment) CMI FPE won the muchsought after Public Award for its Semi Automatic Pup Coil Removal Arrangement.A project that materialized following a request from a client who wanted a safe andefficient pup coil withdrawal device. This is also an indication of the culture at CMI FPEwhere a client is given the best innovative product with safety as its prime focus.
I am pleased to inform you that CMI FPE has had 1347 days without Lost TimeAccident at its Taloja workshop and 1026 days at its Hedavali workshop as on March31 2017.
We are also delighted to share with you that 2017 is earmarked as the mostexciting year in the history of CMI as it celebrates its glorious 200 years ofcommemorating past present and future. It is a proud moment for each one of us to beassociated with CMI. We will take advantage of this milestone and develop the image of CMIGroup and further use it for commercial development.
Nevertheless the new financial year will be no different in the challenges it will posebut I am optimistic and remain committed to all our stakeholders for sustainableprofitable growth. I assure you that we will continue to uphold the faith you have placedin us and look forward to your continued support.
Joao Felix Da Silva