The year gone by has been challenging in many ways. Volatility in revenue enhancementslow customer sentiment weak macro environment and delay in clearances for projects signedbut not made effective were some of the key concerns. As an industry dependent largely onhealth of steel manufacturing companies future developments are determined on how theeconomy performs as well as government policies supporting this industry.
Cheaper steel imports amidst weak demand conditions pose a major challenge to Indianmanufacturers. Slowdown in Chinese consumption continued to keep global steel demandgrowth depressed in 2015. The operating margins of the domestic steel industry witnessed adecline in 2015 due to low capacity utilization and fall in sales realisation.
The markets within which we compete continue to undergo stagnant demand with a numberof customers reporting complexities in making investment. However I am positive that theimpact of urbanisation will have a key role to play in the future. It will createsubstantial new demand for steel to be used in infrastructure developments such as waterenergy and transport systems as well as major construction and infrastructuredevelopments. I am hopeful that the government will be able to carve a balanced path toaccommodate aspirations of the stakeholders of steel sector.
CMI FPE has taken several measures to improve its competitiveness in the past year bydriving productivity and cost efficiency. Your Company continues to expand its customerrelationships through innovation and better solution building. CMI FPE has been putting inplace structures that enable it to identify opportunities
for innovative and high impact strategic projects and has simplified and improved itsprocesses to become a more responsive and innovative organisation where accountabilityand empowerment go hand in hand.
Your Company has been vigorously working to keep its customers abreast of technologicaladvancements through revamp and upgradation projects so as to ensure bettersustainability.
Your Company is working on a range of new products and services to consistently exceedcustomer expectations. This year CMI FPE also emphasised on training its employees inDesign Thinking' for better and newer ways of problem solving so as to foster aculture of innovation and substantial progress.
We already have a capable organization with immense trust and loyalty of our customersas well as stakeholders. As we move ahead in our journey we may need swift adaptation andtough decisions especially for evolving to a product portfolio that is more focused oninnovation and value-engineering.
As we look ahead we see a year of continuing challenges but at the same time we aregeared up to make the organization more efficient to take on the current and futurecompetitive challenges. I am convinced that your support and cooperation will strengthenCMI fPe.
I would also like to express my appreciation to each of you for your support andunderstanding as we move on into the new financial year with great hope.