It is my privilege to communicate with you through my first letter after I took over asChairman and Managing Director of CONCOR. I would like to thank my predecessors who havenurtured the Company through their vision and hard work and created a strong foundationfor it.
Your Company's business is majorly dependent upon overall global and Exim trade of thecountry. It was yet another difficult year for the global economy with low growth andgeopolitical uncertainties. The Exim trade of the country continues to face challenges andremained subdued impacting our business as well. Nevertheless through focused approachright strategies and hard work and dedication of team CONCOR the Company has overcome allthese challenges. It has performed well particularly during the last two quarters of thecurrent fiscal in which our market share has improved. I am hopeful that the Company ismoving on the path of achieving its long term sustainable growth.
During the previous year GDP growth was a robust 7.1%. In the recent past theGovernment has taken various inspired actions towards the progress of the country whichinclude rolling out GST demonitization of high denomination currency renewed focus oninfrastructure etc. All these would help in boosting the economic activities in thecountry and the GDP in the times to come. This augurs good news for your Company as anyboost in economy translates into growth for us. In the year 2016-17 Indian Railwaysregistered a marginal growth of 0.42% in originating loading of cargo from 1104.17million tonnes in 2015-16 to 1108.79 million tonnes in the current year. The originatingcontainerized cargo transported by rail increased from 46.18 million tonnes in 2015-16 to47.49 million tonnes in 2016-17 an increase of 2.82%. Your Company achieved 38.12 milliontonnes of cargo volumes in 2016-17. The inland penetration of containers from Ports tohinterland by rail continue to be at around 19% which was quite less due to various traderelated reasons including high haulage costs involved in rail based multimodaltransportation. Overcoming the challenging business environment your Company hasdelivered a resilient performance during 2016-17. In current year it has achieved ahandling volume of 3.10 million TEUs registering a growth of 6.09% over the previousyear. In the Exim and domestic segments the volumes handled were 2641695 TEUs and460516 TEUs an increase of 6.70% and 2.75% respectively over the previous year. Duringthe year it achieved a gross turnover and net profit of `5895 crores and `858 croresrespectively. The net worth of your Company increased to Rs.8846 crores from `8346crores in the previous year.
The Company is fully confident about its long term business outlook and has thereforecontinued to invest in expanding its infrastructure. In this direction during the yearit spent an amount of around `1057 crores toward capital expenditure mainly on creationof new terminals expansion of existing ones and acquisition of wagons etc. The Companyhas taken major initiatives for development of several Multi Modal Logistics Parks (MMLPs)across India. This will result in business growth contributed by substantial augmentationof handling capacity locational advantage value added services exposure to othersegments of value chain etc.
With rising competition our endeavor is to retain our market share in railcontainerized transportation. Your Company believes in sustainable and responsible growthand is taking innovative steps in marketing and meeting customer's expectations towardsreliable and cost effective services. Our continued emphasis on double stack running fromMundra/Pipavav Ports to Khatuwas and vice-versa is giving good results and we expect thistrend to continue during current financial year also.
The running of Time Tabled Trains service was another initiative that yielded positiveresponse from the trade. This service was started for both Domestic (Chennai Bengaluru& Hyderabad) and Exim (for Kathuwas from TKD Dadri) segments.
CONCOR is poised to reap the benefits from the opportunities emerging post GSTimplementation and looking with keen interest for new business avenues in the field ofwarehousing e-commerce 3PL etc. Our commitment is to provide not only best services toour customers but also value for investment to our investors. Our ethos is "CustomerValue Creation".
Technology is a great enabler but its flipside is that it may also create recognisedfact that technology and mobile connectivity are rapidly changing the consumer behaviorand the business processes. Your Company is committed for digital transformation toleverage our IT capabilities to achieve the competitive advantage. It has taken many ITinitiatives which include providing continuous cargo visibility to its customers throughmobile app. SMS facility and our interactive website.
The Company has framed strategies and has plans in place to achieve its future goalssuccessfully. The robust growth in
Indian Economy is bound to result in additional transport demands. This coupled withthe anticipated changes in profile of traded goods from intermediate to finished goods isbound to increase the opportunities for containerization. Further the large number ofIndustrial Parks SEZs etc. by State Governments and Ports offer your Company an excellentopportunity for serving as logistics partner for the states/industrial estates througharrangements of mutual benefits. The growing market potential in air cargo automobilesector food supply chain management and coastal shipping offers scope for diversificationand are being worked upon.
Your Company believes that success of an organization in the long run will depend uponits goodwill and contribution to the community which it creates through good governanceand giving back to the society. It has always followed transparent practices in doing itsbusinesses particularly in the areas of Corporate Governance and its SocialResponsibilities. It follows the best laid down principles in letter and spirit and hasadopted good systems and procedures thereby creating an environment of trust among all itsstakeholders. The CSR initiatives taken by the Companyinthefieldof education healthenvironment sustainability skill development etc. have touched and positively impactedthe lives of many underprivileged people across the country. The Company earmarked anamount of `24.27 crores for CSR during the year which has been fully utilized. I wouldlike to thank you for the unstinted support and trust in the Company. I would also like tothank the Company's Board of Directors and Ministry of Railways for their continuedguidance and support. I sincerely appreciate our shareholders esteemed customers and ourbusiness associates for having reposed faith in our efforts which has helped us to earntheir confidence. I have tremendous faith in the talented and dedicated team CONCOR and Iam sure they will take the Company to new pinnacles of success in the future.
With best wishes
| ||Sd/- |
|Date: 23.08.2017 ||(V. Kalyana Rama) |
|Place: New Delhi ||Chairman and Managing Director |