"Passion underlines our commitment to deliver through sustainable innovativemeasures."
Mr. Puneet Yadu Dalmia and Mr. Gautam Dalmia Directors of Dalmia Bharat Limitedhighlight the Company's strategic direction
We believe that when you see passion in people and you provide them with an autonomousenvironment to support innovation this enhances pride amongst employees. This prideenables employees to challenge their own assumptions and build a culture of consistentimprovement in productivity.
The FY16 performance of the Group was yet another validation of our distinctive passionand a reflection of our resolve to outperform every single proprietary and sectoralbenchmark.
During the year under review the national economy grew 7.6 per cent and the country'scement sector grew 5.3 per cent. We are pleased to state that our volumes grew by 19 percent revenues grew by 20 per cent and EBITDA grew by 69 per cent over the previous yeareven as the external environment remained challenging.
The Group's passion prevailed. Challenges were accepted; targets scaled; team workingstrengthened; best practice transfers intensified; morale enhanced.
The Group emerged as one of the fastest growing and operationally one of the mostefficient player within the industry. The Group reported one of the industry's highestEBITDA per tonne of cement sold. The Group delivered one of the lowest variable costs pertonne of cement manufactured and achieved a continuous reduction in its carbon footprint.
It is this holistic delivery-not just one or two areas but across the corporateecosystem-that has underlined the Group's position as one of the most exciting cementbrands in India. Our success lies in enhancing value for our entire family ofstakeholders a sign of responsible success in the global cement industry.
In FY16 we strengthened the quality of our business across various operating fronts.
Strategic: DBL acquired KKR's stake in DCBL and brought KKR in as a shareholder inDalmia Bharat Limited (8.4 per cent) making it the largest foreign institutionalinvestor. KKR strengthened its association with Dalmia and this transaction helped inmaking the organisation's corporate structure linear.
Brand Equity: We built a stronger equity for our brand positioning ourselvesstronger coupled with a significant volume increase. We enhanced the premium of blendedcement realisations over competing brands and moved products faster by building trustacross different consumer segments. We marketed our products better and generated higherrealisations.
Sustainability: We attained water- neutrality in one of our plants with the targetof being water-neutral across all integrated operations by December 2017 and also alignedto faster realisation of Sustainability Development Goals (SDGs) near our manufacturinglocations. We are pleased to share that we are now recognised among the most efficientcement manufacturing groups in India leveraging a prudent combination of scale (25 MnT)and presence across 18 states.
Outlook: Going ahead we are optimistic of our prospects in the light of theexpectation of India growing faster than other countries. We are completely invested toaddress growth in domestic cement consumption. The country's infrastructure sector appearsto be turning around starting with robust growth already beginning to emerge from theroads segment.
The Group possesses attractive operating leverage (effective capacity utilisation wasclose to 60 per cent for the Group at the close of FY16) which means that we would beable to scale with speed to address every demand upturn. Our capacity addition at Belgaum(Karnataka) and Umrangshu (Assam) will add to our operating leverage. We strengthened ourcompetitive positioning while retaining our focus on inclusive growth. We are committed toenhance the strength of our Balance Sheet by generating improved and sustainable cashflows.
We take this opportunity to thank all our employees for their dedication andcommitment. We would also like to thank our vendors business associates partnerslenders and other stakeholders for their support. We sincerely thank our Board ofDirectors for their invaluable governance contribution.
|Gautam Dalmia ||Puneet Yadu Dalmia |
|Director ||Director |