It gives me immense pleasure to address you all as we have concluded a busy financialyear 2015-16 (FY16) of your Company.
The last 12-15 months were that of economic stability but at slower pace across theglobe. The World Economy recorded 3.1% growth rate for calendar year 2015 compared 3.4%for 2014as per International Monetary Fund estimates. The forecast for the following year- 2016 is positive at about 3.4%. The vulnerability of geo-political environment China'sdecelerating growth rate and overall slackness in Emerging Markets and DevelopingEconomies are some developments bring watched with caution. The Indian economy on theother hand grew impressively at 7.6% as per Central Statistical Office. Although thesentiments are improving but there are still certain sectors which are yet to get countedin this growth. With present government's growth inducing policies and programimplementation we India can be expected to keep its growth momentum intact.
Roto Pumps is part of USD 47 billion global pumps industry as at the end of 2014. Theindustry is estimated to reach USD 56 billion by 2017 as per Indian Pumps and Valvesreport. Pumps industry serves a number of industries and few of these are critical part ofeconomy's core infrastructure like Oil & Gas Power Mining Paper & Pulp and Food& Food Processing to name a few. The Indian Pumps Industry is pegged at around ?8500Crores as on 2014 and expected to reach ?11000 cores by 2017. India's export from Pumpsindustry are estimated to be ?1280 crores and is expected to reach ?1550 crores by 2017.These numbers indicate towards strong growth potential for the industry both in domesticas well as exports business.
For Roto Pumps FY16 was not so encouraging in terms of performance. Our sales revenuewere flat compared to previous year growing from?94.97 crores in FY15 to? 94.27 crores inFY16. Our Net Profits decreased from ?7.42 Crores in FY15 to? 4.28 Crores in FY16. We areof the view that we will be able to soon make a comeback in our topline in view of thegrowth projections for the economy and our industry. On the profitability front we wouldlike to take up the positive side of bottomline decrease. We have in recent pastinvested in various forward-looking avenues for the Company's growth wherein 'EngineeringExcellence' summarizes the Company's thought-process. In the previous year we hadinaugurated our new state-of-the-art plant at Greater Noida resulting in definitiveincrease in capacities. In recent few years we have developed a R&D Centre which aslargest test-bed in its category. We have also one some new orders and are executing someprestigious client projects. We see impact of all forward-looking initiatives may haveimpacted our bottom line the short term but then these initiatives only help us increaseour scale and gear up for a increasingly dynamic market tomorrow.
We believe that engineering and nurturing excellence across the Organization is goingto be our true differentiator to sustain and grow long-term stakeholder value.
I would like to thank our shareholders investors customers and suppliers for theirtrust and support. I would also like to thank our splendid team for keeping us in goodstead.
Harish Chandra Gupta
Chairman & Managing Director