MESSAGE TO THE SHAREHOLDERS
It gives me immense pleasure to address you all as we conclude the busy financial year2016-17 of your Company.
In the last few months the economies across the globe were stable witnessing growth.The World Economy recorded 3.4% growth rate for the calendar year 2016 compared 3.1% for2015 as per the International Monetary Fund estimates. The forecast for the following yearis positive at about 3.5%. The vulnerability of geopolitical environment China'sdecelerating growth rate and overall slackness in Emerging Markets and DevelopingEconomies are being watched cautiously. The Indian economy on the other hand grew at7.1% as per the Central Statistical Office. Although the sentiments are improving butthere are still certain sectors which are yet to get counted in this growth. With thegovernment's growth-inducing policies and program implementation the Indian economy islikelyto keep itsgrowth momentum intact.
Roto Pumps is part of USD 47 billion global pumps industry as on 2014. The industry isestimated to reach USD 56 billion by 2017 as per the Indian Pumps and Valves report. Thepumps' industry serves many industries and a few of these are a critical part ofeconomy's core infrastructure such as oil & gas power mining paper & pulp andfood processing to name a few. The Indian Pumps Industry is pegged at around ^ 8500 croreas on 2014 and is expected to touch ? 11000 crore by 2017. India's export from the pumpsindustry is estimated to be ?1280 crore and is expected to reach ? 1550 crore by 2017.These numbers indicate strong growth potential for the industry both in domestic as wellas exports business.
For Roto Pumps FY17 was not a great year in terms of performance. Our sales revenueswere flat compared to the previous year growing from ^ 94.6 crore in FY16 to Rs 94.5crore in FY17. However our net profits increased from Rs 4.3 crore in FY16 to ? 6.6 crorein FY17. We are of the view that we will be able to make a comeback soon given the growthprojections for the economy and our industry. We have in the recent past invested invarious forward-looking avenues for the Company's growth wherein 'Engineering Excellence'summarizes the Company's thought-process.
We believe that engineering and nurturing excellence across the organization is goingto be our real differentiator to sustain and grow in the longterm.
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 all through.
Harish Chandra Gupta
Chairman & Managing Director