Indian economy is today the seventh largest in the world measured by nominal gdp and isalso the third largest in terms of purchasing power parity. This definitely reflects thepotential of indian economy and its growth at 7% demonstrates that india is the nextgrowth story in the world economy. Not withstanding the initial hiccups weare on the threshold of a long term sustainable high growth trajectory. 2016-17 has been atough year for your company due to various national and international events affecting thesteel industry. Steel industry continues to suffer due to global over capacity of 265million tonnes. Even in india we are saddled with excess steel capacity resulting incontinuous pressure on margins. The input raw material prices fluctuated widely affectingthe steel industry worldwide. However "green shoots" in the economy driven byincreased infrastructure spending and simultaneous growth in the automobile sector steelconsumption is expected to touch 104 million tonnes by 2017. Implementation of gst andinsolvency and bankruptcy code demonstrate the government of indias will to carryout fundamental structural reforms which will put the country on sound footing andaccelerate the growth going forward. The company is focused towards driving operationalefficiencies and cost reduction. A reputed international consultant has been engaged toprepare and help in implementation of a sustainable improvement plan for steel division.More actions to ensure sustainability of growth are being planned including possibility ofsale of wire and wire rope division of the company. Wire and wire rope business iswitnessing demand revival in most of the sectors both in india as well as internationally.Overall we are optimistic about growth in this business due to improvement in investmentin various sectors of the economy. The performance of the company has to be seen in thismacro-economic background. I am confident that the situation will alter with domesticeconomy picking up steam and with infrastructure development accelerating it willgenerate demand for speciality grade alloy steel in this process.
I immensely value and acknowledge the support of all shareholders and otherstakeholders as we ride through difficult times in the industry to a brighter future. Thejourney is challenging. Let us accept this challenge.
G n bajpai