I am pleased to present the Annual Report of your Company for fiscal 2017. The yearassumes particular importance in the Company's history as it went public through anInitial Public Offer (IPO) listing on the Stock exchanges successfully. It gives me greatpleasure to welcome all our new shareholders to the DMart family. The response to ourmaiden public issue was heart-warming to say the least. My sincere gratitude for the faithand trust reposed by investors in our Company.
We are at an exciting phase in India's growth journey and organised retail continues tobe an attractive sector. At over 7% India is one of the fastest growing major economiesin the world. This coupled with major structural shifts that are underway point to along-term opportunity that is of a massive scale. Most macro-economic indicators thatmeasure the health of an economy continue to be positive in India's context. Major policymeasures such as demonetisation and the implementation of GST are likely to formalise theeconomy even further. Seen together this points towards brighter days ahead for theretail sector.
Value retail is a tough business. There is intense competition and a constantlyevolving dynamic in the form of market forces and consumer preferences. For nearly 15years we have focused on the core needs of our customers aligned our systems &processes in line with their needs and delivered steady growth in our revenues andprofitability.
The retail sector has for long hoped for a level playing field. We believe that GST isa good step towards that and yet its effect on our business is likely to be neutral.This is because the tax rates have been cut for mass consumption products and hiked forhigher-end products.
In India private consumption constitutes 60% of India's GDP of which retail is around50%. Organised Retail was 9% of total retail in FY 2016 and is expected to touch 12% by FY2020. Our business model has stood the test of time and we are focused on doing a fewthings but doing it well and ensure we continue to be amongst the preferred retailers inIndia. This is our guiding mantra for the business.
We are keen to protect value and hence take a cautious measured approach towardsexpansions. Guided by the aspirations of our internal and external stakeholders we focuson ensuring smooth operations and staying true to our core which allows us to widen anddeepen our customer base. At the same time we maintain an excellent rapport with oursuppliers ensuring that we source the best quality products at the most competitiveprices.
In our business we consider the community and environment as key stakeholders. Towardsthis end we strive to be cleaner and greener. Similarly our well-focussed CSRinitiatives in the education sector ensure impactful results for beneficiaries of theeconomically marginal communities.
As we continue in our endeavour to aspire to be a respected and responsible enterprisewe commit to being focussed on our core positioning of value-retail and remain accountableto all our stakeholders and society at large. We will constantly pursue to delight andsurprise our customers with good products at great value every single day.
I hereby thank all the other Board members the Senior Management team and our Founderfor their help in discharging my duties.
I solicit your continued cooperation in
materialising this vision.