The Indian economy seems to be recovering slowly from the two jolts it received inrecent times with respect to demonetization and the implementation of a much needed GST(Goods and Services Tax). The increased pace of growth achieved in Q3 2018 re-establishesIndia as one of the fastest growing economies in the world. Fortunately inflation by andlarge has remained in check. In January 2018 The World Bank released its 'Global EconomicProspects' report and stated that it expects India's growth rate to hit 7.3% the comingfinancial year. Despite these expectations and positive outlook the fact remains that thecorporate capital investment cycle which has remained depressed for at least the last 5years has yet to pick up.
The Transformer division has managed to retain market share in a flat market withincreased competition. Focus on increasing business in the non-tendered segment andimproved reach in utilities has enabled us to have one of our best years in terms ofproduction and dispatches. This has resulted in sales turnover increasing by 18%. Theexport market one of our focus areas has proved difficult to penetrate with sporadicsuccess. Our efforts to break in to this market are ongoing. The Motor division hasachieved significant revenue growth and has successfully managed the operational andsupply-chain transition to comply with the Government's Quality Control Order that permitsonly the manufacture and sale of energy efficient motors after January 2018. The divisionreceived its largest ever order from a PSU (Public Sector Undertaking). Our increasedgeographical reach has bolstered performance.
The Projects business has for the first time successfully bid for executed andcommissioned a transmission line. We will continue to stay away from risky projects andgrow in a cautious manner in this business. Our focus will remain on projects from theprivate sector. To increase our order input we will also consider select projects in EBOP(Electrical Balance of Plant)lighting and GIS (Gas Insulated Substations) segments ofthe market. The Drives and Automation division has achieved a major milestone indelivering their 10000th drive last year. Our focus area will be on the development ofthe solution partner network and to leverage synergies by offering solutions withproducts developed by our Magnet Technology Machines division. One area of concern remainsthe recent depreciation of the rupee against the Euro and the USD. The Magnet TechnologyMachines (MTM) division inaugurated a state-of-the-art manufacturing plant to cater toincreased demand. While endeavoring to maintain our leadership position for elevatorapplications in the domestic market we are also working hard to grow exports. Our effortsin exports have yielded results through our overseas partner.
Overall the world economy seems to be improving having had one of its better years inrecent times with Europe and the US showing positive signs. Let us hope this upward trendcontinues. Chinese growth however is expected to slow down due to its problems of excessindustrial capacity and debt overhang.
What India needs now is good fiscal stimulus to kick start the Capex cycle. The badloan problem also needs to be resolved. The government will have to inject a large amountof money into the banking system to resolve the growing number of NPAs. The new Insolvencyand Bankruptcy Code is definitely a step in the right direction. However the process ofrecovery and restructuring is a long and tedious one. It seems unlikely that anything isgoing to change dramatically before the next election.