It gives me great pleasure to update you about the performance of your Company for theFinancial year 201718. It was a transformative year with the introduction of Goods andServices Tax (GST) an important development that has created a single national market andwill benefit both consumers and industry including the Oil & Gas sectors. While tradeconditions remained volatile during early implementation they have now stabilised andthere is a gradual improvement in overall demand.
The year 2017-18 was a momentous one as the Indian economy embraced its biggesteconomic reform in the form of GST within a year of demonetisation. This move towards'One nation one market one tax' will provide a big boost for the economy. Today Indiais one of the fastest growing large economies poised to record a healthy growth rate of7% on the back of consumption demand and increased public spending. With the countrygetting younger every day and with the rising aspirations of emerging India there arethousands of thriving cities and towns beyond the urban metros that hold the power to fuelthe nation's economic engine. This growth will get accelerated with a slew of ecosystemenablers such as Make in India Skill India and Start-up India.
We are in a rapidly changing world where burgeoning connectivity and transparency isreshaping the value creation model across industries. We continue to lead thetransformation in the LPG sector with significant innovations: we recently launched blastproof translucent and light-weight composite cylinders under the brand name Go Gas Elitefor which we have set up a nation-wide distribution network. We have received a veryencouraging response from customers and your Company is now in complete readiness toreplicate these success stories across the country. Having performed well in recent yearsdespite the highs and lows of this business I believe that Company is at a strikingdistance to become one of India's leading private sector LPG retailer and cylindermanufacturing unit.
Confidence Group by virtue of its entrepreneurial skills innovative strategies andsolid execution is emerging as one of the fastest growing and leading private sectorcompany in India especially in the Auto LPG dispensing stations segment. Our Auto LPGdivision growth is being helped significantly by government policies and initiatives forusing green and clean fuel by the automotive industry and city transportation. Wecurrently have 140 Auto LPG Pumps across the nation and we expect to grow 200-220 pumps byFY 2019. Overall profitability of your company is also being helped by our growth in thesegment.
We have a well-diversified presence in the LPG sector. Our four operating divisions are:LPG Cylinder manufacturing where we are one of the largest in the nation LPG bottlingassistance to oil and gas PSUs in which we are leading private sector player sellingpacked LPG Cylinders to commercial and retail customer and our Auto LPG stations haveprovided further details of each division in our Management Discussion and Analysissection.
Confidence Group is a professionally managed organization and takes immense pride inits highly committed dedicated and dynamic workforce who with their drive and ambitionare converting Dreams of the company into Realities. The Group has emerged as a leader inthe LPG Sector by creating new landmarks in the industry. We at Confidence are committedtowards nation building by serving the masses. Our endeavor is to create value for thesociety at large. Pollution has become a matter of great concern and vehicular pollutionhad multiplied it. Auto LPG the cleaner fuel comes with advantage of cost benefit andready availability.
The Company has recently allotted 1.5 million equity shares @Rs.52/- per shares forRs.1/-face value share to prestigious investors. These funds have been recived in July2018. The aforesaid money shall be used exclusively in expansion of our business in AutoLPG division for installing more Auto LPG Pumps.
Further the Company is in the process of issuing 2.00 million Warrant at a strike priceof Rs.52/- per share to promoters and non promoters. I believe that this shows thecontinuing confidence of the founder in the business and its prospects.
In conclusion I would say that 2017-18 has been an inflection year for the Companyduring which it raised the bar on performance on all fronts and our success. This iswithout any doubt owed primarily to our committed employees across all divisions. I wouldlike to extend my grateful appreciation to the team and hope they will continue to excelundeterred in their endeavours. It is equally important that we acknowledge the resolutefaith and support of our extended family of shareholders customers dealers suppliersfinancial institutions and strategic partners who travel with us in our journey. I wouldlike to extend my deepest appreciation to them and hope to see this bond grow evenstronger.
Our Vision is "To make India a pollution free country and to serve mankind byproviding green and clean fuel sources at an economical price even in remote rural area ofthe nation besides providing logistical support to all the PSU oil majors.
Nitin Khara Chairman & Managing Director