Dear Fellow shareholders
It is my privilege to communicate with you through my second letter after I took overas Chairman and Managing Director of CONCOR.
As per report of International Monetary Fund (IMF) global economy grew at 3.8% duringthe year 2017 whereas the GDP in India grew at 6.7% during 2017-18. With various inspiringsteps taken by the Government in the past such as Make in India Digital India Creationof Infrastructure Sagarmala Project and Implementation of GST etc. the growth momentum inthe Indian Economy is likely to continue.
Your Company's business is majorly dependent upon overall global and EXIM trade of thecountry. It was yet another year of low growth rate of global economy and the geopoliticaluncertainties are continuing. In the EXIM trade of the country due to higher imports thetrade gap is widening. In this external environment with our focused approach rightstrategies and hard work & dedication of our team CONCOR has performed well duringthe year 2017-18.
In the year 2017-18 Indian Railways registered growth of 4.77% in originating loadingof cargo from 1108.79 million tonnes in 2016-17 to 1161.66 million tonnes in thecurrent year. The originating containerized cargo transported by rail increased from 47.60million tonnes in 2016-17 to 54.31 million tonnes in 2017-18 an increase of 14.10%. Thecontainers handled at all ports of the country registered a growth of 11.63% from 13.16million TEUs in 2016-17 to 14.69 million TEUs in 2017-18.
Overcoming the challenging external environment your Company has delivered goodperformance during 2017-18. It has transferred by rail 39.97 million tonnes of cargovolume in 2017-18 an increase of 15.19% over previous year. It handled physical volume of3.53 million TEUs registering a growth of 13.85% over the previous year. In the EXIM anddomestic segments the volumes handled were 3001948 TEUs and 529952 TEUs an increaseof 13.64% and 15.08% respectively over the previous year. During the year it achieved agross turnover and net profit of Rs6470 crores and Rs1049 crores respectively. The networth of your Company increased to Rs9401 crores from Rs8846 crores in the previousyear. The handling volumes gross turnover and net profit for the year 2017-18 were thehighest ever achieved by the Company in a year.
The long term business outlook for the logistic sector is positive and thereforecreation of infrastructure is need of the hour to meet the industry requirements infuture. During the year the company has spent an amount of around Rs857 crores towardcapital expenditure mainly on creation of new terminals expansion of existing ones andacquisition of wagons & container etc. Development of several Multi Modal LogisticsParks (MMLPs) across India is being done which will result in business growth throughsubstantial augmentation of handling capacity locational advantage value added servicesand exposure to other segments of value chain.
With rising competition particularly from the road sector our endeavor is to retainour market share in rail containerized transportation as well as creating new businessverticals. Your Company believes in sustainable and responsible growth and is takinginnovative steps in marketing and meeting customer's expectations towards reliable andcost effective services. We continue to expect good results from double stack running fromMundra/Pipavav Ports to Khatuwas and vice-versa which has not only helped in containingthe cost of empty running but has also helped in enhancing rail co-efficient & madeour services more competitive.
In order to expand the business of our Company & to move towards the provision ofcomplete logistics services your Company has formulated strategies which include settingup of MMLPs at vantage locations along the Dedicated Freight Corridors (DFCs) and majorindustrial states setting up Private Freight Terminals (PFTs) with road bridgingsolutions venturing internationally extensive use of information technology setting upextended gateway facility providing value added services i.e. cross docking wrappinglabelling palletisation bar coding and mobile app etc. We are following a focusedapproach and have plans in place to implement the strategies so as to move on the path ofhigher growth trajectory in the times to come.
Your company is well poised to reap the benefits from the opportunities emerging fromGST implementation and eyeing new business avenues in the field of warehousing e-commerceand 3PL etc. We are committed to provide best quality services to our customers and ourethos is "Customer Value Creation".
Your company believes that signs of economic recovery coupled with growth inmanufacturing sector which is likely to gain impetus with the Make in India initiativewill give boost to our growth plans. The large number of Industrial Parks SEZs etc. beingestablished by State Governments and Ports offer your Company an excellent opportunity forserving as logistics partner for the states/industrial estates through arrangements ofmutual benefits. There is tremendous business potential for providing logistics servicesin air cargo automobile sector food supply chain management distribution logisticsintegrated logistics & manufacturing zones (ILMZ) and coastal shipping which are alsoareas of diversification and the Company has already taken steps to move into such areas.
The Company is committed for digital transformation to leverage our IT capabilities toachieve the competitive advantage. It has taken many IT initiatives which includeproviding continuous cargo visibility to its customers through mobile app. SMS facilityand our interactive website.
Your Company has always followed transparent practices in doing its businessesparticularly in the areas of Corporate Governance and its Social Responsibilities whichhas created an environment of trust among all its stakeholders. The CSR initiatives takenby the Company in the field of education health environment sustainability and skilldevelopment etc. have touched and positively impacted the lives of many underprivilegedpeople across the country. An amount of Rs16.22 crores was spent on various CSR projectsduring the year.
I would like to thank you for the unstinted support and trust in the Company. I wouldalso like to place on record my sincere appreciation for Company's Board of Directors andMinistry of Railways for their continued guidance and support. I would like to express mygratitude to all our shareholders esteemed customers and our business associates forhaving reposed faith in our efforts which has helped us to earn their confidence. I wantto assure you that the talented dedicated and highly motivated team of CONCOR will takethe Company to new pinnacles of success in the future.
With best wishes
|Date:21.08.2018 ||Sd/- |
|Place: New Delhi ||(V Kalyana Rama) |
| ||Chairman and Managing Director |