The Escorts of today is agile and responsive to capitalize on emerging opportunities
I am pleased to present the annual report to you on the centenary of Mr. HP Nanda thefounder of the company. India today is at an inflection point and likely to graduate froma perpetually-developing nation status into a developed modern country in the globalcommunity of nations. To create enduring value for the country we need to build anenterprise that is increasingly agile and future-ready.
Escorts is addressing the growing national opportunity by selecting to focus on threebusinesses aligned with India's development story. As a future-facing enterprise Escortsis strengthening its technology investments and positioning by building capabilities inthe areas of product development technology and design making us competitive acrosslocal and global platforms. We are building our engineering capabilities and strengths tolaunch new products and expand our businesses. The three verticals we serve have a greatpotential for growth as each represents a strong pivot for the development of the Indianeconomy.
Indian agriculture is yet to be fully mechanized and there is a growing need forstrengthening productivity and viability. We are working on technology and solutions thatwill help create the highly-mechanized and evolved farms of tomorrow. We are developingnew large and smaller tractors that will not only help us expand our range but also giveour customers a wider choice.
The Indian government's policy priority matches this universal relevance as well. Webelieve that a number of agricultural reforms will enhance farm viability and acceleratereinvestments benefiting our entire agri machinery business.
India's infrastructural development is a massive task for the next 20 years.Engineering set-ups and contractors will have plenty of focused projects needing smarterand effcient construction equipment technology and solutions. The focus to investaggressively and extensively in infrastructure will translate into the building of newroads bridges ports airports and other infrastructure supports. We are today producingthe required engineering solutions that will contribute to the growing requirement.Escorts is engaged in scaling product design technologies capability and capacities. Weare collaborating with select European companies to offer cutting-edge products that makesit easier for contractors to deliver larger better and faster.
As the global population increases we see a larger investment going into railwaysacross the world as an effective mass long-cum-rapid transport system acrossscale safety and sophistication. The Indian government is prioritizing railway networkexpansion which has reflected in an increased Railway budgetary outlay exceeding rupeesone lakh crore per year creating an attractive opportunity for our railway productsbusiness. The dedicated freight corridor connecting Delhi Mumbai Kolkata and Chennaiwill liberate more track capacity for passengers and widen our product portfoliorelevance. Our product suite comprising all types of brakes and couplers are vital forthe safety of high-speed multi-wagon trains. The Company has made significant progress inthe last couple of years. The Company divested its non-core businesses strengthened itscommitment to existing businesses through increased investment widened its product rangeand deepened its service commitment. Besides we intend to strengthen our business byaddressing the growing scope of our products in the international market potentiallyenhancing the quantum of our exports in a substantial way across the foreseeable future.
Escorts' three businesses are aligned with India's development. We will continueinvesting in technologies effcient distribution and product mix for enhanced agilitydynamism and customer responsiveness to capitalize on emerging opportunities. We havecreated robust structures for benchmarking the best players in the industry to develop acompetitive cost advantage and enhance our profitability. As we delve into new productsand segments the overarching idea will be to achieve growth using the Company'searned-reserves making us a self-reliant enterprise.
I am optimistic that this futuristic approach will enhance value for all ourstakeholders in an enduring way.
Chairman & Managing Director