It is my privilege to write to you and present the Annual Report for the Financial Year2018- 19. From the depreciation of rupee as against the dollar to the Hon'ble SupremeCourt's decision to ban the import of Raw Petroleum Coke (RPC) it was a challenging yearfor your Company. Although the global market for aluminium witnessed a downfall in 2018increasing industrialisation and urbanisation is expected to fuel the demand for aluminiumnot only in India but also in the world.
According to the World Bank's report India's GDP growth is expected to grow moderatelyto 7.50% during FY 2019-20 and your Company strongly believes that the continuedinvestment in infrastructure development improved export performance and strong domesticdemand will fuel the growth of the Indian Economy further and surpass the projected GDPgrowth.
The total Aluminium production in India increased to 18.10% from 2017-18 to 3.40Million Tonnes. At the same time the Aluminium consumption also grew by a healthy 9.80%of which Aluminium imports contributed 54.10%. Aluminium exports by Primary producerswere 1.72 Million Tonnes registering a growth of 31.50% year-on-year (Source:Equitymaster). On the domestic front with an increase in industrialisation the demandfor aluminium would significantly increase in FY 2019-20. The power packaging andtransportation sectors are going to be the demand drivers for the aluminium industry inIndia.
As per forecast by the International Monetary Fund (IMF) India was the fastest growingmajor economy in 2018 with a growth rate of 7.40% that would rise to 7.80% in 2019. Indianeconomy is gradually recovering from the business challenges faced due to demonetisationand the introduction of the Goods and Services Tax.
Now I would like to take you through some of the key highlights of the performance forthe year under review. The imposition of the ban on the import of RPC in July 2018 by theHon'ble Supreme Court of India impacted the Company's performance adversely. Howeverafter reviewing the fact that the calcination industry does not use the RPC for fuelpurposes and considering the demand for aluminium in the country and with non-availabilityof any other alternative raw materials for the production of aluminium other than CPC theHon'ble Supreme Court passed the order in favour of CPC industry but restricted the importto 14 lakh metric tonne per year. The import quantities permitted by the Hon'ble SupremeCourt are aligned with current production requirements of the Calcination and theAluminium industries but do not consider increase in petcoke requirements for futureexpansions. The import ban of RPC led to re-alignment of shipments and productionschedule ultimately resulting in lower volumes of CPC and higher costs during the currentyear under review.
Despite the adverse business climate like import ban volatile prices of RPC andnonavailability of suitable raw materials your Company has achieved the turnover of Rs46403.61 lakhs during the FY 2018-19 as compared to Rs 59598.78 lakhs during theprevious year. The production of Calcined Petroleum Coke (CPC) was 157135 MT during theFY 2018-19 as compared to 204114 MT during the previous year. The sales of CPC were141701 MT for the current year under review as compared to 209343 MT for the previousyear.
We look forward to having an improved performance from the later part of FY 2019- 20.The rupee-dollar exchange rate and the availability of RPC at commercially competentprices will play a vital role in the growth and profitability of the company. Rapidindustrialisation and urbanisation and government initiatives for better infrastructurewill further boost the demand for aluminium across the country.
Public and private firm's competitiveness plays a vital role in the successful economicgrowth of the country. Companies have to adopt prudent policies and regulations whilstconsidering the competitiveness along with building the Company's efficiency andproductivity. In the manufacturing sector issues of labour regulations ease of doingbusiness access to finance and Next Gen manufacturing will require focused efforts fromthe government and the industry bodies.
Governance is the critical factor that ensures a trustworthy relationship between allthe stakeholders and the Company. Your Company follows the best of the governancepolicies as we understand the criticality of the industry in sustaining investorconfidence and incorporated transparent and ethical practices through self-regulation. Asis known for your Company will continue to make significant investments in communityengagements through the implementation of meaningful CSR initiatives.
Environment care remains at the crux of our culture and we take necessary actions thatfocus on creating a more sustainable enterprise. Besides business performance we areengaged in spending enormous time and money in strengthening the pollution control systemsand machineries. We closely work with the regulators government authorities and all thestakeholders to ensure that all the environmental aspects are in place.
As a 50 years old company Goa Carbon works towards building on capabilities during thecrucial time of adversities. Being one of the leaders in the industry coupled with thebest industry knowledge strong business understanding and expertise will help usovercome the current challenges and your Company will soon be back on the growth trackwith the steps already taken to mitigate aforesaid challenges.
I take this opportunity to extend our gratitude to the Government of India Governmentof Goa Chhattisgarh and Odisha Marmugao Port Trust Paradeep Port Trust MangalorePort various regulatory authorities and our bankers associates and suppliers and allother stakeholders for their support faith and continued association. I would like toextend my gratitude to the Company's employees and the board for their consistentcommitment engagement support and encouragement in our journey.
7th May 2019