Building on Our Legacy Imagining Afresh
THE GOVERNMENT OF INDIA HAS ALSO UNDERTAKEN A SERIES OF REFORMS TO CATALYSE THEFORMALISATION AND DIGITISATION OF THE ECONOMY.
OUR COUNTRY IS POWERING AHEAD AS ONE OF THE WORLD'S FASTEST-GROWING MAJOR ECONOMIES.THIS IN TURN IS CREATING OPPORTUNITIES FOR EMPLOYMENT AND ENTREPRENEURSHIP FOR MILLIONSOF PEOPLE.
India is home to a predominantly young and aspirational population whose affinity forbrands is growing day by day. Two-thirds of the nation's ~1.3 billion people are below 35years of age with growing disposable income. To offer you a perspective that is more thantwice the US population.
The Government of India has also undertaken a series of reforms to catalyse theformalisation and digitisation of the economy. From managing fiscal consolidation rollingout the country's biggest indirect tax reform the Goods and Services Tax (GST)improving the ease of doing business' to introducing the Real Estate (Regulation andDevelopment) Act the Government of India is energising the economy and ushering intransparency across sectors.
In this environment our values of innovation creativity excellence andcustomer-centricity are really coming into their own. At HSIL we are reimagining ourbusinesses to serve a new India with new energy and endeavours and to unlock exceptionalvalue for all our stakeholders. We have made encouraging progress in aligning the diverseaspects of the operational ecosystem including systems and processes to increasecapabilities and grow steadily.
We have come a long way by developing innovative bathroom solutions for customers andnow over the past few years are investing to become more agile and aligned to evolvingcustomer requirements. We have ventured into new and synergic businesses to create diverserevenue streams. At the same time we continue to push the innovation envelope across ourbusinesses. During the year we introduced new product categories with a palette ofofferings that incorporate different styles functionalities materials and colours forcustomised choices. Design is highly personal we respect and value that element in ourcraft.
Our robust marketing capabilities wide distribution network strong relationship withexisting dealers and customers and our wide range of offerings across the price spectrumhave enabled us to grow consistently. In a digital-first economy we are leveraging thereach and recall of e-commerce platforms and are partnering with them to grow our onlinepresence. Moreover we have further fortified our relationships with customers in thepackaging products industry by enhancing our capabilities to provide them withindustry-leading and innovative products.
Our overarching strategy has always been to foresee opportunities and build appropriateplatforms for sustainable growth taking into consideration rapidly shifting macrorealities. During the year the Board of Directors approved the scheme of arrangement thatenvisages the demerger of Marketing and Distribution Undertaking of the Consumer ProductsDivision and Retail Division to a separate entity Somany Home Innovation Limited (SHIL)and the demerger of Marketing and Distribution Undertaking of the Building ProductsDivision to a separate entity Brilloca Limited a subsidiary of SHIL.
During the year the Company launched an innovative product range of pipes and fittingsunder the brand TRUFLO by hindware' and initiated trial production from thestate-of-the-art plant in Telangana enabling us to further broaden our offerings for theBuilding Products Division. The Company also commissioned Phase I of the security caps andclosures plant in Telengana strengthening the Packaging Product Division. We take immensepride in announcing that our pipes plant is first in the industry to be awarded Platinumrating by Indian Green Building Council (IGBC). Our security caps and closure plant hasalso been rated Platinum by IGBC. We are excited about the better value and opportunitiesour two new businesses will offer our customers and stakeholders. We also made keyinvestments in growth drivers for the future and achieved yet another year of consistentshareholder returns.
We at HSIL are inspired by the strides we have taken as a company in sustainabilityand stewardship. We are steadfast in our sense of responsibility when it comes to theenvironment the communities we operate in and our people. We have a passionate approachin our commitment to our communities. During the year the Company supported varioussocial issues such as sanitation and hygiene skill development healthcare education andwomen empowerment directly and in association with our partner organisations. We furtherinstituted our CSR arm HSIL Corporate Social Responsibility Foundation to increase theimpact and reach of our programmes. Business success for us goes hand in hand with what wecan do to better our communities and the nation.
I foresee our teams performing and translating our core purpose into strategies thatwill help enrich the quality of life and enhance stakeholder value. We are continuouslyinvesting in training and empowerment to nurture the potential of our people so as toimbibe a passionate go-getter attitude. I would like to thank the entire HSIL family fortheir hard work and dedication. Going forward our priorities are to drive revenue growthwith profitability create innovative products and grow our brand reputation and recall.
The future will continue to present both opportunities and challenges. Our strategywill be to focus on the broad operational canvas to elevate performance and accelerate thepace of innovation to sustain our leadership. This predominant business approach willcontinue to lead our inspiring legacy of sustainable growth despite economic volatilitiesshifting consumer aspirations and industry dynamics.
Our commitment is to continue building our businesses with strategic clarity andvalue-assertive investments in our differentiated capabilities. I am grateful to all ourstakeholders for their trust engagement and support.
Dr. Rajendra Kumar Somany
Chairman and Managing Director