Welcome to the 98th Annual General Meeting of your company. As we closeanother year of pursuing excellence while driving sustainable innovation I would like toexpress my gratitude on behalf of the Board of Directors for the persistent trust youhave placed in us. It is this trust that has helped us reach new milestones pioneerindustry trends while remaining steadfast in our commitment to reduce the world's carbonfootprint.
On March1 2020 Gardner Denver and the Ingersoll Rand Industrial Segment mergedcombining two companies with associated cultures and creating a more comprehensiveportfolio of leading brands across technologies and solutions with greater end-marketbalance and enhanced scale and reach. This was a milestone as we formed a new strongindustrial company with a talented global workforce powered by an entrepreneurial spiritownership mindset and sustainability focus.
Our Purpose barely days old the newly formed Ingersoll Rand Purpose Lean On Usto Help You Make Life Better and our Values were put to the test by the COVID-19pandemic. With the health and safety of our employees as our top priority response teamswere formed immediately and quickly implemented actions to reduce the spread of the viruslaunched an organization-wide communication plan to engage employees and empowered localleaders to make quick decisions that were backed up by our global health and safety teamto ensure consistent execution of best practices.
Ingersoll Rand's businesses manufacture and service mission-critical products thatsupport essential sectors on the front lines of minimizing the spread and fighting theimpact of COVID-19 including the healthcare and public health food and agriculture. Ouremployees customers and partners are proud that our COVID-19 response has been high inour Purpose and know they can lean on us to help make life better.
In 2019-20 the GDP growth rate is estimated to be 5% as compared to 6.8% in 2018-19.The overall industrial sector growth is estimated to be 2.5% in 2019-20 as compared to6.9% growth in 2018-19. Manufacturing sector is estimated to grow at 2.0% during 2019-20Manufacturing activities were subdued due to a decrease in domestic demand for key sectorssuch as automotive and pharmaceuticals. Exports of labour intensive sectors such asjewelry basic metals leather and textile also underperformed during the currentfinancial year. Liquidity crunch due to reduced lending by NBFC also had an adverseimpact. With an encouraging economic momentum as the backdrop Ingersoll Rand has not onlysustained its progress this year too but has also further strengthened its position as amarket leader. Delivering excellence and sustainability lies at the core of IngersollRand's vision; and nurturing an inclusive environment for our team and partners alikegives that vision fruition. As India marches ahead on a solid growth trajectory tocomplete 74 glorious years of independence and the vision of a Better India continues totake shape Ingersoll Rand is geared to translate its multi-pronged and progressive agendainto action for the year 2019-20 and grow exponentially in this conducive environment.From growth perspective various projects initiated in 2019-20 and that includeslocalization of Next Generation R series developing indigenous 30-37kw with world classperformance as well as competitive costs localizing NX2000 compressor to give energyefficient products leveraging Naroda facility to cater to the requirements.Environmental Health and Safety (EHS) benchmarks are areas of prime focus at IngersollRand. The company is committed to pursue the goal of "zero workplace injuries"and "incident free" operations and ensure all employees are aligned with thisobjective. This year we also attained 25% reduction in fresh water consumption at Narodaplant by reuse of treated domestic waste water.
To reinforce our commitment towards establishing an increasingly diverse workforcemultiple initiatives were taken to increase the representation and retention of femaleemployees through the Gender Diversity Employee Resource Group. This further underscoresour intent to uphold the pledge of Paradigm for Parity Coalition made by our parentcompany to bring gender parity to corporate leadership structure by 2030. Continuing toplace a premium on the wellness of our employees this year again we sponsored the GlobalCorporate Health Challenge. Around 235 of our employees participated in the samedisplaying their leaning towards a healthy work-life balance. Our continued initiative tostrengthen the industry-academic relationship and pave the way for future talent saw over300 students visiting our Naroda plant on the occasion of International Manufacturing Day.The students from various colleges running vocational studies engineering and managementprograms across Gujarat joined us at the manufacturing site and were delighted to get thisopportunity.
We are committed
Our passion for growth and our concern for the world beyond the walls of our businesscontinues to be stoked in equal measure. As such in compliance with the Companies Act2013 we continued to support existing initiatives and undertook some new ones that alignwith our purpose as an organization. With a strong belief in nurturing the futuregeneration and encouraging an environment of equity for marginalized sections of societyour partnerships with several not for profit organizations helped us take actions thatmattered. Our support for the Government of India led mid-day meal scheme was able tocover 4162 children across 31 schools in Ahmedabad Gujarat while our projects focused onfurthering STEM (Science Technology Engineering and Mathematics) education progressed tomake scientific concepts simple and application-based for identified beneficiaries inGurgaon Haryana Through our three year partnership with National Skill DevelopmentCorporation (NSDC) we have committed to train 1100 youth by making a contribution ofapproximately INR 2.2 crores. Over 820 candidates have been trained till date with 79% ofthem successfully placed. Additionally the partnership has provided for over 435 womentill date with a focus to make them economically independent by molding them as skilledpersonnel.
Taking forward our social responsibility focus on community development we continuedto maintain the patches of land in Gurgaon we adopted two year's back.
The massive floods in Karnataka caused immense loss to human lives households andinfrastructure with greater impact on the poor and the marginalized living in vulnerablepockets. In an endeavor towards positive intervention amidst this mass destruction weallocated 5% of our CSR budget to contribute to the recovery and rehabilitation effortsundertaken by the state.
Crystallizing our collective vision of creating long-term value in the world are ourcompassionate and engaged employees who volunteered wholeheartedly in all our communitydevelopment initiatives. This year over 12 employee volunteering activities wereorganized including 1250 hours of employee volunteering time. As we usher in the newfinancial year we look forward with renewed optimism to grow steadily along with India'snow diversified and resilient
GDP while keeping our eyes firmly focused on delivering excellence in every initiativewe undertake. Armed with our rich legacy and commitment Ingersoll Rand is well-geared tocontinue to be an integral part of India's industrial production growth story. We thankyou for your ongoing trust and partnership and we look forward to earning your continuedsupport for years to come.
Sincerely Amar Kaul
Chairman and Managing Director