The state of the global economy no longer gives reason for cheer. Growth has moderatedboth in the advanced economies as well as in most emerging economies. An environment ofprotectionism together with a xenophobic sentiment seems to be sweeping many of theadvanced economies including inexplicably the United States. This gives rise to someconcern. More so because the US economy seems to be on a recovery mode.
Against the above difficult background the Indian economy I am pleased to state iswell poised. The "Make in India" theme is an excellent model. Several boldmeasures undertaken by the Central Government during the last Financial Year includingthe proposed implementation of the Goods and Service Tax will be beneficial for theeconomy as one goes along. However in a world economy punctuated with so many growthfault lines the country would need to aggressively reinforce niches for itself in theworld market.
We at Kesoram Industries Limited spent considerable time in the past year enhancingdirectional clarity in our businesses through prioritising and re-emphasising the goal ofbusiness sustainability.
To this end I must compliment the Tyre Business on its endeavours at realigningmanufacturing capabilities in a situation arising out of our disposal of the Laksar tyremanufacturing facility during the year. The Cement Business faced intense competitivepressures with conviction. The Rayon Business which was spun off as a wholly-ownedsubsidiary during the year has tasted some success in developing products for discerningcustomers. This should stand the Business in good stead in the future.
I thank you all for the faith reposed in the Company. I value your continued support.
Basant Kumar Birla