The steel industry has always held a position of significant importance in the contextof economic development and the government's policy space. Although the industry accountsfor roughly 1.04% of the country's GDP. The Indian government has always believed thatsteel is the backbone of industrialization.
India's finished steel consumption grew at a CAGR of 5.69 per cent during FY08-FY18 toreach 90.68 million tonnes (MT). India's crude steel and finished steel productionincreased to 102.34 million tonnes (MT) and 104.98 million tonnes (MT) in 2017-18respectively.
In 2017-18 the country's finished steel exports increased 17 per cent year-on- year to9.62 million tonnes (MT) as compared to 8.24 million tonnes (MT) in 2016-17. Exports andimports of finished steel stood at 0.99 million tonnes (MT) and 1.22 million tonnes (MT)during Apr-May 2018. '
Government of India's focus on infrastructure and restarting roadprojects is aiding theboost in demand for steel. Also further likely acceleration in rural economy andinfrastructure is expected to lead to growth in demand for steel. The Union CabinetGovernment of India has approved the National Steel Policy (NSP) 2017 as it seeks tocreate a globally competitive steel industry in India. NSP 2017 targets 300 million tonnes(MT) steel-making capacity and 160 kgs per capita steel consumption by 2030 The Ministryof Steel is facilitating setting up of an industry driven Steel Research and TechnologyMission of India (SRTMI) in association with the public and private sector steel companiesto spearhead research and develop ment activities in the iron and steel industry at aninitial corpus of Rs 200 crore (US$ 30 million).
India is expected to overtake Japan to become the world's second largest steel producersoon and has envisaged achieving 300 million tonnes (MT) of annual steelproductioncapacity by 2030. Steel consumption is expected to grow 5.7 per cent year-on-year to 92.1million tonnes (MT) in 2018. India is expected to become the second largest steel producerin the world by 2018 based on increased capacity addition in anticipation of upcomingdemand and the new steel policy that has been approved by the Union Cabinet in May 2017is expected to boost India's steel production. Huge scope for growth is offered by India'scomparatively low per capita steel consumption and the expected rise in consumption due toincreased infrastructure construction and the thriving automobile and railways sectors.
Meanwhile during the year under review your company has posted Profit Before Tax atRs. 438.41 Lacs against Rs. 286.68Lacs in the previous year.
With the current market scenario the company has already improved our productionquantity in Structural Rolling from 6500 Metric Ton per month approx last year toachieve 8500 Metric Ton per month approx in current year thereby increase in production by30% approx and in SMS division as compared to last half year in which we produced 3600Metric Ton per month approx in the month of May 2018 itself we have already crossed 6000Metric Ton if the market conditions will be favourable it is expected to achieve 8000Metric Ton or more per month..
We are glad to inform you that as compared to the last year's first quarter (2017-18)in which we have declared profit of Rs. 14.95 Lacs now during current financial year withthe boom in Steel Market Industry your company will surely book good profits as we havegood margins in blooms and billets and had also increased its production and it seems ifthe present scenario continues your Company will capture the opportunity which candirectly affect our profit ratio.
Further we are looking at various options to utilize the freehold land which is locatedat the back side of our Plant in Raipur like either into renewable energy segment withjoint development option or in warehousing projects or in some viable projects. Variousoptions are being contempted but thing has beenfinalized as ofnow.
I extend my sincere thanks to the Board of Directors Management and each & everyperson ofMahamaya Group.
To Shareholders on behalf of Board I thank you for your continued support and lookforward to a positive 2018-19 and beyond.
With best regards: Rajesh Agrawal