It gives me immense pleasure to present to you the 30th Annual Report of your Company.
The year under review was marked by major challenges the post demonetisationslowdown initial troubles of GST migration and rising input costs which impacted theeconomy. However with consumption and industrial output improving economic growthaccelerated in the la er half of the year.
While Mr. Saugata Gupta the MD and CEO of your Company will share a detailed overviewof the performance in his message I would like to highlight that your Company workeddiligently to mitigate the headwinds during the year reporting modest volume and earningsgrowth amidst these macroeconomic challenges and structural reforms. Through concertedefforts it has set a strong foundation to shape the future in the years to come.
According to World Bank's Global Economic Prospects report global growth haseased but remains robust and is projected to reach 3.1 percent in 2018 similar to theestimated growth in 2017. It is expected to edge down over the next two years as globalslack dissipates trade and investment moderate and financing conditions tighten. Growthin advanced economies is forecasted to decelerate toward potential rates as monetarypolicy is normalised and the effects of U.S. fiscal stimulus wane. In emerging market anddeveloping economies (EMDEs) growth in commodity importers will remain strong while therebound in commodity exporters is projected to mature over the next two years.
India is now the world's sixth largest economy as per International Monetary Fund'slatest World Economic Outlook report. I believe that there are significant mediumand long-term growth prospects in India. GST should help transform and strengthen theoverall business environment in the long-term. It will be an enabler of growth for theorganised sector while bringing the unorganised sector into the formal economy. The WorldBank has projected India's GDP growth at 7.3 per cent for 2018-19 and expects it toaccelerate further to 7.5 per cent in 2019-20. India was also ranked at the 100thposition up 30 places in the World Bank's Ease of Doing Business 2017 rankings and wasdeclared the only country in South Asia to feature as one of the 10 economies thatimproved the most.
India's growth in the current fiscal will be buoyed by an increased demand in the ruraleconomy. Agriculture non-farming activities and a be er global climate will facilitatethis surge along with rising domestic consumption. We are enthused by the Government'sagrarian agenda of doubling farmers' income by 2022 by helping reduce cultivation costsensuring profitable prices processing of farm waste and creating non-farm sources ofincome. The hope for a revival in rural however rests on normal monsoons which boostsgrain production and helps curb food price inflation. The Government's focus on increasingemployment opportunities developing infrastructure and growing education avenues will addto the upbeat sentiment. Factors like rising income rising urbanisation rise of nuclearhouseholds as well as a growing workforce should drive growth in India's organised FMCGsector. However macro challenges like rising oil prices and trade protectionism bydeveloped economies could have a dampening effect.
ENABLING INCLUSIVE GROWTH
Our purpose is to transform in a sustainable manner the lives of those we touch bynurturing and empowering them to maximise their true potential. I am very proud of thefact that our focus in business went hand in hand with our pursuit to preserve theenvironment and help communities thrive. Aligned to the UN Sustainable Development Goals2030 (SDGs) your Company has made significant progress in areas of sustainableprocurement energy management water management waste management product responsibilityand future-ready capability building. We have significantly reduced energy consumptioncut greenhouse gas emissions and taken improved measures towards achieving waterstewardship. Our shi_ to renewable energy and conservation initiatives through the EnergyConservation programme has resulted in 31% reduction in energy intensity from thebaseline year (FY2012-13). 80% of our in-house water consumption is conserved from thecapacity created by farm ponds and other conservation projects. The Company also achieved54% reduction of greenhouse gas (GHG) emission intensity against the baseline yearFY2012-13.
Our farmer outreach programme "Kalpavriksha" launched this year to helpfarmers double their incomes has already made a difference to the lives of more than3000 farmer families by providing them training on scientific farming practices andhelping them with day-to-day queries. At Marico we are deeply commi ed to creating asustainable environment and are constantly on the lookout for innovative and disruptiveideas. The Marico Innovation Foundation (MIF) a not-for-profit arm of the Companycontinues to act as a catalyst for innovators helping them accelerate growth. With the MIFScale-Up Programme we have created a platform for innovators to be mentored by domainexperts. The mentors devote their time and experience in developing an implementable planand the entire process is monitored through pre-determined milestones. Some of thesementors are your Company's members. We have also instituted the MIF Awards to recogniseand award unheralded innovations in the country. I would encourage our shareholders toread the latest Sustainability Report which is available on your Company's websitewww.marico.com.
Your Company's efforts to achieve and sustain the highest standards of corporategovernance were duly recognised during the year. In February 2018 your Company was rankedamong the Top 10 in corporate governance among all constituent companies of the S&PBSE 100 Index in a study jointly conducted by International Finance Corporation (IFC)Institutional Investor Advisory Services
India Limited (a proxy advisory firm based in Mumbai) and Bombay Stock ExchangeLimited (BSE) with the financial support of the Government of Japan.
At Marico we continue to reaffirm our commitment to deliver a sustainable long-termbusiness and earnings growth by leveraging our key enablers brands talent andculture. Your Company has identified 5 areas of transformation where it will develop topquartile capability processes and executional excellence ahead of growth Innovation Go to Market Transformation Talent Value Proposition IT & Analytics andValue Management. We are creating an integrated platform for an interconnected businessand shopping experience by bringing together Marico employees partners customersdistributors and wholesalers thereby building a Marico of the Future'. Over themedium-term Marico aims to a ain leadership in two core categories of leave-in hairnourishment and male grooming in its chosen markets in South Asia South East Asia MiddleEast and North Africa and South Africa. We believe we are well-positioned to achieve ouraspirations of becoming a leading emerging market MNC. We will also intensify ourendeavour to achieve inclusive growth for your Company and all stakeholders especially inthe area of environmental sustainability.
I continue to act as the Non-Executive Chairman of the Board while Mr. Saugata GuptaMD & CEO of your Company continues to steer the day-to-day operations of the Company.I also lead efforts to improve the collective functioning of the Board and am activelyinvolved in the Company's Corporate Social Responsibility (CSR) initiatives. YourCompany's Board comprising of leaders with domain expertise from diverse fields such asbusiness strategy finance retail e-commerce and human resources continues to guidethe top management in achieving its long-term goal.
I would like to take this opportunity to thank all our Marico members for theircontinuous engagement commitment and support during the year. I also convey my deepappreciation to all our business partners vendors and other business associates for allthey do which makes our Company successful. Finally a very special thank you to all ourshareholders for the faith they have bestowed on us over the years. We look forward toyour continued support as we strengthen our today for our tomorrow.