Most of you must be aware that Midfield Industries has faced multiple challenges toreach where we are today. Our firm conviction in our capabilities and the increasingmarket potential has enabled us to sustain profitable growth in a rapidly developingeconomy.
It does not need to be re-emphasised that the Indian economy has maintained a steadypace of GDP growth for the last three to four years, setting into motion a virtuous cycleof growth across all industries.
However, the present ecosystem of persistent inflation and policy slowdown may denteconomic growth.
The recent global turbulence (especially in the US and the Eurozone) can also have ashort-term moderating . The long-term prospects are however bright, and India may wellsurpass others as the fastest growing economy in a few years from now.
This is the broad macroeconomic context in which we have to evaluate our industry. Theglobal packaging industry today is estimated to be around $500 billion, growing at a CAGRof 3.1%. The Indian packaging industry contributes 3% to the global packaging market.
The key reasons for this trend include strong growth in emerging markets Due to easyavailability of raw materials and low manufacturing costs, India is fast emerging as apreferred hub for the packaging industry.
We were optimistic of growth in a liberalised economy and that optimism encouraged usto invest around Rs. 2 crores to commence the existing Hyderabad facility. We entered thehighly fragmented Indian packaging industry by reducing the price of our offerings, sothat we can acquire clients and thus in five years following inception we had a portfolioof 350 clients.
Today, Midfield Industries is one of the few organised players in the highly fragmentedIndian packaging industry with a vision to drive multi-fold growth, adding variouspackaging products & systems, global competence, superior products and services.During 2010-11, our total revenue increased 46%, while EBIDTA and PAT increased 20.1 and9.47%, respectively. The improved performance is the natural consequence of our increasingbusiness operation owing to capacity expansions at multiple locations within India.Besides, we are also focusing on exports to enhance global visibility.
We are continuously enriching our product portfolio to cater to a widening fraternityof clients. A new plant is being built at Rourkela that has 6,000 tons capacity for steelstrapping. We will be able to cater to the steel belt in the eastern hub of the country..
One of the most valued offerings by Midfield Industries is customised packagingsolutions for our clients. We have also forayed into the manufacture of polyesterstrapping, PP strapping, VCI paper and stretch films. The in-house production capabilitiesof a range of packaging consumables would help arrest production cost and ensure enhancedquality. With capacity enhancement, enriched offerings and expansion of operationalcontracts, Midfield Industries is poised to scale new heights and emerge as one of theimportant players in the national and international packaging industry.
Our commitment towards customer integrity and product excellence, together with deepsensitivity towards environment protection and ethical corporate governance remainsteadfast. I thank all of you for your unstinted support and guidance, without whichMidfield would never be what it is today. You have made us a powerful industry player toreckon with. We will continue to reward your faith through our efforts.
M. Madhu Mohan Reddy
Chairman and Managing Director