I am delighted to present to you our maiden Integrated Report of NuvocoVistas Corp. Ltd.
The year 2021-22 has been challenging for each one of us. The secondwave of the CCVID-19 pandemic had a significant impact on lives livelihoods and business.I would like to start by expressing my deepest appreciation to all particularly allourfront- line workers who have worked tirelessly to ensure the safetyof our people andcommunities. Our proactive approach to managing business with a primary focus onstakeholder wellbeing has enabled us to overcome challenges and imbued us with the spiritof resurgence.
The past couple of years have been a period of intense action andreflection. We have seen a global pandemic geopolitical tensions supply chaindisruptions and many other public and private upheavals which brought several instances ofvolatility and uncertainty in the economic activities. But gliding through disruptivetimes Indian Economy quicklyovercomingthe headwinds has positioned itself as one of thefastest growing economy in the world. India?s GDP is estimated to have expanded 8.7%in FY 2021-22 against a contraction of 6.6% in FY 2020-21. Despite ongoing high inputcosts cement demand is expected to grow in India on the back of increase in capitalexpenditure good real estate demand and government push for infrastructure spending. Ibelieve we are standing at the threshold of a period of great opportunity and growth. YourCompany has proven to be resilient and adaptable in the face of widespread challenges.
With 7% of the world?s cement production second only to Chinacement is one of the most significant industries in the country due to its largeinfrastructure needs as well as its impact on direct and indirectemployment.
Despite beingthe second-largest producerof cement per capitaconsumption is quite low in India which provides a wide range of opportunities to growexponentially over time. Several government initiatives such as the Pradhan Mantri AwasYojana (PMAY) and the National Infrastructure Pipeline are driving cement consumption. Inthe Union Budget 2022-23 a budgetary outlay of ?20000 crores have been allocated for thePM Gati Shakti National Master Plan for Multi-Modal Connectivity
to buildworld-class infrastructure and logistics across the country.Seven infrastructure engines are driving this approach: Roads Railways Airports PortsMass Transport Waterways and Logistics. These engines provide a huge opportunity in termsof consumption as well as Government investments that benefit the growth and consumptionof cement.
Nuvoco is the fifth largest cementgroup in India and the leading playerin Eastern India in terms of capacity. We strive to become a prominent player in thecountry and grow through innovative and sustainable products under Cement Ready-MixConcrete (RMX) and Modern Building Materials (MBM) businesses.
Over time we have strengthened our position as a holistic entity inthe industry from mining to sales and distribution and through educating customers abouttheir needs regarding home building solutions. With ourwell-established brands and a rangeof innovative customer engagement programs we are able to successfully build a strongerbrand recall among our customers which helps us to gain a significant share of themarket. Our growth story is in line with this year?s theme DrivingGrowthDeliveringValue.?
During the year 2021-22 we achieved several millstones includingcompletion of the Jojobera brownfieldexpansion by 1.5 MMTPA commissioning of CaptivePower Plants (CPP) at Arasmeta and Jojobera and initiation of debottlenecking and AFRprojects at Risda and Nimbol. For the next year FY 2022-23 we have already announcedinitiating work onl.2 MMTPA grinding unit project at our existing Bhiwani Cement Plant andcompletion of debottlenecking projects targeted towards high growth markets of North andEast. We also plan to expand our presence in West India.
Sustainability has always been important to us. The global communitytoday has a strong understanding of the social and environmental concerns we confront. Theneed for action has never been greater. As part of India?s ambitious goal of becomingnet-zero by 2070 the government is raising the bar for decarbonisation and greenproducts. We understand this and we continue to maintain a focus on balancing emergingcustomer needs due to the evolving climate. We have invested heavily in sustainableinitiatives includingthe Waste Heat Recovery System (WHRS) clinkerfactor reductionenergy efficiency (thermal and electrical) and the useof renewableenergyincludingwaste-derived resources and alternative fuels.
From a business standpoint it was the year when we listed successfullyon the stock exchanges. We continued to improve on our premium products which isdemonstrated with significantjump in the sales volume of our market leading brandConcreto. Further our project SPRINT which aims to achieve synergies through the mergerof NU Vista Ltd. has resulted in significant cost reductions in the areas of procurementmanufacturing and logistics.
We continue to support our communities through community developmentprojects from a social standpoint. Our corporate social responsibility projects andsustainable development initiatives aim to empower communities that are in proximity ofour operations.
My outlook remains optimistic both in the shortterm and in thelong-term with respect to India the cement industry and Nuvoco in particular. There aresubstantial opportunities for growth and impact and we are well-positioned to deliver onour strategy and commitments. As I looktowards a buoyantfuture I would like to thank allour stakeholders (internal and external) for their unwavering support. The dedication ofour people and support from the government business partners investors communitiesetc. have turned this challenging year into a fulfilling and fruitful one for us.