The year under review has been marked as a transformative year for Responsive led by ashift from our focus to the launch and promotion of IMPACT Luxury Vinyl Tile in bothIndian and Global market. This has been accomplished by strong research and developmentalong-with prudent and professional financial management.
The Global economy viz a viz is on the path to stabilize but its momentum is uncertainand is exposed to substantial risks of trade protectionist measures. Global liquidityconditions have tightened and some large emerging markets and developing economies haveexperienced financial stress. Further Global growth is now projected to soften from 3.6%in 2018 to 3.3% in 2019 before bouncing back to 3.6% in 2020.
India is projected to remain one of the fastest growing economies in the world asconsumption remains robust and investment growth continues. The economy has achievedsignificant growth due to on-going structural reforms and progressive policy measuressuch as GST implementation "Make in India" Digital India Skill Indiasimplified bankruptcy framework etc. Consequently India's GDP growth is estimated to havegrown 6.8% in FY 2019 as compared to 6.7% in the previous year.
The Government's unwavering push for infrastructure projects in its second term viz.railways airports metros affordable housing Housing for all urbanization and smartcity mission are excellent stimulators for the economy's growth in the medium-term whichwill further give a lift to your company.
The recovery of the economy at a global scale has boosted the overall constructionindustry. Specifically the need to upgrade poor infrastructure particularly in thedeveloping regions like Africa Asia Eastern Europe and Latin America has propelled thegrowth of the overall flooring market. The global flooring market is anticipated to growat a CAGR of 7.8% from USD 275 billion in 2018 to USD 430 billion in 2024.
Among the flooring products Luxury Vinyl Tiles (LVT) is gaining prominence across theglobe due to its superior qualities such as click system which requires no adhesive tostick it to the floor easy and quick installation low cost enhanced durabilityexcellent sound & water resistance and has potential to withstand heavy foot tra_c. Asper a study Globally LVT market contributes 53.0% of total vinyl flooring market bysales volume.
In 2018 LVT represented second most popular type of vinyl flooring.
India however observed only a meager 11.2% market-share of LVT in 2018 and thatreflects the humongous growth opportunity in this segment. In India also LVT products aregaining popularity among several segments viz a viz. sports organizations retail storesrestaurants hospitals schools airports pharma to name a few.
We have launched a new and innovative product IMPACT' under LVT category in FY2019 giving us the first-mover advantage. The product is designed to provide an exactlook & feel of natural wood and stone flooring. It would not only replace the vinylflooring market but also disrupt traditional flooring market such as carpet tilesvitrified tiles wooden flooring and ceramic tiles on account of its superior qualitiesaffordability and convenience. This product will pave our way directly to the endconsumers as we are targeting to tap retail markets along with our established channels.At present around 90% of our business is from Business to Business (B2B) segment viadistributors with this new product gaining traction the mix would also change in favourof B2C segment. B2C business will help us to establish direct and strong linkage withcustomers in addition to higher margins as compared to B2B business.
To foray into international markets in high growth LVT business we have initiated theset-up of a dedicated LVT manufacturing unit in UAE with the capacity of 86 million squarefeet per annum. This would entail an investment of around USD 30 million which is fundedby internal accruals. We expect the plant installation to be completed by Q3FY 2020 andthe cash inflows to be started from Q4FY 2020. The UAE's strategic location providescompetitive market advantage along with low-cost of production.
To expand our geographical distribution reach we are setting up a global sales teamand have signed up with new international distributors to ramp up the volume of sales ofhigh-value margin product. We have built up a highly experienced and professionalmanagement team which plays a key role in helping build a robust leadership andsuccession pipeline.
I am delighted to inform you that we have achieved significant growth in our profits inFY 2019 as compared to previous year. During the year under review we have beensuccessful in our strategy of transiting into high value-added margin products viz a vizcontract and semi-contract vinyl sheets from the low margin printed flooring business. Inline with our strategic move the consolidated revenue for FY 2019 declined by 38.7% toRs. 7750.38 million the EBITDA grew by 7.5% to Rs. 1398.64 million with marginexpansion by around 775 bps to reach at 18.1% in FY 2019. The profit after tax increasedby threefold times to reach Rs. 294.59 million in FY 2019.
We take pride in informing you that during the year under review we continued ourpolicy of remaining long term debt free.
With a strong cash flow position we have invested around USD 25 million in our UAEsubsidiary and duly repaid External Commercial Borrowings during the year subsequent towhich the debt-to-equity ratio improved to 0.12 times in FY 2019.
Our Company is gearing up for strategic transformation. We are among the top fourproducers of vinyl flooring globally. Our aggressive plan to foray into LVT flooring willhelp us with first mover advantage in India. With a strong balance sheet position zerolong term debt a well-diversified value added product portfolio international expansionand a high energy young and dynamic team our Company is well positioned to achieve muchhigher scale and profitability at the global level. Though continuous and united effortsit has set strong foundation which will shape the future in years to come.
We are strongly committed to improve our products and services to meet the changingenvironment work with innovative zeal enhance stakeholder value and enrich our bondswith employees and business partners.
I would like to take this opportunity to thank all our stakeholders including ourvendors customers bankers financial institutions Central and State government bodiesdealers business associates and employees for their firm support and involvement.
We look forward to your continued support in our effort to achieve new milestone.
Mr. Rishabh Agarwal