Let me kicking-off by tendering my thankfulness all the stakeholders for the unstintedand unmatched support for the growth of Scan Steels Limited in 18 -19. The odyssey of ScanSteels by orchestrating its resources with converging at creating values is immutable.Contributions from our people and all the stakeholders in our value chain keeping us inbuoyancy in market. I Thank you all by the name of sui-generis approach which make scansteels Limited a company of envy. This is an exceptional year of reckoning in tumultuousmarket dynamics. India has leapfrogged to second position in steel production in the worldleaving behind Japan and US India steel production is more organized than China who isenjoying number one position and with dwindling production YOY since 2015 in contrastIndia is moving with arithmetical progression. This year has seen lots of topsy-turvy inSteel and Mining industry around the globe. Scan belongs to different league of steelmaking house and we are proud of our business Modus -Vivendi to run the show withfinancial leverage. We come over challenges with grit and lan. Our organizationalcapital in term of People other tangible and intangible assets have buttressed ourgrowth. India is poised to have 5 trillion economy in coming year our relative growth withother developed countries is far different. India has got its inclusive growth and gettinginto paradigm shift in its growth projectile we are yet to arrive the tip of the SCurve as an organization. We tryst with continual improvement is on YoY withcapacity enhancement makes our journey safe and driving with more economic mileage thanour competitors.
This year budget has lots of impetus for manufacturing industries to bring the growthparabola into visibility in Indian economic order. Corporate world in India have littlerejoice with regressive slab of corporate tax. The recent open market operation tools havebeen used judiciously by RBI to create money for advance credit. The forex reservebecoming a problem of plenty and RBI initiative for Japanese yen swapping with INR &Dollar swapping are welcome step by banking industries to maintain liquidity in themarket. Long term perspective economic policy tightened the loose end of the creditmarket The PCA (Prompt corrective action) promulgated by RBI has been abrogated to pushmoney into market to put the growth trajectory in place. India has been tagged asconsumption country in the world infra boom in rural sector is poised to take flight andwhich can create challenges for steel industry to meet demand in coming years. 2020 willsee the biggest ever mining auction India hopefully the present govt will ensure rawmaterial security for medium low scale steel industries to flagging the flag. Thesteel market is in the path of auto correction thru more process and transparency.
We do not have backward integration probably we never intended for looking into tothe complexities of Mining? We Preferred to focus and ameliorate our core competence tomake its a sustainable business model. Over the year we have focused on strategicsourcing and make sure to have our raw materials security strong. The world and Indiatoday are now going thru a new business order of M&A. Since the recession in 2008most of the big Steel makers of India are not able to wake up from the financial doldrums.Steel Industries is now seeing inorganic growth thru stressed asset acquisition by bigPlayers.
The per capital consumption of steel in India is presently 61kg which is very low incomparison with world average of 208kg. The growth potential in India is enormous. The rayof hope is CAGR of Steel demand/production is around 10 Percentage. India is poised nextto China by 2030 with a vision of 300 Million Ton production it will have 300 % jump in12 years the scope for all small and medium scale production units will have enough scopeto grab the share and grow faster. The present consolidation of Steel industries thruacquisition will create a bridge which will be a scope for us to grow.
Scan Steels Limited as a company will Happy to announce that we are the number oneaccepted TMT Producer as a local company in Odisha. I vouch all of our stakeholders willkeep us afloat thru out our journey in future.
I appreciate for the support and co-operation received from all ShareholdersRegulatory & Government Authorities Suppliers Customers and Bankers. The Company hasalways looked upon them as partners in its progress. It will be the Companysendeavor to build and nurture strong links with trade based on mutuality respect andco-operation with each other. On behalf of the Company I wish all of the employees fortheir committed services and responsibilities towards the growth of the Company.
Your Company has shown itself to be immensely entrepreneurial agile adaptive andinnovative over the years and these attributes will continue to serve it well in theyears ahead.
|Place: Bhubaneswar ||With kind regards |
|Date: 30th May 2019 ||Rajesh Gadodia |
| ||Chairman |
| ||(DIN: 00574465) |