Avinash Gandhi Chairman
In spite of pressures from global market conditions India has remained one of thefastest growing major economies in 2018. Although some uncertainty is expected as weapproach events like the general elections and the implementation of the Bharat Stage VIemission norms the outlook for next year's growth is also optimistic benefitting fromexpected low oil prices and an ease in inflationary pressures. Schaeffler India hasperformed well under these market conditions and I am happy to see that the strategiesthat we have put in place are paying o_.
To start I am extremely happy to announce that during the year under review we havesuccessfully concluded the merger effective as of October 2018. The merger has bolsteredthe strengths and competencies of all the three companies unifying our capabilities underone strong Schaeffler entity. Aside from transforming Schaeffler India into one of theleading automotive and industrial component suppliers this strategy aims to strengthenthe way our company is perceived among customers potential employees investors and thepublic. By increasing the long-term identity Schaeffler' in India our establishedproduct brands are becoming synonymous with the umbrella brand. This enables us toposition ourselves strategically and gain competitive edge.
As our company evolves into this strong entity we must also acknowledge the catalystsfor changing market dynamics across the globe. With factors such a climate changeurbanisation globalisation and digitalisation on the rise the way we live and work inthe future depend on the innovation and technology that we invest in today. The core ofour corporate strategy has evolved around recognising this importance. Apart frominvesting in our world class R&D infrastructure we recognise the importance ofengaging the best talentemployees who are creative; performance oriented; committed;and most importantly have the ability to think outside the box. These virtues have becomeembedded into the work ethic at Schaeffler and I truly believe that they are thefoundation for our success.
The Board of Directors is the core of corporate governance and in a fast pacedbusiness environment right governance is of paramount importance. At Schaeffler India weacknowledge and recognise the responsibility and trust placed on us by our shareholders.The Board of Directors currently comprises of four independent directors with diversebackgrounds three non-executive directors including Schaeffler AG CEO two executivedirectors and a strong India leadership team led by the Managing Director. All of us havecollective responsibility and commitment towards corporate governance as it is essentialto the delivery of our strategic priorities. We endeavour to conduct business based on thecompliance of law fairness mutual respect and integrity. Under a comprehensiveCode of Conduct' applicable to the Board Senior Management and every singleemployee Schaeffler India is committed to a culture of sustainability and views it as aprerequisite for the Company's long-term success.
We continue to focus on reducing our environment footprint. Our newly expanded Pune
(Talegaon) manufacturing hall has a rooftop solar installation that reduces energyconsumption. We also took dedicated efforts towards making our surrounding communitiesmore sustainable and improve the quality of life through various CSR initiatives such asNitara access to healthcare and hygiene STEP program among others.
Lastly I would also like to acknowledge our commitment to responsibility and long-termvalue creation for our shareowners. At Schaeffler India we are highly cognizant of ourstatutory duties. Our role as the Board is to set the strategy for the organisation andensure that our business is operated in accordance with the strategy.
On this note I would like to thank you my employees and our customers once again.Schaeffler India is on the brink of realising its full combined potential and I amexcited to see where our skill and commitment to success will take us.