We have positioned ourselves at the forefront of the industry developments to enable futuristic growth and sustained value- creation originating from the favourable industry dynamics.
2018-19 has been a benchmark year for Surya Roshni. We achieved highest volumes in Steel Pipes business and further continued to strengthen our growth in the Lighting business. Over the past few years we have taken strategic decisions like foraying into fans and home appliances strengthening capabilities in the LED segment to capture the industry transformation and building the 3LPE coating facility at Anjar. Our continuous efforts in bringing the strategies into action have been well on target and have started yielding results now. Today we are actively pursuing our future prospects to meet the aspirations of an ever-evolving consumer demand and rapidly changing industry dynamics.
Strong macro fundamentals
India is still a beacon of growth and the most exciting economy in the world as of today.
Several structural changes in the previous fiscal have promoted organised sector growth and business opportunities giving impetus to the overall economic activity. Low inflation accommodative monetary policy and Government income support to farmers will further support domestic economic activity. The Government has set itself an ambitious aim of becoming a $5 trillion economy over the next five years which has necessitated the country to adopt infrastructural upgradation and modernisation of public utilities with strong focus on smart city development city gas distribution and water transportation. This in turn translates into a strong optimism for the Company to grow ahead.
The industry optimism
There are several developments happening within the industry. There has been a thrust on building gas pipelines and new import facilities to increase use of the fuel. Moreover New Exploration Licensing policy (NELP) and Hydrocarbon Exploration Policy (HELP) have strongly emphasised on enhancing the domestic exploration of oil and gas to attain self-sufficiency. There is already a significant demand uptake as well as improvement in the overall tender activity by the Government- run oil and gas companies which will significantly contribute to the growth. Over USD 300 billion investments are estimated over the next decade in setting up of refineries oil and gas pipelines and expansion of city gas distribution network. The Indian Government's focus on agriculture and irrigation sector will further generate demands for water pipes drainage set-ups and irrigation systems going ahead.
Globally economies are shifting from oil to gas. Several natural gas distribution companies have revived their investment plans which include construction of new pipelines as well as replacement of aging pipelines. These upcoming projects are expected to increase the opportunities in the global pipe industry by many folds.
The Indian lighting industry is expected to grow tremendously even over the long term on account of the demand for a smart connected lifestyle and energy-efficient products. According to ELCOMA the industry is expected to reduce energy consumption for lighting from the present 18% of total power consumption to 13%. The lighting market in India is evolving rapidly moving from using conventional products to LEDs. This transition is driven by an increasing number of government initiatives for energy conservation rising consumer awareness about energy-efficient products affordable pricing and product innovations that are in sync with the overall trend of digitisation. Smart lights are steadily appearing on many buyers' must-have lists because of its ability to improve security and comfort and with significant reduction in the energy costs. The Government is also facilitating wide scale implementation of replacing the conventional lights with LED bulbs and streetlights through its ambitious programmes like Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and Street Lighting National Programme (SLNP).
The softer aspect
Each day is a day to deliver at Surya Roshni. Everyday I see how the dedication and hard work of my colleagues are quietly transforming the face of the Company - making it future ready. Our belief is that it is the empathy the trust and the simplicity that will make us a preferred brand. Our sharply customer-centric approach will ensure we continue to chart a differentiated accelerated and disciplined path to growth.
We embrace the best corporate governance practices empower communities focus on preserving the natural environment and ensure the progress and well-being of people.
Our CSR arm - Surya Foundation is committed in elevating the level of weaker sections of the society by empowering them in the areas of health education and social upliftment.
At Surya Roshni our legacy ethics and culture are more agile and futuristic. We are constantly building efficiencies in our operations along with investments in future-positive businesses. We have onboarded industry-best professionals that will drive our operations and system implementations. Besides we continue to monitor developments across each of our departments and adopt best practices in Corporate Governance as per the new age business environment. The Board places great importance in providing clear and transparent reporting across all its communication and ensures that it is fair balanced and understandable.
Before concluding my letter I would like thank all the employees and our dedicated Management Team for their efforts and achievements over the past year I would also acknowledge our Board Members for their constant guidance towards driving Surya Roshni's vision in the right direction. Going ahead we will continue to scout for opportunities to deploy capital and deftly manage our fiscal priorities in line with our organisational objectives.
I also extend my sincere gratitude towards our stakeholders bankers and customers for the deep faith they have imposed on us.
Jai Prakash Agarwal