With a vision to emerge as a value-creator we are significantly improving our productsand process excellence.
Warm greetings to all of you!
I am always amazed by the speed of innovation and firmly believe that change is theonly constant. Yet each year the pace of change only accelerates. As we get into this newfinancial year let me briefly share with you how Surya Roshni as an organisation isevolving by perfecting its strategies for the great future ahead. Over the years we havecontinually displayed our allegiance to the nation and supported its ongoing needs whilealso laying foundations and strategies in line with the nation's long-term vision backedby resilience and a preparedness for every contingency.
Favourable macro-economic factors
The Indian growth story has never been so exciting. Our economy retained itsrecognition as the fastest growing major economies' by registering 6.7% GDP in2017-18. The resilience to change is clearly reflected in this growth as the countrysuccessfully overcame the temporary slowdown phase post-demonetisation and Goods andService Tax (GST) implementation. Today the Indian economy is at a stage of maintaining asteady 7-8% growth and is on course towards becoming the world's third largest economy by2030 with GDP worth USD 10 Trillion.
Good days are ahead and lot of good work is happening in the country. The Government isactively supporting the domestic manufacturing industry through its support to thehome-grown companies by way of implementing favourable business policies. Strategicinitiatives such as the implementation of National Steel Policy 2017 and Make InIndia' initiative will provide impetus to the overall economic growth and development. TheGST implementation will further negate competition from unorganised players in the steelsector and lighting segment. This initiative will help us in leveraging upon theadditional business share from unorganised players as well as strengthen the industryoperations.
Favourable industry dynamics
Our optimism is further driven by the opportunities from our end-use industries. Oursteel tubes and pipes segment is expected to reap rich benefits from the Government'svision of increasing the natural gas usage in households from 6.5% to 25% in the next tenyears. Besides several new tenders are in pipeline to build over 12000 kms of pipelinesacross the nation. Rapid construction activities revival in the real estate segment andaffordable housing shall further contribute towards the demand of our products. Andlastly but most importantly is the demand from the rural segment. With Government'srural-centric policies in the recent budget lots of activities in the areas of irrigationand construction will be driving the demand for our tubes and pipes.
The Indian lighting industry is expected to witness a CAGR of 17% by FY 2020. Theindustry has evolved rapidly moving from using conventional lighting products to LEDs.This transition is driven by an increasing number of government initiatives for energyconservation 100% rural electrification through EESL rising consumer awareness aboutenergy- efficient LEDs and innovative products offered by the industry that are in syncwith the overall trend of digitisation. All the conventional products such as lampstubes downlighters street lights outdoor lighting products are being changed toLED-based lighting products. Most importantly the prices have settled in 2017-18 whichare now more or less stabilised. The important thing to note here is the change in thecustomer perception about lighting. It has now become more of a designer product. Higherdisposable incomes have further led to increase in number of points per home. The shift inperception will create more value for the lighting industry.
As one of India's most respected and trusted brands for steel pipe and lightingproducts we are making rapid strides in line with the Make In India' vision of theGovernment. We have been consistently meeting the customer's expectations through ourworld-class quality products. An innovation-driven approach has enriched our productportfolio enhanced our clientele strengthened our brands across diverse industries andde-risked our business model. We have already built up sufficient capacities across bothour businesses that allow us to play the volume game. The upcoming 3LPE coated pipemanufacturing unit at Anjar for pipe size between 4" to 64" shall furtherstrengthen our positioning in the oil and gas segment. We have the advantage of beingbackward integrated in lighting as all the key components and assemblies are manufacturedin-house. We have the desired capabilities and capacities in place to meet the volumes.Our smart and innovative products are a result of the continuous efforts of our R&Dteam at Surya Technology & Innovation Centre (STIC) at Noida-an advancedstate-of-the-art lighting laboratory and research centre. This would drive the values.
Care for people
The passion and commitment of our people are key enablers of our success. Our teamstrength is magnified by the experience of our leadership teams and their daily executionof our plans. The combined excellence of our people and our world-class operating platformenables us to fully invest in our strong brands and product innovation pipeline. Theresulting combination of brand strength product innovation and best cost structure is awinning formula which has helped us deliver consistent performance over the years.
Care for community
As a responsible corporate community development is inherited in our core valuesystem. We have been an active contributor in the social and economic development of theweaker communities through various community building programmes in the field of healthskill development and education through our CSR arm-Surya Foundation. We have beencommitted towards creating a developed yet sustainable world through conscious efforts inelevating the level of weaker sections of the society. We have also enabled preservationof the scarce energy resource as a commitment to give back to the society hence theentire range of our products is energy efficient and manufactures using world's besttechnology. Further we are committed to empower the lives of as many underprivilegedpeople through our health- based and other social initiatives.
Care for stakeholders-framework for long-term value creation
Our long-term value creation framework is built upon a strong foundation. We are aconsistent dividend-paying company with a vision to emerge as a global value-creator. Weare significantly improving our products and process excellence. The result is businessresilience strong efficiencies high customer satisfaction and loyalty. We remainconfident in our ability to effectively manage our business regardless of the operatingenvironment and expect to continue delivering long-term value for all of our shareholders.
As we look beyond we are all set to explore the multiple avenues for profitablegrowth.
In closing I express deep appreciation for our Company's Board of Directors andprofessional & committed workforce.
I also extend my sincere gratitude towards our stakeholders bankers and customers forthe deep faith they have imposed on us. I look forward towards your continuous associationin the forthcoming years and co-create a sustainable future.
Jai Prakash Agarwal