Fiscal Year 2019-20 was a difficult year for the Indian economy. Amidstweak business environment dwindling consumer demand slowing private investment andglobal slowdown the growth of Indian economy decelerated. Despite multiple efforts madeby the government to arrest the slowdown the year registered the lowest growth rate inover six years.
External risks have also risen significantly and pose a furtherdownside risk to growth and may have a negative impact on India's trade balance.India's GDP is estimated at US$ 3 trillion in 2020 representing about 4% of theglobal GDP. India is currently the fifth largest economy in the world and aspiring to bethe third largest by 2025.
In the current scenario logistics sector in India plays a crucial rolein terms of support to the national economy. Strong growth in the sector is supported bygovernment reforms transportation sector development plans growing retail sales andeCommerce. The development of logistics infrastructure such as dedicated freightcorridors logistics parks trade warehousing zones port modernization and containerfreight stations will also go a long way in improving efficiencies. It is worthhighlighting the role and importance of government support for the sector. Withimplementation of Goods and Services Tax (GST) India has now become one big single marketwhich was otherwise divided by different state level regulations. This has helpedcompanies reduce logistics cost through redesigning of supply chain increase scale ofoperations achieve greater economies of scale and higher adoption of the hub and-spokemodel across segments such as warehousing cold chain container freight stations andinland container depots.
Indian government has also presented a draft of the National LogisticsPolicy with the objective of creating a national logistics e-marketplace for exporters andimporters thereby reducing the cost of logistics and increasing employment opportunitiesin the sector. A Multimodal Logistics Park Policy is also being formulated to promotemovement of goods for domestic as well as global trade.
Logistics has now become an integral part of the value chainoperations. With digital innovations and better offerings the sector's growth can befurther augmented by initiatives from the government such as rationalization of taxes forwarehousing push for digitization and focus on creating a skilled workforce for logisticsand supply chain. Furthermore the reduction in corporate taxes will also support thebusinesses during the overall economic slowdown.
We at TCI Express continue to cater to the evolving Logistics needsthrough our customer oriented and agile business model that offers integrated value-addedservices and leverage technology for efficiency gains.
Our large clientele comprising of both corporates and SMEsdiversified presence across industries along with a superior offering provides us adiscernible competitive advantage and accelerated growth opportunities. Our operationscontinue to expand and currently cover the length and breadth of the country through 800+company branches and 28 sorting centers. The growth is a testimony of our customer-firstapproach.
We have been making technological upgrades in the operations systemsthat not only bring benefits to customers but also help us in offering the best servicesgoing forward. In line with this objective we continue to invest in sorting centres forcomplete automation and implementation of business intelligence as that will result inshorter turnaround time and enhanced operational efficiencies in the long run. Ourinvestment in building paperless operations and centralized vendor management system isresulting in improved efficiencies in the supply chain and has been appreciated by bothcustomers and vendors.
I am pleased to report that all our initiatives have resulted in astrong growth for the company over successive years and in FY2020 we reported Revenue fromOperations of ` 1032 Crores Net income of
` 89 Cores and Cash flow from operations of ` 81 Crores. During thisyear also company has remained debt free resulting in an optimum capital structure andhigher returns for shareholders. The resilient financial performance even in a subduedeconomic environment is a reflection of the trust and faith we enjoy from our customersand vendors; and our superior business model.
In FY2021 we expect to see substantial changes and progress across keygrowth drivers of the logistics in India. We believe that technology adoption is likely toaccelerate and create new opportunities in the transportation warehousing and freightforwarding segments.
In the current crisis times logistics can emerge as the backbone ofthe economy thus strengthening other sectors of the economy. The importance of logisticssector in the economic development of India has never been more compelling. A stronglogistics sector can go a long way in economic revival and boosting India's quest forbeing a manufacturing leader.
Looking at the big picture logistics industry has come a long way andis expected to keep a significant upturn in the performance. TCI Express is confidentabout its growth strategy staying firmly focused on our unique value propositionconsolidating partnership arrangement with vendors and growing our SME client base todeliver robust growth and create long-term value for all stakeholders.