APL Apollo Tubes Chairman's Speech > Engineering - Heavy > Chairman's Speech from APL Apollo Tubes - BSE: 533758, NSE: APLAPOLLO

APL Apollo Tubes

BSE: 533758|NSE: APLAPOLLO|ISIN: INE702C01019|SECTOR: Steel - Tubes & Pipes
Mar 20, 15:41
3.35 (0.17%)
Mar 20, 15:58
-5.15 (-0.27%)
VOLUME 13,911
Mar 16
Chairman's Speech (APL Apollo Tubes) Year : Mar '17

Dear Shareholders,

As another accomplished year passes by, I feel extremely elated to reconnect with you through our annual report. We have witnessed a paradigm shift by pursuing excellence towards achieving our economic, social and environmental goals. In financial year 2016-17, wherein the global economy has witnessed uneven growth, Indian economy has been on the path of robust growth trajectory.

It has been a difficult year for us as your company faced several challenges such as demonetisation and volatile steel prices which had a negative impact on our volumes in the second half of the fiscal. But our strong business acumen has helped us sail through it. Although demonetisation perturbed the company’s growth trajectory momentarily, in the longer term, it will help strengthen the Indian economy, providing a solid thrust to the Digital India initiative and reviving the banking sector through surplus cash inflow. The key macroeconomic factors such as rising FDI, strong domestic demand, projects related to infrastructure development and easing interest rates were the catalyst to fuel the growth of Indian economy. In fact, India’s long-term growth outlook looks promising which is fueled by the government’s drive towards economic liberalisation and impetus on social sector spending for building both hard and soft infrastructure of the country. We have formulated a long-term growth strategy to cash on the benefits from favorable economic factors by augmenting our capacity from the existing 1.3 to 2.5 Million MTPA by financial year 2019-20.

APL APOLLO serves as a ‘one-stop shop’ for a wide spectrum of steel tube products, catering to multiple sectors including urban infrastructure, automobile, construction, housing, energy, irrigation, solar plants, greenhouses and engineering. Increased focus from the Government of India towards boosting consumption patterns across these key sectors of the economy coupled with initiatives such as ‘Make in India’ will help to drive higher growth, which in turn bodes well for your Company. Further, key reforms like GST will benefit organised players like APL APOLLO in a highly unorganised steel tube industry.

Over the last few years, we have been leveraging on our innovation capabilities to expand our product offerings with an aim to improve our market reach as well as create a distinct mark for our Brand. I am pleased to share that APL APOLLO is the first company to introduce the latest global technologies including Direct Forming Technology (DFT) in India. DFT will supplement APL’s presence in the existing product categories, while also creating new avenues of growth through customised manufacturing which cannot be usually delivered through conventional technology. In addition, we are confident it will unlock a vast potential across OEM (Original Equipment Manufacturers) and Export markets.

During the year, we started commissioning a Greenfield plant in an underpenetrated market like Raipur, chattisgarh, which will be fully operational by september 2017. This marks a key milestone for us as the Company has now truly emerged as the only branded steel tubes manufacturer with pan-India presence. We believe we will be able to rapidly ramp-up utilisation levels given the robust untapped demand and potential in Central and Eastern markets.

We are constantly evolving to create a sustainable brand through best in class operational practices. We continue to drive a focused branding approach across markets enabling higher visibility and stronger market gains. During the fiscal, the Company undertook many steps to further help diversify the ‘APL APOLLO’ brand reach and drive higher growth. The change is visible across all the levels through the adoption and implementation of latest business practices and technology at every stage.

With our Vision 2020, we endeavor to create APL APOLLO as the most preferred brand by customers, a profitable business space for our shareholders and an exemplary organisation for our respective stakeholders. Our aim is to expand contribution from value-added products through innovation, strengthen our balance sheet and enhance overall corporate governance by facilitating high level of transparency within the organisation.

The essence of our key business decisions is already being reflected in our constant growth. With the Paradigm Shift in our business operations, we have created an impressive present and are constantly striving to leave the footprints of our legacy for the generations to follow in future.

On behalf of the Board of Directors of APL APOLLO and its group companies, I thank the senior management team for steering the Company to newer heights and all our employees for their passion and dedication towards the Company. I also extend my sincere gratitude towards our stakeholders for their continued support and patronage towards our path of profitable yet sustainable development.

Sanjay Gupta

Executive Chairman

Source : Dion Global Solutions Limited
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