This year has been a remarkable year in terms of operational
performance. On a consolidated basis we have reached a consolidated
gross turnover of Rs. 28,619 million and achieved a production of 572,000
tonnes. Now our capacity has reached the landmark milestone of 0.8
million tonnes and we aim to exit FY2015-16 at a production run rate of
1 million tonnes.
India is well on its way to become the 2nd largest producer of steel by
the year 2016. The per capita consumption is expected to go up by 8-9%
annually over the coming decade to reach a level of 150 kgs by 2030.
With the focus of the new government on the infrastructure buildout,
there will be increased consumption of steel, especially in the pipes
and structurals segment.
Today the usage of ERW pipes has expanded from traditional areas like
liquid transportation, fire fighting, cabling, ducting, fabrication and
power transmission to newer areas like structural sections, sprinklers,
gas distribution, bus body fabrication, automobiles, airports, shopping
malls, bridges, windmills & many others. The opportunity size has
expanded greatly and this has motivated us to target sales of over USD
1 billion in the next couple of years.
We have assembled the largest range of products as well as have the
largest and most diversified footprint in the industry. Acquisitions so
far have been successful for our growth strategies. Now, we can proudly
claim that we are among the few, who have demonstrated abilities to
turn around sick units into successful ventures and that too within the
shortest possible time. We are still open to this kind of challenge, if
provided with appropriate opportunities. We have invested heavily in
our brand and aim to create a customer demand pull over time. Our
aspiration is to make APL Apollo the brand of choice among our
Over the past years, we have focused on incremental operational
improvements. We have benchmarked our HR policies with the best in the
industry, focused on increased training of our employees, initiated
cost reduction programs and used technology to improve the productivity
across our manufacturing lines.
We met another milestone with the SAP implementation and have moved
forward in automating our accounting processes. I personally believe
that it is a very important step, to help us build the checks and
balances to support the high growth that we have seen.
We aim to hit the 1 million tonnes sales in the next couple of years.
We have initiated a number of steps to scale our I organisation and
build our brand, which has started yielding results.
Another goal that we set for ourselves in 2012 was to achieve a USD 1
billion in revenues within 5 years. We should be i able to achieve that
within the targeted timeframe.
I am very optimistic about the future, with the new government winning
with an absolute majority. There is anticipation of many reforms being
unleashed and renewed efforts to kick start the stalled Indian economy.
We at APL Apollo have taken this as a year of renewed focus on growth
with better margins, and aim to put our energies into launching new
products, increasing our distribution network and building our brand.
We are extremely focused on our costs and aim to reduce wastage in our
manufacturing process. This along with our strong balance sheet,
healthy product pipeline, diverse geographical presence and a clearly
defined strategy will make us better positioned for future growth.
I feel good about what we''ve done, and even more excited about what we
want to do. I am grateful to our customers for their business and
trust, to my colleagues for their hard work, and to our shareholders
for their support and encouragement. I thank all my stakeholders in
partnering us in this exciting journey. Now that the business is
generating adequate cash flows, board of the Company recommended
dividend of Rs. 5 per share for FY 13-14. I am grateful to the board of
directors for their support & guidance. I would like to express my deep
gratitude to all stakeholders for their continued faith reposed in APL