Dear Shareowners,
Greetings!
Congratulations on yet another successful year of growth and
achievements for your Company.The top-line grew by a remarkable 30% to
reach Rs 32,459 crore and the market capitalization crossed Rs 58,000
crore by the end of the year. We a re consistently moving forward
towards greater heights.
Globally, there is an increasing thrust on developing cleaner energy
sources and clearly, the spotlight is on natural gas. In Asia itself,
gas consumption in China and India grew at a galloping rate of 21.8%
and 21.5% respectively in the year 2010. These two emerging energy
powerhouses - China and India - are re-defining the Asian gas markets.
In this scenario, it will be particularly gratifying for you to know
that your Company has been ranked as Asia''s No. 1 Gas Utility Company
and globally, No. 2 Gas Utility Company in PlattsTop250 Energy
Company rankings. It underscores the rise of Asian companies among
global energy majors and the strong position of your Company in the
global gas-utility space.
India is slated to become the world''s 3rd largest consumer of energy by
2025, and growing climate change concerns will play a significant role
in increasing the demand for clean energy sources like natural gas. In
order to leverage the opportunities, your Company is taking effective
steps to consolidate its position in the entire gas value chain.The
underlying philosophy of your Company is to grow in a manner that is
sustainable for the economy, stakeholders, community and environment.
The implementation of the projects and initiatives as per the existing
Strategic Plan, 2007-2012 is moving as envisaged. With the execution of
on- going cross-country gas pipeline projects, your Company will
augment its pan-India presence with a total pipeline network of about
14,500 kms. The doubling of capacity of gas-based Petrochemical Plant
at Pata, at an investment of Rs 8,140 crore, is also on fast-track.
Going forward, in order to accelerate your Company''s growth in the next
decade, Strategy 2020 has been drawn-up by the Board. One of the key
targets that your Company has set for itself under this strategic plan
is to reach a turnover of Rs 1 lakh Crore by 2016-17.
The key strategic directions that have emerged for your Company from
this strategic plan include, strengthening its core business areas in
natural gas value chain through LNG sourcing, securing equity gas
through Mergers & Acquisitions, an aggressive push to
Exploration & Production efforts, continued expansion of pipeline
networks, and increasing capacities in petrochemicals. Besides all of
this, city gas projects will continue to remain at the heart of our
initiatives to take clean energy to the common man. Strategy 2020 also
aims to tap emerging potential in gas-based power, renewable power from
wind and solar, unconventional energy sources like Shale Gas and Coal
Gasification. Thrust would also be given to seeding investment in
emerging technologies like Fuel cells and Hydrogen.This will enable
your Company to play an important role in developing the share of
cleaner energy in India''s overall energy mix.
At the organizational level, major emphasis is being given to
capability building and continuous re- engineering of work processes in
order to develop robust enterprise architecture and to enhance the
quality of decision making with reduced cycle-times. Your Company will
continue to strengthen the knowledge management system in the
organization through greater emphasis on IT and technology.
Continuing with its value of ''business-beyond-profits'', your Company
remains committed to the vision of achieving sustainable growth for the
nation. With increased allocation and well-structured CSR activities,
your Company continues to make a meaningful difference in the lives of
many people in the areas of its operations and beyond.
To conclude, your support is a great motivator for Team GAIL and it is
our constant endeavour to drive your Company ahead in a faster and
responsible manner. I am confident that your Company will cross many
new milestones in the years to come by leveraging its strengths and
tapping in on new opportunities. Your continued trust in the Company
and our unstinting efforts to excel will continue to take your Company
onto more rewarding journeys ahead.
(B.C. Tripathi)
Chairman and Managing Director
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