Greetings! We live in interesting times. India continues to be the world''s fastest growing economy. We are expected to become the world''s fifth largest nation by the end of this year Our country is expected to see an investment of a trillion dollars in infrastructure, split evenly between public and private sector resources and is on its way to becoming a five trillion dollar economy over the next five years.
India at an Inflexion Point
In the recent elections, the mandate received by the Government is an indication that the citizens of our country have voted for stability in support of a vision that addresses large segments of the society in a fashion and scale that will radically change India''s development trajectory. In an analysis published earlier this year, the World Economic Forum predicted that India would have lifted 2.5 crore more households out of poverty over the next decade thereby reducing the share to households below the poverty line to 5%. For a size of our country, these are staggering statistics and a harbinger of hope and optimism for the entire nation. Undoubtedly there will be challenges and not all programs may get executed to perfection but there cannot be any denying the fact that the ambitions of our nation are taking shape in a fashion that is transformative and exciting and India is at an inflexion point.
The Transformation of the Adani Group
For the Adani Group FY18-19 has also been a year of inflexion. Each one of our six publicly traded Group companies delivered record financial performance and made tangible progress in further consolidating their positions as industry leaders in every segment we operate in. Every one of the Group companies are now growth platforms that, while mutually independent, draw upon the management and leadership synergies that exist in the Group.
India - Increasingly a gas based economy
Natural gas is globally recognized as the transition fuel of the future. It is the fastest growing energy source, second only to renewable energy. In line with the series of strategic reforms have been rolled out across the country over the past 5 years, the Pradhan Mantri Ujjwala Yojana is a path-breaking government scheme to introduce cleaner LPG fuel to over 7 crore underprivileged homes.
Therefore, the opportunity to introduce a cleaner cooking and fuel alternative to millions of Indians is a responsibility we are grateful to be able to fulfill.
Adani Gas - A memorable year
The synchronization of our timing of spinning out our gas business from Adani Enterprises and the transition of India to a gas based economy could not have been better. We spun out our piped natural gas and city gas distribution business from Adani Enterprises and listed it as an independent publicly traded business under the brand of Adani Gas Limited. This business, along with our power distribution and food business presents one of the deepest platforms to reach end consumers across our country thereby opening up potential for further leveraging B2C business opportunities.
Businesswise, Adani Gas emerged as the largest private player to have won the highest number of licenses catering to 38 Geographical Areas which account for about 8% of the population in India. We expect this momentum to continue as we integrate it into the LPG and LNG terminal business being nurtured as part of our ports business.
On the execution front, our gas business is shaping up well as a result of proactive adoption of technology-driven innovations, advanced safety mechanisms and cutting-edge customer experience.
The plans ranging from enhancing the network infrastructure, introducing flexible commercial models, focusing on access-enabling technologies, and strengthening the supply chain integration with new terminals are all significant differentiators that are being put in place to help drive the operational excellence the Group is known for.
Environment, Social Responsibility & Governance
Along with our focus on the financial and operational performance, we are equally committed to continue to strengthen our corporate governance practices. In line with this, we have implemented a strict policy for related party transactions. To ensure transparency that all transactions are arms length we will include assessments by internal business teams, review through an external agency and a due diligence by an Executive Committee consisting of Board of Directors. These steps are in addition to the existing regulatory requirements.
Adani Foundation continues to go about its business of making a difference to the lives of the various communities the Group touches. Our foundation initiatives now reach across 18 states and 2,250 villages and towns touching over 5, 00,000 families. Along with the growth of the business, it is this goodness that makes our efforts meaningful.
Growth with Goodness
In closing, I thank all our stakeholders for their continued support and conviction in our philosophy of Growth with Goodness. We are committed to continue our exciting journey of growth with the support and guidance of our customers, employees, shareholders, bankers, governments and the Board. We shall continue to remain an active contributor to nation building, adding value to our product portfolio and exploring new opportunities that contribute to the growth of our business and the nation.
Chairman - Adani Group