I am pleased to present the annual report to you on the centenary of Mr. HP Nanda, the founder of the company. India today is at an inflection point and likely to graduate from a perpetually-developing nation status into a developed modern country in the global community of nations. To create enduring value for the country, we need to build an enterprise that is increasingly agile and future-ready.
Escorts is addressing the growing national opportunity by selecting to focus on three businesses aligned with India’s development story As a future-facing enterprise, Escorts is strengthening its technology investments and positioning by building capabilities in the areas of product development, technology and design, making us competitive across local and global platforms.
We are building our engineering capabilities and strengths to launch new products and expand our businesses. The three verticals we serve have a great potential for growth, as each represents a strong pivot for the development of the Indian economy.
Indian agriculture is yet to be fully mechanized and there is a growing need for strengthening productivity and viability. We are working on technology and solutions that will help create the highly-mechanized and evolved farms of tomorrow. We are developing new, large and smaller tractors that will not only help us expand our range, but also give our customers a wider choice.
The Indian government’s policy priority matches this universal relevance as well. We believe that a number of agricultural reforms will enhance farm viability and accelerate reinvestments, benefiting our entire agri machinery business.
India’s infrastructural development is a massive task for the next 20 years. Engineering set-ups and contractors will have plenty of focused projects, needing smarter and efficient construction equipment technology and solutions. The focus to invest aggressively and extensively in infrastructure will translate into the building of new roads, bridges, ports, airports and other infrastructure supports. We are today producing the required engineering solutions that will contribute to the growing requirement. Escorts is engaged in scaling product design, technologies, capability and capacities. We are collaborating with select European companies to offer cutting-edge products that makes it easier for contractors to deliver larger, better and faster.
As the global population increases, we see a larger investment going into railways across the world as an effective mass, long-cum-rapid transport system - across scale, safety and sophistication. The Indian government is prioritizing railway network expansion, which has reflected in an increased Railway budgetary outlay exceeding rupees one lakh crore per year, creating an attractive opportunity for our railway products business. The dedicated freight corridor connecting Delhi, Mumbai, Kolkata and Chennai will liberate more track capacity for passengers and widen our product portfolio relevance. Our product suite, comprising all types of brakes and couplers, are vital for the safety of high-speed, multi-wagon trains.
The Company has made significant progress in the last couple of years. The Company divested its noncore businesses, strengthened its commitment to existing businesses through increased investment, widened its product range and deepened its service commitment. Besides, we intend to strengthen our business by addressing the growing scope of our products in the international market, potentially enhancing the quantum of our exports in a substantial way across the foreseeable future.
Escorts’ three businesses are aligned with India’s development. We will continue investing in technologies, efficient distribution and product mix for enhanced agility, dynamism and customer responsiveness to capitalize on emerging opportunities. We have created robust structures for benchmarking the best players in the industry to develop a competitive cost advantage and enhance our profitability. As we delve into new products and segments, the overarching idea will be to achieve growth using the Company’s earned-reserves, making us a self-reliant enterprise.
I am optimistic that this futuristic approach will enhance value for all our stakeholders in an enduring way.
Chairman & Managing Director