Sesa Sterlite believes in continuous transformation to unlock potential
and create value for society in many ways. The resources that we bring
to the market facilitate economic growth and help improve the quality
of life. Over the years, we have taken significant steps to transform
ourselves through strategic organic and inorganic growth initiatives.
With our sustainability approach and value-focused strategy, we are
well positioned to create greater opportunities for a rapidly
transforming Indian economy.
India is integral to our vision for sustainable growth. The country''s
geology is similar to that of Australia and Africa, and we are well
endowed with minerals and oil and gas. We are among the few countries
in the world, which has abundant reserves of iron ore, bauxite, zinc
and coal. However, owing to multiple structural and regulatory
challenges India''s resource abundance largely remains unexplored. Even
the country''s exploration spend as a proportion of global non- ferrous
exploration spend is abysmally low at 0.2%. Our country can greatly
reduce its import dependence by harnessing its indigenous resource
At Sesa Sterlite, we are focused on playing a significant role in
harnessing that potential. Our fundamental strength lies in the quality
of our assets, and our operating mantra has always been to strengthen
our assets. Our well invested assets are driving positive cash flow.
Driven by our vision and leveraging the experience and expertise of our
Team, we have succeeded in transforming our business, from being just a
copper smelting company to a diversified resources enterprise with an
extensive portfolio of Tier 1 assets.
As we grew over the years, we strongly felt the need to simplify our
group structure and eliminate cross holdings. This was also one of the
key suggestions we received from our shareholders, and this led to the
creation of Sesa Sterlite. The Sesa Sterlite merger was completed last
year; we have reconstituted the Board, and the merged entity has
delivered a strong performance in FY 2014. We are now focusing on
optimising our assets, enhancing production with continued cost
rationalisation and generating strong cash flows.
At Sesa Sterlite, we have created a high-performance culture that
encourages and rewards proactive initiatives and leading-edge talent.
We have been able to grow significantly in terms of volumes,
profitability and sustainability, amid a challenging global operating
environment owing to the contribution of our people. Today, we are
among the largest employers in each Indian state we operate, and we are
committed to build on our team strength. Our learning and development
initiatives help nurture globally benchmarked technical, functional and
managerial skill sets required for running world- class operations.
We believe a high- performance culture must also include a robust
safety paradigm. Safety is viewed as a way of life at Sesa Sterlite.
Ensuring the safety of our workforce and safety of the communities
where we operate takes precedence over all other concerns. Our
consistent endeavour has always been to provide a workplace that is
free from any occupational hazards or sickness with focus on minimising
the environmental impact of our operations. We intend to strengthen our
efforts further, going forward.
Our focus on sustainable development is reinforced by community
outreach programmes. These programmes are driven by stakeholder
engagement and consultation, along with baseline studies and need-based
assessments. We have been able to touch and transform the lives of
millions of people through these initiatives, and we intend to
intensify our efforts further in the coming years.
Going forward, we will focus on the following key priorities: enhance
production across portfolio with emphasis on sustainable returns;
reduce gearing by generating free cash flow from all businesses;
continue minority buyouts; extend community initiatives to improve the
quality of life of people and contribute meaningfully to India''s
India is now on the path of a significant socio-economic transformation.
With demographic advantage, stable governance and an aspirational
society the thrust towards industrialisation and urbanisation in the
country will accelerate further. As a billion-plus population aspire
for a better quality of life, the demand for raw materials and energy
security will increase manifold. This reality drives our business
optimism and will shape our future strategies for growth.
I am confident that the new Board and our new CEO, Tom Albanese will
play a pivotal role in consolidating our strengths and create more
opportunities for sustainable value creation. On behalf of the Board,
I thank all employees, management team, shareholders, business
associates, regulatory authorities, Government of India, state
governments and the greater stakeholder community for helping us in our