The Indian economy, which is now the 7th largest and one of the fastest growing economies of the world, has shown a remarkable resilience in adjusting with structural reforms. With the Government’s continuing efforts for reforms and initiatives for ease of doing business, it is expected that in the coming years, the growth of the economy will further accelerate. RBI’s efforts on controlling inflation are continuing. However, the regime of low cost lending may not continue for more time. In view of the various proposals contained in the Union Budget 2018-19, the rural economy is likely to see an improvement and with the hope of acceleration in the growth of our economy, overall demand should improve.
Due to better performance of the Cement, Pulp & Paper Divisions and reduced interest cost, the profitability of the company has shown a very good improvement during 2017-18. Efforts for reducing costs on all fronts to the maximum extent possible are continuing for achieving further operational efficiencies. In view of the expected growth in the economy, demand and prices for products of our Company should improve in future. During the year, the Company had undertaken a business restructuring exercise, so as to focus on the businesses which have the potential for growth and to reduce the interest cost to the Company to the extent possible.
I would like to extend my gratitude to all our stakeholders, including shareholders, customers, lenders and our loyal, hard working and committed employees, for their unstinted support and faith in the Company.
- B. K. Birla, Chairman