In today’s fluid global economic scenario, India is somewhat better placed among emerging economies. The Union Budget 2016-17 has given a boost to the critical areas of agriculture, education, rural development and infrastructure, particularly the road sector. That takes us a step closer in the direction of an economic recovery. By adhering to fiscal prudence, the Finance Minister has paved the way for the RBI Governor to reduce the future interest which will lead to revival of investment in infrastructure and industry. With political stability at the centre and the government committed to desired reforms, it is expected that better economic growth will emerge in the coming years.
Due to subdued cement demand and over capacity in the industry, there has been pressure on capacity utilization and cement prices. This, coupled with increased interest cost due to commissioning of new units, has impacted the performance of our Company. In view of the expected improvement in our economy, prices and demand for products of our Company should improve in future.
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 continued support and faith in the Company.
- B. K. Birla, Chairman