GE T&D lndia Limited
for the 60th Annual General Meeting of the Company
on 26th July, 2016 at Air Force Auditorium, Subroto Park, New Delhi - 110010
Esteemed Shareholders, my colleagues on the Board, distinguished ladies and gentlemen,
I take pleasure in welcoming you all to the sixtieth Annual General Meeting of your Company.
I will begin with the ‘Change’ which your Company went through as part of the global acquisition of Alstom’s power and grid businesses by General Electric, the change which necessitated more focused approach to integration and continuity, the change which is challenging and opening up new opportunities and frontiers of growth for your Company.
Now your Company is part of General Electric group, which is a global digital industrial giant with operations in around 180 countries, employing more than three lac employees and having annual revenue of US $ 117 billion. It gives your Company opportunity to leverage financial and technological strength of GE. As a result, through its enhanced portfolio, your Company is now able to address wider market segments.
In protracted 18 months acquisition process with regulatory/competition commission approvals across globe, your Company, with exceptional efforts, succeeded in retaining critical talents and resources, its valuable customers and partners in the market place. Today, it’s quite satisfying that your Company continued to deliver customers’ projects in a seamless manner, as before. Join me in acknowledging focussed and unstinted approach of the committed employees whose spirited efforts made it happen.
The financial and operational results in the year bygone, bears testimony to the sustained performance and strong execution in yet another year of challenging market environment.
During the year, the Order intake was Rs. 33.7 billion leading to a healthy backlog of Rs.79.7 billion. Sales revenue was Rs. 34.1 billion mainly impacted by realignment of revenue recognition milestones and phasing of project and export sales during the last quarter. Profit after Tax was Rs. 775 million mainly impacted by lower sales during the quarter with associated volume effect on profits.
In terms of the “Key Events”, once again the year was very good in achieving major targets for the customers and projects. Your Company successfully manufactured and delivered India’s first 800 kV HVDC transformer from our Vadodara factory in Gujarat, for Power Grid’s Champa-Kurukshetra Phase 1 Project.
It gives me sense of pride to announce that your Company continues to be the largest company in terms of number of projects commissioned in the country at the ground level. It commissioned 64 substations right from the voltage level of 66 kV to the highest extra high voltage level of 765 kV including new extension and renovation substations and these were delivered, commissioned during the fiscal year. Your Company continues to make very strong contribution in building the transmission and sub-transmission backbone of India.
The Company also successfully commissioned more than 900 substations automation bays and retrofitted additional 690 Schemes right from 33 kV level to 765 kV level during the fiscal year. This is particularly interesting because in directly involves grid automation and in a way it prepares grid to become smart even at the distribution level in the coming years.
Since inception, your Company has also delivered over 433 bays of Gas Insulated Switch Gear made from our Padappai, Chennai factory.
I proudly announce that your Company received from Power Grid an Award for Commissioning and Delivering highest number of 765 kV, 400 kV Transformers and Reactors during the fiscal year and this is really a great achievement for the Company particularly when India’s largest transmission utility gives this award.
Thanks to customer’s confidence in products and solutions, your Company continue to maintain the leadership position in the market since 2008, for the eighth year in a row.
Environment, Health and Safety (EHS)
Environment, Health and Safety is part of the operating rhythm of the Company and fundamental to how we work. As a result no severe accident was recorded for the employees. Acknowledging all around health and safety, your Company engages its stakeholders, in its drive for health and safety, and is well appreciated for its initiatives.
Corporate Social Responsibility
As a responsible corporate citizen, your Company during the year took CSR initiatives in sectors such as children and education, village adoption and preventive health care. On your behalf, I would like to acknowledge efforts of the committed volunteers in the Company, who are helping out the Company in bringing socio economic change in a meaningful way in areas around factories of the Company.
The Spirit & The Letter
Over the years your Company has been reference for carrying its business with ethics and integrity. Your Company understands that Company’s reputation and integrity can only be built continuously reinforcing ethical rules and procedures. Now being part of GE group, The Spirit & The Letter policies of the group have become part of Company’s working culture.
The market has been difficult and challenging over the last few years, as we have shared through various interactions with the shareholders and stake holders.
However, the long term outlook for the industry is positive. The government of India is committed to drive the economic growth at 8 to 9% rate. The focus on Power, T&D, Industry & Infrastructure sectors is high. ‘Make in India’ initiatives launched by Government of India augurs well for the future of the company.
With the various reforms initiated by the government at the centre, the Company is optimistic that actions will result into reviving the economy through increase in capital expenditure in utilities, power generation, industry and infrastructure. Your Company is fully ready to address such growth opportunities in the near future.
Notwithstanding, the Company’s management team remains holistically focused and committed to deliver increased value for its stakeholders.
Your Company, which is now part of GE group, with presence in around 180 countries and is strongly supported by the Parent company GE. I wish to convey my thanks to the GE’s top management team, for their strong and unequivocal support and opening new opportunities for growth.
I take this opportunity to thank the Board Members and particularly distinguished Independent Directors for their wisdom, guidance and advice in further strengthening the governance process and the performance of your Company, for supporting over 3,000 strong team of ALSTOM T&D India family, who have contributed immensely in sustained performance of the Company in the difficult and challenging times, with their unstinted services, dedication, devotion and commitment. I also thankfully acknowledge continued cooperation, trust and support of various Government/ Regulatory authorities, Company’s valued customers, suppliers, vendors, investors, bankers and shareholders.
In the end, I thank you all once again for joining the sixtieth Annual General Meeting and am sanguine that your Company will continue to grow from strength to strength with your unstinted support and embrace change successfully.