The Financial Year 2016-17 was a mixed year for the steel industry in India. Though the price remained stable by virtue of several Government interventions, viz. Minimum Import Price, Anti-dumping Duty, Safeguard Duty, etc., the domestic demand of steel did not pick up as many big scale projects could not get executed and surge in input costs aggravated the situation. In spite of stoppage of cheap imports into the country, there was an intense price competition among the domestic players. With the growth in domestic demand up by 6 - 7%, the capacity utilization within the domestic suppliers is expected to increase in FY’18. In this light, your Company has taken various initiatives to alleviate the adverse effects of the market slowdown in the form of cost optimization, significant improvement in efficiencies and capacity enhancement.
Despite the challenging business environment, your Company achieved its consolidated revenue of Rs.259.6 Crore which was up by 7.72% y-o-y. However, profit after tax (PAT) was Rs.6.1 Cr.
In FY’18, your Company has planned to diversify its Value Added Products (VAP) business by adding galvanized chain links and binding wires to the products list. We have also planned to enhance the production capacity of barbed wires. The business is expected to contribute significantly to the profits of your Company from the next year onwards.
Your company embarked on the journey of Total Quality Management (TQM) and various initiatives were undertaken to encourage people’s participation in the quality improvement journey and strengthening the innovation culture.
ISWP, being part of the Tata Steel Group Company has worked consistently on improving a safe working environment and culture to achieve a benchmark among Tata Steel Group Companies. Many new initiatives like principle based SHE management system, Enterprise Risk Management in line with that of Tata Steel, Suraksha Scheme for Contract Labour, etc. have been materialised during the year.
I wish to compliment the Company’s Management and all the employees of the company for their sustained dedication to deliver quality work. I sincerely thank the Union for maintaining industrial harmony and look forward to their continued support and encouragement in future. I would also like to acknowledge the trust reposed on the management by our shareholders and other stakeholders.
The ISWPL family joins me in conveying our gratitude to our promoter, Tata Steel Limited, for continued support and guidance.
With Best Regards, (Sunil Bhaskaran) Chairman Jamshedpur 3rd July 2017