I hope you all are safe and in good health.
In many ways, 2020-21 was a challenging year for each one of us. The covid-19 pandemic has had a significant impact on lives, livelihoods of the people and the business. Operational challenges mounted due to restricted movement and disrupted supply lines during the first few months of the pandemic. As the second wave of the pandemic unfolded with predictions of a third wave in the offing, our focus continues to be on our people’s health and safety. The relentless commitment and dedication of every member of the Kirloskar Electric family helped the business overcome many challenges in the past year. As a result, we have been able to bring down the curtains on the financial year.
On the business front, our immediate target has been to strengthen our business, restoring our financial position, earning power and driving long-term profitable growth. Owing to increase in prices of copper and electrical steel, there had been a deficiency in supply of raw materials due to which production had plummeted during Covid outbreak affecting our business massively.
With respect to the electrical industry, the Indian economy is on the path to recovery as per several economic indicators and reports. The Indian power and distribution transformer market has been predicted to grow fast. Presently, the government is taking major steps to strengthen the power transmission and distribution network across the country. Therefore, demand for transformers is predicted to grow over the period of time which will indeed help in the growth of your Company. Further, the growth in renewable energy sector will also substantially help in increase in demand for transformers.
As per various surveys, the number of electrical vehicles on road will grow from 3 million to 125 million by 2030. Huge growth is expected for Electrical Vehicles in India which will see increase in demand for Motors. Your Company being one of the foremost manufacturers of Motors for Electrical vehicles is also well set for gaining from this segment.
Further Government of India is expected to go in for massive investment and expansion in infra projects viz., airports, railways, roads and bridges, water supply, irrigations etc. Your Company is poised to benefit from their investments. Your Company will also benefit greatly due to the expected CAPEX plans from all key sectors such as Steel, Cement, Power, Infrastructure, Sugar and Defence.
The covid-19 pandemic has given your Company, as well as its Vendors and dealers, an opportunity to review and recalibrate all systems of working and becoming more efficient and competitive. Whilst this crisis has placed significant pressure on the Company, I look forward to the future with a great deal of optimism. I am sure your company will exit this period strong, better placed to accompany our clients through their recovery and back to growth. I am confident that we will overcome this situation together.
With this in mind, I would like to take this opportunity to show our appreciation to our employees for all their hard work and for tirelessly working through this extremely challenging year. You did an outstanding job and ensured that our company was able to bring this difficult year to a successful close.
On behalf of Board, I would like to thank all our bankers, financial institutions, vendors, suppliers and other stakeholders for their continued encouragement, support and trust in us. Most importantly, I would like to thank you, our valued shareholders, for supporting us and reposing your confidence in your company. We look forward to your continued support as we take on the challenges in the future.
Stay safe, healthy, and take care of your families.
Vijay R Kirloskar Executive Chairman