Message from Group's Chairman
Dear All,
It's heartening to note that despite lower-than-expected GDP growth of 5.8% in Q4 (Jan-March 2019), India has still managed to defend its status as the world's fastest growing major economy in 2018-19. In a positive outlook for the Indian economy, the World Bank in its Economic Prospects Report has estimated 7.5% GDP growth for the country in FY 2019-20. The World Bank report further predicts that the growth trajectory will receive a further boost by "more accommodative monetary policy" and "low inflation".
As far as the global economy is concerned, the growth momentum in the US is projected to moderate as headwinds from trade policy are compounded by the waning effects of fiscal stimulus. Similarly, growth in China is projected to moderate gradually from 6.6 per cent in 2018 to 6.3 per cent in 2019 and 6.2 per cent in 2020. In view of these developments, India looks all set to maintain its numero uno status as the world’s fastest growing major economy in 2019-20 as well.
Though levying of tariffs by the US and the trade war between the US and China may increase the financial volatility in 2019, what gives us hope is that the government has promised to implement key reforms to drive sustainable economic growth, despite all the challenges. We need to focus on developing infrastructure, increasing rural spending and giving Indian youth opportunities to attain relevant skills for employment or entrepreneurship to give further impetus to the growth trajectory.
CSR as a way of life
LNJ Bhilwara Group has always placed the interest of the common man, especially the most marginalised, at its core. We firmly believe that no business can survive if it is not sensitive to the society it is working with. Therefore, it's our continuing endeavour to make a true difference in the lives of thousands from the underserved and downtrodden communities, as part of our widespread and deep-rooted CSR activities.
Our company is committed to extending the helping hand to the lowest strata of the society in lifting their living standard and ensuring that they live a life with dignity and respect by getting access to basic amenities like affordable healthcare, education, safe drinking water, sanitation etc.
As part of our CSR initiatives, we have also pledged support to inculcate sporting culture among the youth belonging to the poorer section of the society as it provides young people with opportunities for social interaction through which they can develop the knowledge, skills and attitudes necessary for their full participation in civil society.
Digital transformation
In this era of digital transformation, we are committed to metamorphose into a digitalised organisation, supported by technology-enabled backend operations. In addition to the digitalisation of consumer-facing operations, we are also focusing on investing in the automation of our internal processes to improve efficiency, risk management, and reduce the cost of operations.
GE industry facing challenges
As you know, the Graphite Electrode (GE) industry is facing challenges after India ended anti-dumping duties on its import from China in September 2018 leading to higher imports from Beijing. The weakening of steel prices has also contributed to the woes of the industry.
On top of all that, HEG Limited had to stop GE exports to Iran in the wake of US sanctions against Tehran. Iran being a key export destination for GE, the stoppage of exports has tightened our margins.
Looking ahead
With increasing volatility in the financial sector, the operating environment has become more challenging for us. Macro challenges in terms of higher crude prices and trade wars have further compounded the problem. However, we are determined to play a significant role in the country's economic growth. We also aim to act as a change agent and help bring the fruits of economic development to the marginalised sections of the society.
I hope and trust that all of us would continue to work steadfastly for the purpose of bringing in more success and glory to the Group as ever. Looking forward to your continued support.
With best wishes,
Ravi Jhunjhunwala