“Change is not a threat, it’s an opportunity. Survival is not the goal, transformative success is.”
The global economy, presently, is on an upswing. The International Monetary Fund has projected global growth to rise to 3.6 per cent in 2017 and 3.7 per cent in 2018. It has indicated accelerating growth in Europe, Japan, China, and the United States with buoyant financial conditions across the world, and little turbulence ahead in the financial markets. The usual challenges of avoiding complacency, anticipating and managing risk and a possible weak growth of some economies remain but should be managed by policymakers and markets. Essentially, it’s an ideal time for consolidation, building resilience, making reforms and long term policy changes.
India’s growth forecast has been revised down to 6.7 per cent in 2017 and 7.4 per cent in 2018 by the IMF. It is, however, optimistic about the medium-term growth prospects. India, today, stands as the world’s seventh largest economy and is expected to be the world’s third largest economy by 2023. As per the World Bank's Doing Business Report 2018, India's rank has improved to 100th from 130th last year out of 190 countries.
The Government has introduced many impactful policy measures. The introduction of the Goods and Services Tax has been a game-changer and in the long run, is expected to bring ease of compliance and doing business. It has been hailed as a key structural reform which should eventually, improve efficiency, growth and revenue. A low rate of interest, moderate inflation, encouragement of entrepreneurship and various initiatives such as Make in India, Skill India, Digital India, etc. have contributed to a facilitative environment.
The revival of the global economy is a healthy sign for trading and manufacturing activities. PEC Limited is working towards enhancing exports, engineering equipment and projects and employing strategic marketing for improving sales and realisation. At present, turnkey projects are our focus vertical. One such turnkey project procured by PEC Limited was for the construction of a substation for a 132 KV power transmission line on the India-Nepal Sector. This was jointly inaugurated in August 2017 by the Hon’ble Prime ministers of India and Nepal.
We are further aiming to increase our role in the supply chain by managing logistics and warehousing for imports. We are also increasing our geographical outreach by exploring new markets and increasing our basket of products. Our continual efforts on the business generation and execution front are yielding meaningful results. There has been a growth of 13.53% in turnover with the organisation having recorded a turnover of Rs. 4254 crore during the year 2016-17. Till September’17, PEC reached at a record level turnover of Rs 2780 crore with an express growth of 107% compared to last year figure of Rs 1340 crore . We have also improved our operations overall and cut down on operational cost and trade expenses.
During the last financial year, PEC Limited successfully imported Maize valued at Rs. 173.39 crore from Ukraine to cater to the poultry and starch industries. We are building a more diversified portfolio capitalizing on emerging opportunities in solar power. PEC Limited successfully completed projects of installation of roof top solar power plants worth Rs. 42.40 crore. These include rooftop power plants installed at MMTC Ltd, Cantonment Board Roorkee, Jawaharlal Nehru University: New Delhi, Indian Institute of Foreign Trade: New Delhi and the Utter Pradesh Police Department. PEC Limited also exported Red Sanders of Rs. 35.41 crore to Hong Kong and supplied cables and conducting material to Liberia, Ethiopia and Tanzania of Rs. 19.41 crore.
The Company continues to support government initiatives such as Swachch Bharat, Digital India, etc. Our investment in our human capital continues with technical and behavioural training for all levels of employees, from top management to frontline workers. We have also aligned with various organisations for health camps, yoga events, etc. towards keeping our employees healthy and happy.
We acknowledge and appreciate the continuous support of all our bankers and business associates. We are grateful to our clients for giving us opportunities for service and to the Department of Commerce, Ministry of Commerce & Industry for its assistance, support and guidance. We are thankful to all our stakeholders who have posed confidence in us and continue to grow with us.