The world has been going through some very challenging times, with terrorism and near recessionary economies causing much concern. There is still an elevated level of uncertainty for businesses in the aftermath of the Brexit vote and the upcoming US Presidential election. The world economy stumbled in 2015 and despite major headwinds, is, fortunate to have been witnessing signs of revival. Global economic indicators are showing visible improvements. Most of the Euro region is slated for modest growth. The Chinese economy is no longer being hailed as a growth champion but is expected to stay in the same range as in 2015. Russia too, after a long struggle, is adjusting and adapting to the new environment, better than expected.
Amidst the global slowdown, India has been hailed as a bright spot. Despite trimming the growth forecast of India in 2016-17 to 7.4% from the 7.5% predicted earlier, The International Monetary Fund has declared India to be a buoyant economy. The World Bank’s outlook, too, for the Indian economy for this year is favourable and robust. The catalysts for improving productivity are said to be an agenda for business environment reform as well as a pick-up in private investment.
The Government of India has launched numerous interventions and policy changes to boost the manufacturing sector, facilitate ease of doing business and improve competitiveness. The passage of the GST bill will help attract foreign investment. The introduction of the Insolvency and Bankruptcy Code 2016 is a vital reform that will make it much easier to do business in India. Through its stellar initiatives of “Make in India”, “Skill India”, “Digital India”, “Swachh Bharat”, and other programs, the Government has sought to boost the rural economy, generate jobs, enhance literacy and create sustainable development.
There is a huge potential in the market and PEC Limited is looking to make the most of it. During the last financial year, a total turnover of Rs. 3,747 crore was achieved. During the present year, we are expecting to, at least, double that figure. After completing four and a half decades this year, we are revamping our business structure and modifying the business model in line with global changes and market demands. We are looking to consolidate the existing lines of business while diversifying to explore new products, new markets and special trading arrangements. The verticals of Agro Commodities, Bullion, Industrial Raw Materials and Projects and Equipment will be maintained. We will continue to engage with the medium and small scale sector that exports to developing nations by giving them products, which have value for money as compared to more expensive options from the developed nations. Solar Energy is an area of special interest that we are actively pursuing, at present.
PEC Limited has a competent, experienced and skilled workforce. We are looking at increasing the feasible scope of work, besides restructuring and augmenting our human resources. PEC Limited has always had a lean structure that has added to its agility and efficiency. With a full Board at present, after quite some time, including an Independent Director for the first time since its inception, decision-making is expected to be further expedited. We are also looking to digitise as much as possible and want to soon have an E-Office in place.
We continue to give back to society through our CSR initiatives, in various areas of public health, education and livelihood.
PEC Limited has always believed in transparency, continuous performance and delivering the best service to all stakeholders and we are committed to these. Our mission is to achieve sustainable revenue and earnings growth through providing best services to our business associates and making fast-track recoveries. My fellow members at the Board and I have a strong belief that the passion with which this Company was incorporated forty five years ago needs to be re-lived by each person connected with it- be it the employees, customers, banks or the Government.
The Corporation is grateful to its clients for giving it opportunities to grow. We are also thankful to our stakeholders who have posed confidence in the company.