Dhruv M. Sawhney
The global economic growth in the year 2014 has been moderate. Although some of the developed economies are gradually reviving, the revival is still fragile. The prevailing geo-political and economic tension in Europe and slowdown in Brazil & China has been a drag on the global economic growth. However, the steady revival in the US economy remains a key positive for the overall improvement in the global economic scenario. India on the other hand, as per Central Statistics Organisation’s (CSO) revised calculations, is expected to have grown at 7.4% in FY 15. However, we have not seen any tangible revival on ground as our domestic order intake continues to struggle. Having said that, the number of initiatives that are being taken by the new Central Government bring a lot of excitement and hope towards India’s economic growth. Some of the key initiatives are increased FDI in railway infrastructure & Defence, “Make in India” programme and developing 100 Smart Cities. These initiatives along with clearing of the bottlenecks in the infrastructure sector are expected to gradually accelerate the economic growth momentum in the country.
Amid the prevailing challenging macro environment, your Company has achieved strong performance in the year FY 15, backed by robust exports and an increase in aftermarket sales. With better realisation from exports and increase in the share of aftermarket turnover in the overall sales, our margins in the year have further improved. In terms of global reach, we are currently exporting to over 50 countries and have enquiries from around 100 countries. To further strengthen our global presence in our key export markets, we have moved a step closer by setting up two overseas establishments. In domestic market, the demand for turbines up to 30 MW remained flat for the third consecutive year. However, we have been able to hold our market share at 63%.
Despite subdued demand in domestic market, the overall order intake during the year has been healthy, backed by near 100% growth in export order intake. Our aftermarket service offering is also gaining acceptance in the global arena and we are witnessing a strong export order intake in aftermarkets as well. We have taken our successful domestic model of a one-stop-solution provider, with the offering of product as well as aftermarket service, to the global arena and it has been well accepted.
The year has been a momentous year for our JV, GE Triveni Limited (GETL), as it has entered the profit zone for the first time. I would like to congratulate the team for this great achievement. With a very strong order book in hand, the way forward for GETL is very bright.
Our customer centric approach has been the key to our success and would continue to remain at our core. We would also continue to invest in value engineering to provide best quality product and services at competitive cost to our customers, which is our key value proposition. The business opportunities in the global market continue to be exciting and with the introduction of our aftermarket service proposition to a larger global reach, our growth prospects are further improving. The domestic market where we hold a dominant share is expected to revive from the second half of FY 16 and would further gain momentum in FY 17. This would further add to our growth in the coming years.
On behalf of the Board, I would like to thank all our stakeholders for their invaluable support and especially to our employees for their sheer dedication enabling your Company to touch newer height.
With best regards,
Dhruv M. Sawhney
Chairman & Managing Director
Triveni Turbine Limited
12-A, Peenya Industrial
Area, Bangalore, Karnataka
- 560 058, India