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THE GLOBAL ECONOMY SHOWED STRONG INDICATIONS OF A TURNAROUND AT THE BEGINNING OF 2010–11 AND EXPECTATIONS WERE GENERALLY OPTIMISTIC. While the state of affairs is recovering from the global meltdown two years ago, the global economy is still not back to desired health. While developed nations are growing slowly, emerging economies are standing out as real drivers of the global economic activity, India and China the prime movers with India's GDP growth at 8.6 per cent in 2010–11.
The Indian manufacturing sector grew 8.8% in 2010–11. India is ranked second in terms of manufacturing competence and is currently rated as one of the most attractive global investment destinations. As per the super–cycle report by Standard Chartered's global research team, China is likely to grow at 6.9% rate over the next two decades while India is likely to grow on an average of 9.3% over the same period and trail the US as the third–largest economy by 2030. The said report also sees the world economy reaching USD308 trillion by 2030. Based on the growth and inflation forecasts, China will be a USD73 trillion economy and India will be a USD30 trillion economy by 2030. Currently, India is slightly over a trillion dollar economy.
This year Amara Raja celebrates its Silver Jubilee. We started our entrepreneurial journey 25 years ago, and we stand today at a significant milestone. We look back with satisfaction, achievement and responsibility. We look forward to continuing this journey with greater achievements and bigger goals. We are commemorating this milestone with a new corporate identity. The identity rests on five strong pillars that define our core values that we call the 'Amara Raja Way'. The new logo articulates our five core values of Experiences, Innovation, Excellence, Entrepreneurship and Responsibility, symbolising harmony and how they address the challenges of a dynamic business environment.
An ever–changing business environment warranted this change even as our core enduring values will continue to guide us to pass more milestones.
In this special year, our Company crossed the Rs. 2000 cr mark turnover, a noteworthy milestone. We achieved market leadership in our telecom and UPS businesses in the industrial battery business and improved our aftermarket presence in the automotive battery space.
During the year, our Company won several accolades for its innovative and excellent practices. In appreciation of our Company's HR practices, the 'Employer Branding Institute', conferred various awards to our Company like 'Best HR Strategy in line with Business', 'Continuous Innovation in HR Strategy at Work' and 'Excellence in HR through Technology'. The Company bagged the Supply Chain Leader 2011 award under the category 'Dry cells and storage batteries' by Industry 2.0. CII awarded the first prize under the 'discrete manufacturing category' at CII– 4th National Conference and competition on Six Sigma.
The Indian economy is set to expand faster with a projected growth being 8.5% in 2012.
Automotive battery business: The ongoing capacity additions, both in the four–wheeler and two–wheeler plants, will help the Company capitalise on opportunities. The automotive sector will propel our growth over the next few years, with India expected to become the sixth largest passenger vehicle producer in the world with annual car sales projected to increase to over 9 million by 2020.
Industrial battery business: With growing avenues, including replacement opportunities in the telecom sector, surging demand in the UPS and power sectors, exports to new geographies and the government's thrust to connect vast rural areas, there is a growing potential to drive business over the future.
In recent years, emerging economies led by China and India have confidently proven that they are not only capable of managing their own but can also influence the global economy. These countries are currently in a position to assert themselves as superior in economic management and crisis control than many advanced nations. Amara Raja Group is committed to play a significant role in this momentum of growth and prosperity through the 'Amara Raja Way'.
The 25 year journey would not have been the same without our JV partner, customers, employees, vendors and other stakeholders. I take this opportunity to thank them for making Amara Raja a force to reckon within the storage battery business in India and look forward to their continued support. I am confident that we will replicate what we have achieved in 25 years by doubling them in the next five years.