Evolving for the Future
Greetings! We live in interesting times. India continues to be theworld's fastest growing economy. We are expected to become the world's fifthlargest nation by the end of this year. Our country is expected to see an investment of atrillion dollars in infrastructure split evenly between public and private sectors andis on its way to becoming a 5 trillion dollar economy over the next
India at an Inflection Point
In the recent elections the mandate received by the government is anindication that the citizens of our country have voted for stability in support of avision that addresses large segments of the society in a fashion and scale that willradically change India's development trajectory. In an analysis published earlierthis year the World Economic Forum predicted that India would have lifted 2.5 crore morehouseholds out of poverty over the next decade thereby reducing the share to householdsbelow the poverty line to 5%. For a size of our country these are staggering statisticsand a harbinger of hope and optimism for the entire nation. Undoubtedly there will bechallenges and not all programmes may get executed to perfection but there cannot be anydenying of the fact that the ambitions of our nation are taking shape in a fashion that istransformative and exciting and India is at an inflection point.
The Transformation of the Adani Group
For the Adani Group FY18-19 has also been a year of inflection. Eachone of our six publicly traded Group companies delivered record financial performance andmade tangible progress in further consolidating their positions as industry leaders inevery segment we operate in. Every one of the Group companies are now growth platformsthat while mutually independent draw upon the management and leadership synergies thatexist in theGroup.
ATL Going from Strength to Strength
Adani Transmission Limited (ATL) has incredible opportunities ahead ofit and has continued to grow stronger with impressive numbers and established ambitiousstrategic goals over the last fiscal. Despite being one of the fastest growing economiesin the world our per capita electricity consumption continues to be among the lowest andalong with the continued growth in power generation will come the growth of thetransmission sector.years.
Among the principal growth drivers are progressive government policiessuch as 24x7 Power for All'. As part of this vision the government has laid amajor thrust towards capacity building in the energy sector. Also the introduction oftariff-based competitive bidding and similar empowering policy interventions inIndia's power transmission are expected to encourage growth and infuse efficienciesinto the system that we will best benefit from.
One of the major inflection points for ATL in FY18-19 was its foray inthe retail electricity distribution business through an acquisition that gives us anopportunity to serve over 3 million people in the city of Mumbai. This positions ATL wellto pursue other value-accretive opportunities in the electricity distribution space in theensuing times as well as sets the base for further expansion in the distribution sector.
With the government's strategic focus on rural electrification andlast-mile connectivity our journey will not just contribute to the economy but will alsotouch millions of lives.
Three Strategic Priorities
The three areas of focus are optimise operational performance grow ourcore business and ensure ATL is positioned to move fast to capitalise on theopportunityahead.
In case of the transmission strategy we will pursue new businessdevelopment opportunities that are close to our core business and rapidly expand ourregulated asset base.
On the distribution side our constant endeavour is to achieve customerdelight by understanding the present and future expectations of our customers andstakeholders and develop the right kind of products and services that allow for improvedmonetisation.
Finding new ways of optimising our operational performance will be animportant factor in our ability to compete and grow. We are actively working to developour new technology roadmap and to embrace disruptive technologies.
Focus on Safety
As we continue to make strong strategic and operational in-roads wecontinue to maintain excellent safety levels and reliability across all our networks. Asustained focus on our environmental sustainability record and employee engagement remainsa priority. Health safety and security are embedded in our organisational values anddrive our strict adherence to industry best practices.
We have implemented an Integrated Management System (IMS) across ouroperations to identify and manage hazards risks and emergencies related to projects andoperations and maintenance. We are proud to observe no reportable incidents during theyear. Safety is at the forefront of training for all employees and contractor workmen toimprove our safety culture across the board. With a goal of No Fatalities NoInjuries and No Excuses' we continue to demonstrate leadership on safety across alllevels of the organisation.
Environment Social Responsibility & Governance
Along with our focus on the financial and operational performance weare equally committed to continue to strengthen our corporate governance practices. Inline with this we have implemented a strict policy for related party transactions. Toensure transparency in all transactions we will include assessments by internal businessteams review through an external agency and a due diligence by an Executive Committeeconsisting of Board of Directors. These steps are in addition to the existing regulatoryrequirements.
Adani Foundation continues to go about its business of making adifference to the lives of the various communities the Group touches. Our Foundationinitiatives now reach across 18 states and 2250 villages and towns touching over500000 families. Along with the growth of the business it is this goodness that makesour efforts meaningful.
Growth with Goodness
In closing I thank all our stakeholders for their support andconviction in our philosophy of Growth with Goodness'. We are committed tocontinue our exciting journey of growth with the support and guidance of our customersemployees shareholders bankers governments and the Board. We shall continue to remainan active contributor to nation building adding value to our product portfolio andexplore opportunities that contribute to the growth of our business and the nation.