/ Chairman
Chairman's Speech
Dear Shareholders,
I am pleased to inform you that your Company continues to be a highly dynamic and relevant company. However, this outcome was not an easy thing to achieve, especially given the tough market conditions.
Reflecting back on the last year, it was also filled with external vulnerabilities arising out of rising oil prices and volatility in some of the leading global currencies. Despite the slowdown in growth, India continued to stand out as the world’s fastest growing large economy, majorly led by a moderated yet healthy consumption story. However, the GDP growth moderated primarily due to subdued rural demand towards the second half of the year, coupled with a liquidity crunch faced within the Indian non-banking lending companies. This in turn created a knock-off negative effect to other bellwether sectors that depend on consumer finance - especially the automobile and the real estate sectors. While consumer sentiments remain depressed and moderated for now, one hopes that the long-term consumption story of India will remain intact.
/ Vice Chairman & MD
MD & VC Speech
Dear Shareholders,
FY2020 was a milestone year for Pennar Industries, which was also marked by steady growth in demand in the high growth sectors. FY2020 will also be remembered for the consolidation, merging two of our companies and we expect that this will create a leaner group structure, resulting in better synergies, and further optimisation of costs and improved overall fund utilisation.
The year witnessed a marked slowdown in overall global growth, primarily due to the decline in trade and manufacturing activities across most industrial sectors, increased trade tensions between the world’s two largest economies, tightening of financial conditions. However, our economic environment, which consists of sectors like construction infrastructure, general engineering, white goods, railways, witnessed a stable growth helped by a fairly favourable overall economic environment in India. Despite temporary periods of intermittent sluggish growth, as we are currently experiencing, I expect the Indian economy to grow at a steady pace over the next decade, driven by our Government’s infrastructural push and various structural policy reforms, which should augur well for demand growth in general.
