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Chairman's Speech

GE T&D lndia Limited

 

Chairman’s Speech

at the 65th Annual General Meeting of the Company

on 6th August 2021 through Video Conferencing / Other Audio Visual Means

 

Esteemed Shareholders, my colleagues on the Board, distinguished ladies and gentlemen. Once again, a very warm welcome and good afternoon to all of you. We hope you and your families are healthy and safe. On behalf of all the GE T&D board members and the GE team, I would like to welcome you to the 65th Annual General Meeting of GE T&D India Limited. Thank you for joining us today.

 

For us the year financial year 2020-21 was marked not only by its challenges due to COVID-19, but also by how people of your company came together to fight it. Your company continued to operate its plants and sites in accordance with the advisories issued from time to time, by the Central, State and local Governments, while strictly adhering to the prescribed safety protocols.

 

Even amidst the 2nd wave of COVID-19 infections In India and thereafter, the employees of your company constantly worked closely with the utilities and customers, to ensure uninterrupted supply of power for the people of our country. The commitment and grit shown by employees, during these testing times, has been exemplary. My heartfelt thanks and gratitude to all of them.

 

Throughout the year, your Company remained committed to its customer deliverables, and achieved major milestones by successfully commissioning numerous projects. This includes commissioning of the three crucial 400 kV Air Insulated substations for Sterlite Power at Kumarghat, PK Bari and Surajmani Nagar, which are critical part of the North Eastern Region inter-state transmission scheme. Your company has also commissioned all 4 poles of the Champa Kurukshetra HVDC project, which now has the capability of transmitting 6000 MW of electricity from the power surplus eastern region of the country to the northern region. It is also one of the largest HVDC project that GE has executed in the world.

 

GE has brought its learnings from across the world to your Company. All the plants of your Company continued to adopt several lean principals resulting in significant reduction of manufacturing lead time, efficient utilization of space and reduced cycle time, leading to overall cost effectiveness.

 

India’s power market as well as its operating environment continued to be challenging in the financial year 2020-21. However, despite the uncertain times, your Company has been able to make a meaningful progress. During the financial year 2020-21 the Company received orders worth Rs. 2290 Crore from central and state utilities as well as from other major private players in India like Adani, Tata Power and Sterlite, resulting in a healthy order backlog of Rs. 4590 Crore, as on 31 March 2021. For the full financial year 2021 our sales revenue was Rs 3452 Crores up by 9.3%, compared to Rs 3159 Crores in the year ended March 20. During the year, the Company reported a profit after tax of Rs 60 Crores significantly better that the Loss of Rs 303 Crores reported in the year ended March 20. Your Company was also able to reduce our net debt by ~270 Crores in FY 20-21. This result is backed by a strong execution and numerous costs saving actions taken by your Company.

 

Besides making its mark in the Indian market your Company is also expanding its presence in the neighbouring countries. During the year, your Company was able to secure a deal with Nepal Electricity Authority for upgradation of three 220 kV Gas-Insulated Substation (GIS) substations in Nepal. The three substations are critical part of the Nepal‘s South Asia Subregional Economic Cooperation Power Transmission and Distribution Project which is backed by funding from Asian Development Bank and the Government of Nepal.

 

 

Outlook

 

India is making great strides towards renewable energy generation and has committed to more than double its non-fossil fuel target to 450 GW by 2030. With a persistent focus on decarbonization and round-the-clock power, we believe that the Indian energy landscape will continue to undergo a significant positive transformation. This increased focus on clean energy is set to bring significant investments in the India’s renewables sector. This will open a steady stream of evacuation opportunities for the grid industry, primarily driven by increased Green Energy Capacity, expansion of Central and State utilities, growth in the industrial sector and restructuring of aging assets.

 

Additionally, the Government’s focus on increased adoption of electric vehicles is expected to drive innovations in the grid stabilization market and thus bring more opportunities for your company.

 

We also welcome Government of India’s initiative of “ATMANIRBHAR BHARAT”. The Make in India initiative aims to boost manufacturing’s share of GDP from 16% to 25% percent by 2022 and create ~100 million additional jobs in the country. GE T&D has been manufacturing in India since 1957. Today we have a strong presence across 26 locations in India, which includes 5 world-class manufacturing units, 5 R&D centres, 13 Offices and 2 service workshops. We are not only producing in India for India, but we are also producing in India for the world. The management of your Company is deeply committed to service the growing demand for electricity in India and is equally focused to leverage the global power market through export of made-in-India grid equipment.

 

Environment, Health and Safety (EHS)

 

A strong focus on environment, health and safety is core to who we are. Safety of our employees, customers and all our other stakeholders remains our top priority. It gives me sense of pride that your Company received various accolades from customers and industry for its best in the industry safety practices.

 

As a testimony to the Company’s commitment towards effective implementation of safety policies, during the year under review your Company was conferred with the “Safety Innovation Award 2020: Energy Sector, Thrust on Renewable Energy Sector”, organized by the Institution of Engineers India (IEI).

 

Your Company’s EHS excellence has further strengthened during the COVID-19 pandemic. In response to the 2nd wave of the pandemic, your company took several employee support initiatives to ensure the well-being of our employees, which included providing medical assistance, providing oxygen concentrators, conducting vaccination drives at all the company locations, launching employees-initiated financial assistance, providing counselling support through employee assistance program and tie-ups with various medical institutions to ensure timely medical help for the employees.

 

Corporate Social Responsibility

 

On the CSR front, it gives me immense satisfaction to share, that as a part of its sustainability initiatives, your Company has taken multiple social initiatives for community development and helping underprivileged people.

 

In the wake of the COVID-19 pandemic, your Company prioritized response towards containing this global health crisis by strengthening the health system response, protection of health of front-line workers and providing aid to the daily wage laborers. Your Company also extended its support to hospitals across the country by supplying medical utility packages, essential safety kits and vaccination storage equipments.

 

GE T&D India is supporting Government’s vaccination drive through contribution of medical equipments like deep freezers, refrigerators, vaccine carriers and cold boxes, which help the frontline workers to ensure vaccination for people living in remote areas.

 

Acknowledgements

 

Before concluding, I once again wish to convey my sincere thanks to the dedicated employees of Company. Without their efforts and commitment, the Company could not have performed and sustained during these challenging conditions. I would also like to thank the GE leadership and management, for their continued strong and unequivocal support.

 

I extend my gratitude to the various Government and Regulatory authorities, Company’s valued customers, suppliers, vendors, investors, bankers and shareholders for their consistent and resolute co-operation and trust.

 

As one of the leaders in the innovation of modern grid solutions, we are focused on supporting our customers in diversifying the energy mix by ensuring grid resiliency and efficiency by maintaining reliable grid operations. In this regard, GE T&D India Limited is focusing on helping its customers accelerate the energy transition by providing them with the hardware, digital solutions and services needed to deliver affordable, sustainable, and reliable electricity.

 

With its proven delivery capabilities backed by world-class technology and strong manufacturing footprint in India, GE T&D India Limited is strongly positioned to collaborate with leading EPCs and utilities to strengthen the region’s grid infrastructure.

 

And finally, I take this opportunity to once again thank the Board Members and particularly the distinguished Independent Directors for their continued leadership and unwavering support to the Company and its employees. They are always there for us for invaluable guidance and counsel on a myriad of topics, and I truly value their partnership which holds the company to the highest governance and compliance standards.

 

I wish and pray that this world emerges victorious from the crisis created by the pandemic. I urge each and every one of you to stay safe and take care of your loved ones.

 

Thank you!

 

[This does not purport to be a record of the proceedings of the 65th Annual General Meeting].