SHRIRAM TRANSPORT FINANCE COMPANY LIMITED
ANNUAL REPORT 2007-2008
CHAIRMAN`S REPORT
The rapid, linear growth path of the Indian economic landscape is an
uncontested fact.
Growth, however, is achieved in the true sense only when it is for
everyone. Only when the lowest common denominator of the society benefits
from the dividends of growth does it reach its true objectives. Only when
development reduces the divide between the various strata that exist in
society is it considered beneficial. A country progresses only when its
constituents are upwardly mobile.
In short, true growth includes one and all.
However, it is not the sole responsibility of the government or policy
makers to drive the engine of growth. Industry needs to be an equal
participant in creating an atmosphere of opportunity and economic self
dependence for all. It is imperative that an increase in prosperity levels
be facilitated through the creation of industrial infrastructure, service
opportunities and a broad based entrepreneurial culture that spurs further
growth.
At Shriram Transport, we have modelled our business around this concept of
inclusive growth, by focusing not on the target group being already pursued
by financial institutions but that which are outside the influence of
economic resurgence. Therefore, even before the concepts of `discovering
the fortune at the bottom of the pyramid` and `reaching at the grassroots`
came in vogue, we were working towards supporting an entire generation of
entrepreneurs to take a leap of faith in the world of enterprising
endeavour and prosperity. We positioned ourselves in the world of helping
the national road logistics industry by financing pre-owned trucks across
the country.
There is, however, a long way to go. The Indian economy is expected to
continue to grow at a rapid pace in the coming years. This growth to
sustain would need large-scale development of infrastructure. The
Government of India has already realised the need and has increased the
total allocation for infrastructure development to Rs. 19,60,000 cr in its
eleventh five year plan 2007-12. This is expected to create additional
demand for new commercial vehicles, at the same time would increase demand
for pre-owned commercial vehicles in wake of better logistics, increased
production and large-scale infrastructure creation. We expect
the market for pre-owned commercial vehicles to increase faster than new
vehicles as increased demand for vehicles would result in increased freight
rate and better earnings of drivers, leading to a surge in the first time
users and small truck owners. The impact of this growth is also going to
create higher demand for various other commercial vehicles - passenger
commercial vehicles, tractors and construction equipment.
Our consistent performance and growth is testimony to the strengths we have
infused our business with. However, in order that we remain sustainable and
harness the opportunity landscape, we have invested our organisation with
people, systems and processes. These initiatives will surely help us in
countering any adversity in our external operating environment. We view
with concern the rising interest rate scenario that prevails across the
world today, but are confident that we will continue to remain competitive.
The year 2007-08 was important for Shriram Transport. We produced good
results, in a year when the Indian auto sector performed unevenly. We made
excellent progress increasing our customer base, enhancing our asset base
and introducing new verticals and products in making the growth sustainable
for future years. And most significantly, we continued to execute well in
all of our markets, creating value for our customers, our communities, our
employees - and you, our shareholders.
Since our inception, we have worked hard to build a sustainable and
scalable business. We will continue to remain on the path of being a
catalyst for the growth of India. We are equally committed to growing
shareholder value and being a responsible corporate citizen. I seek your
support and encouragement in this journey.
Best regards,
Arun Duggal,
Chairman |