Scan Steels is proud of its pioneering spirit, commitment to community, and
contribution to economic prosperity while also being conscious of its impact on the
environment. Our goal is to partner in India's growth story by supplying steel for
vital infrastructure projects, providing value added steel solutions through innovation
while investing in sustainability and improving the well-being of the broader community.
Dear Shareholders,
It is a pleasure to address you once again and reaffirm our dedication to constructing
a robust and sustainable future as well as our strategic priorities. This past year has
been a remarkable journey for our company, marked by significant achievements and robust
growth amidst a challenging global environment. The steel industry was also impacted by
the volatility in the global environment, which affected the steel demand-supply balance
and resulted in volatility in steel prices. However, India appears to be an exception in
the global steel arena, primarily owing to robust government spending and vibrant
consumption.
Performance Highlights
Our company has demonstrated resilience and adaptability, achieving revenue, profit
margins, and EBITDA despite the fluctuating market conditions and economic uncertainties;
we have managed to strengthen our position in the steel industry through strategic
initiatives and efficient operations.
Strategic Developments
In line with our commitment to innovation and sustainability, we have invested in
cutting-edge technologies and modernized our production facilities. This has not only
improved our production capacity but also enhanced the quality and diversity of our
product offerings. Our focus on research and development has led to the introduction of
new, high-strength steel grades that meet the evolving demands of our customers.
Expansion and Innovation:
This year, we successfully commissioned our new state-of-the-art manufacturing TMT
mills, enhancing our production capacity and reinforcing our position as a market leader.
We also invested in cutting- edge technologies to improve product quality and reduce our
environmental footprint.
Sustainability Initiatives:
As a responsible corporate citizen, we have made significant strides in our
sustainability journey. Our commitment to sustainability extends beyond our operations, as
we continue to engage with our communities and support social development programs.
Talent Development:
Our employees are our greatest asset, and we remain dedicated to their growth and
development. This year, we launched several training and development programs aimed at
enhancing skills and fostering a culture of innovation and excellence.
Looking Ahead
As we look to the future, we recognize the evolving challenges and opportunities in the
steel industry. Our strategic priorities will focus on:
Sustainable Growth: We will continue to explore opportunities for expansion and
diversification, both organically and through strategic partnerships. Our goal is to
enhance our market presence and create long-term value for our shareholders.
Innovation and Technology: Embracing digital transformation and investing in advanced
technologies will be critical to maintaining our competitive edge. We are committed to
leveraging innovation to drive efficiency, improve product quality, and meet the changing
needs of our customers.
Environmental Stewardship: We will intensify our efforts to minimize our environmental
impact and contribute to the global fight against climate change. Our focus will be on
reducing emissions, optimizing resource use, and promoting sustainable practices across
our value chain.
Community Engagement: Our commitment to social responsibility remains unwavering. We
will continue to support initiatives that promote Community wellbeing.
The company exceeded the turnover of almost 967 crore in FY 2023-2024. Your company
has established a new TMT rolling mill with a production capacity of 38 TPH, and the
company has earmarked
190 crore for capex for expansion. We are enhancing working capital to secure raw
materials with a strategy for cost leadership in the competitive market. Your company has
retained its ISO 9001, ISO 14001, ISO 45001, ISI 1786, IS 2062 & IS 2830 Certificates.
India will continue to remain a major consumer within the global steel industry owing
to infrastructure development, rapid urbanization, and supportive policy reforms. We
expect the steel demand growth to keep pace with the GDP growth over the next decade. The
Indian economy witnessed a rise in GDP, and with a bountiful monsoon, the economy picked
up already. This year is expected to be better than in F23. Your company is confident
about its patronship with customers; it is well positioned to take advantage of
opportunities. Your company's goal is to focus on improving sales and profits in
keeping with market conditions, despite the challenging environment. Your company has
spread its risks by increasing the geographic spread of its customer base. Your company is
focusing on cost reduction, particularly on reducing energy consumption and improving
productivity. Your company mainly focuses on new product development and total customer
satisfaction, which in the past had helped us to achieve greater heights. Your company
will maintain the same formula for its progress in the years ahead.
Let me conclude by thanking the customers for their continued patronage, the employees
for their loyalty, the bankers for their support, the suppliers for their cooperation, and
the Board of Directors for their guidance. Non-stop improvement is a corporate strategy
that we at Scan Steels Limited have always followed diligently. Our motto has always been
to adapt to the challenges and adopt them successfully as early as possible, while
continuing to accelerate the growth of the company. It is really heartening to see every
member of our corporate family rise to the occasion and make the company stronger and more
sustainable year after year.
Thanking you
With kind regards,
Rajesh Gadodia (DIN: 00574465)
Chairman