Container Corporation Of India Ltd

Dear Fellow Shareholders,

I would like to extend my sincere greetings and wishes for your good health and safety.

The year 2022 is a very special one for all of us, as our country has completed 75 years of its journey as an independent and progressive nation. Over these years, India has emerged as the fastest-growing economy in the world and backed by its committed workforce and robust democracy, it is expected to be among the top three economies globally over the next decade.

Last year was a mixed bag, with COVID impacting the first quarter of the year. During the next two quarters, the major economies had shown recovery and were moving towards growth with positive outlook. This optimism level was short lived, as in the second half of the year, the headwinds of surging commodity prices, geopolitical conflicts, disruption in trade and financial transactions deteriorated the prospects of economic growth. In spite of the turbulent times, the Indian economy has slogged on to reach the pre-pandemic real GDP level of 2019-20. As per the provisional estimates, real GDP growth of India in FY 2021-22 stands at 8.7%. Further, as per RBI, the Indian economy is likely to grow at 7.2% next year.

Indian Railways registered an increase of 15% in the originating loading cargo from 1,233.22 million tonnes in 2020-21 to 1,418.27 million tonnes in the year 2021-22. The originating containerized cargo transported by rail has increased by 17.63% from 63.23 million tonnes in 2020-21 to 74.38 million tonnes in 2021-22.

In the challenging business environment, with the commitment and hard work of CONCOR family, your Company managed to mark yet another year of outstanding performance. During the year 2021-22, CONCOR has handled highest ever 4 million TEUs as against 3.6 million TEUs in the FY 2020-21, an increase of 12%. It transported 47.69 million tonnes of cargo volume by rail during the year showing 13% increase over previous year. Your Company has achieved the highest ever revenue from operations of 7,594.45 Crores in FY 2021-22 as against 6,384.96 crores in FY 2020-21, an increase of 19% and the net profit was 1,062.34 Crores in FY 2021-22 as against 503.33 crores in FY 2020-21, an increase of 111%.

The Company has always followed the policy of rewarding its shareholders in line with its performance. During the year two interim dividends of 80% ( 4 per share) and 40% ( 2/- per share) on equity share of 5 each were paid to the shareholders and a final dividend of 60% ( 3/- per share) for the FY 2021-22 has been recommended for approval of shareholders. With this, the total dividend payment for the year, will be amounting to 548.36 crores, which is 51.62% of net profit.

In the Union Budget of the year 2022, emphasis has been inter-alia laid on the development of Multi Modal Logistics Parks (MMLPs), Roads, and Cargo Terminals. Therefore, the importance of the infrastructure and logistics industry in the nation's economic growth have been recognized and Government has taken many initiatives in this direction. The Central Government's Budget allocation for capital expenditure has been increased by 35% and in this regard, significant support will also be provided to the State Governments. The work has started on the key pillars for infrastructure development i.e. National Infrastructure Pipeline (NIP), National Monetisation Pipeline (NMP) and PM Gati Shakti, which will go a long way for the sustainable development of the Country. The Government's initiatives for ‘Aatmanirbhar Bharat', setting up target of 25,000 km of new highways, Gati Shakti Masterplan for expressways, 100 new cargo terminals with Multi Modal Logistic Park and initiatives to connect urban transport to railways, will give a big boost to logistics facilities across the Country. Further, development of the Unified Logistics Interface Platform, which allows data exchange among stakeholders, will improve work efficiency in the logistics sector by providing real-time information to all stakeholders and will improve our international competitiveness.

During the year 2021-22 the Company has developed two (02) new facilities at Multi Modal Logistics Park at Mundra, Gujarat and Rail Transhipment Hub at Swarupganj, Rajasthan. Also, the Company has developed the complete dust proof and moisture free solution for Loading, Unloading & transportation of Bulk Cement & Fly Ash into the silo and bulker through 20' ISO standard containers.

Your Company has always been on the forefront, when it comes to contributing for the development of trade of the Country. In this direction, in order to support the EXIM trade dealing with shortage of containers in hinterland, scheme of aggressive discount for repositioning of empty containers for export purpose was introduced. Steps were also taken to meet the shortage of containers for exporters in which CONCOR provided its own containers for overseas movement. In order to promote the Aatmanirbhar Bharat in container manufacturing, initiatives were taken by floating EOI for development of vendors for indigenous manufacturing. In this direction, subsequently, orders for procurement of 8,000 containers were placed with indigenous manufacturers. Recently, the Company has also awarded a contract for manufacturing another 10,000 containers indigenously.

In order to provide total logistics solutions to its customers, your Company has introduced business solutions services, under which single window services for all activities pertaining to custom clearance, cargo and container transportations are being provided in most economic and reliable manner. CONCOR is well respected for performing ethically and for providing growing, innovative & inordinate customer services in logistics. We expect to see FY 2022-23 providing us many more reasons to celebrate in terms of both, operational excellence and financial performance.

The world has seen remarkable technological changes in the last couple of years and this decade is going to see more technological breakthroughs. As an organisation, we always strive to excel with the use of newer and more advanced technologies. Going forward, technology will help us respond to the ever-changing business scenarios, thus remain ahead in the market. Recognizing this, your Company is working on further automation of its services by planning implementation of Artificial Intelligence based systems at its terminals.

Our top priorities have been to ensure smooth operations & uninterrupted supply of services to all beneficiaries. In this process focus is given on health & safety of stakeholders and providing essential support to the local communities and society at large. We have unfailingly demonstrated our ability to persevere, adapt and flourish. CONCOR's position today is an outcome of the untiring efforts of Team CONCOR and the invaluable support extended by our stakeholders over the years. The foundation for our success, even in the toughest of the time, is rooted in our culture, our values and ethos to accept challenges and conquer them. ‘Customer Value Creation' is our ethos.

CONCOR conducts its business in a socially responsible way by maintaining high level of organizational integrity and ethical behavior. Our actions are governed by our values and principles which are reinforced at all levels within the Company. We are committed to do things the right way, which include taking business decisions and acting in ways that are ethical and compliant to applicable legislations.

CONCOR is fully conscious and sensitive of its role as a corporate citizen and reaches out to the marginalized sections of the society through a well-structured policy on Corporate Social Responsibility which is in line with the provisions of the Companies Act, 2013 and DPE Guidelines.

I would like to place on record appreciation for the contribution and valuable guidance given by my fellow Board Members. I also take this opportunity to thank all our stakeholders the Central, State and local governments, our customers, investors, regulators, lenders, suppliers and advisors for their continued support and trust. We are indeed grateful to our shareholders for their unstinted support that gives us the strength to keep moving ahead and fuels our spirit to serve excellence. Finally, a heartfelt appreciation and acknowledgement for the backbone of Company, the employees who have worked relentlessly to meet the commitments, we have made to our stakeholders.