<dhhead> From the Chairman’s Desk</dhhead>
My Dear Stakeholders,
I wish to extend my warmest greetings to all of you.
On behalf of your Board of Directors, I have, once again, this
opportunity to communicate with you. The last year began on a challenging note.
The aftereffects of the pandemic and the ongoing global conflicts
significantly impacted the world economy in many ways which include increase in commodity
and energy prices, trade, and investments slow down, geopolitical tensions, and the severe
humanitarian crisis. Due to globalisation, no country today is insulated from political or
economic events happening in other parts of the world. Atmanirbhar India, with its strong
fundamentals was decently able to withstand all the global disruptions and continue with
its growth story. India has been in a sweat spot and has managed to clock an economic
growth of above 7% for FY23. Further, the outlook for our Indian economy continues to be
bullish as it is projected that by 2030, our economy will be the third largest in the
world and our GDP is likely to increase by three times of its current level. The steep
increase in per capita incomes of the masses will create enormous demand for goods and
services. This will be unprecedented, and it will be the fastest increase of economic
activity in the history of our country.
Itismy fundamentals, and which have sound and ethical business and
governance practices will benefit multi fold from these enormous opportunities which our
country brings us.
Our Indian passenger vehicle industry has surpassed the Japanese
industry to become third largest market globally, only preceded by China and US. In spite
of becoming number three, the difference between India and its nearest competitor runs
into millions of vehicles, and this my dear stakeholders, gives us enough headroom for
sustainable growth. Due to the growing aspirations of our people and higher penetration of
vehicles across the country, our industry is at the cusp of an era of phenomenal growth.
The passenger vehicle industry is expected to reach over 6 million vehicles by 2030. Our
mobility industry is going through unprecedented transformation, be it, the variety of
fuels, the technology related to drive train, electronics, and features focussed on making
the cars much safer and significantly more energy efficient than what are today. Huge
efforts are being undertaken towards making the industry sustainable and reduce the impact
on the environment. Globally, companies in the mobility industry are targeting carbon
neutrality by 2050.
The year 2022-23 was a challenging year for your Company as the
consequences of the global pandemic continued to linger on. On one hand, your Company made
steady inroad in its strategic endeavours for efficiency, growth, improved operational
developed new technologies, and significantly improved the adoption of sustainable
business practices.
On the other hand, the profitability of the group on a consolidated
level was a big challenge that your management made humongous efforts to resolve. In order
to improve this situation, our focus was on three prime areas review, and correction of
the selling price of finished goods manufactured by us, review, and correction of the
purchase price of all the raw materials, and review, and correction of the wastages in our
production process. After thorough and focussed reviews, strong actions were taken to
rectify all these issues. Fortunately for us, our efforts are being supported by the
softening of the prices of our raw materials. I am happy to share with you, that the path
for recovery has been set. Things have started moving in the right direction. Our group is
now moving to be on a strong footing which will enable us to achieve higher growth, as
well as higher profitability. I am sure the economic growth of our country, coupled with
our industry’s growth, along with our strong focus on introducing value added
products for our customers will certainly result in a promising and sustainable future for
your Company.
Your Company continues to expand its business with addition of new
products and new customers. During this year, your company was successful in introducing
new technology parts which were highly appreciated by its customers and were immediately
adopted for use in their forthcoming models. This focus of your Company will ensure higher
revenues coupled with better margins as these premium products bear fruits. Your Company
was successful in securing new business from leading Electric Vehicle manufacturers also.
Although your Company’s product range is engine agnostic, this business from EV
manufacturers will ensure business continuity and growth as customer preferences shifts
from ICE vehicles to Electric vehicles. Going forward, your Company will continue to scout
for more opportunities with Electric Vehicle mobility companies in all categories and will
ensure that we have a substantial presence, in this sunrise industry.
Your Company currently has a significant grasp of the nuances of the
new growth scenario, and we are utilising this knowledge