Sandhar Technologies Limited

It gives me great pleasure to reach you through this message. I am pleased to share our strategic vision and future plans, which are poised to drive our continued success and innovation in the industry. The fiscal year 2023-24 has been a landmark period for India, the Automotive industry, and Sandhar. India's economy has shown robust growth, driven by a surge in consumer demand, favourable government policies, and significant investments in infrastructure. The automotive sector, in particular, has experienced remarkable expansion, with increasing vehicle sales and advancements in technology and manufacturing capabilities.

India's vision for 2047 “Amrit Kaal”

India's growth story in recent decade has been one of resilience. India's strength has always been its institutions, and, many a time, the institutional strength has enabled the country to wade through multiple challenges, indubitably taking it a step closer to being a developed country. India is performing better than various developed and emerging economies in relation to its inflation target. Core services inflation eased to a nine-year low in FY24; at the same time, core goods inflation also declined to a four-year low.

India is a country with immense potential, driven by a young and growing population, urbanization trends, and changing consumer preferences. With a population of approximately 1.4 billion, having a median age of 28.4 years, we can be assured of the adaptability of this workforce, to keep pace with the continuous and dramatic technological changes.

India's strong governance, political stability, and growing middle class are all factors that contribute to its potential to become a consumption powerhouse. These signify a state of tranquillity, organization, and sustained continuity, marked by consistent institutions and policies, thereby minimising investor risk and increase return on investment. The government's focus on increasing CAPEX, has grown exponentially, and is expected to drive growth and job creation in the country. The focus now being on infrastructure development, particularly on the roads and highways sector, this would, without a question drive growth in the coming year. In tandem the Indian construction and infrastructure industry is expected to be the third-largest construction market globally, creating a huge demand for additional mid-end and affordable housing units. To fuel this magnitude of growth, there is a strong need to diversify our energy sources, as the energy demand is expected to increase bounteous by 2047. Setting the same trend, is the start up space, where a huge portion is working in the fields of AI, IoT, robotics, and nanotechnology. Unquestionably artificial intelligence (AI) is the biggest future work disruptor, presenting both risks and opportunities for India's young population. Given the Indian population's affinity for working with technology, as seen with the digital public infrastructure, proactive interventions by the government and industry can position the country as a key player in AI.

India is on track to become the third-largest economy in the world by 2027. This seismic shift is a testament to our nation's resilience, adaptability, and innovative spirit. It is a true reflection of our ability to evolve and thrive in an ever-changing world.

Chairman's Message

The automobile industry - true indicator of the health of the economy The automobile industry has historically been a good indicator of how well the economy is doing, as this sector plays a key role in both macroeconomic expansion and technological advancement. There is a shift in preferences of the customers as they have started to move towards larger/more powerful vehicles across all segments.

The two-wheelers segment dominates the market in terms of volume, owing to a growing middle class and a huge percentage of India's population being young. India's trucking market is expected to quadruple, moreover, the growing interest of companies in exploring the rural markets further aided not only the growth of the sector but also providing meaningful employment The auto-component industry in India is today entering a new phase in terms of global exposure and adoption of technology. The priorities for the future would be to put much greater focus on R&D, to help generate intellectual property in India where world class production quality will be a given. It is important to acknowledge that a transformation is round the corner and we will have to gear up to it.

Needless to say, this calls for a more collaborative approach between the various stakeholders of the value chain i.e. component manufacturers, OEMs, Machine Tool Suppliers, the Raw Material industry and the Government.

Sandhar - Being on the right side of opportunity

As we reflect on the past year, I am proud to say that Sandhar Technologies Limited has made significant strides in its journey towards a more sustainable and responsible future. Our "Going Green" initiatives have been a key focus area, with efforts to reduce water consumption and waste generation, recycling and reuse of materials, and further implementing sustainable manufacturing practices.

Our commitment to quality has been unwavering, the state-of-the-art manufacturing facilities and stringent quality control processes ensure that every component and system meets the highest international standards. This dedication to excellence has earned us numerous accolades and certifications, further enhancing our reputation as a reliable supplier of automotive components.

We have also been at the forefront of embracing Industry 4.0, leveraging technology to drive innovation and efficiency across our operations. Our focus on emerging automotive electronics, including but not limited to, parking assistance sensors, auto parking and cameras, driver monitoring systems, and smart locking, is a testament to our commitment to staying ahead of the curve.

We have made our debut in the EV sector, with our wholly owned dedicated subsidiary, Sandhar Auto Electric Solutions Private Limited has gone live. As of now we are progressing with three product lines here: DC-DC converters, EV chargers, and motor controllers with larger plans in the third quarter of FY 25. This year, as in the previous one, we made several major strategic investments, added new capabilities, and grew our talent to support future growth. An all time high revenue of 3,532 Crores was clocked, led by an increase in SOB with customers, high content per vehicle and ramp up of recently added capacities. At the front of international operations, the Romania plant has started production and should be stable in the near offing.

Our ESG (Environmental, Social, and Governance) focus has been recognized by India Ratings and Research (Ind-Ra), reflecting our commitment to managing ESG risks and opportunities in a responsible manner. Some key initiatives taken this year; Solar Panel Installation for Clean energy & Emission control, Retrofit Emission Control Device Installation for All DG Sets and Zero Liquid Discharge . Apart from these one that is really close to my heart is a vocational training programme “SWABHIMAAN” , which we have started to help women acquire skill sets, to earn a livelihood of respect and growth. The work in education, healthcare, and urban ecology is further augmented by the Sandhar foundation. Our employees are our greatest asset and we will continue to invest in their growth and development, fostering a culture of innovation, inclusivity, and collaboration. We have outlined a comprehensive strategy focussed on innovation / smart connectivity/ industry 4.0 and sustainability to propel our company to new heights. The work on strengthening the groundwork for autonomous vehicles (AVs) has already started, with advancements in sensor technology, artificial intelligence, and connectivity, which would propel the demand to navigate complex environments with minimal human intervention.

Along with emerging technology, AI will impact our professional, personal, and social life significantly. We are putting in strong guardrails and governance models for its usage both internally and externally. To us, this position of responsibility is an extension of Sandhar's strong moral center and sense of purpose.

As we look to the future, we are excited about the growth prospects in India, driven by a young and growing population, urbanization trends, and changing consumer preferences. The country's strong governance, political stability, and growing middle class are all factors that contribute to its potential to become a consumption powerhouse. Moving forward, we will continue to focus on innovation, quality, and sustainability, while also contributing to the growth and development of our country. I am confident that with our collective efforts, we will achieve great things and create a brighter future for all our stakeholders. Future prepare to propel Going forward, we envision being a significant part of India's mobility story, capitalising on our inherent strengths of frugal engineering, cost advantages and quality benefits that we can provide to the rest of the world. With this vision in place Sandhar is all set to be the engine for economic growth.

I am confident that, with your continued support, we can achieve these ambitious goals and drive our company towards a prosperous and sustainable future. Together, we will shape the future of mobility and redefine the automotive industry. Our company is well-positioned to capitalize on this growth, with a strong management team and a commitment to transparency and accountability.

I would like to extend my heartfelt gratitude to the pillars of our success: our valued customers, trusted suppliers, dedicated dealers, investors, shareholders, and the entire Sandhar family, whose unwavering support and commitment has been instrumental in driving our collective growth and achievements.