Dear Stakeholders,
2024 marked a year of resilience for Schaeffler India. Your
organization demonstrated remarkable spirit to fulfil its commitment towards responsible
and sustainable growth. Guided by customer centricity and an innovative spirit, the
Company desires to continuously introduce new products and solutions to the field of
motion and mobility. Schaeffler India's journey from a bearings manufacturer to being
a ‘Leading Motion Technology Company' enables it to provide products and
solutions across the entire spectrum of motion.
I am happy to share that Schaeffler India reported solid financial
results, driven by performance across all its businesses. It continued to benefit from
investments in expanding its manufacturing facilities and enhancing its product portfolio
to cater to growing market demands. Over the past year, Schaeffler India has strengthened
its market position through innovation in sustainability and commitment to community and
employee engagement, setting a strong foundation for future growth.
Economic overview
Despite persistent global headwinds, including the ongoing conflicts in
Europe and the Middle East, the world economy was well placed to avoid recessionary
pressures. As inflation moderated, major central banks, including those in the US and
Europe, began calibrated rate cuts while maintaining prudent oversight. India's
growth trajectory, though slightly moderated from FY24, remains on a steady growth path.
India is expected to have grown 6.4% in FY25 and for FY26, the RBI expects the country to
grow between 6.3% to 6.8% following expansion in private capital expenditure.
As the world's third-largest vehicle market, India's
automotive sector continues to be a crucial economic driver. While India witnessed strong
growth in two-wheeler sales, particularly in the EV segment, other sectors faced varying
challenges – from high inventory in passenger vehicles to declining commercial
vehicle sales and regional variations in the tractor segment. However, your company was
able to outperform industry growth through its focus on winning new businesses.
India is giving impetus to e-mobility through various schemes like
subsidies for electric vehicle production, PLI scheme, and changes in the operating
environment including tightened emission regulation norms, improvement of charging
infrastructure, procurement of e-buses among others. With the competence and capability of
Schaeffler India on offerings for components, sub-systems, and systems to OEMs, the
organization is well placed to develop drive system technologies for both Battery Electric
Vehicles (BEVs) and Hybrid Electric Vehicles (HEVs). Leveraging strong partnerships with
key market leaders, Schaeffler India is uniquely positioned to seize emerging
opportunities in this arena.
The automotive aftermarket landscape in India is experiencing a dynamic
shift, fuelled by rapid urbanization, increased vehicle ownership, and shifting consumer
preferences. As OEMs expand access to their parts beyond authorized dealerships, the
aftermarket enters a new era. The advent of digital platforms and technology is redefining
the market, providing greater access to products and services. Schaeffler India is
strategically positioned to seize these emerging opportunities in one of the world's
fastest-growing automotive markets with its focus on delivering enhanced operational
efficiencies, customized logistics solutions, and improved strategic focus is creating
significant value for its customers.
The industrial landscape in India is expanding rapidly propelled by
rising infrastructure development and industrialization. The need for high-performance,
precisely built bearings is increasing as a result of Industry 4.0 and smart
manufacturing. The railway industry is modernizing through large investments in high-speed
train routes, electrification, and enhanced connection to satisfy the demands of rapidly
increasing urbanization and economic growth. The industry is also witnessing a shift
towards environmentally sustainable solutions. Favorable government regulations and a
drive to lower carbon emissions are helping the renewable energy sector grow. All these
developments are transforming India a pivotal hub for manufacturing and industrial
development.
Schaeffler India has remained strategically focused to strengthen the
foundation of a value-led organization. And sustained efforts for growth, innovation,
operational excellence and advancing the ESG agenda has helped the company to shape a
resilient business.
Prioritizing sustainability
At Schaeffler India, sustainability remains at the core of its business
strategy. Over the past year, we have continued to make significant strides to advance its
ESG focus across all aspects of operations. The Jal Sahara initiative has been expanded to
reach more places, there has been an increased focus on employee well-being and safety,
all while maintain an unwavering commitment to transparency and integrity in business
conduct.
Schaeffler India remains steadfast in its commitment to minimizing
environmental footprint and mitigating the impact of business activities on the planet.
Dedication to implementing impactful energy efficiency and water
conservation measures remains unwavering, as it continues to strive for a more sustainable
future.
In 2024, the scope of CSR projects was expanded further to support
initiatives for water conservation, skill development, enhancing the quality of education
in rural India and improving community health. These efforts have not only empowered to
delegate responsibility towards communities but also helped to strengthen the social
fabric of the areas where we operate. Learning that Schaeffler India has been honoured at
multiple forums for excellence in CSR and ESG leadership through its skill development
programs fills me with immense pride.
At Schaeffler India, stakeholder trust is built on robust governance
practices anchored in integrity, accountability and business ethics. Led by the
experienced leadership team and Board of Directors, we believe in upholding the highest
standards of corporate governance to sustainably create value for stakeholders across the
organizational vertical.
Board Representation
This year also saw some transitions at the Board level for Schaeffler
India Limited. Mrs. Renu Challu completed her tenure as an Independent Director of the
Company during the year 2024. On behalf of the Board of Directors, I express our deepest
gratitude to Mrs. Challu for her significant contributions during her tenure. Her
exceptional leadership in the committees, coupled with her expertise in the fields of
banking, finance, investor relations and regulatory environment has been instrumental in
shaping the organizations achievements. We wish her all the very best in her future
endeavours.
We at the Board are also delighted to welcome Mr. N. V. Sivakumar as
Chairperson of the Audit Committee. With his extensive experience in the field of audit
and advisory and a proven track record of leadership, he brings valuable insights and
experience that will continue to guide Schaeffler India towards success.
I look back at 2024 as a year where your company weathered challenges,
embraced change and grew stronger, solidifying its commitment to a sustainable future. I
am thankful to the Board of Directors for providing insightful direction to the company. I
would also like to extend my sincere appreciation to all the employees, esteemed customers
and partners for their trust and encouragement. I remain grateful to the shareholders for
their faith in Schaeffler India's ability to become a leading motion technology
company. Your company remains determined to fulfil customer needs with innovative, agile
and efficient solutions that bear the hallmark of Schaeffler India's excellence in
motion technology.
Eranti Sumithasri
Chairperson