Dear Shareholders,
As we reflect on thefiscal year 2023-24, it is with great pride and
gratitude that I present to you the 39th annual report of Subros Limited. In
FY24, the Indian economy demonstrated robust growth, driven by a confluence of factors.
India has grown to be the 5th largest economy in the world and the 3rd
largest in the mobility sector. The country is moving towards becoming a resilient economy
backed by sound government policy.
The dynamism of India has made it a key manufacturing hub for the
nation and the world. The year gone by has been significant with various positives,
inflation was under control, GDP stood at 8.2%, the stock market touched new heights and
infrastructure development picked up momentum. The government has aggressively invested in
infrastructure, including roads and highways, leading to an increase in jobs, income, and
eventually, consumption. There have been challenges and disruptions in supply chain
however, industry has been able to adapt and realign.
The mobility sector today stands at an inflexion point as it
transitions from just being automotive manufacturing to mobility. Interestingly, exports
are growing rapidly for the sector and in some quarters, have even overtaken imports. The
'Make in India1 drive towards a 'Viksit Bharat1 is real and the
entire mobility sector is now surging towards being future ready and resilient.
The sector is witnessing a transformative era driven by rapid
technological advancements and shifting consumer preferences. There are transitions in
energy, supply chains, and digital transformations backed by Al, machine learning,
transitions in consumer preferences and most importantly, transition in people and skills.
A key driver of growth in India is the rebound in domestic consumption, spurred by rising
disposable incomes and pent-up demand over the past 2 years. A main influence shaping the
market includes the growing adoption of Hybrid (SHEV) and Electric Vehicles (EVs) as
governments and OE's push for greener alternatives to combat climate change. Alternate
fuels are increasingly gaining traction both in passenger vehicles as well as buses,
trucks, and railways.
Further, connectivity and automation are revolutionising vehicle
design, with smart features and autonomous driving technology becoming increasingly main
stream.
For Subros, FY 2023-24 has been marked by significant achievements,
strategic advancements and a resilient performance despite the varied challenges faced by
the automotive industry. We witnessed a strong rebound in the automotive market, leading
to higher revenues and better profitability. The Company has clocked a 9% growth in
revenue, which now stands at INR 3,071 crores and doubled its profitability as compared to
last financial year. This was the result of a robust localisation plan backed by
improvements in operational efficiencies via various initiatives across plants and
departments.
Subros has been able to diversify its customer portfolio and has made
considerable inroads into the railways as well as the commercial vehicle sector (both
trucks and buses). As the sector transitions and technology evolves quickly, the company
is investing heavily in capacities, process engineering, skilling, design and development.
During the year, we have taken steps towards expanding our market
reach, especially in thermal solutions for railways and the commercial vehicle segment.
Further, In-house development of Thermal solution for the Hydrogen bus and rail coach are
key initiatives taken during the year.
Our R&D initiatives have been pivotal in driving innovation and
ensuring that we stay ahead of the curve in a highly competitive landscape. Along with the
long term technology roadmap, we havealso formulated a roadmap for automating
manufacturing and inspection processes across all plants.
Another initiative we are very proud of is that of diversity, equity,
and inclusion. We believe that diversity is at the centre stage of innovation and
concerted efforts are being made for gender balance as well as integrating differently
abled individuals into the workforce. You would be happy to note that these initiatives
have had a direct impact on the company's PQCDSME parameters.
At Subros, we are committed to sustainable growth and responsible
governance. We believe that sustainability is not a buzz word, it is responsibility that
we all shoulder for the future generations, and at Subros we take this seriously. Our
efforts in sustainability (ESG) are not limited to compliance, but are deeply ingrained in
our corporate ethos. We have made significant strides in reducing our carbon footprint,
enhancing energy efficiency, and promoting green practices across our operations. Our
governance framework has been strengthened to ensure transparency, accountability, and
ethical conduct.
Subros is deeply committed to Corporate Social Responsibility (CSR), it
is integral to our mission of sustainable growth and societal impact. Our CSR initiatives
span various domains, focusing on education, healthcare, and environmental sustainability.
Through partnerships with local communities and NGOs, we have implemented programs aimed
at enhancing educational infrastructure, providing scholarships and promoting skill
development among youth.
As we stand at the forefront of huge opportunities, it is imperative
that we continuously build capital and invest it in technology and people. Capital will be
the ammunition needed to grow and grab the opportunities and it cannot happen with the
people being skilled, re-skilled and up-skilled alone. To meet the needs of this
technology transition, the aim is to evolve from 'Make in India' to 'Design and Make in
India' not just for India but for the world.
The future holds immense potential for Subros. With the automotive
industry poised for further growth, driven by advancements in electric vehicles and smart
technologies, we are well-positioned to capitalise on these opportunities. Our strategic
roadmap focuses on innovation, growth, and digital transformation to drive sustained
growth and create valuefor our stakeholders.
On behalf of the Board and our entire team, I extend earnest gratitude
to our esteemed customers for their trust and partnership.
A sincere thank you to our valued partners, Suzuki Motor Corporation,
Japan and DENSO Corporation, Japan, for their continued support in advancing both product
and process technologies and for collaborating on our future technology roadmap.
I also wish to acknowledge our supplier base, who have stood by us and
evolved with us through these decades. Our dealers, bankers, and financial institutions
for their collaboration as we embarkon ourgrowth trajectory.
I am deeply appreciative of our Board members, whose guidance has been
invaluable through all phases of work. To Team Subros, your hard work, support, and
commitment are the cornerstone of our success. It is your efforts that will propel Subros
forward in this vital era of mobility. And finally, a big thank you to our Shareholders
for believing in us and standing by us over the years, it is because of your trust that we
are driven to do better.
Warm regards,
Shradha Suri
Chairperson & Managing Director