Dear Shareholders,
As we close another successful fiscal year, I am proud to reflect on
the remarkable progress Fiem Industries has achieved during 2023-24. On behalf of the
Board of Directors and the entire Fiem team, I extend my deepest gratitude for your
support and trust in the Company.
OPERATIONAL PERFORMANCE
The fiscal year 2024 has been marked by significant advancements and
steady growth for Fiem Industries. Our financial performance showcases our relentless
pursuit of operational excellence and customer-focused strategies. For FY24, our net
revenue soared past an important milestone of Rs. 2000 Crore, reflecting a robust growth.
This achievement underscores our capability to leverage emerging market opportunities,
particularly in the EV 2-Wheeler sector, and deliver superior products consistently. Our
EBDITA and Net profit have also reached a new high of Rs. 268 Crore and Rs. 166 Crore,
respectively.
During the year, we faced an unfortunate fire incident at our Rai
factory, resulting in significant damage to plant machinery and part of the building.
However, due to the right safety measures and the swift actions of our management and
employees, we were able to save a substantial portion of our assets. Most importantly,
there were no injuries or loss of life. Our facilities are fully insured, mitigating any
financial impact. I extend my heartfelt gratitude to our employees and OEM customers for
their quick response and tireless efforts in restoring normal operations. Remarkably, we
were able to resume operations within just three days.
INDUSTRY
The automotive industry in India has demonstrated significant growth in
FY24, emerging as a cornerstone of the country's economic progress. The sector has
rebounded strongly from the pandemic-induced slowdown, with the overall automotive market
grew by approximately 10% year-over-year. Within this landscape, the two-wheeler industry
continues to be a significant driver, contributing to nearly 77% of the total automotive
sales volumes in India. In FY24, two-wheeler volumes reached around 22 million units.
Electric mobility has become a pivotal focus, with the electric
two-wheeler segment expanding rapidly. During FY24, sales of electric two-wheelers have
reached nearly 1 million units, showing a good growth of 32% over last year. This surge is
fueled by government incentives under the FAME II scheme, improved charging infrastructure
and increasing consumer awareness of sustainable transportation.
Additionally, the industry's growth is bolstered by rising disposable
incomes, urbanization, and enhanced road infrastructure, which collectively support higher
demand for personal mobility solutions. Consequently, India's automotive industry,
particularly the two-wheeler segment, is poised for continued growth and innovation,
reinforcing its position as a global automotive hub.
FUTURE OUTLOOK
I am delighted to inform you that during the year, your Company has
made a very significant breakthrough in the Passenger Car segment. We have been selected
as a supplier for full LED Head lamp for a high-end European Car and have completed Design
and Development in record time. We have also made significant progress with Passenger Car
OEMs in India. This is a first big step towards our journey in the Passenger car segment.
The automotive industry is witnessing a transformative phase marked by
the introduction of cutting-edge models that integrate advanced technologies, catering to
diverse consumer preferences and needs. This surge includes the rising popularity of
electric variants and the introduction of hybrid models, driven by their
cost-effectiveness, environmental benefits, and support from favorable government
policies. These innovations are poised to revolutionize the market
Your company is strategically positioned to capitalize on this evolving
market. With 9 state-of-the-art Manufacturing Facilities, located in major auto-hubs in
India; and 3 R&D and Design Centres located in India, Italy, and Japan, powered with
deep-rooted OEM partnerships, we possess the expertise and capabilities to seize this
market opportunity and achieve sustainable growth.
In closing, I extend my heartfelt thanks to all stakeholders our
shareholders, collaborators, employees, and esteemed customers for their unwavering
support, confidence, and shared belief in our vision. Together, we will forge ahead,
pioneering new frontiers and achieving even greater heights of success.
Thank you for your continued trust in Fiem Industries Limited.
| Warm regards, |
| J.K. Jain |
| Chairman & Managing Director |