Empowering future, thriving together
Schaeffler India is well placed to capture these opportunities as we
introduce and adopt innovative technologies at an even quicker pace, be it our advances in
electric mobility, strengthening digitalisation initiatives or offerings of Industry 4.0
solutions."
Dear Stakeholders,
It is with great pleasure that I present to you the Company's
Integrated Annual Report for the calendar year 2023. The year was a truly special year for
Schaeffler India, and I am honoured to reflect on the progress and achievements we have
made together. In addition to another year of resilient financial performance, we had many
firsts to our credit this year. We completed our first acquisition in India, secured wins
in the area of future mobility and took further strides in localisation and digitalisation
initiatives. The addition of a B2B e-commerce platform in our portfolio presents an ideal
synergy for Schaeffler's future aftersales activities in India. It will be a key
enabler for the aftermarket ecosystem, including distribution partners and help to play an
important role in the fast-growing and evolving aftermarket digital landscape. With our
new project nomination in the area of future mobility, we would be offering a first
system-level solution to our customers as we help them transition to a greener future. We
continued to leverage on our local strengths and our performance in a challenging
environment is a testimony to our perseverance.
Reviewing the operating environment
Despite global headwinds and worsening geopolitical situation, India
promises to remain the fastest-growing large economy for another year. In fact, after
strong growth in the second quarter of FY2024, the Reserve Bank of India has raised its
growth forecast for the year to 7%. In FY25, on the back of the government's support
towards growth, controlled inflation and strong thrust on capital expenditure, private
investment and healthy demand conditions, India is expected to continue with a growth
trajectory. In the IPSOS index of December 2023, India with 64.3 points was at the top of
the index in the world.
The optimism was evident from the automobile numbers. India is now the
third-largest automobile market in the world. Indian light-vehicle sales, comprising of
cars and light commercial vehicles, will grow to 6.1 million units in 2030 from 4.4
million units in 2022, according to an S&P Global Mobility forecast. The market size
of the industry is 7.5 lakh crores and is expected to reach 15 lakh crores backed by
economic growth and investment in the national highway network. Over the past few decades,
the Indian automotive industry has transformed with technology playing a key role in the
massive change. The automotive landscape in India is undergoing a transformation with
Indian mobility changing to bigger and greener vehicles driven by regulatory changes.
Within the industrial space - the Indian government's multifaceted
approach to bolstering its infrastructure sector is commendable. The Make in
India' initiative, skill development programs, infrastructure projects, and the ease
of doing business reforms are paving the way for a more robust and competitive landscape.
The government's emphasis on the railway sector is seen in a number of projects aimed
at updating and enhancing the railways to make them more sustainable and efficient.
Achieving the targets for clean energy adoption also remains a focus area with various
policies and incentives being introduced to promote wind power development.
Schaeffler India is well placed to capture these opportunities as we
introduce and adopt innovative technologies at an even quicker pace, be it our advances in
electric mobility, strengthening digitalisation initiatives or offerings of Industry 4.0
solutions.
Throughout the year, we have remained steadfast in our commitment to
delivering value to customers, employees, and shareholders. Our strategic initiatives have
focused on innovation, operational excellence, and sustainable growth, which have enabled
us to strengthen the market position and capitalise on emerging opportunities. It gives me
immense pride to share that Schaeffler India today stands strong as a H72,261 mn company
and an employee strength of ~3,300 resulting in a market capitalisation of ~H500 bn. This
growth is a testament to the dedication and hard work of employees, confidence of
stakeholders and a resilient business model.
Empowering change: Our ESG commitment
At Schaeffler, we recognise the importance of integrating
sustainability into every business aspect to drive long-term value creation for all
stakeholders. Over the past year, we have continued to make significant strides in
advancing ESG efforts across all aspects of operations.
We remain dedicated to minimising our environmental footprint and
mitigating the impacts of our business activities on the planet. We successfully
implemented and executed projects in several key areas. We focused on using renewable
energy across all operations and working towards replacing conventional technologies
thereby reducing emissions at the plants. Activities on Scope 3 emission reduction
included an evaluation of self-assessment questionnaires for ~89% of our suppliers,
returnable packaging solutions for ~50% of our customers' packages, and consolidated
distribution centres. We are set on the right track to achieve our ambitious target of
being climate-neutral in our operations by 2030.
Our commitment to social responsibility extends beyond business
operations to the communities in which we operate. Within business operations, we are
creating a positive social impact by fostering diversity and inclusion and supporting
employee well-being and safety. And on community, we continued to have programmes on water
conservation, skill development, enhancing the quality of education in rural India and
improving community health to strengthen the social fabric and contribute to the
betterment of society. During the year, we received multiple recognitions for Jal Sahara -
our initiative to tackle water scarcity through natural resource management.
Sound governance practices are fundamental to maintaining the trust and
confidence of our stakeholders. The core principles of corporate governance at Schaeffler
India are integrity, accountability, business ethics, effective supervision and creating
value for stakeholders. We aim to achieve business excellence through responsible
corporate governance, ensuring effective collaboration between the Executive Leadership
Team and the Board of Directors, with transparency in corporate and financial
communications. We remain dedicated to upholding the highest standards of corporate
governance, transparency, and ethical conduct. As we look to the future, Schaeffler India
remains firmly committed to advancing its ESG agenda and integrating sustainability into
our business strategy.
In conclusion
Ms. Hardevi Vazirani has recently taken over the reins of Schaeffler
India's finances from Mr. Satish Patel. I am delighted that we are able to find a
great fit within the organisation, for such an important position. I thank Satish for
navigating us throughout these years and contributing to the growth of our India entity.
I look back at 2023 as a year where we weathered challenges, embraced
change, and grew stronger, solidifying our commitment to a sustainable future.
I am deeply grateful for the unwavering support of the Board of
Directors. I would also like to extend my sincere appreciation to our employees, esteemed
customers and partners for their collaboration, and gratitude to our shareholders. The
progress we made goes beyond numbers for fostering innovation, improving operational
excellence, and building a more responsible future.
The journey ahead fills us with excitement, as we continue to forge
strong partnerships, innovate, and embrace the opportunities that lie ahead. Together, let
us embark on this journey of growth and boundless potential. India's future is
bright, and we are honoured to be a part of its narrative.
Eranti Sumithasri
Chairperson