Shri Harish Sheth
Dear Shareholders,
Your company Setco Auto has made positive strides by navigating the complexities of a
rapidly changing industry landscape. The past year was one of recalibration and
resilience, where we successfully overcame significant challenges and strengthened our
foundation for a prosperous future. While India has distinguished itself as the
fastest-growing economy, with an estimated growth rate of 7.6% for FY 2023-24, our
government has been executing massive infrastructure initiatives over the last 10 years
and this is expected to take a further notch up in the coming years. Spurred by these
ambitious plans, the Indian commercial vehicle industry is also expected to grow
commensurately. As we look ahead, the outlook remains optimistic, with India continuing to
strengthen its push for seamless connectivity.
The global economy has faced multiple disruptions over the past few years, including
supply chain disturbances, rising commodity prices, increased inflationary pressures, and
higher interest rates. These challenges persisted as we entered calendar year (CY) 2023,
leading to lower global growth expectations. However, the situation improved in the second
half of the year, with demand recovering in many economies.
At Setco, our commitment to being the preferred partner for our customers has remained
unwavering. Our pillars of growth have our new energetic leadership, innovation and new
product development, and market focus that have helped us earn the trust of customers.
During the fiscal year, we focused on enhancing operational efficiencies, optimizing our
plants to serve as multi-product facilities aligned with our long-term goals. These
initiatives are essential as we prepare to drive future growth and continue adapting to an
evolving market.
Throughout the year, we remained committed to exceeding customer expectations by
delivering high-quality products that set new industry benchmarks. Our emphasis on
innovation and operational excellence ensured that we maintained our competitive edge,
even in a dynamic and challenging market environment.
The company us happy to inform that the restructuring of Lavacast with has been
successfully completed and the repayment is aligned with the expected cashflow, moreover
the operating parameters of Lava Cast along with all other Foreign subsidiaries have
turned into a positive direction which will give immense support to the growth of Setco
Auto. To add to this we have launched our new range of Setco Allied Products that
compliment our clutch line in the MHCV and LCV distribution portfolio such as flywheels,
bearings, brakes, lubricants and oil and many more. The company has also positively made
strides to develop a new range of clutch for the Farm Equipment Sector.
Looking forward, we are optimistic about the opportunities that lie ahead. Our
medium-term strategy focuses on driving growth by increasing our market share and presence
with our prestigious OE customers. Additionally, we are committed to developing new
products that meet the evolving needs of our customers, particularly in the commercial
vehicle segment, where we continue to innovate.
We have launched the first phase of App "Setco Connect" with our Drive
Rewards program through which we will be connected to the Retailers and Mechanics.
Migration of our accounting system to advanced SAP S4 Hana is implemented.
The journey of the Setco Foundation's engagement with the local communities is now
close to fifteen years. We have grown from adopting one anganwadi in 2009 to eighteen
communities and multiple interventions adopting a life cycle approach.
As we move forward, I would like to express my deep gratitude to our team members,
whose dedication and hard work have been the driving force behind our success. I also
extend my heartfelt thanks to our shareholders for their continued trust and support as we
navigate this journey together.
In conclusion, during FY 2023-24 we have laid a strong foundation for future success,
and I am confident that we are well-positioned to capitalize on the opportunities ahead.
Thank you for your continued support.
With Sincere Regards,
Harish Sheth
Chairman & Managing Director.