Dear Shareholders,
It is with great pride and optimism that I present to you the Annual
Report of Timken India Limited (referred to as Timken or Company) for FY 2023-24.
I am pleased to announce that our Company demonstrated exceptional
resilience and agility in delivering consistent financial performance. In this financial
year, our Company delivered modest growth in revenue over the last financial year, with a
slight improvement in Earnings Per Share (EPS). This result underscores our ability to
navigate through dynamic economic conditions and geopolitical uncertainties.
This year's achievements are a testament to the effectiveness of
our strategic initiatives, the strength of our diversified portfolio and our relentless
focus on operational excellence. Our customer-centric innovations and specialized
engineering expertise have driven significant value across our key end markets. Notably,
our domestic sales experienced double-digit growth, led by exceptional performance in our
rail business. This growth reflects our robust business model and the successful execution
of our long-term strategy.
The Indian economy has been a fertile ground for our success, showing
robust growth despite global economic challenges. The government's focus on
infrastructural development, digital transformation and policy reforms has created a
conducive environment for business expansion. With a foundation of demographic advantages,
increasing consumer spending, energy transition initiatives, manufacturing base expansion
and technological advancements, India presents vast growth opportunities as it marches
towards becoming the world's third-largest economy. Our Company is uniquely
positioned to leverage these opportunities, thanks to our deep understanding of the local
market and our agile business strategy.
We are also advancing our manufacturing footprint initiatives to
support growth. Our greenfield facility in Bharuch is coming along well and at a rapid
pace. We are meeting all targets and are set to start producing by the last quarter of FY
2024-25. This facility will not only help to serve our customers in India but will also
position us as an export hub for cylindrical and spherical roller bearings and components.
As we look ahead, we see tremendous potential in both the domestic and
export markets. At a global level, we are capitalizing on trends in sustainability,
renewable energy, infrastructure investments, electrification, lightweighting, automation
and robotics. Our global strategic focus in these areas is already yielding positive
results and we are committed to further strengthening our position in these high-growth
markets.
Our innovative culture and technical leadership enable us to solve our
customers' toughest challenges. Backed by 125 years of global experience, our depth
of knowledge is unparalleled in the industry. We enjoy a strong reputation for products
and process innovation. As an essential partner for our customers, we continue to focus on
critical applications, complex technical challenges and sustainable solutions for future
market needs.
Our commitment to sustainability remains as the core of our business
strategy. We are committed to creating long-term value for our stakeholders by integrating
sustainable practices into our operations. This year, we have made significant progress in
reducing our carbon footprint, enhancing energy efficiency, reducing our water
consumption, managing waste and optimizing our packaging needs. Our sustainability
initiatives not only contribute to environmental preservation, but also drive cost
efficiencies and innovation. I am proud to share that our Company was recognized with the
Sustainable Organizations Award 2023 by The Economic Times and the prestigious Golden
Peacock Award for Energy Efficiency.
Our strong balance sheet, robust cash flow and disciplined capital
allocation priorities position us well to sustain high performance across diverse market
conditions. We remain committed to investing in our core businesses while also exploring
new avenues for growth, ensuring long-term value creation for our stakeholders.
As we celebrate these achievements, I am also proud to highlight a
significant milestone for our parent company. The Timken Company is celebrating 125 years
of existence in 2024. This remarkable anniversary is more than a corporate milestone. It
is a testament to Timken's enduring relevance, innovation and specialized engineering
expertise. Over the past century and a quarter, The Timken Company has evolved into a
diversified industrial leader, globally recognized for its unique body of knowledge and
skills. Our Company will continue to leverage the expertise and innovations of The Timken
Company to its advantage.
In conclusion, I would like to express my gratitude to our shareholders
for their unwavering support, to the Board of Directors for their invaluable guidance, to
our employees for their dedicated work and commitment to excellence and to our customers
and partners for their continued trust and collaboration with Timken. Together, we will
continue to drive Timken towards new heights of success, creating lasting value for all
our stakeholders by continuing to provide engineering solutions that keep the world in
motion.
Sincerely,
Sd/-
Sanjay Koul
Chairman & Managing Director
DIN: 05159352