Vision is to be the recognized leader in design and production of customized friction solutions, with a presence in every vehicle in the world.
FY 2017-18 started on a weak note with the market trimming purchases in anticipation of GST which was to become effective 1st July 2017. Thereafter, the good monsoons gave a boost to the rural economy, the global environment turned positive and with the increased government spend on infrastructure upgradation, consumer demand revived resulting in manufacturing activity accelerating.
Overall, industry growth has been 15% with growth in production driven by economic activity. Your company growth at 17% has been higher than industry growth, with passenger car, commercial vehicle and farm equipment segments growing faster.
Global demand in the European & American automotive markets helped exports grow by 32% to Rs 169 crores ( previous year Rs 133 crores) and domestic sales up by 13% to Rs 650 crores (previous year Rs 576 crores). Improved overall sales at Rs 819 crores & PAT to 81.9 crores – highest ever achieved by the company.
During the year, the Company maintained cordial relations with the workmen’s unions at all plants. There have been settlements with the Workmen Unions at Thane, Waluj and Jalna Plants, all with wage increases linked to productivity improvements, multi machine working and with penalties for non-achievement of quality and productivity as agreed. The settlements all valid for three years expiring in 2020 involve a financial impact of Rs. 10.3 crores annually from FY 2018-19. These settlements, with committed productivity increases of 18-20% were an enabling factor in the management drive for higher outputs during FY 2017-18, and are expected to help sustain the higher outputs during FY 2018-19.
The Company is in the ball and roller bearing business for the requirements of the mobility industry which has Original Equipment Manufacturers (OEMs) accounting for 65% -70% of the demand while the rest is supplied to the Aftermarket (12% -15%) and Exports (20% – 25%). OEMs comprise domestic and global vehicle manufacturers.
The annual production of the domestic organized sector (as represented under Ball & Roller Bearing Manufacturers Association-BRBMA) has grown to Rs. 6300 crores for the year 2017-18. Your Company’s market share in the domestic organized sector is 13% approximately.
Company’s EVA(Economic Value Addition) which is real measure of shareholders’ value creation has significantly improved this year by 35 crores vs 7.6 crores last year.
Your Company has the largest product range in the domestic market and has been investing in technology development and building competencies for skill based manufacturing. Having won customers’ confidence by leveraging innovative ideas, creative engineering and comprehensive manufacturing expertise we are well positioned to take advantage of the revival in demand.
Counterfeit products in replacement market(which accounts for 25-30% of total demand for industry) are a threat. Also, industry has to adjust to next generation of smart cars.
Permanent employees directly employed by the Company currently total 1557 nos.