The automobile industry in India is going through one of the most challenging faces ever. The industry has been traumatized by Volatility, Uncertainty, Complexity and ambiguity on the domestic as well as on the international front.
While the first six months of the last fiscal were filled with hope, the latter half of the year has been engulfed with gloom and despair. High interest rates coupled with inflation, weakening of the rupee, volatility in the cost of raw materials and prices of crude oil, uncertainty in fuel policy and shaky customer confidence have made the last year one of the worst ever in our industry.
The revenue of Minda Industries from operations for the Financial Year under review was Rs. 110,806 Lacs as against Rs. 105,629 Lacs for the previous year. The bottom line declined slightly due to new plant set up at Hosur. Profit after tax was Rs. 2,712 Lacs as against Rs. 3,031 Lacs for the previous year. The continued growth of exports is an indicator of the growing demand for our products across the world.
Our company has followed the strategy to consolidate its largest business-switches and its variants and moving up the value chain by filing for more patents apart from design registrations. It has also made efforts to improve its product portfolio in the Acoustic Division having acquired Clarton Horn, Spain. For Lighting segment, Fuel cap, LED and Autogas, it has been making continuous efforts to increase its market share.
Except two wheeler segment, the Indian Automobile Industry’s performance has witnessed negative growth due to continued economic slowdown, weak consumer sentiments, rising fuel prices and high interest rates. The overall domestic sales during FY 2013-14 grew marginally by 3.53% because of growth of 7.31% in Scooters and motorcycles sales, while commercial vehicle are the most affected, which de-grew by (-) 20.23%, passenger vehicle and three wheelers also de-grew by (-) 6.05% and (-) 10.90% respectively.
The new Government at the Centre with clear mandate has rejuvenated hope for resolution of policy bottlenecks and accelerating growth. Society of Indian Automobile Manufacturers (SIAM) has also expressed its hope of slight recovery in the current fiscal year in line with the expectation of an overall economic recovery.
We look forward towards the next financial year with an optimistic outlook, and remain flexible to improve our operational systems and corporate governance. Going forward, growth will be driven mainly by healthy economic growth, changing consumer preferences, rising aspirations, increased spending on infrastructure development, thrust on rural economy and new product launches, among others.
In spite of weak market conditions and tough challenges the team UNO Minda has responded well to the tough market scenario by using strong business ethics, excelling in business and working continuously towards sustaining growth even amidst all difficulties the industry is bestowing on it.
I would like to thank all our stakeholders, including our Customers, Vendors, Lenders, Bankers, Joint Venture Partners and Shareholders, for the confidence shown by them in our company.
With Warm Regards
Nirmal K. Minda
Chairman and Managing Director
28 August, 2014