Synergies That Drive Excellence
Dear Shareholders, Ladies and Gentlemen,
A Very Good afternoon!!
It gives me immense pleasure to welcome you to the 26th Annual General Meeting of your Company.I thank you for your being here today and your continued support and good wishes. Every year is a new beginning as we set out to achieve new milestones, milestones that excel horizons.
“Synergies That Drive Excellence” is an apt theme for this year. Your company is strategically focussed in building capabilities that will define a transition for us to become a technology leader in Auto component space with global reputation. We have reinvented ourselves from being a single product company to a multiproduct/ system company, from technology licensee to technology owners and from being an Indian player to emerging as a truly global player. This year has been a transformational year for the group. We have almost completed the group consolidation exercise and have made significant investment in Gujarat to drive future growth. We have also announced acquisition of iSYS RTS Germany, this is at core of our controller strategy as we are likely to see spurt in demand for such products in India.
Strategy for Growth
1. Increase localization / substitute imports: Your company has been among the pioneers in localizing more than 20 components over last 2 decades. Among the recent ones are alloy wheel, air bags and reverse parking system. There are more products in the pipeline like BSVI Sensors and some key controllers.
2. Premiumization: Indian Automobile market is likely to undergo Premiumization of vehicles and UNO MINDA is poised to strongly benefit. LEDs, infotainment systems, wireless chargers and telematics will benefit strongly.
3. Electronification and EVs: UNO MINDA has set up CREAT for research engineering and advanced technologies focused to capture market in growing market in Cockpit Electronics, controllers, sensors and EV technologies.
4. Enhanced Safety and regulatory Norms: BS-VI is expected to be implemented by 2020. It will benefit your company as it is ready with products which are likely to see strong demand like Airbags, crank sensors and filtration solution amongst others.
In reaching the milestone we have always believed in building Deep-rooted fundamentals
Let me explain you my rationale on ‘deep rooted’.
Firstly, we develop, manufacture and supply components parts and systems across all the automobile sectors – 2Wheeler, 3Wheeler, 4 Wheeler and off-highway vehicles. This has given us a wide spread exposure to the industry. Thus, we are the direct beneficiaries from the growth in this segment.
Secondly,our diversified product portfolio base allows us to develop multiple components for a single model. So, there is an interdependence between customer and us. We get associated with the OEMs at a very early stage when they conceive a new model.
Our Research and Development capability along with strong engineering base allows us to develop top of the line components for the OEMs.
Thirdly,besides components, we have built a robust supply chain as well. Right from a developing a component to a delivering complete system, we support the OEMs towards their greater success.
Last but not the least, we have built & nurtured strong relationships with our JV partners and associates who are the technology leaders across the globe in their respective field. This has enabled your Company evolve stronger amidst changing technologies.
Your company has strong thrust on performance
In the 2017-18, your company has demonstrated considerable progress both at top line (32%) and bottom-line (55%). New products like Alloy wheels, RPAS, Air Bags and infotainment will be key enabler in improving our margin profile further. Group is focussed on improving the return on capital employed (ROCE) and enhance shareholder value creation, ROCE for MIL consolidated for FY 2017-18 was ~ 23%.
In times to come, our international business as a percentage of overall business will see a further upside. The near-term target is to achieve 25% from overseas business. In Line with this strategy your company has acquired I-SYS RTS, Germany.
Electric Vehicles – the new market disruptor
We are anticipating the next market disruption through electric vehicles. We are closely reviewing and watching the situations and doing our ground level work. We are also mapping all of our existing products vis-à-vis EV vehicles to capitalise on the opportunities and also happy to inform that our products are not much affected.
Strategic priorities going ahead
1. Invest in the contemporary technologies, focus on R&D and work with the best people.
2. Human capital:Your Company is focussed on building a talented human capital base to achieve the goals that we have set out. We initiated the exercise of identifying future leaders within our organisation. This will allow every employee to stay upbeat and focussed in achieving the overall organisational objectives. We have launched leadership programs like M Leap for Top Management development and Transfor-M for Middle Management development.
While thanking my employees for all these efforts and successes, I also would like to extend my gratitude to our business partners sharing the same destiny with us, to our customers who always support us and show an interest in us, and to our stakeholders who always trust us.
Once again I thank you for being here. Look forward to your continued support.