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Clutch Auto Ltd.

BSE: 505052 Sector: Auto
NSE: CLUTCHAUTO ISIN Code: INE779B01019
BSE LIVE 15:25 | 29 Feb Stock Is Not Traded.
NSE 15:31 | 10 Jun Stock Is Not Traded.
OPEN 6.32
PREVIOUS CLOSE 6.65
VOLUME 100
52-Week high 6.32
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 11.86
Buy Price 0.00
Buy Qty 0.00
Sell Price 6.32
Sell Qty 900.00
OPEN 6.32
CLOSE 6.65
VOLUME 100
52-Week high 6.32
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 11.86
Buy Price 0.00
Buy Qty 0.00
Sell Price 6.32
Sell Qty 900.00

Clutch Auto Ltd. (CLUTCHAUTO) - Chairman Speech

Company chairman speech

CLUTCH AUTO LIMITED ANNUAL REPORT 2004-2005 CHAIRMAN'S REPORT Clutch Auto started as a tiny scale unit in 1970 and became a private limited company in 1971. It registered a 100% compound growth rate in the first decade of its existence. Original Equipment (OE) orders for Clutch for Nissan & Shaktiman defence vehicles during 1972-73 and Tata vehicles in 1974 set the tone for its products and it required brand leadership in the Industry, which it has since maintained.' Apart from the period from 1985 to 1992, when Clutch Auto had technical support from AISIN Seiki, Japan, for its clutches meant for Maruti Udyog and DCM-Toyota, it has been and continues to be a standalone company with its own technology base. After a five year period (1998-1999 to 2002-03) of restructuring, wherein an investment to the tune of Rs.31.10 M was made in fixed assets including online testing equipment, metallurgical & balancing equipment worth Rs.16.20 m. Investments in tools and dies Rs.91.5 M, development of samples and prototypes Rs.70.7 m, product launch Rs. 41.9 m, patents and trademarks registration Rs.4.4 M, totaling Rs.208.5 M were made. Out of 19 new products developed under a project approved by Technology Development Board (TDB), 5 products were launched in the USA-in 2001 with assistance of India Brand Equity Fund (IBEF), Ministry of Commerce, Govt. of India, 8 new products were developed with assistance of ICICI Bank under a world Bank aided programme. These included 8 items exclusively for US Heavy Duty Truck market, 6 for Domestic Medium/Heavy 'Truck market' 13 for Tractors including one for Exports and one for a Passenger Car. After rigorous testing in various operating conditions a major breakthrough was achieved during 2004, when Clutch Auto was nominated as the first Indian company to enter into single step Heavy Duty distribution network by, Fleet Pride, the biggest HDD (Heavy Duty Distributor) in, USA with 200 outlets and 5 warehouses. Clutch Auto's customer profile includes top rebuilders leading supply chain distributors, heavy duty Clutch manufacturers and big aftermarket Clutch distributors in Canada and Central, South American and Carribean based dominant transmission manufacturers. Clutch Auto Limited enjoys the distinction of being the only standalone company in the Original Equipment market in the world besides 6 major (3 in Europe, 2 in Japan and One in USA) and the only offshore company to have successfully entered the American class 7-8 Truck market in competition with one dominant supplier in OE segment and 2 aftermarket suppliers. This opens up vast opportunities to the Company in export which are now targeted to constitute = 50% of its overall annual turnover during the next five years. Having placed itself strategically in all market segments of this lucrative market, the Company now aims at is own structured distribution and service network to support the potential customer base. IPR portfolio presents a strong future for company's products which offer better engineering solutions and include a Self Aligning Clutch 'Whisper' - the Wear Indicator series and Low Pedal Effort 'Ez N Life' besides predamped High Torque Clutch Discs & 'Cool Clutches'. Clutch Auto has excellent research laboratories and manufacturing capabilities to develop futuristic products as may come in its way. Increased service life of different products on domestic and American trucks has been-established with interchangeability and retrofittability, unit-to-unit and component to component, thus carving out an exclusive market segment for new developments made by the Company. It's dedicated staff and engineers of the company enable it to work forward with confidence to emerge as a niche player in Heavy Duty clutch market worldwide. Increasing emphasis on productivity improvement, and optimization of resources in the supply chain with on-going vertical integration are likely to have a positive bearing on Company's prospects in the medium and long terms. During its 5 year preparatory phase of transformation even though exports and domestic sales have shown a downward trend, still company has continued to concentrate on development and testing of, new products and creation of its own Testing, Certification, simulation and Demonstration Capability topped with NVH Drive line solutions through design of clutches have placed Cluch Auto in a pre-eminent position against stiff competition from MNC's both? in the country and overseas markets experience thus gained and in- house Test & Development capabilities would be invaluable while exploring new opportunities in global market. We are sure, dear shareholders, you support the decision of the Company to stand alone and define its own future which though bold and difficult but which has eventually paid rich dividends so that your Company has emerged as a long term player with a rightful place amongst the manufacturers of heavy duty clutches in the world. K.S. Bhatnagar Chairman