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Enkei Wheels India Ltd.

BSE: 533477 Sector: Auto
NSE: N.A. ISIN Code: INE130L01014
BSE LIVE 15:40 | 15 Dec 368.20 2.45
(0.67%)
OPEN

371.95

HIGH

374.00

LOW

365.20

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 371.95
PREVIOUS CLOSE 365.75
VOLUME 2363
52-Week high 464.00
52-Week low 158.00
P/E 125.67
Mkt Cap.(Rs cr) 548
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 371.95
CLOSE 365.75
VOLUME 2363
52-Week high 464.00
52-Week low 158.00
P/E 125.67
Mkt Cap.(Rs cr) 548
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Enkei Wheels India Ltd. (ENKEIWHEELS) - Chairman Speech

Company chairman speech

In order to embrace opportunities of favorable Indian automobile market and implementDiversity & Sustainability Enkei India will enhance capacity of plant facility in thecoming year and plan to increase production capacity.

Dear Shareholders

It gives me an immense pleasure to share with you an update on the overall performanceof the Company. I feel grateful for your continuous support towards Enkei Wheels (India)Limited.

Performance

In the financial year 2016-17 Enkei India made significant way towards the goal. TheIndian government's move to ban high value notes (demonetization) on November 8 2016slowed down the market. Consequently orders for 2W segment took hit to some extent in 3Qhowever were recovered immediately. On the other hand 4W segment was blessed with thefavorable Indian market situation and thus Enkei India went for maximum orders &production numbers. Overall we landed with the 2.27 million wheels including 2W & 4Wduring the year. As against last year Enkei India posted 6% growth in terms of salesvolume as well as sales value - and delivered profit of AP 2.2 (Profit before tax AchieveProfit 2.2%).

External Scenario

In case of 4W there are many new models being launched by our customers. It was afavorable market for the sale of sedan car & SUV car than ever. Since there wasdiversified car sale in domestic market mounting rate of alloy wheel also went up whichis the reason to boost the sales of 4W. For the first time in history the automobile saleof Indian domestic market went beyond estimated number and achieved the sale of 3 millionpassenger cars (incl. UV & Van) which was up by 9.2% (3046727 Cars) and 2W segmentwitnessed the growth of 6.9% (17589511 Cars) in FY 2016-17.

Internal Controllers

Internally we continue to adopt & inculcate Enkei DNA Enkei Ownership & 7Efforts and try to Level & Label up of employees with the help of fundamentals like 5Sactivities & improve the loyalty of employees towards the company.

We also have been continuously practicing the BEP (Break Even Point) Management andDaily Income Statement (DIS) that is:

1. Increase Value Added Ratio (Implementation of 3B)

2. Reduce Fixed Cost (FCR Activity: Fixed Cost Reduction activity)

3. Increase Sales Amount (Adoption of Product Mix strategy)

Enkei India also makes use of CFT Activity (Cross Functional Team activity) for betterproblem solving Enhancement of communication and motivational activities Compliance ofworld standards (Certification of ISO/TS16949 ISO14001 & OHSAS18001) forenvironmental compliance and with the diversity in cars Enkei India will have diversityin wheels as well and in order to adjust to different designs of different models EnkeiIndia will undertake the process change initiatives for new paint shades thoroughcontrol over the process from development to final product stage including qualitymaintenance of large diameter wheels.

Parent Support & Policy

It is our accomplishment that we have strengthened 66 years of vast experience of EnkeiGroup in the field of research & development and manufacturing of aluminum alloywheels. The technical assistance & cultural exchange from Japan and other ASEAN groupcompanies of

Enkei help us to successfully uphold the No.1 position for OEM supplier in the hybridindustry producing 2W & 4W aluminum alloy wheels of India and we remain committed tocontinue the same growth.

Looking Forward

Since 1st April 2017 there is a change in environmental standard (BS3 to BS4 BS=BharatStage) however it is expected that Enkei India's orders will not be much affected. EnkeiIndia is looking forward for new orders & has set production target as "10%Higher Output" in the year to come. Enkei India with orders & production alongwith maximum efforts has set target over & above last year i.e profit of AP5.(Achieve Profit ) In order to align with our Enkei Group 2017 Company Policy"INOBESHON DE SUUJI WO TSUKURU: Maximize numbers using innovations" Enkei Indiawill set clear targets in numbers. We believe in the Enkei India 2017 slogan:"Standardization and Optimization". In order to align with our group standardsEnkei India will undertake Enkei standardization of production processes (smart factoryautomation robotization and installation of new technology)

• ?set up of testing lab for better quality control

• ?improvement in DIS & BEP management for management control and

• ?implementation of the concept "Build strong operations without laborcost impacts" to reduce fixed cost.

In order to embrace opportunities of favorable Indian automobile market and implementDiversity & Sustainability Enkei India will enhance capacity of plant facility in thecoming year and plan to increase production capacity.

Challenges

Currently India's growth rate is very high in the world however it is also addressingmany issues like environmental challenges introduction of GST further compliances andhuge transformations.

Each of them has different challenges and thus we will overcome them with thefundamental approach of proactive action (Be positive Positive thinking) and also adhereto those policies and promote good production & exercise healthy management.

To adhere to the same we will

Follow upcoming GST laws & IND-AS (IFRS Converged Standards)

Comply with health & safety standards environmental management system

"ANZEN DAIICHI: Safety First KENKOU DAIICHI: Health First KHANKYOU DAIICHI:Green First".

With further preparation for the future and more contribution to the society we EnkeiIndia & Enkei group evolving to be a reliable company will ensure to prove its reasonfor existence in the society.

At the end of this communication I would like to thank to all our stakeholdersshareholders customers suppliers vendors employees union our group companies theGovernments and regulatory agencies around the world for taking keen interest in thecompany and extending continuous support to us and we hope to receive the same in futureas well.

Kazuhiko Shimamura
Managing Director