AT GNA OUR NEW PRODUCT DEVELOPMENT AND WORLD-CLASS PROCESSES ARE DRIVEN BY SOUNDENGINEERING AND TECHNOLOGICAL CAPABILITIES.
Dear fellow shareholders
We are delighted with the kind of high investor interest we received and theoutstanding success of our IPO. I would like to warmly thank all the investors who havejoined our GNA family.
Solid fundamentals are prerequisite for sound growth. A solid foundation is criticalfor creating anything of value. We are driven by sound engineering and technologicalcapabilities for the development of our new products and world-class processes. Our strongfoundation is what makes us solid giving us a sound reason to believe in ourselves andgrow at every step. Through this letter I intend to share with you our strategicpriorities and our thoughts and beliefs for the future.
We are among the leading manufacturers of axle shafts for commercial vehicles and o-highway vehicles in India. We enjoy a considerable presence in export markets. We havebeen supplying components to domestic customers since 1995 and to overseas customers since2002. Our market position and experience enable us to compete globally in measurablequality cost delivery and technology. The domestic rear axle shaft market is expected togrow at 13% CAGR over the next fi ve years.
New opportunities are expected to open up for export-oriented low cost countries suchas India. Under such circumstances we believe that our leadership position gives us theplatform to benefi t from this growth both domestically and globally.
We believe we are insulated to a degree against fl uctuation in demand for a specifi cproduct. This is possible due to the wide range of products that we currently o er. Ourability to develop new products as per our customers requirement also plays a keyrole. Our in-house engineering department and the R & D activities undertaken in eachof our product divisions enable us to continuously innovate and develop new products andprocesses.
Leveraging long-term customer relationships
Our long-term relationships with our key customers allow us to understand and catertheir diverse requirements including new product development. Further we get theopportunity to cross sell our products in other vehicle and equipment segments enablingdiversifi cation.
Exploring export potential
With the continuing trend of globalisation and reduction in trading barriers in variousmarkets across the world an export-oriented strategy will continue o ering us businessadvantages. We aim to capitalise on the Governments available tax incentives. Toenhance our customer base and develop relationships we expect to work closely with theglobal sourcing o ces of our overseas customers. We are positive about benefi tting fromour existing relationships with overseas customers for expanding into other productsegments.
Enhanced focus on automation and technology
We have taken steps towards better resource utilisation and e ciency maximisation byincreased automation in the forging and machining processes. Our Company uses IT-enabledbusiness processes such as advanced computer aided design and analysis capabilities toaccommodate a range of customer specifi cations. Our forging facilities such as screwpress with direct drive and extrusion press are supported by robots. We intend to furtherinvest in achieving greater levels of automation. This can be done by acquiring automaticline for the sawing of round and square bars fully-automatic grinder and polisher andindustrial robots such as IRB 7600/500 kg. We intend to invest in automation for moststages of our production process. This is to ensure optimal use of resources reduction ofindustrial risk to human workers economies of scale and signifi cantly higher precisionin the overall manufacturing and design of products.
At GNA we do not simply attempt to push the boundaries of our success insteadwe seek to harness daily improvements to expand our business boundaries. I would like tothank you for considering an ownership in GNA. My colleagues and I would like to assureyou that we are committed to serving the GNA ecosystem for the benefi t of ourstakeholders.