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WABCO India Ltd.

BSE: 533023 Sector: Auto
NSE: WABCOINDIA ISIN Code: INE342J01019
BSE LIVE 15:19 | 24 Oct 6040.85 -50.25
(-0.82%)
OPEN

6076.00

HIGH

6100.00

LOW

6005.50

NSE 15:09 | 24 Oct 6027.60 -55.60
(-0.91%)
OPEN

6110.05

HIGH

6128.95

LOW

5980.05

OPEN 6076.00
PREVIOUS CLOSE 6091.10
VOLUME 189
52-Week high 6403.00
52-Week low 4760.00
P/E 59.10
Mkt Cap.(Rs cr) 11,453
Buy Price 6025.05
Buy Qty 1.00
Sell Price 6047.95
Sell Qty 5.00
OPEN 6076.00
CLOSE 6091.10
VOLUME 189
52-Week high 6403.00
52-Week low 4760.00
P/E 59.10
Mkt Cap.(Rs cr) 11,453
Buy Price 6025.05
Buy Qty 1.00
Sell Price 6047.95
Sell Qty 5.00

WABCO India Ltd. (WABCOINDIA) - Chairman Speech

Company chairman speech

WABCO-TVS (INDIA) LIMITED ANNUAL REPORT 2010-2011 CHAIRMAN'S REPORT Speech delivered by the Chairman of the meeting at the Seventh Annual General Meeting of WABCO-TVS (INDIA) Limited held on 27th July 2011 Ladies and Gentlemen I have great pleasure in welcoming you all to this seventh annual general meeting of your Company. The Directors' report and the audited results of the Company for the year ended 31st March 2011 are with you. I take this opportunity to brief you on the progress made by the Company during the year under review. ECONOMIC AND INDUSTRY REVIEW India's GDP for the full year 2010-11 stood at 8.5% as against previous estimate of 8.6%. This was mainly due to lower economic growth during the last quarter. The growth was at 7.8% as against earlier estimate of 8.5%. This drop was primarily due to a poor show by the manufacturing and mining sectors. According to the estimates, the GDP growth in the current fiscal year would suffer if the inflation continues to remain high. The base year for computation of Index of Industrial Production (IIP) was changed to 2004-05 as against 1993-94 followed earlier. Under this changed base year, the IIP for April 2011 shows a growth of 6.3% Year on Year (4.4% under the old index). Further manufacturing weight in the new IIP was reduced by about 4% while the weight for mining sector was raised by a similar percentage. The commercial vehicle industry registered a significant growth in 2010-11. The sales volume in the Medium and Heavy Commercial Vehicle (MHCV) clocked a growth of 33% over 2009-10. This was a result of heightened industrial activity, government focus on infrastructure development, rapid urbanization, robust freight demand and improved transporter profitability. PERFORMANCE During the year under review, the Company achieved a turnover of Rs 899 crores as against Rs 609 crores in 2009-10, registering an impressive increase of 48%. The growth in the turnover was due to improved economic activity which resulted in growth in commercial vehicle industry. The company was also benefited by higher sales from spares and exports. In the spares segment, sales increased from Rs 109 crores to Rs 139 crores and in the export segment sales grew from Rs 55 crores to Rs 118 crores. The Profit after tax stood at Rs 127 crores in 2010-11 as against Rs 78 crores in 2009-10 registering a very significant increase of 62%. The earnings per share on a face value of Rs 5/- per share improved from Rs 41.22 in 2009-10 to Rs 67.18 in 2010-11. During the year WABCO continued to make a very significant contribution to technology and business operations. WABCO is the global technology leader in the commercial vehicle industry. For over 140 years, WABCO has pioneered breakthrough electronic, mechanical and mechatronic technologies for braking, stability and transmission automation systems supplied to the world's leading commercial truck, trailer and bus manufacturers. Across the globe, WABCO, leverages innovation, new technologies and a powerful network of talents and operations to best serve vehicle manufacturers and operators. In 2010, WABCO increased global sales by 47 percent to $2.2 billion in local currencies. WABCO seeks to lead the world in the creation and supply of products and systems that enhance the safety and efficiency of commercial vehicles. DIVIDEND The board of directors have recommended a dividend of Rs 5 per share (100%) for the year ended 31 st March 2011 as against Rs 2.50 per share (50%) for the year ended 31 st March 2010. NEW PRODUCT DEVELOPMENT The Company has introduced many new products to Indian OEMs during the year 2010-11. The Company has commenced supplies of the following new products/ systems: * Localized Clutch servos for medium and heavy commercial vehicles * Higher capacity Compressors and new variants of compressors for domestic OEM's * New brake system aggregates for various vehicle models of Ashok Leyland, like the Future Vehicle Development Program (FVDP) The Company has also been awarded contracts for design, development and supply of many new products for domestic and export market which includes:- * Anti-Lock Braking (ABS) System to Bharat Earth Movers Limited (BEML) * Automated Manual Transmission (AMT) for Ashok Leyland and TATA Motors Limited * Brake Actuators and Valves for VOLVO's Asia Truck Program * Exhaust Brake System for Daimler The Company is also in the process of implementing in series production of many customized new products and systems for domestic market as well as for WABCO Worldwide. We are continuing to develop our Product Development capability to global standards. TEI & TPM The Company continued to achieve 100% participation in Total Employee Involvement (TEI) activities for the 12th year in succession at our Ambattur plant. During the year 2010-11 these TEI practices were extended to the company's other manufacturing locations viz. Jamshedpur and Mahindra World City. Similarly Total Productive Maintenance (TPM) implementation has been extended to the aforementioned plants. With Total Quality Management (TQM) as the foundation, the Company continues its thrust on Total Productive Maintenance (TPM) and Lean manufacturing for enhancing customer satisfaction and improved business results. AWARDS During the year under review, the Company has won the following awards * 'India Manufacturing Excellence Super Platinum award' and 'Consistency award' from Frost & Sullivan * 'INNOVENDOR Award' from TATA Motors * 'Overall Quality Excellence Award' from VOLVO Eicher * 'Certificate of Appreciation for Performance in Supply Linearity' from Ashok Leyland * 'First prize in Quality Circle Convention' for Supervisors and Managers from Cll * 'Gold Award' from Quality Circle Federation of India at their International Convention * 'Excellence in Technology and Innovation' from TATA Motors at their National Vendors' Meet 2011 * 'Excellence in Quality' Award from TATA Motors at their National Vendor's Meet 2011 * National Award for 'Excellence in Cost Management' from The Institute of Cost and Works Accountants of India. We won the award in the category of Manufacturing, Medium Organization. OUTLOOK FOR THE CURRENT YEAR The production of commercial vehicles with air brakes registered an increase by 9% during the last quarter of 2010-11. With the increased infrastructure development projects coupled with the growth in agricultural output has resulted in improved freight availability. The air brake vehicle industry is likely to register a positive growth of 9% during the current year 2011-12. There are some initial concerns with increasing interest rates and diesel prices, but demand will continue to be robust with increased industrial activity. COMPANY NAME CHANGE In line with the agreement entered with Sundaram-Clayton Limited, after the acquisition of the equity shares by Clayton Dewandre Holdings Ltd from TVS group, the name of the Company is proposed to be changed to WABCO INDIA LIMITED from WABCO-TVS (INDIA) Limited. This is subject to approval of shareholders at this meeting and also of Central Government as per the applicable provisions of the Companies Act, 1956. ACKNOWLEDGEMENT The board of directors thank the shareholders for the trust and confidence reposed in the Company. I would like to thank the promoter Messrs. Clayton Dewandre Holdings Limited an indirect subsidiary of WABCO Holdings Inc. for their continued support to the business. I would also like to thank our customers, suppliers and State Bank of India, banker to the Company, for their continued co-operation and support. All the employees of the Company deserve special appreciation for their continued commitment to the Company in achieving an outstanding performance during the year. I would like to thank the Governments of Tamil Nadu and Jharkhand for all the support in our operations. Thank you. M. LAKSHMINARAYAN Chairman