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Amber Enterprises India Ltd.

BSE: 540902 Sector: Engineering
NSE: AMBER ISIN Code: INE371P01015
BSE 00:00 | 30 Jan 1906.25 -26.25
(-1.36%)
OPEN

1931.75

HIGH

1935.95

LOW

1890.60

NSE 00:00 | 30 Jan 1909.05 -22.30
(-1.15%)
OPEN

1936.00

HIGH

1939.00

LOW

1890.55

OPEN 1931.75
PREVIOUS CLOSE 1932.50
VOLUME 5249
52-Week high 4023.65
52-Week low 1844.00
P/E 391.43
Mkt Cap.(Rs cr) 6,422
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1931.75
CLOSE 1932.50
VOLUME 5249
52-Week high 4023.65
52-Week low 1844.00
P/E 391.43
Mkt Cap.(Rs cr) 6,422
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Amber Enterprises India Ltd. (AMBER) - Chairman Speech

Company chairman speech

Dear Stakeholders

The year 2021 began with global recovery prospects from COVID-19pandemic and usherd new opportunities for a brighter future. With massive vaccine drivethe lives are returning to normal and the economy and industries are building back fastundettered by significant labor and supply chain challenges. The recovery gained momentumin 2nd half of the year where production and capacity utilisation started gainingtraction. As a result of which the order books started to reflect a healthy growthsignalling a strong demand for FY 22. Being an optimist I can only say that what liesahead of us is only going to get better than what we have been through already!

Economy overview

The outbreak of pandemic tought all of us be it an organisation or anindividual to always be prepared respond and adapt to the changing environment. On theheels of massive vaccination drive easing restrictions and revival of demand led to afaster than expected recovery of the economy. The second half of the year registeredgrowth in business activities in the economy and better sentiments overall. However thegeopolitical crisis resulting from the conflicts between

Russia and Ukraine led to an inflationary pressures on commodityprices slowing the economy further. However a positive spurt of growth is anticipatedafter the second half of FY 2022-23. Despite all the turbulences and lows AEIL performedwell across all business segments registering considerable growth.

Industry Overview

The Indian RAC market showed a muted growth in the last five years.During the year 2021-22 the first quarter which remains the peak season for business wentnegative due to onslaught of the pandemic. Whereas quarter 2 and quarter 3 witnessed asluggish growth. Penting up the demand quarter 4 marked a robust growth thereby leadingthe industry to a total of approximately 6.4 million units as compared to approximately5.2 million units of the preceeding year. Out of this ~6.4 million units the estimatedmarket size of RAC Industry at OEM level excluding GST is valued at Rs 12160 Crores ofwhich Amber enjoys an approxumately Rs 3229 Crores. This translates to 26.6% of theoveral market share in value terms. It is also worthwhile to mention various initiativesundertaken by the government to facilitate economic activities and restore customerconfidence which inculcated demand in the Consumer Durables market.

Further with India inching towards a 5 trillion dollar economy the percapita income of the country is going to be doubled and the demand for air conditionersare destined to grow at a double digit growth in the years to come. As per variousindustry reports it will not be a surprise that India by 2030 may witness a domesticmarket of 24 million units and emerge strongly as global sourcing destination.

Our Step towards Collaborate Explore. Expand.

Despite all the external challenges we at Amber remained committedto creating synergies through our strategic collaborations. Driven by an industryexperience of three decades and robust capabilities we continue to explore betteropportunities with an intent to expand beyond our current geographical presence.

I am pleased to inform that we successfully acquired a 73% stake inAmberPR Technoplast India this year and a 60% stake in Pravartaka Tooling Services PrivateLimited. Our acquisition of AmberPR will help us grow our component segment with focus onproviding more backward integrated solution in key component of RAC segment viz. crossflow fan along with solution of Injection molding component for other industries viz.refrigeration and automobile segment.

Our acquisition of Pravartaka will help us provide more diversesolutions of injection moulding tools and components for automotive electronics andconsumer durable industries. Through these acquisitions and developments we are hopefulof drawing on the benefits of added synergies while offering excellence to ourstakeholders.

Our Performance in FY 2021-22

During the year we witnessed demand from B2B segment due to theeconomy's reopening. This marked our highest-ever revenue in the last two years and helpedus make a strong comeback. The Revenue from Operations during the year Rs 420640 Lakhin financial year 2021-22 as compared to Rs 303052 Lakh in financial year 2020-21 a38.80% growth. RAC for the year contributed 46.9% of the total revenue while motorselectronics components and mobility applications contributed 5.6% 15.5% 25.1% and 6.9%of the revenue respectively. Operating EBIDTA of Rs 29565 Lakh in financial year 2021-22as compared to Rs 22858 Lakh in financial year 202021 recording a 29.4% growth. ConsumerDurables and Premium products witnessed healthy growth despite Covid-19-related concerns.The past year saw considerable demand for home appliances amid a hybrid working system. Asa part of our action plan we intend to attain further market penetration and wallet shareto meet this growing demand.

Our Divisional Performance

Amber in its quest to provide the best solution to its growingstakeholders it has introduced the divisional framework which will ensure a pro-activeengagement better services and an inclusive growth. The divisions are as follows:

1. RAC Division

2. Mobility Division

3. Motor Division

4. Electronics Division

5. Components Dision (RAC+Non RAC)

During the year all the divisions have performed splendidly by addingnew customers new product lines and new geographies.

All our business divisions are geared to take advantage of theopportunities present and will boost our position in the domestic market while alsoestablishing a solid foundation for the exports market going forward.

PLI Scheme

Amber is a strong beneficiary of the Government's PLI Scheme for AC& its components. The production capacity provided by the PLI Scheme is likely totranslate into significant growth for the Air Conditioner industry. Amber gained approvalfor AC components under the normal investment category with a Rs 3 billion investmentalong with an approval for the Electronics Division under the major investment categorywith a Rs 1 billion investment. This will be led by an indigenisation of completelybuilt-up units and developments in the component ecosystem. This scheme also becomes anenabler for lifting as well as creating a local component ecosystem. It is also expectedto add value addition to the present domestic AC market and with respect to componentswhich stands at 25% it is expected to reach 75% in next five to six years.

Our Capex Plans

The FY 2021-22 for Amber was a year of expansion and capitalexpenditures. We have planned capital expenditures for two greenfield projects one inPune and the other in Sri City which we anticipate will lead to improved revenues. On aconsolidated basis We expanded our facilities at Kadi in Gujarat for injection moldingcomponents and Chennai in Tamil Nadu for sheet metal components and heat exchangers whichwe started on rented premises. Amber spent Rs 4.33 billion (including right of use assetsbut excluding assets acquired pursuant to business combination) in FY 2021-22 on capitalexpenditure on the existing plants R&D and development of new greenfield sites.

The Supa (Pune) greenfield facility was made operational in Q4 whereascontruction work at SRI CITY facility is in progress and on track. We expect this facilityto be operational by September 2022.

Our responsibly towards the community and environment

Amber has always remained on the front foot when it came to servingcommunity and environment. We work with the mantra of ‘Moving Together and InclusiveGrowth' where we believe the community too must grow with us. At Amber we are committedfor the development of society where we operate and our CSR initiatives reflects ourcommitment to build and support the society by impacting a larger number of beneficiarieseach time.

ESG is an embedded part of Amber's strategy where we believe increating sustainable values for long term. In the recent years our increased focus onimproving AEIL's environmental social and governance strategy has enabled us to buildbetter growth prospects.

Note of Thanks

I extend my heartfelt gratitude to my entire team for their hard workand dedication in creating value for our stakeholders. Team work at Amber is behindAmber's growth story and every team member is a vital part of the Amber family.

I am glad as a company we could make our presence felt in profound andmeaningful ways as we looked after the community's wellbeing and health and promise tocontinue doing so in future.

Lastly I am thankful for the unceasing support from our shareholdersvendors bankers FIs management and customers. Their faith in us makes us who we are andwe look forward to their continued support as we march ahead in pursuit of making a bettertomorrow.

Regards
Jasbir Singh
Chairman & Chief Executive Officer

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