Autoline Industries Ltd.
|BSE: 532797||Sector: Auto|
|NSE: AUTOIND||ISIN Code: INE718H01014|
|BSE 12:40 | 26 Sep||93.00||
|NSE 12:29 | 26 Sep||92.50||
|Mkt Cap.(Rs cr)||362|
|Mkt Cap.(Rs cr)||362.33|
Autoline Industries Ltd. (AUTOIND) - Chairman Speech
Company chairman speech
Dear Fellow Shareholders
It is my privilege to present you the Annual Report for the nancialyear 2018-19. Our determination to excel and strong will to deliver has shaped thetransitional journey for your Company.
India is emerging as a global auto hub and is set to be a part of topautomobile and auto component manufacturing nations in the world. Major global originalequipment manufacturers (OEMs) have made India a component sourcing hub for their globaloperations. With the emergence of electric vehicles (EVs) in the country andgovernment's push for use of EVs new growth avenues are set to arise for both OEMsand auto component industry. Your Company primarily involved in automobile engineeringis among the top players of the country for commercial auto ancillary segment and hasmaintained the position since many years. On the backdrop of sector challenges andliquidity concerns we have achieved notable revenue growth in the past three years. Thepromoters board members investors and management team are very much con dent for thefuture growth of your Company. This is evident from the infusion of equity funds by thepromoters in the last four years. The additional investment by other investors includinghigh net worth individuals foreign investor and private equity fund further boosted thecon dence of all the stakeholders. Towards the transformational journey your Company hastaken several initiatives to emerge out from the past challenges and is geared up for thefuture. Some of the initiatives are mentioned as below: Expansion of Client Base: Inaddition to strengthening its hold in the domestic market your Company has expanded itscustomer base beyond domestic OEM's and have added marquee customers in itsportfolio. Diversi cation in Product-mix: In order to optimize our capabilities andto mitigate sectoral risk your Company has been diversifying into non-auto sector. To tapthe potential of emerging EV market your Company has launched its own e-bicycle and isalso exploring partnership opportunities to leverage its manufacturing capabilities for e-vehicles.
Capacity Consolidation: To optimise installed capacities we areconsolidating manufacturing plants. Recently a plant in Dharwad is successfully executed;another plant in Pune and Pantanagar is underway. The consolidation would lead to enhancedcost savings asset utilization manpower rationalisation and improvement in productioncontrols & supply chain management.
Cost Saving and Operational ef ciencies: Your Company isundertaking various measures like improved machine utilisation manpower rationalisationraw material optimisation tight control over scrap generation etc. for enhancingoperational ef ciency and reduce cost.
Improving Liquidity and Debt Reduction: Your Company iscontinuously raising resources to support its operations and to reduce debt levels. Thereceipts of additional Industrial Promotion Subsidy (IPS) during the year and equity fundinvested by promoters and investor provided a robust liquidity. Technology Tie-ups: Inorder to align and upgrade itself with fast and growing tech advancements your Companyhas signed MoU with Korean Company which will aid technologic support in tooling xtureand manufacturing low cost components. The automobile industry in India is still in thegrasp of challenges. The production and sales numbers continues to decline owing toincreased regulations subdued demand and tight liquidity; however the prospects areoptimistic. As per an industry report the Indian auto component sector is expected togrow at a CAGR of 19% from USD 51.2 billion in FY 2017- 18 to reach USD 200 billion in FY2025-26.
We believe that the recent slump in automobile sector is transitory innature. Various government reforms including bank recapitalization to improve creditavailability further liberalising FDI policy and other sector related reforms will denitely boost the growth prospects for automobile and auto component industry. Your Companybeing a largest automotive sheet metal components and tools manufacturer will be able toreap benefit from the growth of both the conventional as well as electric vehiclessegments.
Your Company is determined to achieve sustainable turnaround and steertowards growth path to add value to all the stakeholders. We will continue our endeavourto improve quality and living standards of the community we livein and enhance prosperityand happiness for our stakeholders. With profound grief I would like to inform the recentsad demise of Mr. M. Radhakrishnan Promoter and Ex-Managing Director of the Company. Hewould always be fondly remembered for his contribution to the growth of the Company.
To conclude I thank all our customers employees nancialinstitutions investors government agencies and suppliers for their unrelenting andunswerving support.