The FY 2018-19 has been a transformational year for our company. We have transitionedfrom being an Engineering solutions company to an organization with Intellectual Propertyof its own. The IP enables us to design and develop products for our automotive customers.Our customers expect us to deliver complete manufactured products not just design anddevelopment.
The Company has acquired Titan Timeproducts Limited Goa an EMS (ElectronicsManufacturing Services) company through share purchase agreement on 18thJune 2018. ThusTitan Timeproducts Ltd has become a 100% subsidiary and subsequently name changed toDanlaw Electronics Assembly Limited (DEAL). Since then 30% stake in the subsidiary wassold to Danlaw Inc.
Danlaw Inc. with its global exposure of delivering innovative products will help DEALbecome world class EMS facility. During the year we have added significant automation tothe existing SMT lines and continue to add infrastructure for significant growth in theupcoming years.
Going forward a manufacturing base in India will unlock significant value from therapidly growing Indian auto components industry which is valued at $ 43.5 Bn today and isexpected to grow four-fold by 2026 becoming the third largest globally. Given theincreased pace of global OEM sourcing from India as well as increased indigenization ofglobal OEMS a local manufacturing base will help Danlaw leverage the growth of the Indianas well as global auto industry. Cost-effective manufacturing a large pool of skilled andunskilled workers proximity to key auto markets in Europe and availability of abundantraw materials all make India an ideal manufacturing
base. We believe that the global move towards new technologies in the auto industry anda superior manufacturing base will generate new opportunities for Danlaw.
The auto industry has experienced fall in the sale of vehicles across the globe on theother hand the investments increased in the mobility electric and automated vehicles.Most of the OEMs are launching newer models with the mobility features. The shift inmobility is driven by Electronics hardware and software.
Our company has been involved in the space of connected vehicles for a long time andhence is at the right place at the right time to be a significant player in theopportunities presented by the paradigm shift in the mobility.
Summary of consolidated financial results:
Total revenue 5556 lacs as compared to 2031 lacs of previous year
Loss after tax of 91 lacs vs.144 lacs Profit in previous year
Danlaw Technologies Inc. our US WOS:
o Total revenues of $445 thousand US Dollars
o Income from Operations $28 thousand USD
In conclusion I would like to place on record the management's appreciation of thecontributions made by our highly skilled and talented employees at all levels. Wecertainly thank our customers vendors and our bankers for their support during the year.
I thank the Board of Directors for their continued guidance.
I am confident of profitable growth going forward. We take this opportunity to thankthe stakeholders for the continued support and we highly appreciate it.
Raju S. Dandu
Chairman & Managing Director