The only constant in a dynamic world is change. Interwoven in the finetapestry of time change allows for new life and novel ideas to germinate. Taking a leaffrom the book we at JTEKT India Limited have embraced change with open arms and haverechristened Sona Koyo Steering Systems Limited as JTEKT India Limited on 7thApril 2018.
The new name spells hope and optimism as this will align us withJTEKT's philosophy and create global identity. I am delighted to inform you that yourCompany has stayed the course and built on its core values of creating a sustainable andbright future through the spirit of No.1 & Only One'. JTEKT India Limitedhas always adhered to quality benchmarking in terms of deliverables research anddevelopment policies and optimising existing systems and processes. Our offerings are atpar with global standards and during 2017-18 we have focused on building our momentumtowards creating safer vehicles cost-effectiveness skill-development and manufacturingsteering systems of high-quality as well as environmental sustainability. Besides ourpriority area of emphasis Customer First' continues to remain at the top ofour list and we have continuously upgraded our technology to keep up with customer'sexpectations.
You will be pleased to note that your Company has improved itsfinancial results by continuously focusing on improving its operationalefficiencies. In FY'18 your Company reported 4.1% growth in revenue from operations.PBDIT improved by 6.46% as a result of continuous improvement in material cost as well asdecline in the fixed costs.
Furthermore the re-organisation of JTEKT India Limited will help yourCompany pave its way in further fortifying its position in the market. Keeping up with thechange your Company adopted Hoshin Management System which aims at:
Creating a strong corporate constitution that is capable ofsustained high performance
Setting Mid/Long-term/ Annual plans By
Prioritizing activities and resources
Involving all members from top to bottom who define activitiesand set targets for their respective positions
Turning over the management cycle (PDCA) during theimplementation of Hoshin
Under Hoshin Management the whole organization is aligned to go in onedirection thus leading to better institutionalisation of a system that puts an evolvedwork culture in place. This would also aid in promulgating JTEKT Group's vision ofbeing "No.1 & Only One" in your Company. Under the vision we put the focuson:
Teamwork & Self-discipline
Aspiration for innovation and for technique
Through its state-of-the-art offerings JTEKT India is well-positionedin India's auto-ancillary market. The positive reforms by the Government such as theroll-out of GST Make in India' initiative and building India as a preferreddestination through 'Ease of doing business' are all paving the way towards abrighter future for the industry as a whole. These changes have reaped a good dividend forthe Indian automotive industry and helped register one of its fastest annual growth ratesat 14.2% during FY2018.
While the passenger car segment witnessed a growth of 7.9% the2-wheeler segment leapfrogged to grow by 14.8%. Additionally the commercial vehiclesegment has also seen a robust growth of 19.9%. Despite a slowdown in investment momentumthe Indian economy was supported by strong private consumption and registered a growth of6.7% during FY2018. This growth can also be attributed to a good monsoon seasonpersistent soft interest regime and the Government's continuous investment to perk upthe infrastructure.
According to the Society of Indian Automobile Manufacturers (SIAM) theIndian automotive industry is all set to have a healthier FY2018-19 as the sales growth ofpassenger vehicles in FY19 is pegged at 8-10%. Utility vehicles growth is pegged at 14-15%and cars between 8-9% in the domestic market. Of all the commercial vehicle continues togrow in double-digit at 10-12% with M&HCVs sales going up by 10-11% and lightcommercial vehicles growing at 10-12%.
The auto ancillary industry in India has undergone transformation andhas changed into an increasingly focused sector from a fragmented one emphasizing on thecompetitive strengths and improving technology. Some of the benefits India enjoys in theauto ancillary sector over other countries are that it is a low-cost manufacturing baseand a highly skilled manpower resource.
The needs of the market today are changing with the evolution of newconcepts and technologies. Factors such as enhanced safety and comfort are a hygienerequirement with an increased demand being seen for features like advanced infotainmentand gesture control systems telematics steering-mounted controls heads-up displays andcentral controllers in passenger vehicles. The government focus on stricter emission normsare also pushing Indian OEMs to build eco-friendly cars. JTEKT has always been at the forefront of inventions such as Column type Electric Power Steering (C-EPS) and continues toinnovate with a view to not only the current but also the future needs of mobility.
Keeping the Customer in focus your Company made its presence felt atthe Auto Expo held at Pragati Maidan from the 8th to the 12th ofFebruary this year. JTEKT Group India demonstrated its proficiency and showcasedinnovative offerings through stall designs and product displays. It exhibited itssteering bearing and driveline products along with a cut model of a Prius at the venue.The booth design was inspired by the present and future needs of mobility. Here all fivegroup companies were present at the exhibition and successfully grabbed the opportunity tospread the message of "ONE JTEKT" to the customers at large. The presence ofsenior leadership from Japan and India further reinforced the Company's commitment.
JTEKT India also conducted Tech Days' at Maruti Suzuki IndiaLimited and at the Renault Nissan Technology Business Centre in November 2017 and February2018 respectively. We exhibited our design and technology capabilities at the two eventswhich was well-received by our customers.
As far as the Intra Company Transfers "ICTs" are concernedwe at JTEKT India have made a good capital investment and promoted the exchange of humanresources between India and Japan. We firmly believe in the idea of providing an idealenvironment for our employees to grow and flourish. The cross-pollination of employeesfrom both the countries will help them learn from each other culturally andprofessionally. Under the umbrella of JTEKT Group in India we are cultivating a cultureof inclusive diversity and would like to provide as much exposure to our employees throughour ICT programme.
With an experienced board at the helm of affairs and focus on awell-structured corporate governance framework your Company has taken all corporatedecisions in compliance with laws and regulations. The Independent Directors of theCompany are well-accomplished in their respective fields and have guided the Company inthe right direction in governance and operations. Their able direction has helped to growour business and efficiencies on the whole.
I take this opportunity to show my gratitude to our customers! At JTEKTIndia Limited we are grateful to be of service to them: Maruti Suzuki Mahindra &Mahindra Tata Motors Honda Fiat India Toyota Kirloskar John Deere Club Car EzgoISUZU and Renault-Nissan India. I would also like to express thanks to our bankers StateBank of India Corporation Bank Standard Chartered Bank YES Bank Kotak Mahindra BankAllahabad Bank IDFCIndusInd Bank and Sumitomo Mitsui Banking Corporation for puttingtheir confidence in us.
I thank the strength of JTEKT India Limited all its employees forcontinued support to the management. Finally I would like to thank our shareholders fortheir firm belief in our capabilities and their continued patronage; they have alwaysmotivated us to deliver better results year after year.
We are looking forward to our collective journey driving into thefuture with new opportunities.
|Thank you |
|Yours sincerely |
|Hidekazu Omura |