The Automotive Industry will be the front-liner tackling disruptions head-on as wellas the torchbearer leading this change.
The COVID-19 pandemic continues to present huge challenges. These are anxious timesthat present numerous challenges which have made their mind up against growth yet despiteall the downsides humanity continues to impress with its grit vigour and more so withcompassion. There may have been doubts on whether humans can work in a unison butevidently keeping all our differences aside we the people of the world came togetherand accomplished impossible feats during such unprecedented times. Vaccines were developedfor a disease no one had heard of within 6 months. This in itself truly shows the powerof unity. The obstacle may have been greater but our keen efforts to move forward hasbeen remarkable.
We at Lumax are confident that with resilience and grit we will overcome everyobstacle. As a brand that is built on the premise of togetherness we were yet againreminded of just how closely-knit our Lumax family really is.
In FY 2020-21 as businesses dropped globally we had two core goals: Sustaining thegrowth momentum while also protecting our people. It gives us immense pleasure to informyou that we met a resounding success at both.
About workforce health we were quick to take sweeping measures nationwide setting upour own quarantine centers in just a few weeks. In spite of temporary productionshutdowns the Company managed to record commendable performance in FY 2020-21 too. ThoughCOVID-19 tried its best and the lockdowns affected public movements the Company had beena step ahead with its 7-decade-old multi-location footprint assisting us to reach ourcustomers despite the limitations.
Lumax is indebted to its associates for their untiring work as well as for theirwillingness to shoulder considerable responsibility. The agreements needed for this werefinalised in constructive dialogue with the employee representatives. We are also humbledby the generous loyalties our customers and suppliers have displayed as well as ourshareholders and supervisory board members whose guidance and unwavering support led usthrough these tough times.
As the global economy rebounds from the COVID-19 the path to resumption is notunmarked by obstacles. Challenges with a mass vaccination exercise continue to weigh onactivity within India as well as globally. The COVID-19-induced lockdown in the first halfof the year resulted in 23% lower output consumption and deeply impacted GDP in thefirst quarter. The fiscal stimulus provided by the Center and the RBI provided somerelief and was aided by phased unlocking in from September.
The Indian economy recorded a V-Shaped recovery and showed optimistic signs of revival.The vaccination initiative taken by the Government brought confidence in the economy.However the second wave of COVID-19 forced the Government to impose lockdown in majorstates and cities leading to cramping of financial momentum resulting in repeatedeconomic slowdown by the end of the fourth quarter.
Lumax had already taken massive procedural shifts during the last year to accommodatethe new normal. Our collective efforts ensured business continuity and achievement ofinnovative milestones. Going forth it is our togetherness that will lead to success.
The world as we know it wont be the same after the pandemic is dealt with. Evencurrently we are experiencing paradigm shifts that are both economic and social fuelledby continuing digitalisation climate change and compounded by the impact of theCoronavirus pandemic. These enormous challenges can only be met by venturing off thebeaten path and pursuing approaches marked by creativity and responsibility. Withinnovations sparked by inspiration based on technological excellence and characterisedby reliability we are shaping the future of business society and technology. TheAutomotive Industry will be the frontliner tackling disruptions head-on and emerging asa torchbearer of change.
The Automotive market has a crucial role in the Indian economy and while the IndianAutomotive Industry faced many recent challenges including COVID-19 pandemic experts sayits growth potential is huge and clear.
The FY 2020-21 has been a challenging year for every industry.
However the Automotive Industry true to its reputation doesnt get knocked outeasily. The pandemic had its day but since the onset of the third quarter the automotivedemand has shown tremendous resilience post facing the worst-ever downturn witnessed inthe last two decades. While the first quarter saw a complete washout of sales as thepandemic peaked the second quarter saw a V-Shaped recovery for the Company. The firsthalf proved to be challenging from the cashflow perspective the Company achievedcommendable record performance in FY 2020-21 too. Our healthy relations with our clientsand vendors helped us stay afloat during this time. With the gradual resumption ofactivities and pent-up demand across segments we recorded very good sales for the nexttwo quarters that is before of course the second wave of pandemic hit us. We creditthis success to our amazing workforce who never resisted challenges and tirelessly workedtowards the Companys vision.
Characterised by difficult challenges and unforeseen events the year held testimony toour effective leadership which kept motivating our workforce while constantly engagingwith them. We learnt a new way of operating working from home - enabled byour digitally sourced platform.
On the operational front our expansion into Printed Circuit Board (PCB) business isintact and the greenfield site at Bawal Harayana will be commissioned soon. Our focus oncontinually innovating new products remained unfazed while moving with the industrytrends. We expanded our product portfolio in electronics and started a JV extension withour age-old partner and Japans automotive pioneer Stanley. Going forward we areoptimistic that Automotive Industry has a bright future ahead with a sure increase in percapita consumption.
As an employer we see the future as a fast-paced world of innovation passion and thecourage to embrace change. People are the key to future success and this is why ourtalented people are the very essence of the Lumax future story.
With our EHS strategy for sustainable products we consider opportunities and risksthroughout our products life cycles. We are stepping up to the challenge of climatechange with new building technology concepts.
The key importance of environmental protection for our future success is also reflectedin our target vision for sustainability: five of the six issues energy climatewater urbanisation and health are directly related to the protection of ourlivelihoods and the conservation of natural resources. We have been working to reduce ourecological footprint for many years. Our environmental management ensures that weconsistently pursue the goals we set ourselves. These efforts are coordinated by the EHS(Environment Health and Safety) and Sustainability corporate sector.
Though FY 2020-21 was a watershed year for all of us it also showed how collaborationand sharper strategies can work miracles. While 2020 tested our capabilities andendurance 2021 is setting the stage for a new era of growth and sustainability. We thankyou all for your commitment and support and invite you to partner towards an inclusivegrowth for all our stakeholders.
|Warm regards || || |
|DK Jain ||Deepak Jain ||Anmol Jain |