Last year at UNO MINDA we had promised ourselves that we would:
it is indeed gratifying to present to you our performance for 2016-17 that standstestimony to our success in keeping our promises to our shareholders and deliveringdouble-digit Eps growth. We withstood unprecedented challenges from economic ups anddowns especially in the domestic business landscape. We not only sustained the revenuemomentum and enhanced margins but also invested in future business opportunities creatingvalue for all stakeholders. strengthening our presence in the aftermarket segment alonebrought us a CAGR of 16% in revenues during 2012-17.
We achieved all this by doing what we are good at-focus and innovation with operationalexcellence.
We manufactured good quality innovative products that perform better to benefit ourcustomers; made incremental improvements using best-in-class automation and undertookselect initiatives that will give us assured future growth. We continue to enrich ourrelationship with oEMs by offering them contemporary mobility solutions.
During the year UNO MINDA also entered into three joint ventures (Jvs) with the globalleaders-onkyo Japan to manufacture Katolec corporation Japan to develop and manufacturebox build assemblies and He Taiwan for Rpas & advanced driver assistance products.
We continued to invest in making uno MINDA future-ready channelising time andresources to bolster R&D and hone the skills of our workforce. UNO MINDA'S fourstate-of-the- art R&D centres continue to develop retro- engineered products forglobal oEMs.
Synergistic Strategic Alliances
Our strong technological partnerships with global leaders like Tokai Rika Emer ToyodaGosei Kyoraku Torica Kosei Katolec corp onkyo & TTE have cemented our identity asan organisation that not just innovates but also sustains and builds on it.
We have also been systematically undertaking technology-led inorganic growth. With theacquisition of clarton Horn rinder and consolidation of pTMA and sAM global we have nowcreated a formidable worldwide presence through partnerships and subsidiaries.
UNO MINDA has earned the status of preferred supplier with oEMs through sustainedefforts in building multi-year relationships. More than 700 business partners and 10000touch points ensure that our products reach the farthest corners of india and are exportedto usA UK Europe & south east Asia and ASEAN countries.
Forging long-term bonds with a focus on innovation to cater to multiple market segmentsacross product lines has put UNO MINDA ahead of the pack earning us respect from ourcompetition.
Consolidation and Portfolio Optimisation
A unique cohesive entity with better financial strength enhances an organisation'sability to compete in the marketplace. To be future ready and embark on an aggressivegrowth trajectory we therefore needed to reorganise ourselves-consolidating product linesacross the group. This consolidation also allows us to substantially cut down overheads byunifying overlapping activities. We appointed KPMG to work on a scheme to simplify ourcorporate structure. As of 31 March 2017 UNO MINDA successfully accomplished phase-1 ofthis restructuring process which we expect to complete in the ensuing financial year.
This business realignment plan will lead to greater harmonisation across our productsresearch and markets which we hope to gain from. We are confident of dominating mostmarket segments our product portfolio caters to and be significant players in the rest inthe foreseeable future.
Innovation-disruptive or otherwise-for us is relevant not only in the technology spacethat our products belong to but also in business processes that support the planning andmovement of our products. At uno MiNDA we have chosen to focus on optimising the productmix by maximising content per vehicle. powered by our strong customer relationships thisoptimal product portfolio will lead to enhanced profitability. It is this business processinnovation that is changing the game in our favour in the emerging automotive solutionsindustry. We shall continue to do so in the years to come.
Responding to Evolving Market
India's ambitious Make in India' programme is another opportunity that uno MiNDAaims to tap. India's passenger vehicles production is expected to increase to 8.7 millionby 2020. consequently the demand for vehicular accessories too will rise steeply. To gainfrom this opportunity we are adding speakers infotainment systems electronicsmanufacturing services (EMs) and driving assistance products and systems (DAps) to ourever-growing product portfolio.
In addition as India develops into a sourcing hub for global oEMs we intend to makethe most of UNO MINDA'S competitive advantage by setting up export-oriented productionunits across the country.
Innovation & Technology
A technology or product by itself is neither sustaining nor disruptive. Therefore itis our responsibility at uno MINDA to choose between a sustaining path and a disruptiveone while embarking on technology-led growth. We have always been led by the interests ofour customers. We will continue to adapt to the dynamics of what technology is able tosupply and the demand our customers make from our products. our effort will be to smartlyallocate resources to prioritise innovative sustenance of high-margin products in largemarkets while also serving disruptive innovations to niche markets.
As vehicles are progressively fitted with technologically advanced systems it isimperative for MINDA to keep pace and stay ahead. our emphasis on utilising technology totransform driving experience vehicle safety technical features and environmentalconsciousness is in turn driving a change in the automotive components industry.challenged by our innovative products competitors will be compelled to defend theirmarket share. This in turn will put us on a strong wicket financially to pursue attractiveinvestment opportunities.
our journey till date and ahead is incomplete without our team members. Their passionand commitment towards the company has contributed largely to our growth over the years.
I would also like to thank the stakeholders for their trust and faith in our company.Your enthusiasm in what we do open up many possibilities for MINDA to play a catalyticrole in shaping the future of automotive systems market in India. We promise that we shallrelentlessly strive to maximise benefits to all stakeholders in the most efficient manner.We seek your partnership for another year to continue our journey of internal and externaltransformation and delivering value to you our shareholders.
Nirmal K minda
chairman & Managing Director