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Rasandik Engineering Industries India Ltd.

BSE: 522207 Sector: Auto
NSE: N.A. ISIN Code: INE682D01011
BSE 00:00 | 17 May 92.50 1.95
(2.15%)
OPEN

94.80

HIGH

94.80

LOW

91.00

NSE 05:30 | 01 Jan Rasandik Engineering Industries India Ltd
OPEN 94.80
PREVIOUS CLOSE 90.55
VOLUME 2117
52-Week high 197.00
52-Week low 60.40
P/E
Mkt Cap.(Rs cr) 55
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 94.80
CLOSE 90.55
VOLUME 2117
52-Week high 197.00
52-Week low 60.40
P/E
Mkt Cap.(Rs cr) 55
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Rasandik Engineering Industries India Ltd. (RASANDIKENGG) - Chairman Speech

Company chairman speech

Managing Director's Message

At Rasandik we are prepared to take advantage of opportunities comingour way and foster a roadmap of growth.

Our market leadership in Body-inWhite (BIW) auto components will befurther complemented by strategic partnerships with renowned auto manufactures in India.This combined with a technologically advanced and innovative approach in productdevelopment would further help us enrich our esteemed clientele with superior quality ofproduct offerings.

Dear Shareholders

I am glad to be speaking again with my trusted shareholders as wesuccessfully reach the closure of another financial year. The impact of the COVID-19catastrophe has been much-pronounced but is subsiding now. Economies across the worldhave been gradually taking a course of revival.

Though the GDP for the entire fiscal of 202021 contracted by 7.3% Q3and Q4 of the annum registered positive GDPs respectively indicating the upbeat outlookof Indian economy. The GDP for Q3 grew by 0.4% and that for Q4 by 1.6%. Q4 seemed tomark the onset of recovery in the Indian economy as RBI also estimated the growth in GDPto be around 9.5% for 2021-22. An economic stimulus package to the tune of Rs. 20 Lacs Crshelped strengthen both the demand as well as the supply side of the economy in the formof credit guarantee liquidity infusions infrastructural development and employmentgeneration through various schemes. These measures are expected to build a sound platformfor the development of economy in urban as well as rural areas.

India has been a promising market for automobiles ranking as the 5thlargest amongst the global automobile markets.

A rising national income would facilitate higher discretionary spendingand improved lifestyles. Moreover an exponential boost in urbanisation will furthersupport India's auto trends. The domestic automobile manufacturing industry demonstrated aCAGR of 2.36% between 2016-17 to 2019-20 with nearly 26 Million vehicles gettingmanufactured in 2020 alone.

The demand for luxury passenger vehicles too is expected to rise byalmost 40% in the coming fiscal of 2021-22. The Medium and Heavy Commercial Vehicles(MHCV) industry is also expected to witness strong expansionary tendencies with growingdemand for such vehicles emanating chiefly from the burgeoning e-commerce sector and theGOI's newly initiated infrastructural development projects amounting to Rs. 2 Lacs CrsThese robust growth trends would derive further boost from the voluntary scrappage policyannounced in the Union Budget 2021-22 generating a massive demand for new vehicles andscrapping the old ones. Another spurt of market expansion is expected to arrive on theback of EVs (Electric Vehicles). However the widespread adoption of EVs can be ensuredonly if the commercial feasibility is firmly established. The said commercial feasibilitymust translate into optimum operations cost for the businesses as well as enhanced comfortand ease of use for the end customer.

These developments clearly indicate a buoyant outlook for theautomobile sector in India. The automotive components manufacturing sector is set tobenefit directly and proportionately from these expansionary developments. Auto componentsector in India was valued at USD 14.5 Billion in the fiscal of 2019-20. By 2026 expertsforecast it to touch the size of USD 80 Billion thus registering a CAGR of 23.9%. Indiaintends to allocate 8% of its total expenditure towards Research & Development in theauto sector.

There has also been an allocation of Rs. 57042 Crs by the Governmentof India for automobiles and auto component sector under its Production- linked Incentive(PLI) scheme.

At Rasandik we are prepared to take advantage of such handsomeopportunities coming our way and foster a roadmap of growth and prosperity for all ourstakeholders. Our market leadership in Body-in-White (BIW) auto components will be furthercomplemented by strategic partnerships with renowned auto manufactures in India. Thiscombined with a technologically advanced and innovative approach in product developmentwould further help us enrich our esteemed clientele with superior quality of productofferings. Such value-added initiatives and laser- sharp focus on maintaining productquality has enabled us to clock in a revenues of Rs. 139.29 Crs

We are noticing a strong trend for rising adoption of EVs across theglobe. From the present share of EVs of approximately 3% in the global automobile marketit is expected to rise to around 24% in 2030. The share of India in this market isestimated to be around 10%. This spells out a huge growth potential for adoption of EVs inIndia driven especially by the three-wheelers. The Company aims to partake in theexpanding market potential of electric three-wheelers (E-Autos) supported strongly by theGovernment of India initiatives such as FAME-II scheme. Also the total cost of ownership(TCO) of the electric three-wheelers is lesser as compared to that of the diesel vehicles.EVs segment is expected to receive further boost with many municipal corporations as wellas leading E-commerce companies aiming for electrification of autos and delivery fleet.

Rasandik promises to uphold our core value of serving our customerswith premium-quality products backed by state-of-the-art technology and world-classproduction processes. I sincerely express my admiration for all our crew members - ourhard-working sincere team who have shown unmatchable dedication and put in tirelessefforts keeping the customer first even in the wake of a pandemic. I also thank my Boardof Directors for this continued support and strategic guidance on the path of growth. Iconclude here but with a sincere vote of thanks and humble gratitude for all mystakeholders and community. We promise to honor the consistent support and faith we havereceived as we continue on our path to drive the future with our engineering solutions.

Regards
Rajiv Kapoor
Chairman & Managing Director

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