Last year the world as we knew it changed for all. Today we're allriding the same sea of challenges. The COVID-19 pandemic rightly being called thepandemic of inequality' has exacerbated the existing disparity and political tensions.This global health crisis has been overwhelming public health systems while wreaking havocon economies worldwide. The immediate economic impact slowed us down considerably.However it also offered the opportunity to pause rethink and design a new and fastertransition to a sustainable world.
Just as we started seeing signs of recovery from the impact of thepandemic in Q3FY21 the second wave of COVID-19 dented Q4FY21. It brought about a new setof difficulties with an even more intense and severe impact than the first wave. Howeverwe overcame the hurdles with the same vigour as we did last year. We stood by ouremployees as health and safety took precedence and provided all possible support onceagain as one family to ride over these testing times.
The announcement of lockdowns in April 2021 resulted in many OEMscutting down production. This had a cascading effect on the component industry. But as thenumber
We also believe that long-term success is achieved by linking economicgrowth with environmental stewardship and financial performance with socialresponsibility. As a global company we will always strive to ensure that our ESG focus isembedded into our strategy and that our growth ambitions are compatible with sustainabledevelopment practices conscientiously seeking the right balance in every choice we make.of new infections gradually started to drop and with the pick up in the pace ofvaccination drives we soon saw lockdown restrictions starting to ease. This indicatedimproved demand and better capacity utilisation for OEMs. However the impact of thepandemic on the supply chain continues inhibiting a complete return to productionnormalcy.
The lockdown imposed during the second wave was different from thefirst one. Companies now had a first-hand experience of dealing with the situation thathelped them respond better. Moreover the migrant labour exodus was not as pronounced asit was in the first wave as employers went the extra mile in taking care of contractualoperators and fitters.
Like most companies worldwide the COVID-19 pandemic significantlyimpacted our business. As our immediate response we focussed on making our plantsdistribution centres and offices safe for our people. Our operations and EHS teams workedpromptly to ensure safety. At all our workplaces. We introduced extra health and safetyprecautions including rigorous cleaning and sanitation protocols regular wellness checksfor team members and changes within facilities to comply with social distancing mandate.
While Q1FY21 witnessed a complete washout of sales we experienced ahealthy recovery in Q3FY21 owing to pent up demand and increased demand for personalmobility. As a company we showed remarkable resilience and strength during the initialpart of FY21. H2FY21 saw us seizing the prevalent opportunities on the back of a strongrevival of the industry. This helped us immensely in posting solid financial performance.Today localisation has emerged as one of the key pillars for us and we believe theprospective long-term demand outlook is still intact. Our prudence and preparedness makeus well-poised to capitalise on this demand. We will continue to pursue our goal with newvigour and are confident of emerging much stronger from the current challengingenvironment.
The merger of Harita Seating Systems Limited and its four holdingcompanies with Minda Industries was completed on April 1 2021.
The Government-proposed PLI Scheme of ?57000 Crore for the auto sectorwas a significant development during the year. The Scheme will help the auto sector tothrive on the Make in India' initiative. Thus it will turn the sector from beingimport-oriented for some critical components to an export-oriented one. Further thevoluntary vehicle scrappage policy included in the Union Budget will encourage theconsumer demand towards new and environment-friendly vehicles. Similarly the Ministry ofRoads and Highways proposed a green tax on old vehicles for reducing pollution. Thisclearly highlights the efforts that the Government is taking to shift energy consumptiontowards renewable sources. The Union Budget also announced 15% hike on custom duties onspecified auto parts like ignition wiring sets safety glass and parts of signallingequipment among others. This will definitely promote domestic manufacturing of automobilecomponents in the country and reduce the quantum of imports. All these factors and reformscollectively will help us align with the industry developments and thereby help furtherbroaden our future possibilities.
We also believe that long-term success is achieved by linking economicgrowth with environmental stewardship and financial performance with socialresponsibility. As a global company we will always strive to ensure that our ESG focus isembedded in our strategy and that our growth ambitions are compatible with sustainabledevelopment practices conscientiously seeking the right balance in every choice we make.
Sustainability Underpins Success
The success of our business shows that financial returns and socialresponsibility are interdependent. We look to work together to improve how people live andvalue our connect within the natural environment while walking towards a better tomorrow.In view of this we undertook various measures to lower our impact on the environment. Wealso made a commitment to obtain energy from renewable sources - in line with the Group'ssustainability vision.
During the year the Group undertook a lot of initiatives which areexpected to have environmental benefits and improve sustainability of the organisation. Wehave been working to reduce energy consumption water consumption C02 emission andwaste. This will ultimately reduce Operational cost. We have set up a green beltplantation drive covering 40% green area for new plants. We are also undertaking waterconsumption projects intending to reduce water consumption by 10% in FY22. To reduce ourcarbon footprint we have been investing in renewable energy. We have now installed 8.4megawatts of rooftop solar cells across 20 plants contributing 10% of the powerrequirement of the Group. We target to further increase renewable energy to 15% by the endof FY22.
Going forward we are optimistic that personal vehicles sale willswiftly recover as the economic activity picks up and the preference for personalmobility will further fuel the demand. The second wave had affected the rural areas aswell and hence we believe the demand for 2-wheelers might take some time before itnormalises. But positive indicators like the forecast of normal monsoon higher rabi cropsowing than last year and financial measures included in this year's national budget willact as a fillip to the rural economy. The mobility demand surge even as COVID-19 risk isexpected to normalise as public transport restarts across regions. Overall the medium- tolong-term outlook looks positive for the industry.
On behalf of the Board I would like to thank all the stakeholders fortheir continued loyalty and support. I also acknowledge the strong encouragement of ourcustomers bankers and our business associates. We are looking forward to your assistanceto help us achieve a better year ahead and beyond. Last but not the least I would like tothank all the staff and management for their dedicated services support and promise thatwe will strive to improve further.
Nirmal K Minda
Chairman & Managing Director