Dear Stakeholders,
In FY 2023-24, India's economy showcased
resilience and dynamism, with a robust GDP
growth rate of 8.2%. Driven by thriving sectors
like IT, telecommunications, automobile and
pharmaceuticals, India has solidified its position
as the world's fifth-largest economy. With prudent
financial management, inflation eased to 4.83% in
April 2024, which remained well under the Reserve
Bank of India (RBI) tolerance band set at 2% to 6%.
Strong fiscal indicators, including a 22.19% growth
in direct tax and an 11.5% surge in GST collection
strengthened the economy. India continues its
transformative journey, with rising domestic
consumption, strategic investments, and global
integration and is poised for sustained growth.
Industry Perspective
Speaking about the auto industry, automobile
production achieved robust growth of 10% in
FY 2023-24 across all vehicle categories. The
passenger vehicle segment achieved production of
4.90 Million units. The 2W category also recorded
production of 21.5 Million units in April-March 2024,
growing by 10% though still falling short of the pre-Covid peak.
In value terms, the Indian automobile industry
surged by 19% to reach US$ 122.53 Billion
(₹ 10.22 Lakh Crores) in FY 2023-24, driven
significantly by growth in the utility and sports utility
vehicle (SUV) segment. Notably, the UV and SUV
segment experienced a remarkable 23% increase in
volume and a 16% rise in average prices, resulting
in a substantial 39% growth in overall segment
value. This price uptick was influenced by general
inflationary pressures, a preference for higher-end vehicle segments, the adoption of hybrid and
automatic models, the appeal of sunroof-equipped
vehicles, and a gradual shift towards electric
vehicles (EVs). The trend reflects Indian consumers'
inclination towards more feature-rich and higher-priced vehicle options across various segments.
The Indian automotive industry's growth
momentum is expected to continue into FY 2024-25 owing to strong demand, especially in passenger
cars and two-wheelers. Initiatives allowed in the
budget are also expected to positively affect the
auto sector's growth in FY 2024-25. The long-term
prospects for the auto industry remain highly
optimistic. India has embraced the challenges faced in the past few years and is now at the cusp of rapid
growth over the next decade.
The Company's perspective
Our focus on expanding market share, offering
comprehensive indigenous solutions and embracing
the PACE technology megatrend has yielded
remarkable results. We have achieved a 25% growth
in annual revenues, reaching ₹ 14,031 Crores in
FY 2023-24 compared to ₹ 11,236 Crores in FY 2022-23, outperforming industry volume growth.
Our EBITDA for FY 2023-24 stands at ₹ 1,585 Crores,
showcasing a substantial improvement from
₹ 1,242 Crores in FY 2022-23. Notably, our EBITDA
margins increased to 11.30%, compared to 11.05% in
FY 2022-23. The PAT attributable to shareholders
of the Company increased by 35% to ₹ 880 Crores
in FY 2023-24 from ₹ 654 Crores in FY 2022-23.
Additionally, we have achieved a Return on Capital
Employed (ROCE) of 19.81%, indicating progress from
the previous year ROCE at 19.16%.
At Uno Minda, we remain committed to innovation,
leadership, and social responsibility. We continue to
expand our presence in various products, including
switches, PV seating, alloy wheels, lighting, and EV
business.
In the realm of alloy wheels, we have expanded our
manufacturing capabilities, producing both Gravity
Die Casting (GDC) and Low-Pressure Die Casting
(LPDC) wheels. Furthermore, our focus on LED
penetration in 4Ws and strategic initiatives in the EV
segment shows our commitment to sustainability
and future-oriented solutions.
As we look ahead, we are optimistic about our growth
prospects. Our ongoing expansions in EV plants, 2W
alloy wheel production, and 4W switch plants are
clear indicators of our confidence in sustaining our
performance and ensuring long-term success. The
Company’s exceptional performance in FY 2023-24
reaffirms our position as an industry leader. With our
strong financial and operational performance paving
the way, we are well-positioned for continued growth
and success in the years ahead.
Segment Highlights
Switching Systems
At Uno Minda, we sustained growth in the switching
business, which contributed revenues of ₹ 3,663
Crores growing at 14% on a year-on-year basis. This
constituted 26% of our consolidated revenues for
FY 2023-24. Our switching systems segment has
demonstrated exceptional performance, driving
significant revenue growth for the Company. This
growth can be attributed to various factors, including
the adoption of smarter switches, strategic market
expansion, and increased exports in the 2W segment.
With the recent commissioning of lines for its 4W
switch plant in Chennai, we anticipate further
growth. Our focus on providing innovative solutions
to OEMs has solidified our market presence, boasting
a commanding market share of over 50% in both 2Ws
and 4Ws. Plans for consolidation of plant setup in the
North region at Farukhnagar Haryana to have larger
capacity underscore the Company's commitment
to expanding the market share and enhancing
profitability by maximising kit value.
Lighting Business
We have achieved a revenue of ₹ 3,368 Crores in
FY 2023-24, contributing to around 24% of our
consolidated revenues. The lighting business
revenues have grown by an impressive 31% in
FY 2023-24 in comparison to FY 2022-23.
At Uno Minda, our lighting division has emerged as
a key revenue driver, showcasing robust growth and
innovative strides in the automotive lighting industry.
With the commissioning of a new 4W lighting plant
in Gujarat, we started manufacturing of India’s first
indigenous 4-feet-long tail lamp, which further
expanded to three more such tail lamps later during
the year for different OEMs. Notably, the passenger
car exterior lighting business has thrived, securing
incremental orders, and witnessing technological
advancements in tail lamps, surpassing headlamps
in terms of kit value. Furthermore, the Company's
focus on cutting-edge lighting technologies like
logo projectors and illumination has garnered orders
from leading OEMs. With a strong market presence
and an expanding portfolio, Uno Minda has been at
the forefront of LED adoption, particularly in the 2W
segment. The division's strategic expansion plans in
Pune emphasise its commitment to meeting growing
demands and staying ahead in the competitive
landscape. With a clear focus on value addition and
market share expansion, we plan to become top
player in the lighting business in the coming years.
Casting Business
The segment has achieved a revenue of ₹ 2,830
Crores for FY 2023-24, contributing to 20% of our
consolidated revenues. Our casting division share of
revenues in total revenues has significantly increased
from 12% in FY 2020-21 to 20%. Notably, revenue
growth is led by the alloy wheel business for 4W and
2W, benefitting enhanced from incremental volumes
from new customers and better volumes from
existing ones.
Alloy wheel penetration continues to increase
reaching 45% in FY 2023-24. Buoyed by the demand,
the Company has also been aggressively expanding
its PV alloy wheel capacity. After commission of
additional 30,000 per month wheel line in Gujarat
plant, PV Alloy wheel capacity stands at 3,90,000
wheels per month, running at almost 100% utilisation.
We are further expanding by 60,000 wheels in Bawal
plant with 30,000 expected to be commission in
FY 2024-25 and work on remaining capacity will
commence depending on the necessary approval for
land acquisition.
During the year, we also announced another
greenfield plant with a capacity of 1,20,000 wheels
per month at IMT Kharkhoda, Haryana in a
phased manner over the next 5 years with phase 1
commissioning in Q2 FY 2025-26.
The Company also commissioned all three lines of ~
2.00 Mn wheel expansion at its 2W alloy wheel plant
at Supa Maharashtra. The said lines will ramp up in
coming quarter. Pursuant to additional orders the
Company is undertaking another expansion at Supa
plant by 2.00 Million wheel per annum committing
capital expenditure of ₹ 300 Crores. The enhanced
capacity is expected to be commissioned by Q1 FY
2025-26. Post expansion, capacity of 2W alloy wheel
will get enhanced to 7.5 to 8 Million Wheels per
annum.
Acoustic Business
Our acoustic business i.e. one of our oldest product
line stands as a vital component of the Company's
revenue portfolio, contributing ₹ 833 Crores
representing around 6% to consolidated revenues.
Notably, stable growth was observed in both the
Indian market and the European subsidiary, Clarton
Horns. While we are manufacturing electronics
horns in our European subsidiary, the adoption of the
same in India market is still very low owing the price
difference from traditional horn. Higher adoption of
electronics horns is one of the key drivers to watch
out for substantial growth in the acoustics business
Seating Business
Our seating business is a significant revenue
contributor, with revenues of ₹ 1,100 Crores,
constituting 8% of total revenues. The growing
demand for advanced seating solutions in CVs is
driven by comfort and safety mandates. Strategic
customer diversification efforts and partnerships,
like the joint venture with TACHI-S, underline our
promise of always innovating. With plans to reach
targeted revenues ₹ 1,500 Crores ahead of schedule,
the seating business remains a key growth driver,
aligning with evolving market needs.
Other Products Business
Our other products business, contributing 16%
of the revenues, marks an important segment in
the Company's portfolio. Primarily fuelled by the
escalating demand for EV products, controllers,
sensors and ADAS, Uno Minda's pioneering
localisation of wireless chargers has captured
significant OEM interest, with large orders secured
for both BEVs and ICE vehicles from OEMs. The
Company has set up a greenfield plant under ja
Joint Venture with FRIWO AG in Farukhnagar,
Haryana, to produce vital EV components for two- wheelers and three-wheelers. Phase 1 of the plant
was commissioned in first quarter of FY 2023-24.
In first year of operation itself, the plant has crossed
revenues of ₹ 195 Crores. Building on its low voltage
EV specific components, the Company is now
building capabilities for high voltage EV specific
components.
Beyond the above-mentioned emerging
technologies products, Uno Minda's other products
business encompasses blow moulding products
which has also grown significantly on the back of
capacity expansion at Bangalore.
Aftermarket Business
We are also one of the largest players in the
automotive aftermarket. Our aftermarket business
has witnessed a remarkable growth over last five
years, propelled by strategic investments, proactive
market strategies, and a keen eye for emerging
opportunities. The Aftermarket business achieved
revenue of ₹ 1,010 Crores in FY 2023-24.
Uno Minda emphasises delivering high-quality
aftermarket products, supported by robust
distribution networks. Uno Minda aims to strengthen
this segment by introducing new products,
expanding distribution networks, creating awareness about the use of genuine parts and prioritising
customer satisfaction, aligning with our commitment
to meeting market demands effectively.
Strategic Business Update
In FY 2023-24, we continued on an ambitious
journey of reinforcing our foothold in the automotive
industry and expanding our product portfolio.
We actively look at consolidating our business to
streamline operations, drive synergies and achieve
economies of scale.
During the year, we received approval for three
merger schemes whereby Harita Fehrer Limited,
Minda I Connect Private Ltd and domestic and
trading business of Minda storage batteries private
Ltd got amalgamated with Uno Minda Ltd. Minda
TG Rubber Private Limited also got amalgamated
with Toyota Gosei Minda India Private Limited.
With respect to the merger of Kosei Entities with
Uno Minda Ltd, the scheme is under approval from
statutory authorities and likely to be approved in
FY 2024-25.
After increasing stake in Kosei entities last year,
we increased our stake to 76% in Minda Westport
Technologies Limited, making it our subsidiary,
thereby reinforcing our position in alternate fuel
systems. This positions us to pioneer sustainable
mobility solutions and spearhead transformative
change in the automotive industry.
Uno Minda has been proactively securing land
parcels in all major auto hubs to be ready to meet the
growing demand from OEMs. Last year, Uno Minda
had acquired 86 acres of land at Khed City Industrial
Park, Pune followed by the recent acquisition of
37 acres in Hosur Tamil Nadu and 94.32 acres in IMT
Kharkhoda Haryana. Uno Minda's proactive land
acquisitions and greenfield project demonstrate its
commitment to staying ahead of the curve in the
rapidly evolving Indian auto landscape.
People
Our team members are integral to our progress and
achievements. We are committed to cultivating an
inclusive and safe workplace that provides equal
advancement prospects for everyone. To achieve
this goal, we have devised a comprehensive training
and diversity strategy. We are proud that our efforts
have earned us a spot in the Great Place to Work
Institute's Top 30 Best Workplaces for Manufacturing
Companies in India.
Looking Ahead
Looking ahead, the automotive industry is poised for
continued growth in FY 2024-25, driven by robust demand across vehicle categories. At Uno Minda,
we are confident of sustained momentum, through
strategic expansions and partnerships to lead
innovation and capitalise on emerging opportunities.
With a focus on sustainable mobility solutions and
market leadership, we remain committed to shaping
the future of the automotive landscape.
Heartfelt gratitude
On behalf of our Board, I extend heartfelt
appreciation to our entire team and all vital
stakeholders for their constant support and
encouragement as we pursue excellence. We
eagerly anticipate our continued collaboration
towards realising our collective vision and creating a
meaningful impact on our surroundings.
Best regards,
Mr. Sunil Bohra
Group Chief Financial Officer
