Letter from the
CMD
As I reflect on the growth and progress for FY 2022-23, I’m pleased to share with you that our Company have marked a robust performance across the businesses, driven by strong demand and growth in the industry
Dear Stakeholders,
As I reflect on the growth and progress for FY 2022-23, I’m pleased to share with you that our Company have marked a robust performance across the businesses, driven by strong demand and growth in the industry.
The global economy has shown a smart recovery after the Covid-19 pandemic-induced severe and unimaginable distress, along with grave and undefining challenges such as the Russia-Ukraine war, energy crisis, and historically high inflation and interest rate levels. Labour markets in most advanced economies have strengthened, and aggregate demand has exceeded the expectations. Additionally, the supply chain situation has improved with the implementation of policy packages by economies worldwide.
The Indian economy has demonstrated remarkable resilience in the face of global challenges, achieving a growth rate of 7.2% in FY 2022-23. India’s economy has gained recognition as the fastest-growing major economy, a testament to the robust demand observed across various industries. The Government is undertaking initiatives to boost the economy and control inflation, with a continued focus on infrastructure development and rising private investment.
Despite ongoing geopolitical tensions and energy crisis, India is emerging as an attractive destination for global investors, particularly in sectors ripe for reforms, such as energy, transport, and infrastructure.
Amid the global volatility, the Indian automobile industry ended FY 2022-23 on a positive note, bounced back from the challenges posed by the Covid-19 pandemic. Demonstrating strong resilience, rapid innovation, and robust market demand, the industry achieved record sales in the passenger vehicle (PV) segment of over 3.9 Million in FY 2022-23 owing to the strong demand and easing of supply chain constraints. Consumer preference and demand in the PV segment are increasing towards SUVs and the segment has marked 30% year-on-year growth.
3.9 Million+
Industry achieved record sales in the passenger vehicle (PV) segment in FY 2022-23
30% year-on-year growth
Increasing towards SUVs and the Segment
The commercial vehicle (CV) segment witnessed a major uptick in sales volume in FY 2022-23, driven by bounce back in demand and growth in major economic activities. The electric vehicle (EV) segment has shown significant growth potential, with all major companies set to enter the market in FY 2023-24 by introducing new models in both the passenger and commercial vehicle segments. On the export front, there is a substantial downturn, mainly in the CV segment owing to the geopolitical tensions. Overall, the industry is optimistic and ready to mark the next leg of growth in the future.
The Government has announced Production Linked Incentive (PLI) scheme for the Indian automobile and auto component industry of ₹ 25,938 Crores in 2021. Currently, the Union Government has announced Standard Operating Procedures (SOPs) for the PLI scheme for the automobile sector. This scheme will allow applicants to request for testing and certification of products utilising advanced automotive technology. Furthermore, this scheme will increase the local production of advanced automotive technology (AAT) goods and infuse capital in the industry. On the FAME II front, the outlay of ₹ 5,172 Crores has been announced as a part of outlay of ₹ 10,000 Crores which was announced at the launch of the scheme. This amount will be utilised in a way the Electric Vehicle demand will surge.
According to data released by SIAM, India is the third-largest car market in the world. This highlight both India’s qualifications as the fastest-growing economy in general and the potential of the auto sector in particular. Uno Minda has been at the forefront of the industry’s transition to greener, safer, and smarter mobility by leveraging this expansion in the Indian vehicle sector and our strategic efforts.
One of the key factors driving Uno Minda’s growth in the automotive industry is its commitment to innovation and R&D. The Company has invested heavily in research and development activities, especially in our flagship centre CREAT (centre for research engineering and advanced technologies); to continuously improve its product offerings and stay ahead of the competition by focussing on strategies such as PACE, ADAS and design. During the year, we opened another office of CREAT in Chennai to further strengthen our team. We now have 30 R&D centres and design studio (INITIA) globally, with 1022 engineers working around the clock to provide best-in-class services for mobility products and systems.
With support from our in-house R&D Team and our joint venture partners, we have built unparalleled EV specific components portfolio for two wheeler and three wheeler. We have also secured order with annual peak value of around Rs 2000 Crores from EV OEMs in last one year paving the way for market leadership in EV specific components as well.
We continuously endeavour to consolidate and simplify our business to achieve synergy benefits and economies of scale enabling maximisation of shareholder’s value. Currently, there are three merger schemes which is at various stages of approvals including Kosei entities merger. Besides consolidation, we have also been expanding in all major product categories by setting up greenfield as well as brownfield plants. Currently we are working on 8 (eight) expansion projects involving switch, alloy wheel, lighting, EV specific product and traction motors. We will continue this journey towards excellence and are confident of emerging as a stronger organisation.
Driving The New
Automotive industry is poised to grow in future owing to the growing demand of passenger vehicles for every household. With manufacturing future ready products, we will be able to cater to this growing market. Our processes are streamlined to the vision of the Company making redesigned products with extreme focus on customers and increasing the exports side. In our transformational journey, we have made the change in the Company’s identity to Uno Minda Limited.
We are driven by the rich culture that encourages to develop new thing every day. We are on the path of progress through advancing our value chain. Increasing interaction more with internal and external stakeholders, engaging more with our partners and source best-in-class raw materials to product premium products. Overall, driving the new says that we are tapping every opportunity and making ourselves reliant to address the growing need of the industry and stay ahead of the curve.
90%+ Plants
Follow the Certification that Adhere to Environment & OHS Management System
Environment, Social and Governance at Uno Minda
We understand the importance of undertaking environmental initiative inside the organisation. Strictly adhering to the rules and regulations would lead ourselves to impact less to the environment where we operate. Our more than 90% of the plants follow the certification that adhere to environment & OHS management system. We adhere to the permissible water withdrawal limits through installing STP, ETP water management system. We also adhere to the waste management regulations that come under compliance with local regulations & processes. Furthermore, we are preserving our environment by increasing the renewable energy share in our operations & through implementation of energy efficiency projects/ kaizens on regular basis such as installation of energy-efficien t less emission led equipments, replacement of high CO2 emission fuel with less CO2 emission fuel etc.
We believe that a strong and resilient society is one where everyone can actively participate. Our vision is to empower community, wherein we imagine all members to come together and participate to empower and support one another – creating a diverse and inclusive community that offers people of all abilities the opportunity to live, work, learn and socialise in the ways they choose.
We act and intervene through several programmes as per their need of the community. Uno Minda Group through Suman Nirmal Minda Foundation (SNMF) has significantly contributed in the areas of education, skill development (vocational training programmes), preventive & curative healthcare & community well-being. Our CSR intervention contributes to a positive societal impact through diverse community engagement initiatives. We collaborate and involve different stakeholders like Community, PRI Members, Local Administration, Government, Employees, Customers & suppliers for contributing towards sustainable development.
We adhere to the policies that govern the organisation in a broader way. We follow the regulatory compliance & updates, emerging workplace trends, global good practices and culture of diversity and inclusion. We adhere to principles of conduct, anti-corruption policies, helpline or feedback facilities for all stakeholders.
Strategic Focus Areas
Looking ahead, we hold a strong belief in our capabilities and are committed to staying in sync with the industry to maintain a competitive edge. Our focus remains on continuously enhancing the efficiency of our team, empowering them to drive business success.
Our objective is to consistently deliver returns for our valued business partners and contribute positively to society as a whole. We are actively engaged in developing innovative technologies and solutions that will shape our future. Moreover, we are determined to play a role in addressing the climate challenge by designing energy-efficient products and embracing a greener approach towards creating a sustainable world.
Best regards,
Nirmal K. Minda
Chairman & Managing Director