Dear Shareholders,
Greetings from Pricol !
With the threat of COVID-19 behind us (well almost), I hope you and
your family are safe, keeping good health and moving steadily towards normalcy in your
day-to-day lives and I pray for everyone's wellbeing.
From its humble beginnings in Coimbatore more than four decades ago,
Pricol, your company, today is recognised across the world for innovative, yet cost
effective automotive solutions to OEMs. Aiming at technology and engineering excellence,
we are driven by a passionate work force that has led the company to partner with leading
automotive brands through solutions that help them stay ahead of the curve.
The past two years presented unprecedented challenges in every which
way, but at the same time also offered unanticipated opportunities. By continuing to being
bold, remaining resilient and prioritising futuristic decisions, we sailed through the
challenges and augmented new opportunities that will put us in good stead in the years to
come. We also put a clear and strategic emphasis on all our stakeholders so as to grow
stronger together.
The domestic auto industry was looking forward to decent growth in the
calendar year 2022. But with the current situation of increase in raw material costs and
semiconductor prices, coupled with supply chain disruptions could become headwinds for the
Indian automobile industry going forward this year thereby affecting growth. Restricted
supplies of critical raw materials are causing new supply chain impacts, driving up raw
material prices including that of lithium, cobalt and nickel, aluminium and to some extent
steel too. Furthermore, gases used in the production of semiconductors are also impacted
although the overall effect is unlikely to be immediately material. To cope with these
cost increases, automakers across regions have reluctantly increased their vehicle prices,
despite the likely impact on demand. So there certainly are risk factors that exist
because of these in ationary pressures and geopolitical tensions. Nevertheless, we are
gearing up internally to manoeuvre these challenges and deliver results to best of our
efforts in all possible ways.
As a responsible business house, we are constantly evolving each day
and continuously working on the improvement of all stakeholders and society at large. I am
personally involved in several initiatives to improve the safety, physical and mental
well-being of all our associates across the organization and various communities outside
the organization as well. Plus, we also undertake sustainability initiatives focussed on
tree plantation, water conservation, renewable energy, etc as a commitment and a moral
responsibility to give back to Mother Earth.
Today, Pricol is becoming a force to reckon with in the Indian
automotive industry with global recognition. With the blessings of the almighty and all
our sustained efforts, we are here to grow putting our focus on technology, people and
society at large. I take this opportunity to thank each and every one of you for your
trust and con dence in our vision. I would like to acknowledge the contributions of all
our employees, board members, bankers, business partners and shareholders for their
continued support and faith in us.