iii. Ensure we have the right product at the right price keeping our
Brand prism in mind.
iv. Look at both M&A and Greenfield projects simultaneously
In the Engineering Division, we need to look at existing growth and
expansion in existing areas i.e. in Fine Blanking and Stamping. But we must also look into
having possibly a greenfield Plant in North India, expand existing capacities in Bangalore
etc., possibly look at making a greenfield twowheeler chain project (we currently import
chains for our After Market business) as Government of India is pushing for local
manufacturing in many areas etc.
So many projects would need relooking at the present organization and
make it FUTURE READY! As we said earlier, 3x growth of Engineering Division is our
Ambition. That would include M&A - about 49 companies have been seen so far; we nearly
finalized with one in February 2025. We are actively pursuing a few; hopefully, we shall
be able to close this in current Financial Year. We have progressed on our electronic
manufacturing and also some progress has been made in the railway segment.
So, on the "What Next", we know what all we need to do for
faster growth and margin expansion. Alvarez & Marsal has been given the mandate to
reduce material cost - work began in February, 2025 - our team is working with them on
various ideas for cost down with an expected savings of more than ' 200 Crores over 18
months period. We are also seeing how to improve scheme productivity etc as we feel more
rigour in controlling / reducing costs will help in improving margin in both Appliance and
Engineering divisions.
Motor Division management has undergone a small change. A seasoned
professional with 9 years' experience in Motherson Sumi and recently retired from there
has been put in charge. We expect much better results from Q3 FY 25-26.
We have started commercial production of BLDC motors for Front Load
washing machines in Q3 of this financial year. The Commercial production of AC motors will
start from Q2 FY 25-26. We are also in talks for supply of motors to OEMs in order to
fully utilize the capacity by FY 26-27.
In AC, we did much better in FY 2024-25. However, in Q1 FY 26, early
rains spoiled our Sales Plan; We have plan for the year is good growth at decent margin -
hopefully, the category will bounce back from Q1 setback.
We need to focus on customer service in all our businesses and meet our
Late Chairman's Vision of being "CUSTOMER'S 1ST CHOICE"! This is most
important and this is what our late Chairman would want most. As a Company, we need to
focus more on training at all levels in order to achieve his vision of being a far larger
Company than we are today and most importantly, a Company that everyone respects for best
quality Product and Service!
I would also like to take this opportunity to thank all our
Shareholders, Government officials, Bankers, Suppliers, Colleagues, etc. who have
supported us!
Warm Regards,
Bikramjit Nag
Chairman