Dear Shareholders,
Resilience is one word that can aptly define the state of economic affairs across the
world! Four years after the unprecedently turbulent events of the pandemic, wars,
inflation, and monetary tightening, the economy has found a steady ground where it has
firmed up. Inflation that seemed to engulf the entire world doused off as quicky as it
flared up. With developed economies expected to return to their inflation targets earlier
than emerging markets and developing economies, global inflation is predicted to decrease
gradually from 6.8% in 2023 to 5.9% in 2024 and 4.5% in 2025.The general consensus is that
core inflation will decrease more gradually.
Furthermore, the rate of global growth, which was predicted to be 3.2% in 2023, is
expected to stay constant in 2024 and 2025. The COVID-19 pandemic, Russia's invasion of
Ukraine, weak productivity growth, and growing geoeconomic fragmentation are all
contributing factors to the low pace of expansion by historical standards. Near-term
factors include still-high borrowing costs and the withdrawal of fiscal support.
Amidst all the ups and downs, Indian economy has emerged as a knight in shining armour.
It has shown incredible growth and leapfrogged to take its GDP growth to 8.2% in FY
2023-24 as compared to the growth rate of 7.0% in FY 2022-23. Such kind of growth further
fortifies India's position as the world's fastest-growing major, which is currently fifth
in the line. Seeing this impressive and steady growth despite the volatile economic
scenario, the Monetary Policy Committee (MPC) has forecasted the real GDP from an earlier
estimate of 7 per cent to 7.2 per cent for FY2024-25. The reason for India clocking such
growth has been cited as improving rural and urban demand buoyed by favorable monsoon
forecasts. The Indian economy is in a strong position and is expected to continue rising
at the quickest rate of any major economy in the world thanks to its strong growth and
falling inflation. In addition, the investment growth has largely been driven : by the
Government of India (Gol) capital - expenditure growth. Moreover, the continuous I
government stimulus programmes, faster I consumption growth compared to China, the P US,
and Germany, focus on increasing industry output and emphasis on self-sufficiency have
also aided in growth.
The Indian automobile has posted a satisfactory performance with sales growing by 12.5%
this fiscal backed by robust economic growth and strong and conducive government at the
centre. Category wise, passenger vehicle sales rose to 8.4% with overall sales touching
almost 5 million units including 4.2 million domestic and 0.7 million exports,
three-wheelers 41.5% two-wheelers 13.3%, commercial vehicles marginally by 0.6%.
As our most trusted partner, you would be pleased to know that at JTEKT India, we have
steadfastly fortified our position in the automotive sector through the means of
rationalisation and amalgamation with the right ethos and values. This has not only helped
us optimize our potential but also achieve excellence in operations, manufacturing and
functioning. To improve overall operational efficiency, we have implemented a number of
initiatives throughout the years to rationalize our manufacturing operations. Keeping
innovation and pragmatism at the forefront, we have concentrated on improving our
designing, prototyping, and testing capabilities and made an attempt to align with the
current market and consumer demand. Our affiliation with technology has gone back to the
time of our foundational years and we have succeeded in being upbeat with trends and
provide our patrons high-tech, high-quality, reliable products experience.
We have also placed a strong emphasis on upskilling and upscaling our people resources
through training, development, and skill enhancement because quality, innovation, growth,
and development are our primary values.
In addition, customer satisfaction is our first goal, and we're constantly working to
improve our capacity to become self- sufficient by sending staff members to our
headquarters for extended training, standardizing the development process, developing
locally, and simultaneous engineering.
On the financial turf, we have succeeded in optimising our potential by improving our
net profit margin from 4.2% to 4.7%. Furthermore, Return on Capital Employed has improved
from 14.9% to 16.2%.
During the fiscal, we received acclamations from our Customers. Tata Motors recognised
the Company for outstanding performance in the area of "Quality Forever".
Trenton Pressing, USA recognized the Company as "Best Overall Supplier 2023"
ISUZU, recognised the efforts of the Company in achieving "Best Delivery
Performance".
In order to remain competitive and provide excellent customer service, we are growing
our capabilities in accordance with the business plan, and manufacturing rationalization
is a key component of that strategy. Our roadmap for rationalization rests on a long-term
perspective and we have been implementing it in a phased manner, and the amalgamation of
JTEKT Fuji Kiko Automotive India with JTEKT India, last year, has also been included in
the extended scope of rationalization plan.
Your Company serves numerous clients with a variety of products through operations
dispersed throughout seven plant locations. We have established a dedicated staff to
oversee all rationalization projects, adhering to the structured Obeya approach for
effective implementation. This necessitates tight collaboration with customers for
expedited approval as well as quick and dependable project execution. We have succeeded in
realizing manufacturing rationalization and reap benefits in the areas of capacity
creation, cost optimization and operational efficiency enhancement.
Our commitment to excellence has helped us forge an alliance with precision and master
craftsmanship and reach new heights of success and growth with the help of our
stakeholders and partners. I express my gratitude to patrons like Maruti Suzuki, Mahindra
& Mahindra, Tata Motors, Honda Cars India, Stellantis (Fiat + PCA), Toyota Kirloskar,
Club Car, E-z-go, Renault- Nissan, Isuzu and SML-Isuzu. I want to take this opportunity to
thank our bankers: State Bank of India, Standard Chartered Bank,
Sumitomo Mitsui Banking Corporation, MUFG Bank Limited and Mizuho Bank Limited.
I am glad to express my sincere gratitude to all the employees who have led JTEKT India
to newer heights with their hard and smart work and helped us forge an alliance of faith
and trust with our patrons. They have relentlessly provided the customers, clients, and
community their support and best-in- class products, services and experiences.
In the end, I am pleased to extend my profound appreciation to our shareholders who
have been our strong support both during tough and good times. It is indeed your trust and
unfailing faith in us that has kept us afloat!
Yours sincerely,
Hitoshi Mogi
Chairman and Managing Director