Dear Shareholders,
It is a privilege to present the Annual Report for the financial year 2024. As I
reflect on the past year, I am filled with a sense of pride in what we have accomplished
together at Remsons. We are here to celebrate our achievements, discuss the challenges
ahead, and plan for the future, but today is about collaboration, innovation, and shared
goals. Our commitment to engineering excellence, innovation and sustainable growth
continues to lead our way forward, reaffirming our position as a leading player in the
automotive components industry.
India's economic resilience over the past few years has been noteworthy. The recently
published Economic Survey for 2023-24 highlights that the country's real GDP in FY24 was
20% higher than in FY20 a remarkable feat achieved by very few major economies. The
Government of India's continued focus on infrastructure development, along with growth in
the manufacturing and services sectors, has created a robust foundation for sustained
growth in the years ahead.
In this dynamic environment, the Indian auto component industry has shown impressive
progress, witnessing robust growth over the past year. Notably, the electric vehicle (EV)
sector has gained significant traction, playing an increasingly important role in the
industry's evolution. As demand patterns continue to shift and new opportunities emerge,
our strategic initiatives continue to be aligned with market trends to broaden the scope
for sustained growth and development.
Accelerating Growth
During FY24, we reported remarkable financial performance. Our revenue from operations
rose to H3,123 crores and EBITDA increased by 20% year-on-year to 31.02 crores. Most
notably, our net profit grew by 59%, reiterating our resolute focus on the disciplined
execution of our growth strategy. We have also raised 63 crores during the year to meet
long-term capital requirements, fund strategic acquisitions and support our working
capital needs.
Remsons made a substantial impact at the Bharat Mobility Global Expo 2024, also by
being selected to discuss and demonstrate our products to our Prime Minister Mr. Narendra
Modi about localisation of Global technology. We are reinforcing our position as a market
leader in the automotive component manufacturing space. With our growing focus on
next-generation and EV-agnostic products, we are adopting latest technology and improving
our product portfolio to retain a competitive edge. Noteworthy among our achievements
during the year gone by is the order win from Tata Motors, for winches, to be supplied for
cars such as Tigor, Altroz, Punch and the new Nexon iCNG.
Our ability to adapt to industry changes and develop new product lines has been a key
driver of our growth. At the heart of this advancement is our engineering prowess,
cutting-edge design capabilities, and innovative spirit. Our state-of-the-art design
centres are equipped with comprehensive testing facilities that support ‘Value
Engineering.' These facilities allow us to explore alternative materials and deliver
high-quality, cost-effective solutions that align with the needs of our customers.
We have consistently upheld our commitment to quality, ensuring that all our products
meet the highest standards. To achieve this, we utilize advanced characterisation testing
facilities for inner cable testing, conduit testing, stretch-compression tests, and
dynamic testing. Additionally, our hot and cold chambers simulate extreme temperatures
ranging from -40 degrees Celsius to +120 degrees Celsius. Our in-house FEA analysis allows
us to predict product function behaviour in the field, thereby making the subtle changes
in our drive towards perfection.
Our focus on excellence has not gone unnoticed. Remsons was proudly ranked 30th in
India's Top 100 Great Mid-Sized Industries by Great Place to Work. This recognition is a
testament to our strong organizational culture and our commitment to creating a supportive
and thriving workplace for all our employees.
Strategic Initiatives
Our growth strategy is centred on both organic and inorganic expansion. We have made
strategic forays into the heavy commercial vehicle (HCV) segment, diversified our product
offerings, and ventured into new technology products, thereby securing our place across
all segments of the auto industry. Acquisitions and joint ventures have been critical in
enhancing our technological capabilities and expanding our market reach.
We took a major step forward with the acquisition of a 55% stake in the automotive
sensor division of Pune-based Uni-Automation, forming our subsidiary,
Remsons-Uni Autonics Private Limited. This acquisition aligns with our strategy to
offer advanced sensor technology solutions. Additionally, our 50:50 joint venture with
Daiichi Infotainment System to deliver advanced infotainment solutions and another JV with
Aircom Group AG to manufacture tyre puncture kits, reflect our commitment to providing
comprehensive fuel agnostic automotive solutions.
Sustainability Focus
Sustainability remains a core pillar of our business strategy. I am delighted to share
that we have been awarded with a Gold Medal in the Ecovadis Sustainability Assessment,
placing us in the top 5% of companies evaluated globally. This recognition highlights our
dedication to environmental, social and governance (ESG) principles. Furthering our
commitment to clean energy adoption, we have solar-powered two of our manufacturing units,
generating nearly 500 KVA energy per month and contributing positively to our
sustainability agenda.
Social responsibility
Our corporate social responsibility (CSR) initiatives are grounded in the values of
collaboration and community welfare. Through partnerships with organizations like Akshaya
Patra, Indian Development Foundation, and Alert Citizen Foundation, we have been able to
extend our impact and bring meaningful change to the communities we serve. We support
local schools by providing educational materials, scholarships, and infrastructure
improvements, including our "Meri Pathshala" project. Additionally, we organize
regular health check-up camps, ensuring essential medical care reaches underprivileged
communities, addressing their healthcare needs.
The Road Ahead: Building on a Strong Foundation
As we look ahead, we are determined to move up the automotive value chain through
investments in cutting-edge technology and expansion of our operational capacity. Our
primary focus remains on enhancing shareholder value, while continuing to innovate and
adapt to the changing dynamics of the automotive industry. As we accelerate the pace of
our growth, we are relying on a diversified portfolio to lend us the leverage to sustain
the pace of excellence that we have set so far. Backed by our innovative spirit and our
ability to adapt to changing market dynamics, we are confidently moving forward, ready to
scale new heights of success.
Thank you for your continued faith in Remsons Industries.
Regards,
Krishna Kejriwal
Chairman & Managing Director