To start with, I would like to express my gratitude to all the stake
holders, for extending their continuous support to Enkei Wheels (India)
At the beginning of the year under review Financial Year 2012- 13,
share swap was executed which resulted into increase of Enkei
Corporation stake by more than 64% in the Company. Hence, it was the
first year for Enkei Wheels (India) Limited to become an individual &
independent entity both in name and reality.
At the outset in Financial Year 2012-13, the growth for indian
automobile industry was miniscale and it witnessed the growth of 2.1%
for passenger car segment and 2.9% for two wheeler segment.
As far as Company is concerned, last financial year, it experienced
fewer orders because of Tsunami in Japan, flood in Thailand and strike
in factory at customer end. Likewise in Financial Year 2012-13 also
occurrence of labor related incidents took place in the factory at
customer end which affected the stable order position of the Company
The environment surrounding us is becoming rigid and difficult because
of the effects of external causes of Indian Economy and political
instability. Our Indian rupee is becoming weaker compared to foreign
currency which is resulting in sudden price rise in the cost of basic
raw material of the Company.
However, Company has implemented the Shrink Balance Activity (Damage
control to bring the damage to the lowest by implementing the
production system in order to match with order quantity) as a measure
to overcome such rigid and difficult situation.
Also by exercising the 5S audit activity and monitoring Daily Income
Statement (DIS) as per standard of Enkei Group management principle, we
are putting maximum efforts to develop all sorts of improvement at the
production level and also promoting 3 Basics of manufacturing for
improvement of quality parameters which are the fundamentals of Enkei
Group. We are hopeful and also aiming to acquire the new orders and
stable production in the coming years.
As a result of this, the Revenue has gone up by 4.8% as compared to
Financial Year 2011-12, and we have achieved the Gross Revenue of 3200
million INR (including excise duty). Later at the year end, Promoters
(Enkei Corporation) provided great support by relinquishing their
rights of receivables from the Company which helped us to close the
Financial with profit. Here onwards also we will keep raising the
target and aim towards fulfillment of goal.
The biggest strength of Enkei Wheels (India) Limited, is in the 61
years of rich experience of the Enkei Group in the field of research &
development and manufacturing of aluminum alloy wheel. The strong
technical support & cultural exchange from Japan and otherASEAN group
companies of Enkei, makes us No. 1 aluminum wheels OEM supplier at
present in India. And we commit to retain the same status.
In order to deal with the new demands in first half of financial year
2013-14, we have almost completed the preparation for production
capacity expansion and also prepared to strive with the increased
production capacity and technical capability.
Financial Year 2013-14 will be challenging for the Indian Automobile
Industry due to ongoing economic slowdown and inflation. However, we
will continue to focus on cost control, new product development and
will put maximum effort to increase the orders and to the production
activities to get maximum growth.
I believe the future holds immense opportunities for us and our global
team has the proficiency to drive and convert these opportunities into
success, for all of us.
At the end I would like to express my cordial gratitude to all for your
support and cooperation and would also like to request the same
hereafter as well.
Masakatsu Uchiyama Managing Director