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Enkei Wheels (India) Chairman's Speech > Engineering - Heavy > Chairman's Speech from Enkei Wheels (India) - BSE: 533477, NSE: N.A
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Enkei Wheels (India)

BSE: 533477|ISIN: INE130L01014|SECTOR: Auto Ancillaries
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Mar 15
Chairman's Speech (Enkei Wheels (India)) Year : Mar '16

Dear Shareholders,

It gives me a great pleasure to share with you an update on the overall performance of your Company. I would like to begin by expressing my gratitude to each of you for extending your continuous support towards Enkei Wheels (India) Limited.

Performance

In the financial year, 2015-16, orders for 4W segment were sufficient and all the 4W production lines (MAP lines) were occupied throughout year. However due to unfavorable circumstances, we witnessed downward sales trend in Q4 for 2W segment.

Despite of such challenging external environment your company succeeded in delivering 2.13 million pieces of wheels and achieved net revenue of INR 3,858 million during the year as compared to

2.17 Million pieces of wheels & revenue of INR 3,839 Million in last year.

As a result, we could post positive profit at operational level. However, the company landed in negative net profit as it incurred extraordinary loss from surrender of leasehold land which was the matter of concern over the years. But it is a proactive step in the years to come.

External Scenario

Considering the external perspective, due to poor monsoon, motorcycle segment in 2W suffered which resulted into order crisis. Then as a measure towards environmental problems Hon''ble Supreme Court of India ruled out vehicle registrations above 2000 CC for diesel variant cars in Delhi which too, to some extent affected our orders. However the Indian automobile industry continued to post positive 7.2% growth (domestic sale) for passenger cars (incl. UV & Van) in 2015-16 against the previous fiscal year and 3.0% positive growth for 2W segment. Your company has received sufficient orders from customers for their new models.

Internal Controllers

Internally, we continue to adopt & inculcate Enkei DNA, Enkei Ownership & 7 Efforts and try to Level & Label up of employees with the help of fundamentals like 5S activities & improve the loyalty of employees towards the company.

We have been continuously practicing the BEP (Break Even Point) Management and Daily Income Statement (DIS), that is:

1. Increase Value Added Ratio (Implementation of 3B)

2. Reduce Fixed Cost (FCR Activity: Fixed Cost Reduction activity)

3. Increase Sales Amount (Adoption of Product Mix strategy)

We also make use of CFT Activity (Cross Functional Team activity) for better problem solving, Enhancement of communication and motivational activities & Compliance of world standards (Certification of ISO/TS16949, ISO14001 & OHSAS18001) for environmental compliance.

Parent Support & Policy

It is our accomplishment that we have strengthened 64 years of vast experience of Enkei Group in the field of research & development and manufacturing of aluminum alloy wheels. The technical assistance & cultural exchange from Japan and other ASEAN group companies of Enkei, help us to successfully uphold the No.1 position for OEM supplier in the hybrid industry producing 2W & 4W aluminum alloy wheels of India and we remain committed to continue the same growth.

Looking Forward

In the current financial year 2016-17, consistently, like the previous year we will ride on this favorable wind and aim to obtain further new orders and ensure stable production. Along with this, due to positive sentiment of monsoon as well as focus on enhancing the operational efficiency we have strong intention to put our best foot forward towards making more profit than the previous financial year.

We believe in the EKIN 2016 slogan CHIMUWAKU DE MOKUHYOU WO TASSEI SURU: To Achieve the Goal with Teamwork and with the help of our Enkei Group Company Motto 2016 SUUJI DE KEKKA WO DASU: Numbers show results, we aspire to achieve the future goals in terms of NUMBERS.

Challenges

Currently Indian Government is focused towards many issues like environmental problems, introduction of GST and further compliances.

To adhere to the same, we will practice environmental management system, comply with health & safety standards, follow upcoming GST laws & new Companies Act, 2013.

We will ensure our reason for existence in the society - Make Profit, Make Contributions to the Community, Preserve Company''s longevity.

At the end of this communication, I would like to thank to all our stakeholders, shareholders, customers, suppliers, vendors, employees, union, our group companies, the Governments and regulatory agencies around the world for taking keen interest in the company and extending continuous support to us and we hope to receive the same in future as well.

Kazuhiko Shimamura Managing Director

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