Dear Stakeholders,
It is with immense pleasure that I present our fourth Integrated Annual Report for the year CY22. Once again, we demonstrated our capacity to withstand external crises, manage challenges, and continued to grow. Guided by our strategic priorities we remained agile, resilient, and efficient; a fact reflected across our CY22 performance.
During CY22, Schaeffler India completed six decades of growth, innovation, and expansion in India because of the consistent trust, support, and partnership from our customers and suppliers and the commitment and dedication of the Schaeffler India family.
One word has resonated the most with me to describe our performance, is tenacity. As we navigated through a challenging global environment, our country continued to remain at a bright spot amidst this volatility. We, at Schaeffler India, continued to remain resilient with our unwavering commitment towards our goals. This helped us achieve impressive results across all businesses, buoyed by the record-breaking growth in exports.
Our focus on customer-centricity, operational efficiency, and innovation enabled us to achieve a strong top-line and bottom-line performance, which grew by 23.5% and 39.8% year-on-year (y-o-y), respectively. Throughout the year, we witnessed headwinds in the form of inflation and supply chain constraints; however, the sustained countermeasures put in place following the pandemic along with our balanced business mix insulated and sustained our performance.
Looking back at our production figures for this year, our plants registered a strong operational performance in meeting our customers' needs. We continue to pursue the highest quality and safety standards at our plants, which remain uncompromising priorities for us at Schaeffler India.
Localisation remains a key strategic imperative for us. In CY22, our focus on localisation proved to be beneficial in reducing our business risk and increasing our operational flexibility. As India aspires to become a regional manufacturing hub, our four plants are well positioned to cater to the growing demands of our customers and localise manufacturing in line with our strategic priorities.
During the year, our exports saw a remarkable increase of 70%. This surge in exports was largely driven by our localisation initiatives and increasing demand from our global customers.
As we move ahead, we will continue to remain focused on investments in India. The unique competitive advantages offered by government’s push towards manufacturing in India bodes well for us in the long-term. I am optimistic that this will translate into a higher growth trajectory for us.
Guided by our vision and mission, as we take on responsibility for a sustainable future, we continue to take a holistic approach towards all our stakeholders – both internal and external. We ensure that all our stakeholders are empowered to benefit from the outcomes of our collective efforts, fostering a sense of shared purpose and accomplishment.
We, at Schaeffler India, prioritise our customers’ needs passionately that not only drives us to offer the innovative and value engineered solutions today but also inspires us to innovate and meet the future needs of motion and mobility. At Schaeffler, Sustainability is embedded in everything that we do as we strive to offer future-ready solutions.
Employee well-being and engagement is one of the key strategic priorities for us at Schaeffler India. Our employees, above all, are central to us. Our global pulse survey allows them to express their thoughts transparently and empowers them to be a part of our long-term planning and direction. I am extremely happy to share that the recent global pulse survey recorded the highest participation from India which shows their faith, involvement, and engagement towards the organisation. We recognise the importance of empathy and care at our workplace and ensure collective and collaborative decision making and problem solving within a diverse setting.
During the year, we maintained our focus on investing in our employees and enhancing their competencies helping them to navigate through the continuously evolving business environment. We believe that investing in our workforce is critical to our success and the long-term growth of our business.
We strive to become the preferred technology partner and supplier of sustainable solutions. As proof of our commitment, we are aligning with our Group’s eight sustainability goals, impacting multiple areas of environment, social and governance.
Going forward, we are looking at various areas to transform our operations to integrate these actions into capital planning, workforce planning, and operations management. For us, it is not just about what we do and achieve but how we achieve with passion, dedication, and a commitment to enable the transition and shape the future.
Climate-neutral
supply chain by
Employee engagement according to the pulse survey score
Received in CY22
Reiterating our commitment to become carbon neutral by CY40, which also covers the entire supply chain, we look forward to working closely with our suppliers in a combined effort to combat global warming.
I am pleased to announce the introduction of cutting-edge Schaeffler Lifetime Solutions, in CY22. We are excited about the potential transitions towards green energy that opens multiple opportunities for us in India in the long term as the Schaeffler Group continues to expand knowledge and expertise in these niche areas that will shape the future.
We are beginning to implement initiatives in the areas of digitalisation and automation to get to the ‘next level of operational excellence’. We plan to double our digitalisation efforts for the next few years to retain our competitive advantage. To shape the future in an ever-evolving landscape, we will continue to invest in more efficient ways of production to produce innovative products and new avenues of creating value.
The external business environment is expected to remain challenging in the coming financial year. However, I am confident, with the Indian growth story as strong as ever, that focusing on our medium-to-long-term strategies positions us to be agile, take advantage of new opportunities, and drive growth.
As we conclude another eventful year and look forward to 2023, I am filled with pride and gratitude to everyone at Schaeffler India. Despite the challenges and obstacles presented by the past year, we managed to achieve many milestones, convert opportunities, and navigate through business headwinds. These accomplishments could not have been possible without the unwavering commitment and dedication of our team at Schaeffler India. I take this opportunity to express my thanks to our stakeholders who continue to support and engage with us in our journey.
Sincerely,
Harsha Kadam
Managing Director & CEO
