• Introduction:
Containe Technologies Limited (Company) is a public company listed on BSE SME Exchange,
incorporated on 16th September 2008 as a private company. The registered office of the
Company is situated at H. No. 3-13-142/ 341P, 342, Gokul Nagar Marriguda, Mallapur,
Secunderabad, Hyderabad-500076, Telangana, India
The Company Manufactures Speed Limiting Devices, Vehicle Location Tracking Devices,
Embedded SIM Cards, M2M Service Provider.
The Speed Limiting Device is a Safety Product which is mandatory fitment for New
Registration, fitness of all commercial vehicles of goods carriers, hazardous
petroleum/chemical tankers, public transport, and school buses, as per GSR 290E of
15.04.2015. It is designed, developed, and manufactured according to the Automotive
Industry Standard (AIS 018) "MOTOREYE & LIMITS" approved by ARAI and AIS 037
Standard, ensuring conformity of production audits for its excellent quality and proven
durability.
Vehicle Location Tracking Devices Product has been tested as per Automotive Industry
Standard AIS-140& BIS 16833 Standard. This product is approved by ICAT TAC certificate
no:CK8073. This IRNSS VLTD (Vehicle Location Tracking Device) is designed with Quad band
GSM / GPRS Module, equipped with GPS/IRNSS receiver to provide accurate navigation data,
this can be remotely configured (OTA Configuration).
The Company has registered APN for PAN India “ctplm2m.in” and manufactures
its owned Dual Profile e-SIMS in collaboration GSMA Approved Manufacturing facility and
has MOU with service providers Like BSNL, Vodafone Idea and Airtel for eSIM Profiles and
has M2M service providers License from Department of Telecommunications.
• Global Economy:
The automotive industry is an important pillar of the world economy. It affects every
aspect of daily living, and it is an important source of employment - approximately 5
percent of the global labour force is directly or indirectly employed in this industry.
The total turnover of the automotive industry is greater than the gross domestic product
of France.
• Global Auto Components Industry:
Global economic development is dependent on the activities of the automotive industry
due to the wide range of businesses that it is integrated with. The automotive industry
contributes around 3% of the worlds total GDP output, and that share is higher in
emerging markets such as China and India.
• Indian Economy:
India has become the fastest-growing economy in the world in recent years. This fast
growth, coupled with rising incomes, boost in infrastructure spending and increased
manufacturing incentives, has accelerated the automobile industry.
Indias economic growth in FY 2023 has been principally led by private consumption and
capital formation and they have helped generate employment as seen in the declining urban
unemployment rate and in the faster net registration in Employee Provident Fund. Moreover,
Worlds second-largest vaccination drive involving more than 2 billion doses also served
to lift consumer sentiments that may prolong the rebound in consumption. Still, private
capex soon needs to take up the leadership role to put job creation on a fast track.
• Indian Auto Components Industry:
India occupies a strong position in the global heavy vehicles market as it is the
largest tractor producer, second-largest bus manufacturer, and third-largest heavy trucks
manufacturer in the world.
Indias auto component industry is an important sector driving macroeconomic growth and
employment. The industry comprises players of all sizes, from large corporations to micro
entities, spread across clusters throughout the country. The auto components industry
accounted for 2.3% of Indias GDP and provided direct employment to 1.5 million people. By
2026, the automobile component sector will contribute 7-9% of Indias GDP.
The turnover of the automotive component industry grew 34.8% to Rs. 2.65 lakh crore
(US$ 33.8 billion) during April-September 2022 compared to the first half of the previous
year. As per the Automobile Component Manufacturers Association (ACMA) forecast, auto
component exports from India are expected to reach US$ 30 billion by 2026. The auto
component industry is projected to record US$ 200 billion in revenue by 2026. Strong
international demand and resurgence in the local original equipment and aftermarket
segments are predicted to help the auto component industry grow.
Significant demand for automobiles also led to the emergence of more original equipment
and auto components manufacturers. As a result, India developed expertise in automobiles
and auto components, which helped boost international demand for Indian automobiles and
auto components. Hence, the Indian automobile industry has a considerable impact on the
auto component industry.
The industry is a leader in exports and provides jobs to over 3.7 crore people. From FY
2016-FY 2022, the industry registered a CAGR of 6.35% and was valued at Us$ 56.50 billion
in FY22. Due to the high development prospects in all vehicle industry segments, the auto
component sector is expected to see double-digit growth. The industry is expected to stand
at US$ 200 billion by FY 2026.
The Indian automobile industry contributes almost 6.4% of Indias GDP and 35% of
manufacturing GDP and is a leading employment provider. India could be a leader in shared
mobility by 2030, providing opportunities for electric and autonomous vehicles. The
automobile sector received cumulative equity FDI inflow of about US$ 33.77 billion between
April 2000- September 2022.
• Government Initiatives for Automobile Industry:
1. The Indian government has planned US$ 3.5 billion in incentives over a five-year
period until 2026 under a revamped scheme to encourage production and export of clean
technology vehicles. Initiatives like Make in India, the Automotive Mission Plan 2026, and
NEMMP 2020 will be a net positive for the sector.
2. In November 2020, the Union Cabinet approved a PLI scheme in automobile and auto
components with an approved financial outlay over a five-year period of Rs. 57,042 crore
(US$ 8.1 billion). In September 2021, the Indian government issued notification regarding
a PLI scheme for automobile and auto components worth Rs. 25,938 crore (US$ 3.49 billion).
In February 2022, the government received an investment proposal worth Rs. 45,016 crore
(Us$ 6.04 billion) from 20 automotive companies under the PLI Auto scheme. This scheme is
expected to create an incremental output of Rs. 2,31,500 crore (US$ 31.08 billion).
3. The Government aims to develop India as a global manufacturing and research and
development (R&D) hub. It has set up National Automotive Testing and R&D
Infrastructure Project (NATRiP) centres as well as the National Automotive Board to act as
facilitator between the Government and the industry. Under (NATRiP), five testing and
research centres have been established in the country since 2015.
4. There have been plenty of investments in the automobile sector recently, as the
Government of India expects the automobile sector to attract US$ 8-10 billion in local and
foreign investments by 2023. The industry attracted Foreign Direct Investment equity
inflow (FDI) worth US$ 33.53 billion between April 2000-June 2022, accounting for 5.54% of
the total equity FDI during the period.
• Opportunities:
1. Expanding the business in different states thereby leading to creation of new
customer base;
2. Growing demand for vehicle telematics and ITS Products;
3. Approval from the State Government of Maharashtra, West Bengal, Madhya Pradesh and
NCT of Delhi to register Vehicle Location Tracker (VLT) Device for usage in the respective
jurisdiction.
4. Approval from State Government of Nagaland and APSAC to supply and fitment of
Vehicle Location Tracker (VLT) Device;
• Threats:
1. Providing Performance Bank Guarantee Overhead Expenses;
2. Initial Software Development Overhead and Man Power Resource Maintenance Expenses;
3. Continuous Product R&D, for Improvements/Updates and Testing Agencies Expenses;
• Outlook:
The rapidly globalizing world is creating newer opportunities for the transportation
industry, especially while shifting towards electric, electronic and hybrid cars, which
are deemed more efficient, safe and reliable modes of transportation. Over the next
decade, this will lead to newer verticals and opportunities for auto component
manufacturers. To help them adjust to the shifting dynamics of the sector, the Indian
government has already offered various production incentives. India is also investing
heavily in electric car infrastructure.
• Risks And Concerns:
Risks are inevitable in todays world and Company strongly believes that its success
depends upon identification of potential risks in advance and the creation of appropriate
mitigation strategies to bypass or minimise impact, to the extent possible.
Effective risk management comprises of:
i. Constantly scans its external environment to identify emerging threats while also
evaluating its impact on its business goals.
ii. Standard policy to pass the cost increases with its premium quality positioning.
iii. Consciously following with the up-keep of equipment and implementing the cost
control methods.
• Internal Control Systemsand Safeguards:
One of the important pillars of corporate governance is a robust internal controls
framework that assists the corporation to achieve predictable and desired outcomes. It
helps in aligning controls with the dynamics of constant challenges and changes in risk
profile, arising due to varying internal and external factors. The internal controls
framework established by the Company is commensurate with the size of operations and
complexity of its businesses. All internal controls are well aligned with the evolving
business needs, objectives, and overall strategic direction. The Company ensures integrity
in conducting its business, safeguarding of its assets, timely preparation of reliable
financial information, accuracy and completeness in maintaining accounting records.
• Human Resource Developments / Industrial Relations:
Human resources are the principal drivers of change and have always been one of the
most valued stakeholders of the Company. The Company aims to develop the potential of
every individual associated with the Company as a part of its business goal.
During the period under review, the total number of people employed by the Company is
25 .
• Key Financial Ratios:
Debtors / Turnover |
Current year - 2.21 (previous year - 3.02) |
Inventory/ Turnover |
Current year - 0.93 (previous year - 0.54) |
Interest Coverage Ratio |
Current year - 2.72 (previous year - 2.17) |
Debt / Equity Ratio |
Current year - 0.44 (previous year -0.41) |
Operating Profit Margin (PBT) |
Current year - 17.23 (previous year - 11.63) |
Net Profit Margin (PAT) |
Current year - 0.07 (previous year - 0.02) |
Return on Net Worth |
Current year - 0.07 (previous year - 0.04 ) |
Cautionary Statement: The statement and views expressed by the management in the
above said report are on the basis of best judgment but the actual results might differ
from whatever stated in the report. The Company takes no responsibility for any
consequence of decisions made based on such statements and holds no obligation to update
these in future. Readers are cautioned not to place undue reliance on these
forward-looking statements.
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