DOMESTIC BUSINESS
GENERATOR
India today is the 5th largest economy in the world and is striving to become 3rd largest economy by 2027. Governments initiative to digitalize the economy and create a world class infrastructure to support this mission has driven the need for uninterrupted power for everyone and all segments in the society. While power outages related to weather disturbances continued to fuel the demand for generators for backup power, usage of portable generators for primary applications like mobile utility vans, provision for doorstep services like mobile saloons/ pet grooming are also on the rise. A very interesting area wherein Generators have been put to use is for drone charging in the agricultural fields used for various spraying operations in line with Governments vision to "Double farmers incomes by 2030", enabling accelerated mechanization to drive efficiency in agriculture production. As a result of these factors generator sales were at a similar level as last year.
Corporate and Institutional demand continued this year as well, due to spending on infrastructure and agriculture.
Opportunities
Demand for portable generators for applications like milking, chilling, camping for leisure and recreational purposes besides weather related disturbances is expected and will help your Company to maintain its dominant position in the portable generator category and continue to offer optimal power solutions to a diverse group of customers across India.
Economic activities and operations, especially in small and medium size businesses, with expected portable power back up, demand is on the growth path.
The Companys promotions focus, mainly on urban, semi-urban and rural markets, to leverage lifestyle / comfort requirements from consumer, are expected to help the Company penetrate its efficient and reliable offerings.
Concerns
Peak power deficit continues to be within acceptable levels, primarily due to adequate power generation. Interim demand for our products in urban areas driven by long-haul power cuts has thus been on reducing trend.
Consumer spending remains low due to higher interest rates.
Outlook
Portable power back up demand and use of generators for new potential applications will help your Company to maintain the volume and its leadership position in the generator category.
GENERAL PURPOSE ENGINES AND WATER PUMPING SETS
Unseasonal and uneven distribution of monsoon led to a rise in Water Pump sales in the financial year 2024-25, especially in eastern, central, and southern markets. State and Central Governments ongoing support programs towards farming and fisheries sectors were within acceptable levels but the overall process was slow with respect to release of funds by the Government.
Launch of new 4-inch outlet water pump model launched in August 2024, helped the Company to offer an optimal solution to farmers grappling with bulky diesel water pumps and further strengthened its market leadership position with the existing lineup of 1.5-inch,2-inch and 3-inch water pumps.
2-inch water pump sales in the financial year crossed a milestone of 60K+ units which has helped the Company to maintain its leadership position in water pump segment.
Construction segment mechanization, primarily towards small, portable and compact machines was good due to focus on overall infrastructure growth.
In the previous financial year, your Company launched multiple models of concrete vibrator for the construction industry thereby providing a standardized solution for deflation of freshly laid concrete mix, a critical construction process. The Company is making efforts to increase its footprint in the construction segment by introducing more of such engine driven applications based on its success in other global markets and improving the efficiency and speed of construction in line with Governments direction to create a world class infrastructure to maintain the momentum of fastest growing economy in the world.
Your Company also introduced two models of stationary sprayers having multiple applications for spraying of various plant protection liquids in the agriculture segment and for equipment washing purposes.
The Company targeted reach in coastal areas and waterways by expanding engine driven long tail boat application for small and medium sized boats navigating the inland waterways and offshore fishing with introduction of Honda GX powered long tail boat in March 2025 thereby accelerating shift from manual to mechanized process.
The Governments planned investment in irrigation and infrastructure projects is expected to help fuel-based engine demand. Continued supply chain requirements towards agriculture produce / products ensured demand and need for farm operation products and services. Companys demonstration activities, supported through vans and manpower deployment, for new products recently launched in the agricultural and construction markets, are well received and is helping the customers to reap the benefits of portable and cost-effective solutions for their timely land preparation, deweeding and irrigation needs besides offering portable, environment friendly and cost-effective solution in diesel dominated construction machinery segment.
Opportunities
Increasing investments in infrastructure was one of the key factors bolstering the growth of the construction market in India.
Harnessing available surface water for irrigation of agricultural crops will continue to drive demand for portable water pumps in the agricultural segment.
Construction mechanization, through portable engines run applications and farm mechanization products such as engines, water pumps, brush cutters, power tillers and crop harvesters will accelerate shift to mechanization with decreasing farm labour and will fuel the demand of portable machinery. Expected continuity in Government support will provide much needed fillip for our product portfolio and offerings.
Growing awareness to address environmental concerns brings in demand for more fuel-efficient 4 stroke engine powered applications.
Concerns
Subsidy policy by the State and Central Government and its operational complexities is a point of concern leading towards delays in purchase by end customers. Your Company endeavors to closely engage with various stakeholders in Government through its field teams to have a much deeper understanding of the process and contribute towards acceleration of the implementation of Government schemes to help farmers in their buying decision to acquire portable farm solutions for their various agricultural process.
Outlook
The infrastructure sector in India is expected to generate better momentum in the next few years due to increased investment in infrastructure such as national highway facilities, warehousing, airports and urban/rural housing projects.
The Company is pursuing to develop multi-channel structure in the country across various segments to develop application related products and equipment. Tying up with small, medium and specialized partners and OEM is expected to build much- needed ecosystem of cost competitiveness and application specific product sales and services.
BRUSH CUTTERS
Hondas range of fuel efficient and reliable 4 stroke brush cutters are specifically suited for optimal solution for various farm activities like de-weeding and crop harvesting.
The Company continues to offer its environment friendly 4 stroke brush cutter range for routine de-weeding operation and farm/ real estate management across all major markets in India.
Our complete portfolio of fixed shaft, flexible shaft and high- powered variants provide optimal solutions to the needs of professional users.
Concerns
Subsidy policy by the State and Central government and its operational complexities, is leading to delay in purchase by the end customers.
Influx of low cost imported brush cutters mainly from China has destabilized the pricing in the market.
TILLERS
The Companys focus towards agriculture mechanization was strongly led with its expanding line-up of Power Tillers.
The financial year 2024-25 was very challenging for the overall tiller market due to delay in implementation of various subsidy schemes of Central and State Governments due to complex disbursal process leading to lower end customer purchase. End customers withheld their purchases in anticipation of scheme release in season time which inadvertently got delayed.
EXPORT BUSINESS
Overall Export Business was 106% of the plan set in the beginning of the year.
2~3Kva models sales in Europe, Africa, Japan and China was major business driver amongst genset category.
The Company successfully introduced its New 4-inch Water Pump model in Nepal.
Water Pump and Tiller sales are showing increasing acceptability in Asia Oceania Region.
Concerns
Political uncertainty in certain countries may affect export business.
Stricter CARB/EPA /CPSC regulations are impacting the prospect sales.
Competing with global supply chains and various accessibility routes, especially in new and emerging markets, continues to place price competitiveness a major driver and challenge for success.
Outlook
Company is engaging with channel partners to develop and nurture the gasoline fueled Tillers, Engines and Water Pumps.
INTERNAL CONTROL SYSTEM
Your Company remains dedicated to the continuous enhancement of its internal control systems across all business processes. It has well established robust internal controls that are appropriately scaled to the size and operations of the Company. These controls are specifically designed to:
Safeguard Company assets against unauthorized use or loss;
Ensure efficient business operations in accordance with Company policies;
Maintain the accuracy, completeness, and reliability of financial and accounting records; and
Ensure compliance with all applicable laws and regulations.
To ensure the effectiveness and integrity of these internal financial controls, the Company conducts regular internal audits and implements comprehensive checks and balances, including stringent expenditure and budgetary controls.
FINANCIAL PERFORMANCE
Profit before Tax and Exceptional Items for the year was Rs. 10,770/- Lakh as against Rs. 11,975 Lakh in 2023-24.
Key Financial Ratios of the Company which has significant change (i.e. more than 25% change) compared to last year are as follows:
FY 2024-25 | FY 2023-24 | Reason for change | |
Net Profit Margin (%) | 10.06 | 9.32 | No significant changes |
The return on net worth during the financial year 2024-25 was 9.54%
as compared to 11.91% in the financial year 2023-24.
For a detailed explanation of change please refer to Note 34 of notes to Financial Statement.
HUMAN RESOURCES
Our people are key to retaining our competitive edge. We continuously work to create an environment of empowerment through well-defined policies that reflect empathy, celebrate meritocracy and provide ample professional and personal development opportunities. Our people are welcomed into safe workspaces designed around our values of diversity, equity, inclusion and fair play, giving them a healthy space to flourish.
Your Company promote Diversity, Equity and Inclusion at all locations, for all segments of employees and stakeholders and continues its steadfast dedication to promoting equal opportunities within the organization and beyond. Building upon our long-standing legacy through our programmes and inclusive practices, we strive to create a workplace culture where every individual feels valued, respected and empowered to unlock their true potential.
Over the year, several D&I activities have been rolled out which includes reviewing the existing policies and practices and introduction of new policies like paternity leave, hybrid working model and flexible work timings for female associates to make the workplace inclusive, supporting gender equality and aimed at their career progression. These initiatives underscore the Companys commitment to creating an inclusive and supportive workplace.
Your Company is committed to enhance the green human resource management practices by digitalizing HR processes. Through these initiatives, the Company showcases its dedication to environmental stewardship and reinforces its role as a responsible corporate citizen, contributing positively to sustainability and social responsibility.
We consider our employees critical to our success. Our human resource strategy is outlined to build better organizational capabilities, hire and retain the best talent and create a culture that delivers longterm value and sustain competitiveness in the global marketplace. The relationship between the management and the workers has evolved significantly. Dialogue and communication at periodic
intervals have helped in addressing the grievances and challenges faced by both the associates and the organization. The Management ensures timely updates and cascading of critical information and updates on the business side to its associates.
Your Company considers the health and safety of its employees as the very basic foundation for a positive organizational work culture that is focused on business excellence. Our workforce is our greatest asset. With a commitment to promoting holistic development and creating a safe, inclusive and progressive work environment, through the strategic focus of Responsible Business, we strive to foster a culture of learning and support for our employees.
The Companys CSR initiatives aim to create social value for the local community and society at large. The Company undertakes CSR projects in the areas of child education, community development etc. Through its CSR projects, the Company aims to create a meaningful and lasting impact on the lives of beneficiaries.
The Company as on March 31, 2025, had 727 associates. INFORMATION TECHNOLOGY
With increasing digitalization, rise in cyber-crimes and downtimes in manufacturing industry, high cost of data breaches and evolving regulations, businesses are placing greater focus on detecting, preventing, and combating information security threats. The Company identified its information security risks and is committed to safeguarding business information from internal and external threats. The Company has established robust policies and processes on information security.
CAUTIONARY STATEMENT
Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Companys operations include significant changes in political and economic environment in India and key markets abroad, tax laws, litigation, labor relations and interest costs.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
(a) Conservation of energy
(i) The steps taken for impact on conservation of energy | Following energy conservation measures were taken to reduce the energy consumption: 1. Reduction in fuel consumption by thermal painting implemented in paint shop oven resulting in saving of png gas consumption of 929 scm per year. 2. Installation of VFD on ASU (air supply unit) blower and paint booth exhaust fan in paint shop resulting in saving of 8,748 kwh per year. 3. In PDC shop machine optimization of burner efficiency resulting in saving of PNG gas consumption of 3,527 scm per year. 4. Reduction in energy consumption by installation of energy efficient pump in vam unit. This resulted in saving of 10,647 kwh per year. 5. Reduction in energy consumption by installation of energy efficient motor in dry off oven resulted in saving of 2,559 kwh per year. 6. Reduction in energy consumption by replacement of overhead light of steel shop with energy efficient led lights. This resulted in saving of 1,366 kwh per year. 7. Reduction in energy consumption by installation of energy efficient pump on neutralization pit. This resulted in saving of 2,559 kwh per year. |
(ii) The steps taken by the | Successfully completed the feasibility study of solar power plant of 300 kw capacity in the year |
Company for utilizing alternate sources of energy | 2023-2024. The project implementation will start from quarter four of FY 2026-2027. |
(iii) The capital investment on energy conservation equipment | Following capital investments were made for energy conservation equipments: Rs. 4.3 Lakh: procurement of energy efficient pumps for Vam unit Rs. 2.0 Lakh: procurement of flue gas analyzer for PDC furnace for optimization of burner efficiency of PDC machine. |
B. Technology Absorption
i) The Effort Made Towards Technology Absorption | 1. Upgradation of technical knowledge of associates by using technical expertise of Honda Motor Co. Ltd., Japan, by way of on the job training and guidance to the companys engineers and technicians. 2. For development of the new technology model and to improve the manufacturing quality of in-plant / out - plant parts, new manufacturing facility has been added in the following areas: A. Adoption of global concept for domestic engines & gensets with E10 and subsequently rollout plan for E20 gasoline. B. Increasing the process efficiency by adopting global honda standards. C. Upgrading existing generator models to continuously meet the regulations of advance countries such as: - EPA/CARB/CPSC/ANSI/PGMA G300 regulation for the USA market. D. GX200 engine with rpm reduction with high torque is introduced. E. Developing new pump with high discharge performance and usability. |
ii) The Benefits Derived Like Product Improvement, Cost Reduction, Product Development Or Import Substitution | The benefits achieved: A) Ensuring compliance with both customer expectations and regulatory standards across all product lines, including engines and generators. B) Developing environmentally friendly products through effective management and reduction of hazardous substances. C) Reducing costs by focusing on import substitution, benchmarking best practices, and implementing value addition and value engineering strategies. D) Enhancing product appeal and competitiveness, leading to improved sales performance. E) Optimizing packaging design and concepts for parts, resulting in significant cost savings |
iii) In Case Of Imported Technology | Following information is furnished in case of imported technology (imported during the last three years reckoned from the beginning of the financial year): |
a) The Details Of Technology Imported | For manufacturing/ testing of power products. |
b) The Year Of Import | Technology is being imported since beginning of the collaboration agreement dated 18.10.1985, as is renewed/revamped from time to time and valid for a period of 5 years till march 31, 2027. |
c) Whether The Technology Been Fully Absorbed | No, this is a continuous process. |
d) If Not Fully Absorbed, Area Where Absorption Has Not Taken Place And The Reasons Thereof | Technology is further to be absorbed for localization of high technology engine components and in producing the country specific products / models like: - Engines- OHV technology- to enhance part efficiency through value engineering. - Generator - incorporate advance technologies such as Fuel Injection Systems, Inverters and GCU. - Product enhancement - develop value added products tailored for the US markets, including bluetooth enabled and co sensor integrated models. - Water pump- produce high performance self-priming pumps specifically for indian farmers. - Electrified power unit- integrate electrification technologies into power unit products and operational processes. |
iv) The Expenditure Incurred On Research And Development | Nil |
(C) Foreign Exchange Earning and Outgo
During the year the total foreign exchange used was Rs. 14,026 lakh and the total foreign exchange earned was Rs. 16,095 lakh.
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