Igarashi Motors India Ltd Management Discussions

Economic Review

World Economic Overview

After a prolonged and unprecedented period of shocks, the global economy appears to have stabilized through much of 2024, with steady yet underwhelming growth rates. Global GDP is projected to have registered 3.3% growth in CY 2024 and is estimated to grow by 2.8% in CY 2025. The global economy demonstrated resilience and withstood a series of mutually reinforcing shocks, despite substantial interest rate hikes by central banks aimed at restoring price stability. Growth remained subdued amid lingering uncertainty, constrained by weak investments, sluggish productivity growth and high debt levels.

However, the global landscape changed as governments around the world reordered policy priorities and uncertainties climbed. Risks stemmed from geopolitical conflicts, rising trade tensions and elevated borrowing costs in many parts of the world. Compounding these challenges, the war in Ukraine drove energy prices even higher, placing additional strain on economies with significant energy demands.

https://www.imf.org/en/Publications/WEO/Issues/2025/ 04/22/world-economic-outlook-april-2025

Projected world economic growth
3.3%	2.8%
2024	2025

World Economic Growth – An Overview

	Estimate	Projections
	2024	2025	2026
World output	3.3%	2.8%	3.0%
Advanced economies:	1.8%	1.4%	1.5%
United States	2.8%	1.8%	1.7%
Euro Area	0.9%	0.8%	1.2%
Emerging Markets and Developing Economies:	4.3%	3.7%	3.9%
Emerging and Developing Asia	5.3%	4.5%	4.6%
China	5.0%	4.0%	4.0%
India	6.5%	6.2%	6.3%
Middle East and Central Asia	2.4%	3.0%	3.5%

https://www.imf.org/en/Publications/WEO/Issues/2025/04/22/world-economic-outlook-april-2025

Future Outlook

Amid escalating trade tensions and financial market adjustments, intensifying downside risks dominate future outlook. Forecast for global growth has been revised markedly down, reflecting a highly unpredictable environment Growth prospects are expected to be hindered by a trade war and heightened trade policy uncertainty. Global growth forecast for the next five years stands at 3.1%, marking its lowest level in decades, although lower inflation and ongoing monetary easing in many economies can provide a modest boost to global economic activity.

Advanced economies are forecast to maintain a steady growth rate of 1.5% in 2024, with a slight uptick to 1.7% in 2025, while developing economies are projected to expand at an average rate of 4% over 2024 and 2025, marking a slight slowdown from 2023. At this critical juncture, there is a need for countries to work constructively to promote a stable and predictable trade environment and to facilitate international co-operation, while addressing policy gaps and structural imbalances.

Source: https://www.imf.org/en/Publications/WEO/Issues/2025/ 04/22/world-economic-outlook-april-2025

India Economic Overview

Indias growth story is indeed a powerful narrative of ambition, innovation, and unparalleled potential. As per the second advance estimates by the National Statistics Office (NSO), the Ministry of Statistics and Program Implementation (MOSPI), Indias real GDP is estimated to grow by 6.5% in FY 2024-25, as compared to real GDP growth rate of 9.2% in FY 2023-24, which was estimated to be the highest in the previous 12 years (barring FY 2021-22). Headline inflation was estimated at 4.1% during the year under review vis-?-vis 5.4% in the previous year, on account of high-frequency macro-economic indicators, and indicating a promising outlook in the coming years.

Growth was mostly led by a significant government spending and prompted by a spike in exports, higher capex pick-up, and huge growth in consumption expenditure. Indias long-term growth story is believed to be intact. Despite global challenges, India emerged as an economic powerhouse and is moving up the global value chain and continues to be the worlds 5^th largest economy in the worlds GDP rankings list, owing to its strong economic foundations and on the back of continued economic reforms, thriving domestic demand, careful financial management, high savings rate, and favorable demographic trends.

India GDP Current Growth and Future Projections (%)

	Estimate	Projections
	FY 2023-24	FY 2024-25	FY 2025-26
India	9.2	6.5	6.7

Source: https://pib.gov.in/PressReleasePage.aspx?PRID=2097892

Future Outlook

According to the World Banks Global Economic Prospects (GEP) report, Indias economy is projected to expand at a robust 6.7% in both FY 2025-26 and FY 2026-27, far surpassing global and regional counterparts. The Indian economy is poised to lead the global economic landscape, retaining its position as the fastest-growing major economy. With global growth expected to remain at 2.7% in FY 2025-26, Indias strong performance highlights its resilience and increasing influence in shaping the worlds economic future. A sustained growth reflects the countrys strong economic fundamentals and the ability to maintain momentum despite global uncertainties, reinforcing its position as a key player in the global economy.

(Source: World Bank & International Monetary Fund)

Industry Overview

Global Automotive Industry

The market size of the global automotive industry was valued at USD 3,564.67 billion in 2023, and is projected to grow at a CAGR of 6.77% by 2033, expected to reach a market size of USD 6,861.45 billion.

The global light vehicle production in 2024 was at 91 million units, a 2.2% increase compared to 2023 levels, with all regions except mainland China and South America experiencing decline. While the Internal Combustion Engine (ICE) vehicles held the major share, the Hybrid Electric Vehicles (HEV) segment is expected to grow at a high rate of 20-25% over 2025.

In 2024, the global automotive industry faced economic uncertainty, ongoing geo-political tensions, high interest rates, and weaker consumer demand, bottlenecks in critical semiconductor issues, supply chain disruptions and rising material costs slowed production. Labor strikes, workforce shifts, and cybersecurity risks further pressured automakers.

Balancing profitability, innovation, and sustainability remained critical for industry survival amid intense competition.

For 2025, global light vehicle sales are seen rising ~3% year-over-year to ~93 million units, according to S&P Global Mobilitys 2025 auto sales forecast, reflecting cautious recovery growth.

(Source: MarkLines Data)

In 2025, the global automotive industry will encounter both opportunities and challenges influenced by economic conditions, trade policies, and evolving consumer preferences, pushing them to go for HEV. Increasing tariffs on imported auto parts and materials may drive up production costs in key automotive regions resulting in opportunities for low-cost manufacturing hubs, such as India.

Indian Automotive Industry

The Indian automobile industry, which is the third-largest automobile market in the world, witnessed strong growth, with passenger vehicles, three-wheelers, and two-wheelers all recording record sales. The industry benefited from the stable policy environment and positive consumer sentiment. The passenger car market, which was valued at USD 32.70 billion in 2021, is expected to reach a value of USD 54.84 billion by 2027 while registering a CAGR of over 9% between 2022-27. The Indian auto industry witnessed a steady growth trajectory in 2024, with positive consumer sentiment and macroeconomic stability that helped in propelling reasonable growth for the sector across vehicle segments. The domestic automotive production (PV, CV, 3W, 2W) in 2024 stood at 26 million* units in FY 2024-25, a ~13% increase compared to FY 2023-24 levels of 23 million units. According to industry experts, this is expected to grow to 28 million units in FY2025-26.

During the last few years, Global OEMs are deepening investments in countries such as India due to geopolitical uncertainties and trade tariffs. This move has progressed from exploration to localized supply chains, expanded production, and stronger regional supplier networks. India stands out with cost advantages, skilled labor, and supportive policies and these continue to drive diversification, ensuring supply chain resilience and global competitiveness as automakers solidify long-term strategies for sustainable growth. Also, in India, localization for local markets is gaining traction, with automakers tailoring products to meet the domestic demand, while optimizing costs.

4W market – Sales trend

Passenger vehicles grew by ~2% in FY2024-25 as compared to the previous fiscal year, with sales of around 4.25 million units. A stable policy environment, continuing from previous years, provided a conducive foundation for growth. Continued infrastructure spending and the onset of festive season boosting consumption helped gain momentum.

Good monsoons and healthy crop yields are expected to put more money in the hands of customers in rural markets, boosting demand in the coming year. Market analysts anticipate a growth of approximately 7% in FY 2025-26, bringing volumes to around 5 million units.

(Source: SIAM)

Global: 4W – Automotive Actuators Market

The global automotive actuators market, estimated at USD 24.7 billion in 2024, is projected to reach USD 39.4 billion by 2032, growing at a CAGR of 6.0%, according to data from Marklines. The market is set for substantial growth as the automotive industry advances toward software-defined, connected, and autonomous vehicles. Demand is fueled by the increasing adoption of automation, electronic systems, and smart actuators across all vehicle segments, from economy to premium models, enhancing safety, efficiency, and passenger comfort. Passenger cars continue to dominate the market, driven by the integration of ADAS and intelligent vehicle systems.

The rise of hybrid and fuel-efficient ICE vehicles presents a lucrative opportunity for the automotive actuators market, with electric actuators playing a critical role in powertrain optimization, thermal management, and emissions control. The increasing prevalence of ADAS-equipped vehicles further accelerates actuator demand, ensuring precise control of functions such as braking, steering, and acceleration. Advancements in materials, miniaturisation, and sensor integration have significantly improved actuator performance, enabling their deployment in increasingly complex vehicle architectures.

The global automotive sector is undergoing a major transformation, with key trends including hybridisation, powertrain electrification, and connected vehicle technologies. Modern passenger cars typically have over 120 Passenger vehicles grew by ~2% in FY 2024-25 as compared to the previous fiscal year, with sales of around 4.25 million units.actuator-driven motors, while luxury and high-tech vehicles can exceed 200 motors per vehicle, controlling applications such as seat adjustments, HVAC systems, active grille shutters, and fluid valves, among others.

Additionally, the push for fuel efficiency and stricter emission regulations has led to a focus on downsizing vehicle engines, significantly boosting actuator adoption. Governments worldwide are also promoting efficient ICE and hybrid systems, leading to increased demand for electric and hydraulic actuators to enhance vehicle performance and regulatory compliance.

Going forward, efficient ICE and hybrid powertrains are expected to remain dominant in global passenger vehicle segments over the next decade. Our company is strategically strengthening its position as a leading global player in the actuator motor segment, aligning with the growing demand for advanced actuators, while other players are consolidating among Tier-1 and Tier-2 segments.

India: 4W – Automotive Actuators Market

TheIndian4-wheeleractuatormarketcontinuestodemonstrate strong growth, propelled by rising demand for fuel-efficient vehicles, evolving emission norms like BS-VI (including phase 2 RDE), and the integration of advanced vehicle technologies. Key innovations in Electronic Throttle Control (ETC), Exhaust Gas Recirculation (EGR), Waste-Gate Actuators (WGA), and Variable Geometry Turbochargers (VGT) have significantly contributed to this momentum. According to Industry ARC, the Indian 4W actuator market is expected to grow at a CAGR of 6.72%, reaching USD 3.62 billion by 2026. Additionally, the India Automotive Actuators Market is projected to witness a CAGR of over 7.8% between 2025 and 2030, supported by the increasing adoption of actuator solutions in comfort and safety applications.

Alongside powertrain applications, actuator demand in safety and body systems – including electronic parking brakes, smart latching systems, seat motors, and powered closures – has been gaining traction. This growth is being driven by rising consumer preference for enhanced in-cabin comfort, convenience, and safety, particularly in premium and mid-segment passenger vehicles. With the automotive industry progressively aligning with global safety and comfort trends, actuator applications in these domains are expected to see a sharp increase over the coming years.

Estimates suggest that the overall automotive actuator market in India reached approximately 10.8 million units in 2023, with projections indicating a rise to 15 – 17 million units by 2026, reflecting a robust CAGR of 15% 18% from 2022 to 2026. In alignment with this trajectory, our company is actively collaborating with leading OEMs and Tier-1 suppliers, aiming to expand its market share and strengthen its position as a key player in both traditional and emerging actuator segments.

Geopolitical Tariff Impact & Strategic Opportunity

The evolving global trade environment – marked by rising tariffs, geopolitical tensions, and supply chain disruptions – is prompting a strategic realignment in global sourcing. OEMs and Tier-1 suppliers are increasingly re-evaluating their dependency on massive global supply bases, seeking resilient, agile, and cost-effective manufacturing alternatives. India has emerged as a preferred destination in this transformation, supported by its robust engineering talent, improving infrastructure, and stable policy environment.

Our Company is actively aligned with this trend, enabling global customers to diversify their supply chains by offering localized, high-quality actuator and motor solutions that meet stringent international standards. This shift is further reinforced by Indias strengthening trade relationships, including its position as the first nation being considered for a forward-looking Free Trade Agreement (FTA) with the United States. This strategic alignment is expected to offer long-term tariff benefits and solidify Indias role as a critical node in the global automotive supply chain, presenting significant opportunities for sustainable growth.

OEMs and Tier-1 suppliers are increasingly re-evaluating their dependency on massive global supply bases, seeking resilient, agile, and cost-effective manufacturing alternatives.

Electric Motor Growth Platforms

Broad-banding of Actuator Motor Applications – 4W

With an established global presence built over two decades, our Company continues to solidify its leadership in the global 4W Actuator market. Our Companys market share in Engine Air Management applications has grown to 15% in the global PV segment, reinforcing its commitment to innovation and expansion. Beyond air management applications (ETC, EGR, VGT, WGA, CCV), it has significantly advanced its footprint and started serial production in Safety Applications (EPB, PLA, GBA, and EVP) and Vehicle Body applications (TOCD).

These high-performance actuators are integral across Internal Combustion Engine (ICE), Hybrid, and Battery Electric Vehicle (BEV) platforms, reflecting our Companys adaptability to evolving automotive trends.

A relentless pursuit of scalable manufacturing, efficiency, skilled team, and customer collaboration has propelled our Company toward achieving new milestones, solidifying its position as a key player in the global actuator market. It has successfully expanded into tech-neutral Auto applications, namely Body & Safety Applications, and ECD applications.

Engine Air Management

Our Company commands a 15% global market share for Engine Air Management (EAM), which encompasses solutions for the engine, exhaust, and turbo systems. Additionally, it holds a strong 43% market share in the domestic EAM sector. The recent implementation of BS-6 RDE Phase 2 regulations is significantly increasing traction for comprehensive EAM offerings, as stricter emission norms drive demand for an expanded application portfolio across engine, exhaust, and turbo applications, ultimately contributing to an anticipated rise in its overall EAM market share.

In Engine Air Management, the development team has deepened its engagement, now working on ~25 programs in collaboration with 12+ Tier-1 customers worldwide. Our companys focused efforts have laid the foundation for projected cumulative volume of ~27 million motors over the next 3-4 years.

Safety Systems

Building on our strong partnerships, leading globaltraction, withTier-1 customers have entrusted the Company with additional business, leading to the planned launch of five new programs in its Safety systems over the next couple of years. Notably, the teams have successfully accelerated program development timelines for the past 12 months, culminating in the launch of serial production for three new programs in Braking Systems during FY 2024-25. Meanwhile, the safety thesystem initiatives have gained significant development team actively driving more than 10+ programs globally. The anticipated production cumulative volume for these programs now stands at approximately 30-32 million units over the same period, demonstrating strong market confidence in its safety solutions.

Electric Parking Brake (EPB)

Building upon the momentum in the safety system initiatives, including the planned launch of EPB lines, the development team is actively engaged in 12 new programs in collaboration with five renowned Tier-1 customers, both internationally and domestically. Though we are a relatively late entrant in this sector, we are making big strides, as demonstrated by these ongoing initiatives which are anticipated to reach a commercial launch phase within the next 12 months alongside three of these Tier-1 partners. This progress is projected to yield a total cumulative volume of 20-21 million motors over the subsequent 3-4 years, with a completed volume of 0.26 million units achieved in FY 2024-25 and an estimated volume of approximately 2 million units projected for FY2025-26 as these new programs ramp-up.

Gear Box Actuators (GBA)

Full-scale production for our GBA solution, incorporating three motors per unit, has commenced in the second half of FY 2024-25, following successful testing at our global Tier-1 customers facility. Currently, our development team is actively collaborating with this key partner on this pivotal component for modern manual transmission systems. This electro-mechanical device, controlled by an electronic control unit, ensures optimal mechanical transmission performance. The projected cumulative volume for this GBA solution is 4 million units over the next 3-4 years (~0.9 million units for FY 2025-26), highlighting its significance in the automotive landscape.

Park Lock Actuators (PLA)

Our development team is currently engaged in three programs for PLA with two global Tier-1 customers, with an expected Start of Production (SOP) in the latter half of FY 2025-26. These programs have a projected cumulative volume potential of 6-7 million motors over the next five years.

Marking a critical milestone in our validation process, the PLA product is currently undergoing advanced system-level field testing at the customers facility, reaffirming our commitment to delivering reliable and innovative solutions aligned with evolving industry requirements. PLAs are essential in preventing vehicle rollaway during parking, enabling features such as Hill Assist mode, and improving theft protection.

Body Systems

During FY 2024-25, our development team successfully launched one new program into serial production within the Body systems domain for the global PV Market. Building on this momentum, our expertise has deepened with the initiation of six new application programs. These programs focus on TOCD and various seat functions (folding, adjustment, sliding, height, cushion tilt, reclining) for both the global and domestic PV markets. Market projections indicate a promising increase in volumes for these Body system applications, now expected to reach 15-20 million motors cumulatively over the next 3-4 years.

Trunk Opening and Closing Device (TOCD)

TOCD are essential components in modern vehicles, automating the process of opening and closing the trunk to enhance user convenience, safety, and overall vehicle functionality, with features like hands-free operation and obstacle detection becoming increasingly popular. Following successful development and launch in late 2024 in collaboration with a leading Global Tier-1 Customer, supported by Igarashi, Japan, we achieved a volume of 0.13 million units in FY 2024-25. We are currently scaling up production, with a projected volume of approximately 1.5 million units for the current FY 2025-26, and anticipate a cumulative volume of 9 million units over the next 3-4 years through this strategic partnership, solidifying our position in the growing global smart tailgate market.

PCB for TOCD – Automotive Electronics

The PCB for our Trunk Open-Close Device (TOCD) entry into automotive electronics.marks our significant Following successful development, testing, and validation completed in FY 2024-25, this PCB is currently in the process of launch within our ESDM line. We anticipate a volume of 1.5 million units in the current FY 2025-26, with a projected cumulative volume of 9 million units over the next 3-4 years for this automotive electronics component. This achievement opens up a window for entry into other electronics applications space within the automotive domain.

Motor assembly for seat

Seat adjustment actuators, enabling enhanced driver ergonomics through functions like sliding, height adjustment, reclining, cushion tilt, and folding, are a growing area within automotive aesthetics. Our expansion in this domain has involved the development of five distinct actuating motors.

Currently, our development team is actively collaborating with four global and domestic Tier-1 customers on these seat movement motors. Looking ahead, this engagement is projected to yield a significant cumulative volume of 6-11 million motors over the next 3-4 years, positioning us strongly to capitalize on the increasing demand for comfort and convenience solutions in the automotive seating segment.

Sub-assemblies for DC-brushed and brushless DC motors

Our Company is a trusted leader in the supply of sub-assemblies for DC brush and brushless motors, designed for critical automotive applications. Our product range includes motor, armature, and brush holder assemblies for seat systems, stator and armature assemblies for window lift mechanisms, and armature and carrier assemblies for fuel pumps. With a strong presence in both global and domestic markets, we are committed to delivering high-quality, reliable solutions. Additionally, our active pursuit of new RFQ inquiries reflects our dedication to innovation and business expansion, reinforcing our position in the evolving automotive industry.

Armature Assemblies for Window Lift Motors

The automatic window lift is a standard convenience feature in four-wheeler passenger vehicles, driving significant growth in the Indian Window Lift Mechanism (WLM) market, which reached approximately 18 million units in FY 2024-25 and is projected to expand to around 22 million units by FY 2025-26. Our Company has been a dependable supplier of WLM armature assemblies for over two decades, producing 137 million parts since 2010, and currently holds a commanding one-third share of the domestic market.

Our development team is actively driving five upcoming programs set to commence production in FY 2025-26, with an estimated volume of ~9 million units, and is engaged in nine new programs targeting a cumulative volume of over 12 million units in the near future. Strategically positioned to increase our domestic market share from ~40% to ~55% by integrating new tech-neutral applications with our WLM motor sub-assemblies, we are committed to expanding horizons and sustained growth in this promising market driven by improving domestic vehicle sales.

Armature Assemblies for Wiper Motors

The global automotive wiper motor market is experiencing steady growth, estimated at USD 5.87 billion in 2024 and projected to expand to USD 7.88 billion by 2034, reflecting a CAGR of approximately 3%. This growth is fueled by increasing vehicle production, tech-neutral applications, advancements in technology, and rising demand for enhanced visibility and safety features. Leveraging our backward integration and mass manufacturing capabilities, our Company is strategically positioned in the global automotive wiper motor market. Currently, our development team is actively working on four upcoming programs for current and new global Tier-1 customers, with production scheduled to commence in FY 2025-26 and an estimated cumulative volume potential of ~3 million units in the next 3-4 years.

Carrier Assembly for Fuel Pump

Building on over two decades of expertise in manufacturing fuel pump sub-assemblies for brushed DC motors, we have established a strong reputation as a trusted supplier to leading global Tier-1 customers. Currently, our development team is actively engaged in six new programs in collaboration with key market players, with two of these programs having commenced production in FY2024-25 and four more in various stages of development. These initiatives are projected to yield a potential cumulative volume of nearly 8 million units in the next 3-4 years, reinforcing our commitment to competitiveness, quality, and long-term market growth in the fuel pump segment.

Molded Stator & Armature Assembly for Fuel Pump

We are currently developing new molded stator and armature assembly programs for fuel pumps. For the stator assembly, targeting Europe & Mexico, the expected Start of Production (SOP) is in the latter half of FY 2025-26, with an anticipated cumulative volume of 3 – 4 million units over four years. Simultaneously, we are developing two new molded armature assembly programs (carbon commutator) for a domestic Tier-1 customer, with an expected SOP in 12-15 months and a projected cumulative volume of 5 – 6 million units over five years.

Motor sub assembly for seat

With a decade-long track record of supplying seat motor sub-assemblies, our Company has established itself as a trusted partner for leading Tier-1 manufacturers worldwide. We have delivered over 30 million comfort motor sub-assemblies for seat application globally so far, reinforcing our commitment to quality, reliability and scalability. Looking ahead, we have two new programs in the pipeline, scheduled for SOP in the next 12 months, with an anticipated cumulative volume of over 30 million units over the next 4-5 years.

BLDC Water Pump Sub-Assemblies for Coolant Control Hub – Stator & Rotor

During the year, our Company entered into a strategic collaboration with a leading global Tier-1 manufacturer for the development of stator assemblies for the CCH pump program. The project is scheduled for SOP in FY 2025-26, with an estimated cumulative volume of 2 – 3 million units over the next four years.

Furthermore, our Company is actively engaged with the same customer for the BLDC stator and rotor program for the coolant control valve application. This initiative represents launch significant in the year 2027 with a projected cumulative post launch volume of over 3 million units in the next 5 years.

Fast-Moving Electrical Goods Market

BLDC Ceiling Fan Motor Market – Industry Overview

In FY 2024-25, the Indian Fan market – encompassing both Induction and Brushless DC (BLDC) motor variants – reached approximately 61 million units as per industry experts. Within this landscape, BLDC fans continue to gain momentum, driven by rising consumer interest in energy-efficient solutions. However, BLDC market growth during the year was moderate, constrained by higher initial costs, limited consumer awareness, and the increasing presence of cost-effective Improved Induction Fans (IIFs).

The Bureau of Energy Efficiency (BEE) has deferred the Revised Star Rating norms for ceiling fans – originally scheduled for December 2024 – to January 1, 2026. These upcoming standards will introduce more stringent energy efficiency requirements, especially for 5-star rated products. Until then, demand for efficient induction fans is expected to remain strong, while BLDC fan adoption is likely to continue its gradual upward trend. The BLDC segment stood at approximately 8 million units in FY2024-25. As next-generation solutions, BLDC fans offer higher speeds, lower energy consumption, consumer convenience, and reduced heat emissions, effectively addressing airflow needs. The Indian fan market is projected to grow to 64 million units by FY 2025-26, supported by shifting consumer preferences toward premium products equipped with IoT capabilities, app-based controls, and decorative aesthetics, according to estimates from market watchers. These dynamics, combined with forthcoming regulatory changes, present a strong growth opportunity for our company across premium, standard, and economy segments.

Since the launch of our BLDC product line in 2020, we have deployed over 5 million solutions in the Indian ceiling fan market. Despite subdued overall growth in FY 2024-25, we maintained a ~22% market share of the BLDC segment by partnering with seven key OEMs who collectively account for over 60% of the organized market.

Our commitment to innovation is evident through several key advancements:

• Enhanced BLDC Technology: Introduced features such as temperature sensing and offline voice recognition for a superior user experience.

• Fusion Functionality: Developed a dual-mode system enabling seamless operation via both wall regulator and remote.

• Universal Regulator Compatibility: Delivered consistent performance across 180V – 300V using standard wall regulators.

• Graphical Indicators: Visual display for fan speed and rotation to improve user interface.

• Smart Home Integration: Enabled cost-effective BLE (Bluetooth Low Energy) module to support smart home connectivity.

We are currently collaborating on 22 new programs with seven major customers for ceiling fan motors, sub-assemblies and controllers forecasting 8 million cumulatively over the next 3 – 4 years. These opportunities and customer partnerships reinforce our stronghold in this evolving market.

Electronic system design and manufacturing (ESDM)

Our Company has significantly upgraded its EMS (Electronics Manufacturing Services) facility to support the assembly of automotive electronics products, aligning with the growing demand for high-reliability solutions in this sector.

Key enhancements include:

• Advanced Inline Equipment: o Inline Laser QR Code Printer: Enables high-speed, traceable product identification.

o In-Circuit Testers: Ensures robust quality through comprehensive electrical testing.

o PCB Depaneling Machines: Offers precise separation of PCBs, reducing stress and ensuring component integrity.

o Conformal Coating Setup: Provides moisture and dust protection to enhance durability in harsh environments.

• Product Reliability Test Chambers:

Integrated environmental and stress testing chambers ensure that all products meet stringent quality and reliability standards expected in the automotive industry.

These upgrades position our Company as a top-tier EMS provider, capable of handling a diverse product portfolio, while delivering superior quality and performance. With this modernized infrastructure, our company is well-equipped to meet the needs of both existing and future customers in automotive and other high-reliability markets.

R&D Development Projects milestone with our eVA Series

Motor assembly for seat adjustment

Leveraging the extensive prior experience in seat motor sub-assemblies, the development team has successfully designed a complete motor for various seat applications, including sliding, height adjustment, reclining, cushion tilt, and folding. This program is specifically tailored for a leading South-East Asian Tier-1 player and has successfully undergone design validation and our internal testing phase. Currently, Phase-2 samples are undergoing validation at the customers end.

EV Motor Development

Having successfully developed an EV application platform and actively engaged in strategic partnership discussions to solidify the Companys global automotive presence, we have achieved a significant EV Motors with drivers for the E2W/E3W segment. For these motors, offering power ranges of 3.3 kW, 7.5 kW,and 15 kW,we are actively pursuing contract manufacturing partnerships for sub-assemblies.

Manufacturing Strategy advancementsIn FY 2024-25, our Company made significant in manufacturing technology and process automation. Building on our strategic focus on cluster automation and quality enhancement, the Process Engineering team achieved key milestones – particularly in automating main motor assembly stages for new applications.

Following last years initiative to diversify into three new product categories, innovative automation solutions were successfully implemented to elevate manufacturing competence. Notably, a new assembly line for the TOCD (Trunk Opening & Closing Device) motor – with over 70% automation – was developed in record time. Advanced processes such as negative armature balancing and glue-based magnet fixing were fully automated, enabling production with minimal manual intervention. The line was built in just seven months, with the product launch accomplished within 14 months of RFQ receipt.

BLDC stators used in coolant pumps for premium passenger vehicles. A fully automated line – integrating injection molding, winding, welding, and packaging – has been established and will be production-ready in the next fiscal year.

These capability enhancements are unlocking new opportunities across both existing and new customer accounts, as our penetration in multi-application motor programs per vehicle continues to grow steadily.

Recognizing that people are the driving force behind technology and business progress, our Company launched "KAIRYO 2.0" in the second half of FY2025. Building on the enthusiasm generated by the earlier KAIRISE initiative, KAIRYO 2.0 focuses on SMART-targeted and high-impact improvements. Cross-functional teams were formed and empowered to drive transformation, resulting in an impressive average of 100 improvement projects executed each quarter

delivering measurable gains in operational efficiency and reinforcing our culture of continuous improvement.

Key Financial Ratios

Key Financial Ratios Standalone Operation as per SEBI Listing Obligations and Disclosure Requirements (Amendment) Regulations, 2018.

Key Ratios

Particulars	FY 2024-25	FY 2023-24
Debtors Turnover	4.40	3.79
Inventory Turnover	4.86	4.37
Interest Coverage Ratio	3.21	2.09
Current Ratio	1.24	1.37
Debt Equity Ratio	0.28	0.25
Operating Profit Margin (%)	11.60%	10.22%
Net Profit Margin (%)	3.00%	1.00%
Return on Net Worth (%)	5.00%	2.00%

Risks and Concerns

A strong risk management and ESG policy continues to provide guidance to the Risk Management & ESG Committee and the internal Risk Management team and helping them manage business risks. The Companys Risk Management & ESG Committee comprises Mr. Hemant M Nerurkar (Chairman), Mr. L Ramkumar, Mrs. SM Vinodhini and Mr. R Chandrasekaran.

Macro Risks & Strategic Foresight

• Challenges: Geopolitical tensions, trade disruptions and tariffs, economic slowdown, and security threats impacting global supply chains.

• Proactive Measures: Strengthening trade resilience through market diversification, strategic partnerships, and customer-centric initiatives to enhance adaptability.

Technological Evolution and Innovation Readiness

• Challenges: Clean Mobility, evolving consumer preferences, and technological advancements in automotive and consumer durable industries.

• Proactive Measures: Focusing on R&D to expand the tech-neutral product portfolio, optimizing BLDC motor technology for new ECD applications, and broadening air management, safety and body applications.

Market Dynamics & Competitive Edge

• Challenges: Intensifying competition, pricing pressures, evolving regulatory landscapes, and localization challenges.

• Proactive Measures: Strengthening differentiation through multiple value proposition, cost-competitive pricing strategies, and logistics optimization to enhance market penetration. Focusing on star-rated BLDC fan motors, and diversifying into new geographies, product segments and customer segments to maintain competitiveness and expand the business mix.

Operational Excellence & Agility

• Challenges: Adapting to stringent quality standards, supply chain complexities, and workforce evolution balancing with automation in manufacturing technology.

• Proactive Measures: Enhancing supply chain resilience, adopting digital transformation in manufacturing, and fostering continuous workforce development. Upgrading design and testing capabilities, including FMEA, with system-level validation support.

Financial Stability & Risk Hedging

• Challenges: Market volatility, liquidity risks, and managing risks of forex fluctuations, commodity price movements and product liability impacting financial resilience.

• Proactive Measures: Maintaining strong financial governance, implementing robust hedging strategies under the purview of audit committee, commodity pass-through mechanism, appropriate liability insurance coverage, and ensuring adaptive capital management.

Cybersecurity & Digital Trust

• Challenges: Increasing cyber threats, data security risks, and IT infrastructure vulnerabilities.

• Proactive Measures: Deploying cybersecurity solutions, conducting routine threat audits with internal control measures, and reinforcing data protection policies.

Sustainability & ESG Leadership

• Challenges: Environmental compliance, employee health, wellness, and workplace safety in a rapidly evolving regulatory environment.

• Proactive Measures: Implementing sustainable manufacturing practices, prioritizing ESG-driven initiatives, and fostering a culture of employees safety and well-being.

Resilience Against Natural Calamities

• Challenges: Disruptions from natural disasters, pandemics, and global crises.

• Proactive Measures: Establishing a dynamic crisis management framework and ensuring robust business continuity planning to mitigate unforeseen disruptions.

Human Resources

Our Company considers its employees as the most valuable asset, recognizing the crucial role they play in its day-today operations. Our Company consistently organizes leadership, technical, and behavioral training to enhance the skills and capabilities of its employees. The robust HR policy fosters equality and transparency across the organization, creating a safe, synergetic and conducive work environment for employees to deliver optimal results, ensuring that employees goals align with the organizations growth vision. Our Company actively engages and inspires its workforce, supporting them in achieving personal goals while fostering overall company growth. As on March 31, 2025, our Companys total employee base stood at 760.

Internal control systems and their adequacy

Our Company has established a strong internal control system. The adequacy of the system is validated by its role in ensuring proper authorization, recording and reporting of transactions, along with safeguarding company assets. Moreover, Our Company has well-documented policies and procedures, reinforced by extensive reviews conducted by internal auditors. These review reports are periodically evaluated by the management and the Audit Committee of the Board, contributing to a business environment with minimized risks.

Cautionary Statement

The Management Discussion and Analysis contains forward-looking statements describing the Companys objectives, projections, estimates, and expectations. All such statements are subject to risks and uncertainties. Actual results might differ substantially or materially from those either expressed or implied in the Statement depending on the factors that could affect the Companys operations.