Jagan Lamps Ltd Management Discussions

Industry Structure & Developments

The Indian automobile industry became the fourth largest industry in the world with the two-wheeler segment.

Globally, Indias automotive industry is at the forefront of many segments. To list a few: by volume it ranks first in two wheelers, segment A Cars and Tractors. India is renowned as a global hub for frugal and scalable engineering. Due to the a growing middle class and a demography dominated by a young population, the two-wheeler segment dominates the market in terms of volume, catalysed by the penetration of the automobile companies in the rural sectors. The Indian economy appears to be headed for sustained sluggishness in 2024-25.

The position will be clearer, when the new government elected. The long-term outlook of the country appears to be positive on account of the various economic reforms, increasing aspirations, sustained consumption momentum and a national under-consumption of a range of products which is appearing to correct itself.

The Indian auto-components industry is projected to become the third largest in the world by 2025 and is expected to account for as much as 5% to 7% of Indias GDP by 2026. Globalization coupled with favorable government initiatives and significant FDI inflow from major global players will facilitate the growth of the Indian auto -components sector. However, all these perceptions are subject to new things happening in the industry that may change the landscape of the industry in the medium to long term.

Apart from this, global parameter is witnessed that there is very heavy demand in the Automobile Industry in India and Globally. This is an opportunity for the Company to grow with their production capacity and which gives boost to the auto components and automotive bulbs manufacturer and traders.

The company operates in single segment of Automotives Bulbs & Lights.

The Revenue from operations decrease by 2.7 % during the year to 4,979.72 Lacs from 5,117.23 Lacs in previous year. The Profit before tax was decrease by 4.369 % during the year to 375.59 Lacs from 392.75 Lacs in the previous year.

There were no material changes affecting the financial position of the Company since the end of financial year under review.

Due to technological advancements and consequent disruptions, it would be difficult to predict the industrys performance in very precise terms. These trends could change the industry matrix at every level, whether OEMs or Components manufacturer, trigger new competitions and generate a totally different market order.

Your Companys internal control systems are commensurate with the nature of its business and the size and complexity of its operations. Internal controls are reviewed periodically by the internal auditor and report significant audit observations, if any, to the Audit Committee and follow up actions, if required.

The Audit Committee reviews the adequacy and effectiveness of inter control systems commensurate with the nature of the business.

We deeply value our people and cherish their dedication and relentless efforts to steer the business ahead and help us get closer to our goals.

Statements in this management discussion and analysis describing the Companys objectives, projections, estimates and expectations are categorized as ‘forward looking statements within the meaning of applicable laws and regulations. Actual results may differ substantially or materially from those expressed or implied.

Important developments that could affect the Companys operations include competition, employee cost and significant changes in the political and economic environment in India, environmental standards, tax laws, litigation and labour relations amongst other factors.