Global economy
In CY2022, the global economy grappled with inflationary pressures, the ongoing
Russia-Ukraine war and the resurgence of COVID-19 in China. On the supply side, easing
bottlenecks and declining transportation costs reduced pressures on input prices making
way for recovery in cost pressures. Global GDP grew 3.4% in CY2022 with advanced economies
growing at 2.7% and Emerging markets and developing economies (EMDEs) at 4%. Global
headline inflation appears to have peaked in the third quarter of CY2022. Fuel prices and
prices of non-fuel commodities are declining, lowering headline inflation. Signs are
apparent that monetary policy tightening is starting to cool demand and inflation, but the
full impact is unlikely to be realised before CY2024.
Global GDP is likely to grow 2.8% in CY2023 and 3% in CY2024 led by the sustained
efforts of central banks to fight inflation.
The decline in growth in CY2023 from CY2022 is driven by advanced economies. In EMDEs,
growth bottomed out in CY2022 and is expected to pick up, led by China, with the full
reopening in CY2023. Advanced economies are expected to grow at 1.3% and 1.4%,
respectively, in CY2023 and CY2024. EMDEs are expected to grow at 3.9% in CY2023 and 4.2%
in
CY2024. Global inflation likely to drop from 8.7% in 2022 to 7% in CY2023 and 4.9% in
CY2024.
(Source: IMF April 2023 – World Economic Outlook)
Indian economy
According to the provisional estimates by the National
Statistics Office (NSO), in FY2023, the GDP growth rate is projected at 7.2%, lower
than the 9.1% witnessed in FY 2021-22, where pent-up demand boosted growth. Indian
economy witnessed sustainable growth in FY 2022-23 despite the tailwind of the
pandemic and the headwind of the geopolitical conflicts. Macroeconomic environment has
witnessed stability on various fronts including improved current account deficit, robust
banks and easing inflation pressure.
Retail inflation is expected to moderate in line with wholesale inflation, which fell
to a 25-month low in January 2023.
FY 2022-23 witnessed high service exports, moderation in oil prices and a fall in
import-intensive consumption demand. Coupled with robust revenue collections, there are
increased expectations of a fall in the current account deficit in FY 2022-23 and FY
2023-24, and strengthening of the Indian Rupee in near future. The easing of global
inflationary pressure led by falling international commodity prices and strong government
measures are expected to aid economic growth in India.
Indias private non-financial sector debt has witnessed a steady decline since
mid-2021, along with an improvement in the quality of debt. In FY 2023-24, the Indian
economy is expected to continue to be the fastest-growing economy in the World. This is
led by the fact that the economy has exhibited strong resilience amidst testing times
driven by strong domestic consumption and fixed economic progress is led by various
government interventions and initiatives. In the Union Budget 2023-24 strong emphasis was
laid on boosting economic growth amid mounting fears of recession. The budget adopted
seven priorities, namely inclusive development, green growth, reaching the last mile,
infrastructure and investment, unleashing the potential, youth power, and a focus on the
financial sector.
The inflation trajectory in India is likely to be determined by extreme weather
conditions such as heatwaves and the possibility of an El Ni?o year, volatility in
international commodity prices and pass-through of input costs to output prices. Inflation
is expected moderate in FY 2023-and is likely to remain at 5-6%, with risks evenly
balanced.
Driven by strong measures and a huge allocation to capital expenditure, the Indian
economy remains resilient even amid volatile global developments. The Economic Survey
2022-23 and the RBI have projected Indian economic growth at 6.5% in FY 2023-24 despite
high global uncertainties.
(Source: NSO, World Bank, PIB)
Global automobile industry
Despite advancements, chip shortages and supply chain problems continue to persist.
Additionally, economic sluggishness and resultant inflation acts as a dampener on
consumption. As COVID-19-induced supply-chain challenges have been exacerbated by
geopolitical tensions and global economic concerns, semi-conductor shortage will continue
to persist in CY2023. Moderation in automobile demand has made supply-chain blockages less
acute. However, the issue of semiconductors shortage will be addressed in CY2024 when new
capacity will come into operation. Additionally, rising geopolitical tensions between
Taiwan and China may lead to challenges in acquiring metals such as nickel, cobalt, steel
and aluminium, making it more difficult to assemble EV batteries. Lithium supply, vital in
battery, could be affected by zero-covid policies in China, the worlds largest lithium
refiner. Different countries are encouraging local sourcing to counter these foreseeable
challenges.
According to EIU, global new-car sales is expected to rise by 0.9% in CY2023, held back
by squeezed consumer spending, high commodity prices and production shutdowns caused by
supply-chain disruptions. Overall, following a decline in CY2022, new-vehicle sales will
rise only marginally in CY2023, led by growth in Asia, the Middle East, Africa and Latin
America. Global new-vehicle sales at 79 million in CY2023, will be lower than pre-pandemic
levels of 88 million units. In CY2023, sales of electric vehicles (EV) are expected at ~11
million units, growing 25%, attributable to various innovative incentives provided by
governments globally. The US government offered US$7,500 EV tax credit at the point of
sale on clean-vehicle purchases from January 1st 2023. The US will also remove 200,000
vehicle cap per manufacturer to encourage investment in local production and limit
government expenditure. China has extended tax breaks and purchase subsidies available for
buyers of new energy vehicles (NEVs) until the end of CY2023. These breaks include
exemptions from purchase taxes, annual vehicle taxes and consumption taxes. The French
government is working on a subsidised EV leasing plan, in a bid to make EVs more
affordable for low-income households.
Source: Automotive Outlook 2023, Economist Intelligence
Indian automobile industry
The automotive sector in India is one of the main pillars of the economy. With strong
backward and forward linkages, it is a key driver of growth, contributing 7.1% to Indias
GDP. During FY 2022-23, a mix of gradual improvement in chip supply, higher incomes and
healthy replacement demand, especially for SUVs supported automobile sales despite
inflation trending higher through the year. In addition, customers are pre-buying ahead of
implementation of new fuel emission norms, second phase of BS-VI. In FY 2022-23, retail
sales of passenger vehicles recorded a new high at 3.9 million vehicles, growing 23% as
compared to FY 2021-22.
According to the Society of Manufacturers of Electric Vehicles (SMEV), the EV segment
grew 158% with 62% sales contribution from two-wheelers. The spike in EV sales is
attributable to their economic viability as compared to ICE vehicles and the increase in
numerous homegrown brands.
EV sales constituted only 5% of the total vehicle sales in
FY2023. This contribution is expected to reach 20-30% by FY 2029-30.
Source: FY2024 outlook for the automotive industry : The Financial Express
Current Scenario
Driven by higher off-take of passenger carriers, the three-wheeler (3W) segment
witnessed 87% growth with EV rickshaws posting 119% growth. The availability of finance,
along with the availability of alternative fuels and state subsidies, has contributed to
the growth of this segment. The PV segment posted the highest-ever domestic sales at 27%
primarily driven by pent-up demand, new model launches, and better product availability
due to the easing of the semiconductor chips supply. The demand for higher-end variants
and premium SUVs witnessed strong demand.
However, the demand for entry-level remained slow.
Future Outlook
According to Federation of Automobile Dealers Associations (FADA), the Indian
automobile industry is expected to witness a single digit growth in FY 2023-24, after
closing FY 2022-23 with double digit growth. The primary reasons for lower growth
are high base, inflationary pressures, routine price hikes, and regulatory changes. In
addition, predictions of El Nino may impact monsoons, hampering sales of automobile in
rural pockets. It is expected that EV sales will capture share from internal combustion
engine (ICE) market share. EV sales are expected to be higher given the strong push by the
government and imposition of stricter emission norms. In the last two decades, the Indian
automotive industry achieved great success, capturing eye-balls at the global level. In
terms of global rankings in manufacturing output, it is second largest in 2Ws, seventh
largest in CVs, sixth largest in PVs and the largest in tractors. Over the past ten years,
India has emerged as one of the most preferred manufacturing locations globally for
high-quality automotive components and vehicles, narrowing its gap over several
established locations. In the coming decade, the industry is likely to see some
significant transformations being the shift of growth in demand for automobiles from
developed nations to developing nations, mainly BRICS, a dramatic increase in the share of
EVs, making them a "computer on wheels and connected to the Internet", a
relentless pursuit of economies of scale and scope in design and engineering of
automobiles and components, while also pursuing low-cost manufacturing destinations.
Source: doc2023217160601.pdf (pib.gov.in)
Advantage India
The government is working towards making India a global automobile manufacturing hub
and the domestic industry is expected to double to be worth Rs. 15 lakh crore in
the near term. The auto sector provides direct and indirect employment to around 4 crore
people and is expected to grow to 5 crore by 2025.
India currently imports 8 million tonnes of scrapped steel annually. According to
government estimates, about 50-60 scrapping centres can bring down demand for imports of
steel scrap making India self-reliant. The new vehicle scrapping policy can help in
establishing an organised industry due to growth in demand thereby enabling new employment
opportunities. To make India self-reliant, the government targets to develop a scrapping
centre within a reach of 150 kilometres from all the city centres, with the aim to make
India a scrapping hub for the entire South East Asia.
Indias natural resources, including iron ore, bauxite, high solar insolation and
low-cost labour, could prove to be a boon to makers of basic metals, textiles and apparel,
renewable energy, and chemical products. The countrys large numbers of well-trained
workers helping skill-intensive value chains, such as automotive components. According to
Quad Investment Network, nine technological critical areas, from a supply chain and
manufacturing perspective include semiconductors, clean energy and critical minerals,
quantum technologies, mobility like 5G or 6G, cybersecurity, health tech, biotech, defence
tech, and space tech. India is emerging as a technology powerhouse led by collaboration
with United States, Japan and Australia in these technologies.
OPPORTUNITIES:
Strong government support: In the Union Budget 2023-24, Rs. 3,000 crore was allocated
for the Indian Semiconductor
Mission to reduce import reliance. Given the increased proliferation of tech-enabled
features in passenger vehicles, the semiconductor mission is likely to impact this segment
the most. Revision of the income tax slabs is also likely to increase disposable income in
the hands of the middle class, driving demand for entry-level cars and 2Ws.
EV push: In the Union Budget 2023-24, the government announced the extension of the
customs duty exemption for capital goods and machinery imports for manufacturing
lithium-ion cells used in EVs. In addition, the global impetus on supply chain
diversification, strengthening of the Tier 2 and 3 domestic supplier base, and ‘Make
in India initiatives, such as Production Linked Incentive (PLI) and Faster Adoption and
Manufacturing of Hybrid and Electric vehicles (FAME) schemes will help boost the EV sales
in India.
Strategic Market: Availability of skilled low-cost labour, robust R&D centres,
low-cost steel production, several ports and airports, etc provide a robust economic
environment for the growth of the automobile sector.
Indian auto components industry
The overall Indian auto components industry, which accounts for 2.3% of Indias GDP, is
set to become the third largest globally by 2025.
The Indian auto component industry saw robust export demand in firsthalf of FY 2022-23.
In the first nine months of FY 2022-23, the industry grew 34.8% to Rs. 2.65 lakh crore.
Industry growth in FY 2022-23 is pegged at 15% and in the range of 10-15% in FY 2023-24
led by the steady growth momentum in the domestic market. The rising participation of
global automobile OEMs in the Indian auto components industry has aided the localization
of their components in the country. Exports are also seeing substantial rise favoured by
China plus one strategy adopted by many countries. Total exports are expected to reach US$
80 billion by 2026. The FDI inflow into Indian automotive industry during the period April
2000-March 2023 stood at US$ 34.7 billion.
Source: Auto Components Industry in India - Investment Opportunities
(investindia.gov.in)
Company overview
The Company will be setting up new Plant at Kharkhoda,
Sonipat- Haryana to meet the volume requirement of Maruti Suzuki new Plant at IMT
Kharkhoda, Sonipat which is expected to be commissioned from June 2025. The Company has
been allotted land in MSIL Suppliers park, Kharkhoda admeasuring 6.47 acres / 26,174.48
sq mtr (approx.) on lease basis.
Further, the Company has also got land on lease basis admeasuring 2.87 (approx) acres
at SMG Suppliers Park in Gujarat. The Company will be setting up Shop for the new EV
model of SMG. The production will start in October 2024.
The facilities will be set up in phases in commensurate with
MSIL volume forecast at new location. MSIL has plan to produce 1 million vehicles at
the proposed location.
Financial performance
Your Company recorded total Income of 2,345.48 Crores during FY 2022-23 as compared to
2,078.81 Crores in FY 2021-22, up 12.83%. The EBIDTA stood at 174.58 Crores as
compared to 150.36 Crores in FY 2021-22, up 16.11%. The Profit Before Tax came at 57.67
Crores as against 42.15 Crores in FY 2021-22, up 36.82%. The profit after tax was 37.36
Crores as compared to 27.47 Crores in the previous year, up 36% on account of higher MSIL
volumes, improved operational performance and higher tool room profit for the period ended
31st March, 2023.
The summarized standalone financial performance and key financial ratios are as under:
PARTICULARS (in crore) |
FY2023 |
FY2022 |
CHANGE (%) |
| Revenue from Operations |
2,344.20 |
2,078.38 |
12.79% |
| Other Income |
1.28 |
0.44 |
190.91% |
TOTAL INCOME |
2,345.48 |
2,078.82 |
12.83% |
EXPENSE |
|
|
|
| Material Cost |
1,850.05 |
1,648.47 |
12.23% |
| Changes in Inventory of Finished Goods, Work-in-progress |
3.90 |
-2.15 |
281.40% |
| Employee Benefit Expense |
184.03 |
162.38 |
13.33% |
| Finance Cost |
36.83 |
32.73 |
12.53% |
| Depreciation and Amortization cost |
80.07 |
75.48 |
6.08% |
| Other Expense |
132.93 |
119.76 |
11.00% |
TOTAL EXPENSE |
2,287.81 |
2,036.67 |
12.33% |
PROFIT BEFORE TAX |
57.67 |
42.15 |
36.82% |
TAX EXPENSE |
20.31 |
14.68 |
38.35% |
PROFIT AFTER TAX |
37.36 |
27.47 |
36.00% |
| Total Comprehensive Income for the period (Net of Tax) |
1.34 |
1.63 |
-17.79% |
Total Comprehensive Income for the period [Comprising
profit/(loss)for |
38.70 |
29.10 |
32.99% |
the period (after tax) and other comprehensive income (net of tax)] |
|
|
|
| Earnings Per Share ( In Rupee) |
8.63 |
6.34 |
36.12% |
PARAMETERS (As a % of Total Income) |
FY2023 |
FY2022 |
CHANGE (%) |
| Material Cost |
79.04% |
79.19% |
-0.19% |
| Employee Cost |
7.85% |
7.81% |
0.45% |
| Manufacturing, Administrative and other Expense |
5.67% |
5.76% |
-1.62% |
| Financial Charges |
1.57% |
1.57% |
-0.27% |
| Depreciation |
3.41% |
3.63% |
-5.98% |
| EBITDA |
7.44% |
7.23% |
2.90% |
| Profit Before Tax |
2.46% |
2.03% |
21.27% |
| Profit After Tax |
1.59% |
1.32% |
20.54% |
PARAMETERS |
FY2023 |
FY2022 |
CHANGE (%) |
| Debtors Turnover (No. of Times) |
27.18 |
27.38 |
-0.73% |
| Inventory/ Net Turnover (Times) |
11.32 |
11.43 |
-0.93% |
| RONW (PAT/Average Net Worth) |
7.63% |
5.95% |
28.24% |
| Interest Coverage |
2.57 |
2.29 |
12.15% |
| Current Ratio |
0.67 |
0.59 |
13.54% |
| Debt Equity Ratio |
0.66 |
0.80 |
-17.50% |
| Operating Profit Margin (%) |
7.44% |
7.23% |
2.90% |
| Net Profit Margin (%) |
1.59% |
1.32% |
20.54% |
Treasury Operations & Financial Systems
The Company prudently manages its working capital funds while using Working Capital
Demand Loan and Sale Invoice Discounting facilities. In line with long term & short
term plans, the company maintains sufficient headroom on its undrawn committed borrowing
facilities at all times to meet any exigencies for requirement of funds. The Credit Rating
awarded by
ICRA for the short term borrowing is A1. Further, the long term borrowing rating is A+.
The Company is implementing EPBCS (Enterprise Planning & Budgeting Cloud Service) and
FCCS (Financial Consolidation and Close Service) for strengthening effective planning,
budgeting & consolidation. This will give real-time financial & operational data
for effective decision making & planning.
The Company has appointed Deloitte consulting for its implementation.
Risk and mitigation measures
Our comprehensive risk management system enables us to mitigate risks arising due to
internal as well as external environment by initiating appropriate and timely action as
may be deemed fit.
Risk |
|
Mitigation |
Business Risk |
The external business environment including domestic and international
economic events impact the business. Any negative development like geo-political tensions,
supply chain disruption, price volatility, raw material shortages etc may impact earnings. |
We closely monitor the external and internal business environment.
While working towards our longer- term goals, we closely manage strategic and pricing
interventions as well as cost and programmes to ensure appropriate and timely action is
taken for any emerging business risk. |
Financial Risk |
Business profitability may get impacted due to foreign
currency rate fluctuation, unfavourable changes in import duties and taxes, etc. |
We enter adequate forward exchange contracts/ derivative
contracts and closely monitor the foreign exchange exposure. The Company has negligible
exposure to foreign exchange as all raw material procurement is localized & there is
no foreign exchange borrowing. Our robust risk management policy, with a clause on foreign
exchange risk management helps us to mitigate any financial risks. The Company is availing
the borrowings at floating rate of interest to mitigate the Interest rate risk as the
rates are linked with several external benchmarks & having reset clause of shorter
tenor in the sanction. We continuously monitor both operational and financial risks to
ensure business operations are not impacted. |
Procurement risk |
Raw material price volatility and unavailability/limited availability
of raw materials may lead to procurement risks. Inability of supplier to timely supply
quality materials or financial distress on supplier side may impact production and thereby
profitability. |
Robust inventory management is the prime responsibility of our
sourcing function which ensures adequate supplies of cost-effective, quality raw materials
at all times. We constantly explore multi product sourcing options to ensure business
continuity and competitive sourcing. |
ESG Risk |
It is imperative for us to take cognizance of climate change and
environment management as our business operations depend on finite natural resources. |
Our Risk Management Committee closely monitors ESG related risks
highlighted by our internal mechanism. Materiality assessment on sustainability issues
enables in analysing and prioritizing prime issues with respect to the Environment, Social
and Governance. We are continuously improving this process through regular monitoring and
hiring external agencies for material assessment. |
Information technology
We have continued with our vision of ‘Delighted Customers, Happy Employees,
wherein safety and agile methodology continue to help us in delivering optimum process
efficiencies, improved product quality levels, thus enabling higher productivity per unit
and lower rejection ratios.
Substantial improvements in overall process efficiencies are being delivered by
implementing innovative low-cost solutions to identify repetitive actions and improving
their overall delivery times.
This year, your company has also incorporated ‘Sustainable living, Substantive
actions in the way of working. Identifying and implementing plant wide ‘Smart
solutions, helping deliver deeper insights into our current gaps in operations and paving
way for improved performance, some of which is reflecting in our financial performance for
the yearas . well
Roadmap of transition from ‘Digitization to ‘Digitalization to eventually
‘Transformation is now taking shape substantively. Your company is developing fast
its capabilities to develop and deliver shop floor innovations paired with industry wide
best practices with an ability to quickly scale up these solutions horizontally company
wide. Automated tracking of critical processes is ongoing, and these are being mapped with
various deployed solutions like ERP, PPC, MES etc, and ensuring that we have a single
version of truth, aligning all to a common purpose without any ambiguity.
We are implementing across all our manufacturing units multiple smart solutions like
Facial Recognition based
Attendance and Access Control System, Manpower Planning and Cost Monitoring System,
Machine Monitoring System, Condition Based Machine Monitoring System, Vision based
Automatic Number Plate Recognition System with automated weigh bridges, Production
Planning & Scheduling System, Vision Based Robotic Quality Inspection System, Man less
boundary management and security system, SCADA and many more state of the art solutions
based upon cutting edge AI/ML based smart automation solutions. All these effortsare
bearing fruits and are reflecting positively not only in our financial results, but also
in improved Customer Satisfaction (CSAT) and Employee Satisfaction Survey (ESS), providing
us with a strong platform to be ahead of the market with a capability to adapt quickly to
any future market changes.
AI solutions have helped us immensely cope up to bring online our systems to pre
pandemic levels of capacity delivery and continue to add positively to our business
performance, business continuity and risk mitigation efforts.
Internal controls systems
We have a robust and comprehensive internal control systems keeping in terms with the
size and complexity of our business operations. It enables the safeguarding of assets
against misuse or loss and the highest level of productivity at all levels. The internal
control framework is designed to effectively monitor the adequacy, efficacy, and
usefulness of financial, accounting and operational controls on a regular basis. According
to our Management, the internal audit and control systems is adequate to ensure that all
transactions are authorized, recorded and reported correctly. A critical part of our
control systems is our independent internal auditor, M/s Mehra Goel & Co. the internal
audit function carries out a thoroughly designed internal audit programme which is
reviewed by the management and the Audit Committee on a periodic basis. The internal
control systems comprise extensive internal and statutory audits. To further strengthen
internal controls, the company has implemented Analytics tool which fetches data from ERP
system. The tool covers certain critical areas of key business processes viz Procure to
Pay, Order to cash, Record to Report etc. The tool helps the audit team in providing
timely information on any control gaps in any of the critical areas and ensures timely and
pro-active actions.
We continuously strive to enhance our internal audit in addition to regular internal
audit both by external auditors and internal audit team.
Human capital
We have created long-term value for our stakeholders given our relentless focus towards
enhancing technology, enabling innovation and empowering people. We are leveraging our
expertise to tackle unique challenges by transforming them into opportunities to ensure
sustainable future growth. As we continue to evolve and embrace change, we remain focussed
on Leadership, Excellence, Agility and Performance. We provide an agile and dynamic
environment that enables every JBMite to maximize performance and value for all
stakeholders.
We have successfully launched JBM L&OD Framework catering to people capability
development and solving real-time business issues though various initiatives &
interventions by adopting best-in-class practices.
We have made significant
Talent reviews are conducted periodically to assess and develop employees skills and
competencies. These efforts have resulted in a highly skilled and motivated workforce,
which has contributed to the companys overall success. Our focus on talent management has
also ensured we are well-positioned to address any future talent needs.
We have successfully implemented and are running the HR People Capability Maturity
Model (PCMM), a framework that helps us to assess the maturity of our HR practices and
processes and identify areas of improvement.
We are successfully running skill development centres to provide training and
upskilling opportunities to its employees. The Skill Development Center has helped us to
build a highly skilled and competent workforce capable of meeting the ever-evolving needs
of the business. We have tied up with various institutions to increase catchment area of
talent development.
We have successfully automated our HR processes to improve an HR management system that
streamlines various HR processes, including recruitment, on boarding, performance
management, and payroll. The automation of HR processes has helped us to improve
efficiency, enabling people to focus on more strategic and value added initiatives.
We have successfully strengthened our total rewards function, which encompasses
employee compensation, benefits, and recognition programs. We have also established an HR
Shared Service Center, streamlining and centralizing HR processes and services. The
Shared Service Center is a step towards providing a single point of contact for employees,
ensuring consistency and initiative improved the employee experience by simplifying
administrative tasks, accelerating response times, and providing access to HR expertise.
We also witnessed the launch of the third leg of Sankalp Siddhi initiative in the form
of Sankalp se Siddhi 3.0, an initiative driven by the Chairman himself that aims for
Organizational and Self-development. The self-aspect, represented by the Wheel of Life,
focuses on employees efforts in spirituality and ethics, physical and health, family and
home, mental and education, finance and career, and social and culture strides in talent
management. while emphasizing on the commitment to organizational transformation with a
quantum leap approach, while maintaining a strong foundation of discipline,
accountability, and positivity.
We successfully drove the One JBM initiative to give a uniform experience to the new
joinees across all the locations. The initiative included a standardized on-boarding
process, a common induction program, and a comprehensive orientation program to help new
joiners acclimate to the organizations culture and values. With the launch of a
comprehensive blue-collar manpower strategy that includes a uniform policy, and efficient
contractor management, we aim to succeed significantly in eliminating legal risks and
ensuring smoother operations and harmonious industrial relations by implementing these
measures. These efforts shall result in improved productivity, better employee morale, and
a positive impact on our bottom line.
Overall, our last years journey, encompassing Sankalp Se Siddhi 3.0 initiative,
seamless HR processes, and core values of ISQ, are all aligned towards creating a
sustainable future for the Company.
Awards
Our success is intertwined with the success of our customers. byOur commitment to
customer-centricity is exemplified the testimonials and positive reviews we have received.
We showcase these expressions of satisfaction and appreciation as a testament to our
dedication to delivering outstanding service and value. Our companys efforts in Best
practices in Human resource & Yield improvement for FY 2022-23 have been recognized by
M/S Maruti Suzuki India Limited (MSIL) in its vendor conference held on 1-2 May, 2023 at
Dubai.
Apart from this, we receive various awards from industry bodies and associations. Our
employees participate in various competitions organised by these bodies so as to benchmark
and upgrade themselves.
Environment, health and safety
Environment, Health, and Safety highlights our unwavering commitment to sustainability,
employee well-being, and risk management. Through dedicated efforts, we have made
significant progress in reducing our environmental impact, promoting a healthy workplace,
and prioritizing safety at all levels. We remain resolute in our pursuit of continuous
improvement and look forward to further advancing our EHS goals in the years to come.
We promote commitment towards environment by adopting the 3R principle in our values,
by promoting awareness towards environment by various campaigns, environment month
celebration, reducing dependency on natural resources by improving our process
efficiencies.
We promote safety and health awareness through participation of all stakeholders
by various campaigns, competitions and events. To ensure preparedness for emergencies, we
conduct periodic mock drills and various assessments. Safety committee meetings are
conducted fortnightly across units, under supervision of safety officer and is chaired by
the Unit Head. Safety data is a part of our periodic review system which is done by our
top management. We are committed to continuous improvement in our
Environment management system as per ISO 14001:2015 and occupational Health and safety
Management system as per ISO 45001:2018 system through periodic audits by American Systems
Registrar (USA). We take all the required corrective and preventive actions as part of our
system requirements.
Our Quality management system is certified for IATF 16949:2016 standard. All the
assessments for the compliance and improvement is done by the certified internal auditors
and reviewed by the top management periodically.
Driving Business Excellence Through 12 Pillar Model
At JBML we drive business excellence through a 12 Pillar
Excellence Model which encompasses all facets of business and drive organizational
growth. These 12 Pillars derive inspiration from various globally known business
excellence frameworks like EFQM, Malcolm Baldrige, Deming etc. The improvements are driven
through a learning and assessment cycle that is conducted annually for all plants ensuring
continuous improvement.
To achieve excellence in all business processes by:
1. Driving, Facilitating and Observing excellence initiatives across group, to deliver
sustainable value, create trust & credibility among stakeholders.
2. Driving net zero goal through deployment of ESG to create robust & resilient
organization
3. Synchronization of Functional Processes & its Alignment with all Businesses
through detailed Audits/Assessments to enable "Business Processes
Transformation"
4. Creating standardization & uniformity across stakeholders & organization
through BE initiatives, to ensure effective collaboration through cross functional
activities
5. Imbibing Business Excellence culture by adoption of
Rigorous thinking, Collaborative Approach & Taking
Charge to build SQCPEI Culture through defined methodology in following areas Building
Safe Culture at all places
Energy consumption optimization
Integrated Prescriptive Maintenance Approach (IPMA) LEAP & Kaizen Business Process
transformation and IQA SIPOC ERM & ESG
Basic digitization
Cautionary Statement
The information and opinion expressed in this section of the Annual Report consists of
‘outlook which the management believes are true to the best of its information at
the time of preparation. The Company shall not be liable for any loss, which may arise as
a result of any action taken on the basis of the information contained herein
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