Jay Bharat Maruti Ltd Management Discussions

<dhhead>MANAGEMENT DISCUSSION AND ANALYSIS REPORT</dhhead>

ECONOMIC SYNOPSIS:

A. GLOBAL ECONOMY: RESILIENCE AMIDST HEADWINDS

In FY25, global economic growth moderated due to ongoing inflationary pressures, restrictive monetary policies in developed economies, and heightened geopolitical uncertainties. These challenges led to subdued consumer spending and disruptions in global trade flows. As a result, global growth is projected to ease to 2.3% in 2025, down from 2.6% in 2024 (Source: World Bank). This is due to serious macroeconomic headwinds like increased trade tensions, policy uncertainties and mounting trade barriers. The US economy displayed notable resilience, supported by robust expansion in the services sector, a strong labour market, and elevated real wages. In contrast, Europe including the UK witnessed sluggish growth, impacted by the ongoing conflict in Ukraine, elevated energy costs, and a downturn in both manufacturing and services. China’s performance fell short of expectations, weighed down by a slowdown in the real estate sector and industrial output. The Asia-Pacific region remains the fastest-growing globally. Amid these macroeconomic headwinds, the automotive industry encountered significant challenges. Elevated interest rates and tighter credit conditions in key markets like the US and Europe weakened consumer demand, particularly in the mass-market segment.

 

Challenges and Considerations:

The global economy in 2024-25 presents both significant challenges and remarkable opportunities. The governments, and institutions will largely depend on their ability to adapt to evolving dynamics, whether it be through diversification, technological adoption, or sustainable practices.

While the risks are considerable, they also present pathways for growth and transformation. Organizations that can successfully navigate the complex intersection of geopolitical tensions, economic volatility, technological disruption, and environmental responsibility will be well-positioned for long-term success.

In the coming years, adaptability, innovation, and strategic foresight will be critical in ensuring sustainable growth, value creation, and risk management in an increasingly interconnected global economy.

 

1. Post-Pandemic Recovery and Uneven Growth - Emerging economies are projected to grow at a slower pace than developed countries, which could exacerbate global inequalities and increase political and social tensions.

 

2. Inflationary Pressures and Central Bank Actions - Central banks have raised interest rates to curb inflation, but this monetary tightening has raised concerns about slowing growth, especially in highly indebted economies.

 

3. Geopolitical Landscape: Tensions and Trade Realignments

 

The U.S.-China rivalry continues to reshape the global economic environment, particularly in trade, technology, and finance.Protectionist policies, including tariffs and export restrictions, have introduced volatility into global supply chains, forcing many organizations to reassess their dependency on certain markets.

 

• The ongoing Russia-Ukraine conflict continues to disrupt global energy markets, particularly in Europe. Sanctions on Russian energy exports and the subsequent increase in global energy prices have strained economies, especially those with high energy dependence.

 

WORLD ECONOMIC OUTLOOK GROWTH PROJECTION

(Real GDP, Annual Percent Change)	2024	2025	2026
World Output	3.3	2.8	3.0
Advanced Economics	1.8	1.4	1.5
United States	2.8	1.8	1.7
Euro Area	0.9	0.8	1.2
Germany	-0.2	0.0	0.9
France	1.1	0.6	1.0
Italy	0.7	0.4	0.8
Spain	3.2	2.5	1.8
Japan	0.1	0.6	0.6
United Kingdom	1.1	1.1	1.4
Canada	1.5	1.4	1.6
Other Advanced Economies	2.2	1.8	2.0
Emerging Market 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
Emerging and Developing Europe	3.4	2.1	2.1
Russia	4.1	1.5	0.9
Latin America and The Caribbean	2.4	2.0	2.4
Brazil	3.4	2.0	2.0
Mexico	1.5	-0.3	1.4
Middle East and Central Asia	2.4	3.0	3.5
Saudi Arabia	1.3	3.0	3.7
Sub-Saharan Africa	4.0	3.8	4.2
Nigeria	3.4	3.0	2.7
South Africa	0.6	1.0	1.3
Memorandum
Emerging Market and Middle-Income Economies	4.3	3.7	3.8
Low-Income Developing Countries	4.0	4.2	5.2

 

Source: IMF, World Economic Outlook, April 2025

 

Note: For India, date and forecasts are presented on a fiscal year basis, FY 2024/25 (starting in April 2024) shown in the 2024 projections are 6.5 percent in 2025 an 6.2 percent in 2026 based on calender year.

 

International Monetary Fund IMF.org

B. INDIAN ECONOMY IN FY 2024-25

India is projected to be the world’s 4th largest economy in 2025, surpassing Japan. India is projected to remain one of the fastest-growing major economies after United States, China, and Germany. The IMF estimates India’s GDP to reach $4.187 trillion in 2025, just marginally higher than Japan’s projected $4.186 trillion. Despite a slight downward revision from January 2025 projections, India’s economy is forecast to grow at 6.2% in 2025, making it the fastest-growing major economy globally. India is also expected to continue its strong growth trajectory in 2026, with a projected growth rate of 6.3%. Rising consumption and both domestic and foreign investments are expected to contribute to India’s economic growth. India’s economic outlook for 2025 is positive, with the country poised to become the world’s fourth-largest economy and maintain a strong growth trajectory.

 

Highlights:

The IMF has projected India’s GDP growth is one of the fastest-growing in the world. This growth is driven by:

 

• Strong domestic consumption: India’s large and growing population provides a robust domestic market that continues to support consumption-driven growth.

 

• Resilience in services sector: The IT and software services sectors remain strong, with increasing demand from both developed and developing markets.

 

• Infrastructure investment: The government’s focus on boosting infrastructure (roads, railways, airports) and promoting manufacturing via Make in India has also contributed to growth.

Despite global economic challenges, India has been largely shielded due to strong internal demand, government reforms, and robust export growth.

Source: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2123826

 

Key Risks and Challenges

The IMF highlighted several risks and challenges that could affect India’s growth:

 

• Global economic uncertainty: Geopolitical risks, including the potential for higher global inflation or energy price volatility, could impact India’s trade and investment climate.

 

• Private consumption: Though robust, private consumption remains sensitive to economic and inflationary shocks, particularly in rural areas.

 

• Climate change: The IMF also pointed to potential risks related to climate change and its impact on agriculture and rural incomes.

 

C. INDIA’S AUTOMOTIVE INDUSTRY: MIXED PERFORMANCE WITH SUV-LED GROWTH IN FY 2024–25

In fiscal year 2024 25 (FY25), India’s automotive industry recorded a mixed performance across its major segments. Passenger Vehicle

(PV) production reached a record high of 5.0 million units, reflecting a3% year-on-year increase. This growth was predominantly driven by surging demand for utility vehicles (UVs), which made up 62% of total PV sales, rising from approximately 57% in the previous year. The sharp rise in UV sales was supported by the launch of feature-rich, stylish new models that aligned with evolving consumer preferences, alongside attractive discounts and promotional campaigns that maintained sales momentum.

The two-wheeler segment also saw a strong rebound, with production increasing 11% to 23.8 million units. Growth in this segment was underpinned by a revival in rural demand, improvingconsumerconfidence,and the launch of new scooter models with upgraded features. Notably, electric two-wheelers continued to gain popularity, accounting for over 6% of total two-wheeler sales during the growthyear.

On the other hand, the commercial vehicle (CV) segment registered a modest 3% decline in production compared to the previous fiscal. Although the broader truck segment faced challenges, demand forhigh gross vehicle weight (GVW) trucks and ongoing expansion of the national highway network helped cushion the overall impact.

Looking ahead to FY 2025 26, the industry anticipates moderate growth, with domestic car sales projected to rise by 1–2%. This tempered outlook is influenced by a high base effect and shifting market dynamics. Nonetheless, the SUV segment is expected to maintain its upward trajectory. Leading manufacturers forecast double-digit growth in SUV sales, supported by favorable macroeconomic indicators and a strong product pipeline.

In summary, FY 2024 25 highlighted robust gains in the PV and two-wheeler categories, while the CV segment faced minor setbacks. The SUV boom played a pivotal role in driving PV segment growth a trend likely to continue in FY 2025 26. Automakers are expected to intensify their focus on expanding SUV portfolios and integrating advanced features to meet shifting consumer expectations and sustain growth in India’s evolving automotive landscape.

 

THE AUTOMOBILE PRODUCTION, DOMESTIC SALES AND EXPORTS:

Production

The industry produced a total of 3,10,34,174 vehicles including Passenger Vehicles, Commercial Vehicles, Three Wheelers, Two Wheelers, and Quadricycles in April 2024 to March 2025, as against 2,84,34,742 units in April 2023 to March 2024.

 

Domestic Sales

Total Passenger Vehicle Sales increased from 42,18,746 units (FY 2023-24) to 43,01,848 units (FY 2024-25)

 

Exports

Exports rose by 19.2%, reflecting strong global demand.

•

Passenger Vehicles also saw their highest ever exports in FY 2024-25 of 0.77 million units registering a growth of 14.6% ascompared to FY 2023-24. Growth in exports have been driven by demand of global models being manufactured from India in markets of Latin America and Africa.

Source: https://www.siam.in/pressrelease-details.aspx?mpgid=48&pgidtrail=50&pid=579

 

Industry Outlook: FY 2025-26

The Indian automotive industry stands at a transformative juncture as it enters FY 2025-26, characterized by robust growth prospects, technological evolution, and shifting consumer preferences. The sector is positioned for significant adoption, digital transformation, and supportive government policies, while navigating infrastructure and supply chain challenges.

The Indian economy is poised for continued growth in FY 2024-25, albeit with cautious optimism:

 

1. Economic Growth and Market Dynamics

The Indian automotive sector demonstrates resilient growth fundamentals, underpinned by the country’s expanding middle class, urbanization trends, and increasing disposable income levels. Consumer confidence remains strong, supported by favorable demographic patterns and improving economic conditions that drive vehicle acquisition across all segments.

 

2. Accelerated EV Adoption

The electric vehicle segment is experiencing unprecedented growth momentum. Production of battery-powered passenger vehicles is set to more than double year-over-year, representing a significant milestone in India’s electrification journey. to capture a substantial portion of total passenger vehicle sales. The broader EV ecosystem is maturing rapidly, with automakers launching multiple new electric models focusing on both mass market and premium segments.

 

3. Growth Trajectory

The electric vehicle market demonstrates exceptional growth potential, with projections indicating sustained expansion through the decade. Indian manufacturers are responding with increased production capacity and product diversification, positioning the country as a significant player in the global EV landscape.

 

4. Investment and Infrastructure Development

The sector is witnessing substantial capital deployment toward manufacturing capacity expansion, technology upgradation, and research and development initiatives.

 

5. Digital Transformation

The industry is embracing comprehensive digital transformation across multiple dimensions. Manufacturing operations are integrating

Industry 4.0 technologies, IoT systems, and automation to enhance efficiency through digital sales platforms, virtual showrooms, and personalized services that cater to evolving consumer expectations.

 

6. Innovation Ecosystem

Investment in research and development capabilities is accelerating, with focus on indigenous technology development. The online automotive market is experiencing remarkable growth, driven by consumer preference for convenience and transparency in vehicle purchasing decisions.

 

7. Policy Support and Regulatory Framework

The government continues providing robust policy support through various schemes designed to promote automotive sector growth and sustainability. Production Linked Incentive schemes enhance manufacturing competitiveness, while FAME II policy accelerates electric vehicle adoption. Focus areas include updated emission norms, enhanced safety standards, and quality regulations that drive industry transformation toward cleaner and safer mobility solutions.

 

8. Environmental Sustainability and Green Energy

The automotive sector is prioritizing carbon footprint reduction through multiple strategic initiatives. Clean energy adoption in manufacturing operations, transition to cleaner powertrains, implementation of circular economy principles and adoption of sustainable production processes are becoming industry standards.

 

Risks and Challenges Ahead:

1. Market and Operational Risks

Supply chain disruptions, including semiconductor shortages and raw material price volatility, continue presenting significant challenges. Intensifying competition from domestic and international players requires continuous adaptation and innovation.

Consumer preference shifts toward shared mobility and evolving transportation patterns affect traditional ownership models.

 

2. Technology and Infrastructure Challenges

Infrastructure gaps remain a primary concern, with consumers expressing anxiety about charging duration, range limitations, charging infrastructure availability, and battery safety. Rapid technological changes demand continuous adaptation and substantial investment in new capabilities. expansiondriven by electric vehicle

 

3. Financial and Regulatory Considerations

Substantial capital requirements for technology transition and capacity expansion strain financial resources. Raw material cost volatility and currency fluctuations impact profitability and planning. Policy changes and evolving regulatory requirements create uncertainty, while compliance costs continue increasing.

 

4. Strategic Outlook

Success in FY 2025-26 will depend on companies’ ability to balance growth opportunities with risk management. Market diversification into emerging segments and export markets, technology leadership through innovation investment, strategic partnerships with ecosystem players, and talent development for future requirements are essential focus areas.

In conclusion The Indian automotive industry’s outlook for FY 2025-26 presents substantial opportunities alongside significant challenges. The sector’s transformation toward electrification, digitization, and sustainability positions it for long-term growth while requiring strategic navigation of infrastructure, technology, and market complexities. Success demands adaptive capabilities, future-focused investments, and resilient operational frameworks that prioritize customer needs and environmental responsibility.

 

D. INDIAN AUTO COMPONENT INDUSTRY:

The automotive components industry experienced a 11% YoY growth, reaching Rs. 3.32 lakh crore (US$ 38.4 billion) in the first half of FY25. India has become the fastest-growing economy in the world in recent years. This fast growth, coupled with rising incomes, a boost in infrastructure spending and increased manufacturing incentives, has accelerated the automobile industry.

India’s auto components industry’s market share has significantly expanded, led by increasing demand for automobiles by the growing middle class and exports globally. Due to the demand for Indian auto components, several Indian and international players have entered the industry. India’s auto component industry is broadly classified into organised and unorganised sectors. While the unorganised sector consists of low-valued items and mostly serves the aftermarket category, the organised sector serves OEMs and includes high-value precision instruments.

The automobile component industry turnover stood at Rs. 6.14 lakh crore (US$ 74.1 billion) during FY24, registering a revenue growth of 9.8% as compared to FY23. Domestic OEM supplies contributed ~54% to the industry’s turnover, followed by domestic aftermarket (~10%) and exports (~18%), in FY24.

Source: https://www.ibef.org/industry/auto-components-presentation

 

OPPORTUNITIES:

1. Robust Demand a. Growing working population and expanding middle class are expected to remain key demand drivers. b. India is witnessing robust demand for auto components amid ongoing shift in global supply chain. c. With plans to reduce auto components’ import dependence, domestic players are expected to witness a demand surge.

 

2. Export Opportunities a. India is emerging as a global hub for auto component sourcing and the industry exports over 25% of its production annually. b. Auto component exports are expected to grow and reach US$ 80 billion in FY26. c. By FY28, the Indian auto industry aims to invest Rs. 58,000 Crore (US$ 7 billion) to boost localization of advanced components like electric motors and automatic transmissions, reducing imports and leveraging ‘China Plus One’ trend.

 

3. Policy Support a. 100% FDI is allowed under the automatic route for auto components sector. b. In January 2024, the Government of India approved additional fund of Rs. 1,500 Crore (US$ 180.3 million) for second phase of FAME-II c. The Indian government announced Production Linked Incentive (PLI) Schemes for 14 key sectors have been announced with an outlay of Rs.1.97 lakh crore (US$ 23.84 billion) to enhance India’s Manufacturing capabilities and Exports. d. The Bharat New Car Assessment Program (BNCAP) will not only strengthen the value chain of the auto component sector, but it will also drive the manufacturing of cutting-edge components, encourage innovation, and foster global excellence. e. The Government has reaffirmed its commitment towards announced customs duty exemption on the import of capital goods and machinery required for the manufacture of lithium-ion batteries that typically power EVs.

 

4. Competitive Advantage a. A cost-effective manufacturing base keeps costs lower by 10-25% relative to operations in Europe and Latin America. b. India is the 2nd largest steel producer globally, thus has a cost advantage. c. India is emerging as a global auto component sourcing hub due to its proximity to key automotive markets such as ASEAN, Europe, Japan and Korea.

Source: https://www.ibef.org/industry/auto-components-presentation

 

The Road Ahead

The rapidly globalising world is creating newer opportunities for the transportation industry, especially while shifting towards electric, electronic and hybrid cars, which are deemed more efficient, safe and reliable will lead to newer verticals and opportunities for auto component manufacturers. To help them adjust to the shifting dynamics of the sector, the Indian government has already offered various production incentives. India is also investing heavily in electric car infrastructure.

Manufacturers in this industry are focusing on developing sustainable solutions, lightweight materials, and efficient production processes to meet the evolving needs of the automotive sector. Additionally, there is a growing emphasis on digitalization and data analytics to optimize operations and enhance product performance.

As the automotive industry continues to evolve, the auto components sector will play a crucial role in shaping the future of mobility. Collaboration with automakers, investment in research and development, and adaptation to changing regulations will be key factors for success in this dynamic and competitive market.

According to ICRA, the domestic Passenger Vehicle (PV) market is expected to expand by six to nine percent in the current fiscal year compared to the previous year.

The number of charging stations stood at 1,800 in March 2021 and is expected to reach 4 lakh by 2026. This would make it easier for the auto component industry to take advantage of the EV opportunity and expertise in EV components manufacturing, thus helping India on a global scale. The Indian government is exempting imports of capital goods and machinery essential to produce lithium-ion cells used in EV batteries from customs duty. This, coupled with the shift in global supply chains, will help the Indian global automotive component trade to expand 4-5% yearly to US$ 80 billion by 2026. Moreover, the Indian auto component industry is the third largest in the world.

Source: https://www.ibef.org/industry/auto-components-presentation

 

E. COMPANY OVERVIEW:

The Company navigated FY 2024-25 with notable achievements amidst these global economic conditions. Our strategic initiatives in ESG give us an edge over other auto component manufacturers in India. Leveraging technological advancements, we enhanced operational efficiencies and strengthened customer relationships, positioning ourselves as a reliable partner in the automotive sector.

The company has made investment of Rs 21,363.10 lakhs to set up 1600 Ton Robotic Tandem Line, 1000 Ton Progressive Line, Weld Shop and other miscellaneous facilities.

The company has started partial supply for Brezza model of Maruti Suzuki which is shifted from Manesar to Kharkhoda. However, the commercial production for New model is expected to start by the end of July /August 2025.

The Second phase of expansion will start in the current financial year.

Further, Construction activity of the plant at Suzuki Supplier’s Park has been completed as per plan and all necessary approvals have been received from the concerned authorities for running of the plant. The state-of-the-art weld shop has been installed at the said location to meet the production of EV vehicles of Maruti Suzuki. The commercial production is yet to start due to delay in MSIL schedule.

 

FINANCIAL PERFORMANCE:

The summarized standalone financial performance and key financial ratios are as under:

PARTICULARS	FY2025	FY2024	CHANGE
Revenue from Operations	2,290.12	2,292.11	-0.09%
Other Income	2.83	3.75	-24.53%
TOTAL INCOME	2,292.95	2,295.86	-0.13%
EXPENSE
Material Cost	1,782.12	1,786.66	-0.25%
Changes in Inventory of Finished Goods, Work-in-progress	-1.87	-3.15	-40.63%
Employee Benefit Expense	197.95	196.82	0.57%
Finance Cost	35.85	39.56	-9.38%
Depreciation and Amortization cost	84.13	84.33	-0.24%
Other Expense	147.27	145.27	1.38%
TOTAL EXPENSE	2,245.45	2,249.49	-0.18%
PROFIT BEFORE TAX	47.50	46.37	2.44%
TAX EXPENSE	15.70	15.01	4.60%
PROFIT AFTER TAX	31.80	31.36	1.40%
Total Comprehensive Income for the period (Net of Tax)	-1.41	5.96	-123.66%
Total Comprehensive Income for the period [Comprising profit/(loss)for the period (after tax) and other comprehensive income (net of tax)]	30.39	37.32	-18.57%
Earnings Per Share ( In Rupee)	2.94	2.90	1.38%
PARAMETERS	FY2025	FY2024	CHANGE
Material Cost	77.64%	77.68%	-0.04
Employee Cost	8.63%	8.57%	0.06
Manufacturing, Administrative and other Expense	6.42%	6.33%	0.09
Financial Charges	1.56%	1.72%	-0.16
Depreciation	3.67%	3.67%	-
EBITDA	7.30%	7.42%	-0.12
Profit Before Tax	2.07%	2.02%	0.05
Profit After Tax	1.39%	1.37%	0.02
PARAMETERS	FY2025	FY2024	CHANGE
Debtors Turnover (No. of Times)	21.59	22.14	-2.48%
Inventory/ Net Turnover (Times)	8.86	9.75	of our internal -9.13%
RONW (PAT/Average Net Worth)	5.80%	6.01%	-3.49%
Interest Coverage	2.32	2.17	6.91%
Current Ratio	0.61	0.63	-3.17%
Debt Equity Ratio	0.79	0.61	29.51%
Operating Profit Margin (%)	7.30%	7.42%	-1.62%
Net Profit Margin (%)	1.39%	1.37%	1.46%

 

Your Company recorded total Income of Rs.2292.95 Crores during the financial year 2024-25 as compared previous year which is a marginal decline of 0.13%. The EBIDTA of the Company was Rs.167.49 Crores during the financial 25 as compared to Rs.170.26 Crores in the previous year. However, the Profit Before Tax for the financial year 2024-25 increased by 2.44% to Rs.47.50 Crores as against Rs.46.37 Crores for the previous year. The Profit After Tax for the financial by 1.40% to Rs.31.80 Crores as compared to Rs.31.36 Crores in the previous fiscal. The Company has a healthy net cash accrual of Rs.123.33 Crores during the financial year 2024-25.

Disclosure of Accounting Treatment: There has been no change in Accounting treatment that is different Accounting Standards in the preparation of financial statements.

The Company has complied with all the provisions of the accounting standards in accordance with Section 133 of the Companies Act, 2013.

 

Treasury Operations & Financial Systems

The Company maintains flexibility in the funding by using Short Term Loan and Long Term Loan to meet any exigencies. The Credit

Rating awarded by ICRA for the short term borrowing is A1. Further, the long term borrowing rating is A+.

 

INTERNAL CONTROL SYSTEMS, INTERNAL AUDIT AND ITS ADEQUACY:

Overview

Company maintains a robust and comprehensive Internal Control System, meticulously designed to align with the scale and complexity of business operations. This system ensures safeguarding of assets, accuracy and reliability of financial reporting, and efficiency of operational processes. Internal control framework is structured to continuously monitor the adequacy, effectiveness, and utility of financial, accounting, and operational controls, providing reasonable assurance of achieving our strategic objectives.

 

Control Framework and Tools

To strengthen the verification of our internal controls, we have Internal audit Tool that enables systematic assessment of the design and effectiveness of these controls. This initiative empowers management to proactively identify and address potential gaps, reinforcing the integrity of our processes. The framework is regularly reviewed and refined to adapt to the evolving needs of the business, ensuring resilience in a dynamic operating environment.

 

Internal Audit Function

For the fiscal year 2024-25, our Internal Auditor, M/s Sahni Natrajan & Bahl, played a pivotal role in enhancing our internal audit function.

Their recommendations have led to the implementation of industry-aligned control measures, reinforcing the robustness of our systems. The Audit Committee along with Management, approves the annual internal audit plan, which prioritizes critical business risks, new initiatives, and key process vulnerabilities. This focused approach ensures that our Internal Control System remains adequate, effective, and responsive to the Company’s changing needs.

 

Internal Audit and Oversight

Internal audits are conducted in accordance with the Annual Audit Plan, ensuring comprehensive coverage of key areas. Audit reports are thoroughly reviewed on a regular basis by Management and the Audit Committee, in discussion with the Internal Auditors. This collaborative process facilitates timely identification and resolution of issues, further strengthening our control environment.

 

Commitment to Continuous Improvement

Company is dedicated to enhancing operational performance, streamlining processes, and minimizing inefficiencies and waste. Throughtheefforts we continuously identify opportunities for improvement, driving operational excellence and sustainable growth. By integrating feedback from audits and leveraging best practices, we ensure that our Internal Control System evolves to meet the demands of our business and the expectations of our stakeholders.

For the fiscal year ended March 31, 2025, Management has assessed the Internal Control System and consider it adequate and effective in supporting the Company’s objectives.

With Proactive approach to risk management, and a commitment to continuous improvement, Company remains well-positioned to deliver value while upholding the highest standards of transparency and accountability.

.86 Crores in the RISKS AND MITIGATION MEASURES: year2024-

2024-25 increased 1. Business Risk: The Company’s success intrinsically depends on the growth trajectory of the Indian automotive industry. Further, the global landscape presents significant challenges. To mitigate this managing its supply chain to ensure resilience in a VUCA world. While maintaining focus on long-term strategic drivers and brand building, the Company has implemented strategic and pricing interventions alongside cost and efficiency management programs. This multi-pronged approach takes into account rising input costs, the competitive landscape, and the need to maintain strong product brand strategy. In essence, the Company is adapting to navigate these external challenges while safeguarding its long-term vision.

 

2. Risk of Quality: The Company’s image in competitive market is made by quality of its products. Non-standardized supplier management approach during NPD project phase may delay in projects and line stoppage. Your Company has standards of techniques for improvement in quality of products manufactured at all levels. Supplier selection procedure defined for new supplier selection. Annual Audit of suppliers are planned and conducted as per SOP. For vendor upgradation and rationalization work under progress as per management directions, for e.g. Dojo centres at vender end. Safety audits are conducted at defined frequency as per SOP. HIRA assessment is conducted & reviewed at defined frequency. Safety accidents/ incidents are monitored and reviewed regularly. Inter group/ inter plant safety practices shared and adhered.

 

3. Compliance Risk: ESG / legal / statutory requirement non-compliance may lead to plant / unit closure. Brand image loss due to Major Safety, Environment or Legal issues. The Company ensures that all legal & statutory requirement is monitored online with the help of third party agency. Various legal requirement audits are conducted as per plan for internal assessment.

 

HUMAN CAPITAL:

The fiscal year 2024 25 has been a landmark period for Human Resources at JBML, driven by strategic initiatives focused on nurturing talent, strengthening governance, and ensuring a robust, engaged workforce. With human capital at the core of our strategy, we continue to align our efforts with JBML’s long-term vision of sustainable growth and operational excellence. a. Leadership Development: Cultivating Future-Ready Leaders

Recognizing that strong leadership is critical to organizational success, we deepened our leadership development efforts through the launch of the Leadership Launchpad initiative. Using comprehensive assessment centers, we evaluated middle and senior management and created Individual Development Plans (IDPs) for each participant.

These personalized plans are designed to:

• Enhance strategic thinking and leadership competencies.

• Prepare leaders for future business challenges.

• Build a robust succession pipeline, ensuring business continuity and talent retention.

By empowering high-potential employees with structured growth paths, we’ve reinforced our commitment to long-term leadership development and reduced attrition risk

. b. Governance and Process Excellence through PCMM@JBM

To elevate our HR governance standards, we rolled out audits under the 10-pillar PCMM@JBM framework. A "Train the Trainer" program equipped internal auditors with the tools to ensure audit rigor and consistency across units.

Key highlights: • Extensive employee experience surveys provided actionable feedback.

Insight-led action plans are being implemented to close identified gaps.

• Standardized deployment of HR best practices enhances consistency and transparency across all locations.

 

c. Strategic Learning & Development for Business Impact

The JBML Learning & Organizational Development (L&OD) framework remained a powerful driver of capability building. This year’s training landscape included: • Management Development Programs (MDPs) and Organizational Development Programs (ODPs).

• Supervisor Development Programs, empowering frontline leaders.

Business-specific training aligned with strategic objectives.

We also ensured ROI measurement by linking training outcomes with performance, through structured review of individual goals

("Sankalps").

 

d. Building Skilled Talent through Strategic Collaborations

Our Skill Development Centre flourished through partnerships with academic institutions and government bodies. New MOUs expanded our reach, bringing practical training to more youth across India: and comply

Assam Skill University, Guwahati Broad skill development.

Don Bosco Technical Institute, Kolkata Electrician and Fitter training.

Govt. ITI, Gurugram Specialized welding skills.

Govt. ITI, Faridabad Tool & Die Maker and Welder programs.

These initiatives bridge the skill gap and create a sustainable, job-ready talent pool for JBML and the broader manufacturing ecosystem.

 

e. Industrial Relations: Zero Man-day Loss Achieved

We are proud to report zero man-day loss during FY 2024 25 a reflection of our commitment to harmonious industrial relations. Highlights:

• Strong contractor management and consistent deployment of workforce policies.

• Open communication and mutual respect across blue-collar operations.

• Stable, engaged workforce and enhanced productivity across all plants. f. Ethical Governance & Employee Welfare through Policy Strengthening

In line with ESG and BRSR (Business Responsibility and Sustainability Reporting) requirements, we conducted a thorough review and implementation of key employee policies, ensuring alignment with evolving stakeholder expectations.

Updated/strengthened policies include:

• Anti-Corruption and Anti-Bribery Policy

• Equal Opportunity Policy

• Human Rights Policy

• Code of Conduct

• Grievance Handling Policies (for all categories of workers)

• Prevention of Sexual Harassment (POSH) Policy

These policies reflect our unwavering commitment to ethical conduct, social responsibility, and a safe, respectful workplace.

 

g. Recognition for HR Excellence

Our people-first approach and innovation in HR practices have earned us prestigious industry recognition:

CII National HR Circle Competition 2024: Best Practices in L&D People Development & Capability Building.

 

WAW 2024 Spiritual Wellbeing Award: Celebrating our efforts in fostering holistic employee wellbeing, including spiritual wellness. These accolades validate our strategic direction and inspire us to continue setting benchmarks in HR excellence.

 

Looking Ahead

Our HR vision remains firmly rooted in building a future-ready organization. By fostering leadership, embedding governance, and prioritizing employee development and welfare, JBML is poised to drive sustainable business growth through its most valuable asset — its people.

 

INSTALLATION AND USAGE OF HANA SOFTWARE:

The Company had adopted SAP HANA (High Performance Analytic Appliance) software w.e.f. 01/04/2025 at group level, which was a Multi Model database used to store large datasets and enable real-time analytics.

It strengthens reporting and analytics, streamlines user experience, boosts efficiency and automation, supports more informed decision-making, and fosters better integration and collaboration.

 

ENVIRONMENT, HEALTH, AND SAFETY (EHS) ), AN ENABLER TO ACHIEVE SUSTAINABILITY:

JBM group is a pioneer and a strong advocate of sustainability, which is highlighted by one of our five core values "Safe & Green". Environmental Sustainability is thus inherent and embedded into the organizational DNA since inception. In line, all our plants are ISO

14001 and ISO 45001 certified relevant legal requirements / law of the land. We are driving our philosophy forward through various initiatives in the field of EEHS which have been giving us positive outcomes.

 

Energy & Environment

Heavy manufacturing capabilities at JBML requires significant use of natural resources. Thus to reduce follow a unique "PANCHTATTVA" approach across our plants focusing on improving and optimizing our resources utilization in the five environmental aspects i.e., Prithvi (Soil Conservation), Agni (Energy Conservation), Vayu (Air Conservation), Jal (Water Conservation) & Akash (Space Utilization). The "PANCHTATTVA" approach and "Energy & Environment Conservation Pillars" are showcased through one pager below. These one pagers define JBM Way" through Approach, Levers & Enablers / Strategy which the" provides broad guidelines to each plant for focused improvements. Projects defined under each of the areas are monitored through two Continuous Improvement (CI) platforms namely LEAP and Kaizens. LEAP is a platform where all improvement projects are registered and use problem solving techniques like Quality Circle (QC), Six Sigma (6s), Lean, 7QC Tools etc. to drive plant level projects. At the same time small (Just-Do-It) improvements are captured & monitored through Kaizens.

Various initiatives under each head are taken to reduce our overall environmental footprint. We drive multiple energy conservation projects through GTC (Generation, Transmission and Consumption Optimization) approach. JBM group-level drive, "SANKALP Se SIDDHI", also strives to increase green cover in JBM plants. To effectively implementPanchtattvawe16 EEH parameters across all manufacturing locations and rate them to create a competitive culture amongst group plants. Average EEHS score of JBML plants improved from 62% to 69% over last 1 year. Some of the Key Initiatives taken under the Panchtattva driven across JBM are as below.

 

Energy & GHG

• DG Power Generation reduction (Scope 1) by 4.2%

• Compressed Air Leakage reduction by 3.65%

• Overall Power Factor improvement by 0.99%

 

Emissions & ODS

• Turbo ventilator and fume extractors installation in plants for improved ambient air quality

• Replacement of old ACs with new generation ACs for ODS reduction

 

Waste

• Improved waste management practices by employing 3R i.e. reduce, reuse and recycle

Improved material yield through VAVE projects

 

Water

• Reduced fresh water dependency by enhanced recycled / reuse of waste water

• Zero Liquid Discharge (ZLD) and rain water harvesting.

 

General

• Training and Capacity Building at plants

• Enhanced competitiveness of plants by CIP initiatives like Sankalp Siddhi, Kaizen and LeaP. Increased EEHS monitoring by increasing total EEHS score span from 8 to 16 parameters.

 

Health & Safety

JBML has undertaken a series of focused, systemized, and technology-driven initiatives to elevate occupational health and safety standards, making them a strong contender for top industry awards. Our efforts are deeply aligned with ISO 45001:2018 certification requirements and go beyond compliance by fostering a robust safety culture across all facilities as highlighted below. All safety measures are in strict compliance with the Factories Act, 1948 and respective state factory rules while ensuring all Legal and Regulatory Compliances.

1. JBML has established and continuously enhanced its Environment, Energy, Health and Safety Management System (EEHSMS) bydevelopment and deployment of comprehensive policies & procedures for routine and non-routine activities, risk assessments, internal audits, and top management reviews through BBS & MCS committee ensuring continuous improvement.

2. Hazard Identification and Risk Control through HIRA (Hazard Identification and Risk Assessment) , supported by systems like Hiyari-Hatto (near-miss reporting) and Gemba Walks.

3. Workplace Controls through work permit systems for non-routine activities. Use of machine fencing, guarding, and check sheetsfor operational safety.

4. Safety Technology Integration through Machine Control Safety Systems: JBM standardized equipment with Layered Protection Safety (LPS) and Safety Level Classifications for various manufacturing operations and machines viz. HPS, LPS, Robo Welding,

SPMs, EOT, Forklift, LT Room, Pipe Bending Machine, Grinder, Manual Gas Cutting, SSW, Forklifts, Cranes & Material Handling.

5. We have identified& standardized safety technology solutions like light curtains, proximity sensors, safety interlocks, emergency stops, IoT alert systems, safety PLCs, tower lights, Eco-Line Guard, biometric access control, collision avoidance sensors, zone lighting, AI cameras, speed controllers, reverse sirens and real-time load monitoring.

6. JBML introduced a full-scale Behavior-Based Safety (BBS) intervention to improve safety culture in the organization through Daily pre-shift Do’s & Don’ts briefings & checklists, operator led validation of safety devices and Training programs at DOJO centers.

7. Health care is not limited to occupational health but is integrated into the organization’s culture through regular health check- ups, blood donation camps, and onsite Occupational Health Centers (OHCs), hospital tie-ups, Yoga and lifestyle sessions, mental health awareness and lifestyle counselling.

8. Safety rating mechanisms to promote a healthy competition between plants, with awards for best performers.

9. Active celebration of Safety Week and Safety Month, including gamified exercises like safety quizzes, Hazard hunt competitions etc. 10. New equipment purchase decisions include mandatory safety features with minimum Safety Level-2 (L2) as defined in the JBM standards.

 

DRIVING BUSINESS & OPERATIONS EXCELLENCE:

JBM is improving the outreach of its business excellence activities by instituting a "Task Force" and Financial Analyst in addition to its existing verticals namely - Health & Safety (H&S), Energy & Environment (E&E), Business Governance (BG), Continual Improvement (CI), Sustainability (ESG), Basic Digitization (BD), which marks the start of Phase 2 of the Business Excellence strategy.

Function	Purpose/Objective	Strategy/Enablers
H & S - Health & Safety	? To build Health & Safety Culture in the Organisation	? Robust safety assurance system. ? Machine Control Safety & Behavior Based Safety approach
	? To achieve Zero Incident and create a Safe Workplace for all	? Safety culture development through 20-pointer Safety score assessment & improvement
E & E-Energy & Environment	? To develop Energy & Environment Culture.	? Integrated Maintenance Approach (IMA) & PanchTattva approach
	? To achieve Net Zero	? By improving Energy Efficiency, Reduction in GHG, Waste Management, Water Conservation through 16 pointer E&E score
BG - Business Governance	? To streamline business processes	? Process governance thru D6S Audit & 12P Assessment approach
	? To enable best-in-class quality products	? Integrated Quality Approach (IQA) & improve 12 pointer Quality score
CI - Continual Improvement	? To develop Continual Improvement culture to achieve best in class performance in SQCPEI	? Employee Engagement (Kaizen), Process Optimization & Cost Reduction Projects (LEAP), Best Practices Adoption ? Performance, performance & product Benchmarking
ESG - Sustainability	? To develop Sustainability Culture in the organization	? Deployment of ERM and ESG ? Transparent BRSR Reporting
BD - Basic Digitization	? To develop robust digital back bone of the organisation ? To make the plants Industry 4.0 ready	? Enhanced SAP adoption Score and utilization of Digital & SaaS Tools across all business processes

 

Phase DT-Digital ? Digitization & Digitalization / 14.0

-2 Transformation ? To increase efficiencies of business processes ? Through end to end connected & visualized processes ? Create smart factories BT - Business ? International awards like Deming / JIPM etc. Transformation ?? Turnaround of Focus Plants Creating World Class Plants ? Performance Improvement in SQCPEI

We are now moving towards an "Impact Driven Approach" for 12 Pillar effectiveness while ensuring it’s alignment with business goals, targets and results with a strong focus on input pillars. Business Excellence is actively engaging with BU and Corporate functions which define the basic operational foundations of 4M i.e. Man, Machine, Material and Method. The philosophy behind "Impact Driven Approach" is that standardized and process oriented inputs enable reliable and desired outcomes.

 

BUSINESS EXCELLENCE-IMPACT DRIVEN APPROACH FOR 12 PILLAR

Assets Process-Driven Approach Impact-Driven Approach Focus Following Structured processes Achieving Measurabe Results Key Metric Compliance, Efficiency Business Impact, Outcomes Mindset Rule-Based, Incremental Agile, Adaptive, Innovative, Quantam Flexibility Limited (Rigid SOPs) High (Can adapt dynamically) Applicability Safety, Quality & Operations Control Business Strategy, Digital Transformation

 

Best Suited For Regulated Environments, Standardized Innovation, Growth, Business Centric

 

Work Projects

 

We are moving towards Impacat Driven Approach to a achieve Business aligned Results, in our 12 Pillar Assessment

Strategy, in which Performance Pillars depends on the Strategy & Input Pillars

Strategy	Input	Performance
1. Top Management focus on Excellence	2. Human Resource Management	3. Manufacturing Capability & Testing Facility
6. Risk Management	5. Maintenance Capability	4. Manufacturing Process Control
8. Sustainability & Continual	9. New Product Development	7. Fire & Safety Management
Improvement	10. Supplier Development	11. Energy, Environment & Health
12. Industry 4.0

 

OUTLOOK:

Despite these challenges, JBML remains committed to its business objectives for FY 2025-26, driven by strategic initiatives and growth opportunities in the automotive industry. We anticipate sustained demand for auto components, supported by government incentives and increasing consumer adoption of sustainable mobility solutions. Our commitment to innovation and sustainability positions us favourably to capitalize on these emerging trends.

In response to geopolitical uncertainties, we will maintain a diversified in sourcing raw materials and components. Investments in technology and digital transformation initiatives will further enhance operational efficiencies and customer service capabilities, reinforcing our competitive advantage in a rapidly evolving market landscape. Furthermore, our focus on sustainability remains integral to our long-term growth strategy. We continue to invest in research and development of eco-friendly technologies and processes, aligning with global initiatives towards carbon neutrality and circular economy principles. These efforts not only support our environmental stewardship goals but also enhance brand reputation and appeal to socially conscious consumers and investors. In conclusion, while FY 2024-25 presented multifaceted challenges amidst a dynamic global economic environment, JBML is well positioned to navigate uncertainties and capitalize on opportunities in FY 2025-26 and beyond. Our resilient business model, strategic priorities, and commitment to operational excellence will drive sustainable growth and create long-term value for our stakeholders.

DISCLAIMER

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.