i. Industry Structure and Development
The Company is engaged in the business of Manufacturing and Trading of Electronic
vehicles and other related renewable energy products.
The electric vehicle market was experiencing significant growth, driven by factors such
as increasing environmental awareness, government incentives, technological advancements,
and improvements in battery technology. As a result, established automakers and new
entrants were investing heavily in EV development. Advances in battery technology were a
critical driver for the development of electric vehicles. Improvements in energy density,
charging speed, and cost reduction were key factors influencing the feasibility and
widespread adoption of EVs. The environmental benefits of EVs, including reduced
greenhouse gas emissions and lower air pollution in urban areas, were a driving force
behind their development and adoption.
ii. Opportunities and Threats Opportunities:
Environmental Concerns: Growing environmental awareness and the need to reduce carbon
emissions present a significant opportunity for EV manufacturers. Consumers and
governments are increasingly seeking cleaner transportation options.
Technological Advancements: Ongoing advancements in battery technology, materials
science, and electric drivetrain systems provide opportunities to improve vehicle range,
charging speed, and overall performance.
Government Incentives: Many governments offer incentives such as tax credits, rebates,
and grants to promote EV adoption. These incentives help make EVs more affordable and
attractive to consumers.
Infrastructure Development: The expansion of charging infrastructure offers
opportunities for companies to invest in charging stations, both at homes and public
locations, to alleviate "range anxiety" and accelerate EV adoption.
Innovation in Mobility Services: Electric and autonomous vehicles have the potential to
revolutionize transportation services, such as ride-sharing and autonomous taxi fleets.
Companies that tap into these new mobility models could find substantial opportunities.
Supply Chain and Manufacturing: The EV supply chain, including battery production and
raw material sourcing, presents opportunities for innovation and efficiency improvements.
Diverse Vehicle Offerings: Electric powertrains can be adapted to various vehicle
types, including cars, buses, trucks, and two-wheelers. This diversification offers
opportunities for market expansion and addressing different customer needs.
Consumer Interest and Demand: As consumers become more interested in sustainability and
advanced technology, the demand for EVs is likely to increase, providing growth
opportunities for manufacturers.
Threats:
Charging Infrastructure Challenges: The lack of widespread and convenient charging
infrastructure could hinder the adoption of EVs, leading to "range anxiety" and
discouraging potential buyers.
Competition from Combustion Engine Vehicles: Traditional internal combustion engine
vehicles still dominate the market. If EVs cannot compete in terms of price, performance,
and convenience, their adoption may be limited.
Initial Cost: Despite government incentives, the initial purchase cost of EVs can still
be higher than that of conventional vehicles. Price-sensitive consumers might be hesitant
to make the switch.
Consumer Acceptance and Habits: Some consumers might be hesitant to switch to EVs due
to concerns about vehicle range, charging times, and the unfamiliarity of electric
technology.
Regulatory Uncertainty: Changes in government policies and regulations related to EV
incentives, emissions standards, and manufacturing requirements could impact the
industrys trajectory.
iii. Internal Control system and their adequacy
The Company has adequate system of internal control commensurate with its size and
operations to ensure orderly and efficient conduct of the business. These controls ensure
safeguard of assets, reduction and detection of frauds and error, adequacy and
completeness of the accounting record and timely preparation of reliable financial
information.
iv. Financial performance with respect to operational performance
The financial performance of the Company for the year 2022-23 is described in the
Directors Report.
v. Environment, Social and Governance Aspect:
Company is aiming to create more than 1000 jobs and provide staff quarters at the
facility with highest level of health and safety. A Green field project with focus on New
Energy Technology products which are torch bearers of sustainability
Green Energy Initiative: Company is installing 1MW rooftop at manufacturing Plant to
reduce the reliance on fossil fuels and reduce the cost of manufacturing. Management is
dedicated to reduce carbon emissions and minimize the impact on environment.
Company is encouraging the processes that are Environment Friendly and Carbon Neutral.
Effects are being made to become better Corporate Citizen by Respecting the Worth of
Earth, Adopting Ethical Business Policies and Equitable Business practices.
50+ years of Combined experience in New Energy, Human Capital Management and Advance
Engineering and sustainable Mobility is driving values and strategies at Mercury EV-Tech
Limited for sustainable tomorrow. New Product Development teams are constantly focusing on
Making E-Mobility affordable and sustainable with circular economy product designs and
materials.
vi. Recent Trend and Future Outlook:
The sector in which the Company has been operating is developing faster and provision
sample growth opportunities.
The E2W industry saw and is seeing a positive sentiment and a high level of interest
from the customers due to environment awareness; encouragement from the Government in
terms of EV incentive policies & schemes; improved battery technology and growing
charging facilities across the nation.
India saw a 132 per cent increase in electric two-wheeler sales in year 2021. Between
January-December 2021, the electric two wheelers (E2W) industry, including high-speed (HS)
and low-speed E2W, registered sales of 2,33,971 units against 1,00,736 sold in2020. While
as a segment, the Indian electric vehicle market was valued at USD 1,434.04 million in
2021, and expected to reach USD 15,397.19 million by 2027, registering a CAGR of 47.09%
during the forecast period (2022-2027).
Infrastructure development for battery & vehicle manufacturing, charging
infrastructure, and scrapping centres will definitely lead to growing EV market. In
Electrotherm, the high-speed and low-speed electric two-wheelers will continue to
contribute positively in net earnings of the Company. However, our focus shall continue to
grow in High speed models of two wheelers segment with hundreds of thousands happy
customers towards Governments mission Electric Vehicles 2025 onwards.
vii. Awards Achievements and Licenses:
• AIS- 156 Approval for Super Bike Battery:
Vadodara, 15%" June, 2023: Mercury EV-Tech Limited (formerly known as Mercury
Metals Limited)engaged in developing of innovative and advanced electric mobility
solutions in India. Powermetz Energy Private Limited, a subsidiary of Mercury EV-Tech
Limited has received Indias first AIS 156 Phase-lI Certification for Battery Pack used in
Ultra High-Speed 2-Wheeler (2W) bikes coupled with Battery Management System (BMS) from
Reliance lio certified with our battery pack with contractor based high discharge
technology.
Mercury EV-Tech Limited through its 80% owned subsidiary Powermetz Energy PrivateLimited has received Indias First AIS-156 Phase-ll Certification for the battery pack to
be used in Ultra High-Speed 2W bikes coupled with Battery Management System (BMS) from
Reliance Jio certified with our battery pack with contractor based high
dischargetechnology.
This certification is a testament to the Companys capability to develop Lithium-lon
Phosphate (LiFePo4) battery packs for Ultra High-Speed 2W bikes with a capacity of 54 Ah
that meets global standard for safety and performance mandated by Ministry of Road
Transport and Highways and issued by Automotive Research Association of India (ARAI).
The Battery Pack will be used for captive consumption as well as to supply to other
OEMs in the market, showcasing our ability to deliver cutting-edge electric mobility
solutions in evolving EV market.
• WMI Code:
WMI registration is an abbreviation for World Manufacturer Identification Registration.
This form of registration follows the international standards of registration when it
comes to identifying the quality aspects related to vehicle manufacturers around the
world.
WMI registration is mandatory for all form of automotive manufacturers in India. The
registration is compulsory, as it is mandatory to understand the country of manufacture
for a particular automobile. The Company via letter received WMI Certificate on 3rd
February 2023; there are different forms of benefits of WMI registration in India.
The following are enumerated below:
Quality Standards
By securing this registration, the automobile manufacturer can rely on standards
related to quality produce. Another added benefit of this form of registration is
adherence to the standards defined by the SAE. The BIS in India is a part of the
International Standards of Organisation (ISO). Hence adhering to quality would be achieved
by taking this form of registration.
Compliance with International Norms
WMI registration is an international registration and compliance under the SAE. The
main regulatory body in India is the BIS. This body liaises with the SAE when it comes to
issuing the WMI code for vehicles produced in India. By adhering to the norms of the BIS,
a company or automobile manufacturer will be complying with international standards.
Recognition
WMI registration would indicate where the manufacturer is from. Apart from this WMI
number or code forms the first part of the VIN. The first three numbers distinguish the
car manufacturer from other manufacturers in the world. Apart from this, the first number
indicates the region where manufacturing occurs. This will distinguish the car
manufacturer from other manufacturers.
Apart from being mandatory, WMI registration would provide the above benefits to car
manufacturers around the world.
• 2W High Speed (EEC Model) :
Vadodara, 28th April, 2023: Mercury EV-Tech Limited (formerly known as Mercury Metals
Limited) engaged in developing of innovative and advanced electric mobility solutions in
India. Powermetz Energy Private Limited, a subsidiary of Mercury EV-Tech Limited received
an open order worth Rs. 1,100 million for supply of E2W batteries to one of the leading 2W
EV manufacturers of India.
Mercury EV-Tech Limiteds 80% owned subsidiary Powermetz Energy Private Limited has
secured a major order worth Rs. 1,100 million to supply E2W batteries.
Lithium-ion batteries supplied under the order will be used for their entire range of
Electric 2W. The company has commenced the supply of batteries against the order and is
committed to executing the order effectively & efficiently and delivering the highest
quality products.
Order win is a testament to the quality and durability of the batteries produced by
Mercury EV-Tech Ltd group. This order is a significant milestone for the company, due to
the fact that it ushers in a beneficial initial result for the investment in creating an
EV plant.
viii. Material developments in Human Resources/Industrial Relations front, including
the number of people employed.
Employees are Companys greatest asset. We aim to attract and retain the best, pro 75e
them with encouragement and stimulus and make them feel that they are an integral part of
the Companys mission. Our policies supporting our employees wellness, health, and
security have kept them engaged and continued with us for long tenures. As a result,
despite various challenges, we have developed, engaged, and retained our talent and
workforce across project sites. The performance management system has been revamped to
ensure that we had a robust mechanism to identify, reward and retain our top performers.
We continue to automate and digitize HR processes making them more efficient. The online
goal setting and Performance Review module was digitized this year. It ensures that all
our information on employee performance is correct which is crucial in various Talent
Management practices like succession planning, enhanced roles etc. We continue to nurture
and grow our talent through various behavioural, functional, and technical learning
programs. We have revamped our employee induction program to ensure that our new joiner
get an improved employee experience, thereby enabling their seamless assimilation into the
system.
ix. Cautionary Statement:-
Statements in this Management Discussion and Analysis describing the Companys
objectives, projections, estimates and expectations may be forward-looking statements
within the meaning of applicable laws and regulations. Actual results might differ
substantially or materially from those expressed or implied. Important developments that
could affect the Companys operations include a downtrend in the infrastructure sector,
significant changes in Indias political and economic environment, exchange rate
fluctuations, tax laws, litigation, labour relations, and interest costs.
|
For and on behalf of the Board |
|
Kavit R. Thakkar |
|
Managing Director |
| Date: 05.09.2023 |
(DIN: 06576294) |
| Place: Vadodara |
|
+91-9892691696
