PPAP Automotive Ltd Management Discussions.

Economy Overview

The Indian economy is the 5th largest economy in the world in respect to GDP (Source : IMF). According to IMF, Indias economy is estimated to have grown at 4.2% in FY20, significantly slower rate than in FY19. The decline was primarily driven by a mix of both internal as well as external factors such as synchronised global slowdown, dipping domestic automobile sales, flattening of core sector and declining investments in construction and infrastructure sector. Other factors such as ongoing stress among non-banking financial companies (NBFCs), which resulted in credit squeeze and negatively impacted consumption, investment and exports also contributed to the slow growth. Despite the slowdown, India improved by 14 ranks in the World Banks Ease of Doing Business Index 2020 to the 63rd position. Reforms undertaken in recent years such as Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC), Foreign Direct Investment (FDI) liberalisation, among others, have been amplifying the prospects of Indias growth story. (Source:https://timesofindia.indiatimes. com/business/india-business/india-jumps-14-places-to-63rd-in-ease-of-doing-business-rankings/articleshow/71749029.cms) The government has also announced several measures to revive the economy which includes capital infusion into public sector banks to improve liquidity and push credit offtake, merger of public sector banks to enhance credit capacity, reduction in policy rates, sharp cut in corporate tax rate, funding to real estate for stalled projects and support to NBFCs under the Partial Credit Guarantee Scheme. However, the outbreak of COVID-19, has disrupted trade and manufacturing activity throughout the globe as well as in the country. The lockdowns imposed by the Government to control the spread of the pandemic has posed altogether new challenges and has altered the outlook of the Indian economy. The economy is further expected to experience slowdown and is projected to grow at 1.9% with potential downsides. However, a strong recovery at 7.4% in FY 2021- 22 is being projected based on the assumption of successful containment of the pandemic and the consequent increase of fiscal spend. The fiscal and monetary stimulus provided by the government and RBI would assist greatly in this forecasted recovery. (Source: IMF World Economic Outlook April 2020, Economic Survey, Union Budget: PWC) In order to make India a manufacturing hub, the government has identified 25 key sectors like automobiles, defense manufacturing, chemicals, IT, pharmaceuticals, textiles, ports, aviation, leather, tourism and hospitality, wellness, railways amongst others. The government has also introduced Start Up India Scheme which aims at fostering entrepreneurship and promoting innovation by creating an ecosystem that is conducive for growth of Start-ups.

Industry Review

Indian automotive and automotive components sector

The financial year 2019-20 was a challenging year for the auto industry, which witnessed headwinds due to the slowing economy in last 6 years. The automotive industry registered a double digit drop in sales across categories. The Passenger Vehicle (PV) segment experienced decline of 15% affected by weak consumer sentiment, credit availability, higher purchase prices on account of insurance regulation and confusion around BS VI and EV transition. Some improvement in consumer sentiment was witnessed during the festive season, however, the automobile industry has not recovered from demand contraction and the situation further worsened due to imposition of complete lockdown in the country to contain the COVID-19 Pandemic in the last 10 days of the FY20.

While the long-term outlook for the Indian auto industry looks promising, however there has been some softening of demand for automobiles in the last five years.

During the FY20, the Indian automotive industry produced a total 26.36 million including PVs, commercial vehicles, three-wheelers, two-wheelers and quadricycles as against 30.92 million FY19, registering a de-growth of (-) 14.73%. The sale of PVs declined by (-) 17.88% in FY20 over the same period last year. Two-wheelers sales registered a de-growth of (-) 17.76% in FY 20 as compare to FY19. (Source: SIAM)

In FY20, a total of 3.43 million PVs was produced registering a de-growth of (14.76) % over the same period last year. The auto components industry account for 2.3 per cent of Indias Gross Domestic Product (GDP) and employs as many as 1.5 million people directly and indirectly each. (Source : IBEF) The growing presence of global automobile Original Equipment Manufacturers (OEMs) in the Indian manufacturing landscape has significantly increased the opportunity for localization of the imported auto components in the country. The India has become the preferred designing and manufacturing base for most global auto OEMs for local sourcing and exports. Relative to competitors, India is geographically closer to key automotive markets like the Middle East and Europe.

A stable government framework, ease of doing business, increased purchasing power, large domestic market and an ever-increasing development in infrastructure have made India a favorable destination for investment for auto components industry. The Indian auto-components industry is set to become the third largest in the world by 2025. Indian auto-component makers are well positioned to benefit from the globalization of the sector as exports potential could be increased by up to US$ 30 billion by 2021. (Source : IEBF)

Company Overview

PPAP Automotive Limited (“PPAP” or “Company”) is a leading manufacturer of automotive sealing systems, interior and exterior automotive parts in India. The Company started its association with the automotive industry more than 35 years ago with the first Maruti cars being launched in the country. The Companys state of the art manufacturing facilities are located across the PVs automotive hubs in Northern, Southern and Western India. The registered office of the Company is located at New Delhi. All the facilities of the Company are equipped with the latest technology available today for polymer extrusion as well as injection molding, its areas of core competence.

The Company manufactures over 1,000 different SKUs and ships over 2,00,000 parts every day to its customers which include the Japanese OEMs, the local OEMs as well as other major OEMs in the PVs segment as well as the commercial and the two-wheelers segment. The Company was established in 1978 for the manufacture of custom-made extrusion products, the Company commenced the automotive parts business in 1985. Over the years, PPAP has been continuously adding more and more products for its ever expanding customer base to enhance its per car contribution. The Company continuously targets to achieve zero ppm in quality and delivery performance for all its customers.

PPAP has a technical collaboration with Tokai Kogyo Co. Limited, Japan for development and manufacturing of automotive sealing systems. The relationship between both the companies started in 1989 and since then both the companies enjoy a harmonious and mutually beneficial relationship with each other.

PPAP also has a technical collaboration with Nissen Chemitec Corporation, Japan, for development and manufacture of interior and exterior injection products. The Companys technical association commenced in 2007.

PPAP also has a technical collaboration with Tokai Kogyo Seiki Co. Limited, Japan for manufacturing of tools and dies.

The Company has ventured into EPDM rubber based automotive sealing systems by establishing a Joint Venture (JV) viz. PPAP Tokai India Rubber Private Limited (PTI) with its Technology Partner Tokai Kogyo Co. Limited, Japan.

During the financial year, the management has reviewed its business and areas of operation. The Company will continue to grow the current business with the focus on adding new customers in new geographies. However, along with this, separate teams would focus on scouting opportunities in non-automotive segments, as well as, the after-market. The Company will also focus on developing products for the two-wheelers, three-wheelers, Electric vehicles starting with Lithium Ion Battery packs. These battery packs would be extended to energy storage applications as well. The company is commercializing its tooling facilities and scouting opportunities to develop and sell plastic injection moulding toolings. The Company is investing in new-age technologies and machines to enhance its manufacturing and technology development capabilities. In view of this, the Company has established two wholly owned subsidiary companies viz. Elpis Components Distributors Private Limited, which will focus on after-market sales, and, PPAP Technology Limited, which will focus on development of Lithium Ion Battery packs for to develop the products for 2/3 Wheeler electric vehicles as well as energy storage applications

Product details

The Companys core competence is in polymer extrusion based automotive sealing systems and injection molded products. The product details are as follows:

1. Automotive sealing products a. Plastic extrusion

PVC / TPO / PP (with / without metal insert) - Weather Strip Outer, (Black) , Weatherstrip Outer (exposed type Chrome SUS) , Weatherstrip Outer with PET film (Bright chrome and High gloss Black), Weather Strip Inner Molding Roof, Molding Windshield, Air Spoiler, Trim Door Opening , Rail Component Side Door, Cowl Top Seal, Sun Roof Drain Hose etc.

b. EPDM rubber and TPV extrusion (Products made by Joint Venture) EPDM Rubber (with / without metal insert) - Trim Door Opening, Back Door Opening, Weather Strip Trunk Lid, Door Seal, Secondary seal, Hood seal, Air DAM, Seat Liners etc., TPV Extrusion Glass Run Channel

2. Automotive plastic injection molding products a. Interior parts

Door Trims, Pillar Garnishes, Lining Rear Panel, Rear Tray, Trunk Side, Tail Gate, Weather Strip Partition, Instrument Panel, Cover Engine Upper / Under, Cover ECU, Box Battery, Molding Hood, Fender Inner, Splash Guard, Duct Cooling, Fuel Pipe, Cover Steering Joint, Boot Component with center console etc.

b. Exterior parts

Bumper, Fender Lining, Fog Lamps Garnish, Radiator Grill Garnish, Body Side Molding, Rear Bumper Garnish, Wheel Cover, Door Sash, Cover Corner etc.

3. Plastic injection molding tooling

The Company has commercialized its tooling facility. The tooling facility is capable of making injection tools upto 1.5 meter * 1.0 meter in size. The Company manufacturers tools for various applications in automotive as well as non automotive industry.

4. After market / accessories parts

The Company has ventured into development of parts for the after market. Along with these parts, the Company also plans to sell automotive accessories like phone & cup holder, rear tray, socket & USB with monitor, sunvisors, seat headrest and hooks etc. These products will be sold through the wholly owned subsidiary Elpis Components Distributors Private Limited

5. Lithium Ion Battery Packs

The Company has ventured into development of customized battery packs for mobility ( electric two wheeler , electric three wheeler) 2 KWh, 3 KWh, and Storage (ESS, solar off grid & instrumentation) 0.8kw to 5 kw.

6. Non Auto OEM Parts

The Company is scouting opportunities in Non-Automotive OEM parts as part of its diversification strategy. The Company will be launching products like pales, construction profiles, medical profiles etc.

The Company has in house design and development center for products, mold, machines & fixtures. The tools and fixtures are produced at its in house tool manufacturing facility. The products made by the Company are tested and validated to meet customer specifications at its in house testing and validation facility, thereby, providing customers with end-to-end solutions.

The Company is a key supplier to all the major automotive manufacturers in India. PPAPs customers profile include all the major car manufacturers like Maruti Suzuki India Limited; Honda Cars India Limited; Toyota Kirloskar Motor Private Limited; Renault Nissan Automotive India Private Limited; Tata Motors Limited; Ford India Private Limited; Mahindra and Mahindra Limited; SML Isuzu Limited; Isuzu Motors India Private Limited, Hyundai Motor India Limited, Suzuki Motor Gujarat Private Limited, MG Motor India Private Limited, Skoda Auto Volkswagen India Private Limited and two wheeler manufactures viz. Suzuki Motorcycle India Private Limited. The Company also caters to CKD parts export requirements of its customers. The Company also caters the requirements of their respective Tier 1 suppliers. The Companys key objective is to become a global level excellence company operating in India. This mission is enabling the Company to focus on achieving excellence in all the facets of the organization. PPAP continued its efforts to reduce waste and energy consumption in its own manufacturing processes.

The Company continue to challenge the status quo and are committed to achieve excellence in all business practices. It is our endeavor to improve the efficiency of each and every business process of the Company.

Awards & recognition

PPAP continues its track record of superior performance with all its customers. The Company has been bestowed upon the following awards:

1. Zero Defect Supplies by Toyota Kirloskar Motor Private Limited;

2. Achieving Quality Target by Toyota Kirloskar Motor Private Limited;

3. Appreciation Award for Partnership by Hyundai Motor India Limited;

4. Award in Category of Productivity (SME) by The Machinist Super ShopFloor Awards 2019;

5. On Time Development by ISUZU Motors India Private Limited;

6. Quality by Toyota Kirloskar Motor Private Limited;

7. Fire Safety Management Award 2019 by Toyota Kirloskar Motor Private Limited; and

8. Zero PPM by Toyota Kirloskar Motor Private Limited.


The Company is IATF 16949:2016 certified Company for Quality Management System. These standards lay the foundation of a well established system which ensures that the Company achieves its Quality targets. Apart from these standards, the Company endeavors to meet all the standards and systems of its customers in order to provide them with a quality product. The Company firmly believes that offering high quality products, which are benchmarked with the best in the world, is an integral part of the total customers satisfaction. Outflow and occurrence prevention are the two pillars to achieve “Built in Quality”. PPAP emphasis to establish non defective conditions in process by procedure controls, abnormality management, trainings and standardization. PPAP believe to develop an ownership driven work culture where quality of output is self certified by each and every team member. Another important tool is management and checking of standardized non-defective conditions so that defects are not generated. Every team member is involved in quality upgradation by implementation of Jishuken and quality circles.

Establishing non-defective process and continuously improving them is the key to produce quality product. The Company has implemented many systems like FMDS, TPS, Cell evaluation system, IQC, Pro-qac in order to continuously upgrade its operations in terms of safety, quality, cost and productivity, in order to make them globally best.

Opportunities and threats Opportunities

Global components sourcing hub

The Indian auto component industry is one of Indias sunrise industries with tremendous growth prospects. It has emerged, from being a low-key supplier of components to the domestic market, to a significant player in the global automotive global suppliers are increasing procurement from their Indian subsidiaries or partners due to the cost competitiveness coupled with robust engineering capabilities and location advantage. Foreign manufacturers are also keen to set up their facilities in India due to the presence of a large pool of skilled and semi-skilled workers.

Governments ‘Make in India Initiative

‘Make in India initiative of the government has encouraged many companies to manufacture their products in India with dedicated investments in manufacturing. This has placed India on a strong footing when compared to the global giants in terms of size and scale. The Automobile industry is one of the prime movers of the manufacturing sector under this initiative. It aims to increase exports of vehicles by five times. The OEMs have also started emphasising on localisation of parts, which will ultimately boost the auto components industry.

COVID-19 effects

COVID-19 has disrupted the entire economy and had brought the entire country to a standstill. However, the demand of Automobiles is expected to increase for two wheeler segment as well as entry level passenger segment cars in the post-lockdown period as social distancing, and fear associated of using public transport & shared mobility will encourage more people to own their own car.

Financial incentives by government

Each state in India offers additional incentives for industrial projects. Incentives are provided in the form of rebates in land cost, relaxation in stamp duty exemption on sale or lease of land, power tariff incentives, a concessional rate of interest on loans, investment subsidies / tax incentives, backward areas subsidies, special packages for mega projects etc.


Economic slowdown leading to contraction in demand remains one of the major threats which could lead to decreased volumes and capacity utilization. Moreover, technological changes and environmental regulation continue to weigh on sector.


The growth opportunity in India is attracting global OEMs to establish their operations in the country. Along with the OEMs their entire global supply chain also has started to get attracted towards the Indian market and today most of the global component suppliers are present in India. These phenomena have led to a substantial increase in the automotive component industry which is driving superior performance by all the companies. The Indian companies which are able to upgrade their operations, in line with, global standards, will be able to secure future business with the OEMs. The companies which are not able to upgrade their process & systems, focus on R&D, upgrading their quality and cost competitiveness and those who do not have a track record of superior performance with their customers, will find it difficult to survive in the long term. The competition will drive many associations as well as mergers and sell offs leading to consolidation and survival of overall competitive companies.

The Company identifies the risks by each process and location. At the operational level there are several risks that are inherent to the business of the Company. These are typically transactional in nature. These risks are managed through internal processes and controls. In addition, the Company has to deal with certain major micro risks that affect the Companys strategy implementation, some of which are enumerated below:

O Raw material and supply risk

Procurement of raw material for the products of the Companyis significantpart of the cost of the final product. Substantial very increase in current raw material prices may pose a threat to the margins of the Company in this competitive auto component sector. To mitigate the risk, the Company strives to improve its operational performance and develop new cost competitive materials, which are technologically superior and meet the customers specifications. The Company is also focusing on reducing the geographical risk by aggressively pursuing local sourcing of its raw materials and other components. The Company believes in building long-standing relationships with the suppliers and strong vendor management skills to secure an uninterrupted and timely supply of critical raw materials at competitive rates.

O Technology risk

The Company continues to be dependent on its technology partners for the products designed by them in collaboration with the global OEMs. In order to mitigate this risk, the Company is improving its R&D competence and is working on local design projects with the OEMs.

O Regulatory change

The new emissions norms and the focus on cleaner engine technologies might result in a reduction of vehicles in the short term. The frequent changes in policy may also restrict investments by the global OEMs to invest in the Indian market. The growth of the industry may get impacted due to these changes.

O Availability of unskilled and skilled labour

One of the key challenges faced by the Indian automotive industry is the availability of skilled manpower to support the operations. The Company also faces regional concerns in availability of skilled manpower. The industry is making a lot of efforts in partnering with the government in introducing skill programs like JIM and technical training institutes. The Company has established in house training centers known as DOJO centers to upgrade the skills of its workforce. The Companys prime focus is on development of its human capital by extensive training focusing on development of Mind, Body and Soul.

O Quality / processes risk

The quality and meeting delivery targets are the basic parameters / essence for the business of the Company. To mitigate this risk, the Company regularly impart job skill enhancement training, works on enhancing supplier capabilities, robust manufacturing processes and close monitoring of transporters.

O COVID-19 risk

The prevailing Covid-19 situation has brought in financial hardships and unprecedented risks for the Company. Goods and services markets are likely to suffer a setback as a result of poor consumer sentiments which may lead to lower retail footfalls and muted consumer demand.

Financial performance Standalone

Profit and loss statement analysis

Revenue from operations decreased by 12.39% YoY to Rs. 36,004.46 lacs in FY20, due to sluggish demand and COVID impact.

EBITDA decreased by Rs. 2,645.57 lacs YoY to Rs. 5,074.39 lacsinFY20duetolowersalesandlowerabsorptionoffixed cost.

Depreciation stood at Rs. 2,572.29 lacs in FY20 from Rs. 2,599.53 lacs in FY19.

EBIT stood at Rs. 2,577.39 lacs in FY20 from Rs. 5,227.49 lacs in FY19.

PAT stood at Rs. 1,927.79 lacs in FY19.

Earnings per share stood at Rs. 13.77 in FY20.

Balance sheet analysis

Net worth increased to Rs. 30,419.76 lacs from Rs. 29,511.04 lacs in FY20. Equity share capital remained same to Rs. 1,400 lacs whereas, reserves and surplus increased to Rs. 29,019.76 lacs from Rs. 28,111.04 lacs recorded in FY20.

Book value per share increased to Rs. 217.28 from Rs. 210.79 in FY19.

Net fixed assets stood at Rs. 23,805.86 lacs and in FY19 Rs. 23,951.72 lacs.

Current assets stood at Rs. 10,447.16 lacs in FY20.

Borrowings decreased to Rs. 2,217.06 lacs from Rs. 2,459.32 lacs in FY20. Debt-Equity ratio stood at 0.07 times.

Return on Net Worth (RONW) is 6.3% in FY20.

Return on Capital Employed (ROCE) is 7.9% in FY20.


Profit and loss statement analysis

PAT stood at Rs. 1,820.41 lacs in FY20.

Earnings per share stood at Rs. 13.00 in FY20.

Key financial ratios

Particulars FY20 FY19
Debtor turnover ratio 8.77 7.3
Inventory turnover ratio 7.68 8.68
Interest coverage ratio 9.78 12.92
Current ratio 1.41 1.29
Debt equity ratio 0.07 0.08
Operating profit margin 6.95% 12.50%
*Net profit margin 5.10% 8.20%
*Return on net worth 6.30% 11.30%

*Net Profit Margin and Return on Networth is lower this year due to lower net profit as compared to last year.

Internal control system and their adequacy

The Company believes that internal controls is one of the key pillars of governance. It judiciously provides freedom to the management within a framework of appropriate checks and balances. The Companys internal financial control framework is established in accordance with the size and operations of the business and is in line with requirements of the Companies Act, 2013. The Company has a proper and adequate system of internal control to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and that all transaction are authorized, recorded and reported correctly. The internal control system is designed to ensure that financials and other records are reliable for preparing financial information and other data and for maintaining accountability of assets. The internal control system is supplemented by an extensive programme of internal audits, reviews by management and documented policies, guidelines and procedures. The management monitors and evaluates the efficacy and adequacy of internal control systems in the Company, its compliance with standard operating procedures, accounting procedures and policies. The Company has laid down transparent policies and procedures to ensure the independence and effectiveness of internal and external audit functions. The internal audit function provides assurance to the Board and management that a system of internal control is designed and deployed to manage key business risks and is operating effectively. The internal audit report is regularly placed before the audit committee of the Board. Based on the report of internal auditors, process owners undertake corrective action in their respective areas and thereby strengthening the controls continuously. Significant audit observations, if any, and corrective actions are presented to the audit committee of the Board. The Company is willing to take in order to achieve its long-term strategic objectives. The Company believes that every employee has a role to play in fostering an environment in which emphasis on compliance with regulations and ethical behavior is accorded due importance. The process controls are self-evaluated and the measurement plans are laid out and monitored regularly to overcome the deficiencies as detected during self-evaluation and confirmed by the auditors.

During the financial year 2019-20, the Company has implemented a new ERP system i.e. SAP which will enable the Company to align all its processes and will result in better controls.

Internal controls over financial reporting

The Companys internal financial controls over financial reporting is a process designed to provide reasonable assurance regarding the liability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The Companys internal control over financial reporting includes those policies and procedures that:

a) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

b) Provide reasonable assurance that transactions are recorded as necessary to permit preparations of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

c) Provide reasonable assurance regarding or timely detection of unauthorized acquisition, use, or disposition of the Companys assets that could have be a material effect on the financial statements.

Human resources

Human Resource plays a pivotal role in an organizations health, its sustainability and its growth. They push levers that take futuristic businesses to the next level of excellence and achievement. PPAP believes in building a capable and agile workforce to achieve its business objectives. The Company motivates its employees to work according to its purpose and its values. It prepares its people for the changing market scenario, maintain its competitive edge and unleash their full potential. The Company maintains the right capabilities across all level of the organization through different modules of learning and development programs on fundamental skills, knowledge, attitude, management and capability enhancement, etc. PPAP has a legacy of nurturing and promoting talent from within the organization to create a healthy and vibrant work culture. The Company believes in enhancing employees everyday experiences and in building meaningful workplace relationships. The Company relies on leveraging the skills and experience of the people available within the organization. We continuously identify the capabilities for long term sustainable performance and prepare successors for the next generation. The Company takes initiatives like regular health check-up, visit by Ayurveda doctor, conduct health awareness sessions, better food habits, yoga sessions, meditation sessions, spirituality sessions, cultural programs, etc. for the better mind and health of our employees. Employees safety is a major priority of the Company. The Company encourages the employees to participate in various safety promotional activities to shift their mind set towards safety.

The Company has channelized its communication processes so that the voice of the management reaches the last employee and the voice of the last employee, reaches to the top management. This ensures harmony, focused working and enables the Company to achieve impossible tasks. The Company puts special emphasis on employee communication through town hall meetings, celebration of festivals, leadership interactions and promotional activities to ensure alignment with Companys Mission. Employee feedback surveys and discussions also help the Company in providing insights on what is important to employees. The HR function of the Company is committed to improve all its processes based on the results and feedback and ensures that the Companys human resource will remain its greatest asset.

Training and development

PPAPs basic policy for training and development is the cultivation of “Teach and be Taught” culture and to pass on this knowledge and skills to the next generation. Immediate senior plays a leading role in developing this culture. We have developed a vibrant work culture by adopting “learn, perform and drive” thinking way. Training and development enable employees to expand their knowledge, acquire new skills, sharpen existing ones, perform better, increase productivity and become better leaders. Trainings are based on 70-20-10 principle i.e. 10% of the time of trainee goes in classroom, 20% learning is supported by the coach and 70% action on projects which enable an employee to complete the learning cycle and understand the processes, in depth.

The Company imparts induction training to all fresh recruits to ensure that they work to achieve Companys goals and be a part of our journey to take the organization to new heights. Refresher training is also imparted to existing employees as per need. PPAP promotes a self-learning culture in which subordinates are encouraged to inculcate reading habits of a variety of books, reports and articles on the latest trends and global practices. Employees are encouraged to share learnings with their peers. The Company constantly engages its employees in various other learning and development programmes like TBP projects (systematic problem-solving skills along with drive and dedication), Jishuken, Quality circle, Interplant quiz competition and Kaizens, etc. to improve work efficiency and build collective skill and intelligence. The team members are continuously trained at the shop floor for SOP adherence, quality and technical aspects viz. Advanced Product Quality Planning, Production Part Approval Process, Failure Mode and Effects Analysis, Measurement System Analysis, Statistical Process Control, PROQAC etc., on system needs and safety. At shop floor level, a unique Ownership Development programme is practiced where high potential blue-collar employees are identified and groomed for upward mobility.

Every year PPAP sends few employees for one year training at Toyota Kirloskar Motor, Bangalore for learning Toyota Production System (TPS). Our employees also get trained at Maruti Suzuki Centre for Excellence (MACE). The Company has ‘DOJO Centre to ensure zero defects for its customers.

Safety, Health and Environment

The Company is committed to provide a safe, secure and healthy workplace. Environment, Health and Safety (EHS) is one of the primary focus areas for PPAP. Safety is treated as the first step in every activity for the Company. The Company has well definedsafety organization, which is responsible to carry our all safety, electrical and fire audits, risk assessment, safety meetings and take necessary safety measures on the identified unsafe conditions and acts (Hiyari Hatto Points) so that it cannot leads to any near miss or accident with the hierarchy of control i.e. hazard elimination, substitution, engineering control, administrative control and provision of personal protective equipment. Safety team of PPAP conducts mock drills and educates employees from time to time. The Company ensures that the safety standards and norms are adequately complied with.

The details of certifications are as follows:-

Locations ISO IATF 16949 : 2016 ISO 14001 : 2015 ISO 45001 : 2018 ISO 50001 : 2018
Plant I (Noida) Y Y Y Y
Plant II (Noida) Y Y Y Y
Plant III (Surajpur) Y Y Y Y
Plant IV (Pathredi) Y Y Y Y
Plant V (Vallam Vadagal) Y # # #
Plant VI (Viramgam) Y # # #
JV Company
Plant I (Surajpur) Y # # #
Plant II (Viramgam) Y # # #

# under process

PPAP is endeavour to protect the environment planet by combining the modern ways of living with a deeper understanding of nature. PPAPs continuously ensures that the environment in all its plants and surroundings nearby is safe and healthy for everyone. The Company is undertaking numerous environment management programmes and projects to minimize environment footprint, energy and water consumption as well as waste reduction from manufacturing operations. The Key focus areas are:

Efforts to reduce environmental impact;

Regulations governing waste;

Regulations governing chemicals; and

Pollution prevention.

Cautionary statement

Statements in the management discussion & analysis report describing the Companys objectives, expectations or forecasts may be forward looking within the meaning of applicable laws. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include global and domestic demand and supply conditions affecting selling prices, raw material availability and prices, changes in government regulations, tax laws, economic developments within the country and other factors such as litigation and industrial relations.