sjs enterprises share price Management discussions


Global Economy

Following a turbulent year in 2022, the global economy is seen demonstrating signs of resilience in 2023. The geopolitical tensions caused by the prolonged Russia-Ukraine war, supply chain disruptions, higher inflation, and tighter monetary conditions derailed the economic recovery in CY 2022. Global economic growth remains low by historical standards and financial risks have increased. International trade was also severely impacted in 2022 due to global economic slowdown, persistent inflation, supply chain bottlenecks, and subdued consumer sentiments. However, economic conditions have started showing signs of stabilisation in early 2023, supported by the reopening of the Chinese economy as the country unshackled itself from pandemic-related restrictions.

A key factor in the improvement in economic activity has been the easing of energy and food prices and input costs. After a year of the Russia-Ukraine war, global oil markets are seen trading in relative calm. The Brent crude oil prices reduced to US$ 85.01 per barrel in 2023 as compared to US$ 100.94 per barrel in 2022 and the average oil price is estimated to come down to US$ 81.21 per barrel in 2024.

The real Gross Domestic Product (GDP) grew in the United States, the European Union, and major emerging markets and developing economies in 2022. The United States (US) economy is showing improvement with real GDP growth at 2.1% in 2022. The European economy recorded 2.7% growth in 2022. However, the large negative terms-of-trade fallout from the Russia-Ukraine war and associated economic sanctions in Europe impacted the growth of the automotive industry. The Emerging Market and Developing Economies (EMDE) grew at an annual rate of 4.0% in 2022.

The International Monetary Fund (IMF) has projected global growth to decline from 3.4% in 2022 to 2.8% in 2023 and rise to 3.0% in 2024. The global banking crisis in March 2023 following the collapse of two leading lenders in the United States (US) have triggered concerns of recession in the world economy. Growth in Advanced Economies is projected to decline from 2.7% in 2022 to 1.3% in 2023 before rising to 1.4% in 2024. The emerging economies are projected to decline from 4% in 2022 to 3.9% in 2023 and rise to 4.2% in 2024. China and India will be the major contributors to global economic growth and will account for 50% of the global growth in 2023. With the central banks efforts to curb inflation by tightening monetary policies, global headline inflation is projected to decline from 8.7% in 2022 to 7.0% in

2023 and 4.9% in 2024.

Global Economic Growth: Actual and Projections (%)


2022 2023 (P) 2024 (E)
Global Economy 3.4 2.8 3.0
Advanced Economies 2.7 1.3 1.4
Emerging Markets and 4.0 3.9 4.2
Developing Economies (EMDEs)

Indian Economy

India outperformed and repositioned itself amongst the worlds fastest growing economies, even as most developed countries faced slowing growth amidst high inflation in FY 2022-23. Indias GDP growth during FY 2022-23 is estimated at 7.0% as against 9.1% growth achieved in FY 2021-22, as per the second advance estimates of National Income released by the National Statistical Office (NSO). The accelerated pace of economic reforms has led to the sustainable growth of the

Indian economy and strengthened its position in the world.

The IMF projects the Indian economy to grow at 5.9% in

FY 2023-24 before rising to 6.3% in FY 2024-25. The optimistic growth stems from positive factors such as strong investment activity bolstered by the governments push for infrastructure development with an allocation of 10 Lakh Crores, the rebound of private consumption, improvement in capacity utilisation, and revival in credit growth. The Reserve Bank of India (RBI) has also increased the repo rate by 250 basis points to 6.50% in FY 2022-23 to curb inflation and boost economic growth.

Moreover, growth-enhancing policies such as the production-linked incentives (PLI) schemes and the governments emphasis on self-reliance will boost productivity and have a multiplier effect on the Indian economy. The Indian economy remains relatively well positioned to navigate global headwinds in FY 2023-24 with unprecedented levels of optimism and multiple growth levers at play.


Decorative aesthetics industry Overview

The Indian decorative aesthetics industry caters to leading auto OEMs, global independent tier-I automotive component makers, and consumer appliance companies. The 2W segment accounts for majority of the industry share.

The decorative aesthetics industry includes production of aesthetic and visually appealing products. The discretionary consumption manufacturers strive to bring value and aesthetic superiority to their offerings to enhance their market share. Compared to other automotive parts, most aesthetic items involve lower logistics costs due to their compact nature.

Indian decorative aesthetics industry

Over the past few years, the decorative aesthetics market has witnessed a shift towards premium, aesthetically superior, and technologically advanced products triggered by evolving aspirations, higher spending propensity, rising brand consciousness, and the advent of e-mobility. According to CRISIL Report, the industry is projected to grow by ~20%

CAGR to reach 49.2 billion by FY 2025-26, driven by an increase in the underlying application segments and growing demand for premium aesthetic products.

Indian two-wheelers sector

After three consecutive years of decline, domestic two-wheeler sales increased to 15.8 Mn units as against 13.5 Mn units in fiscal 2022, growing by 17%, in line with the rising demand for personal mobility.

The recent surge in the demand for electric two-wheelers has also supported the overall sales of two-wheelers in fiscal

2023, and this trend is expected to continue in the coming years. In the past two years, the adoption of e-scooters across India has expanded exponentially, not only in tier I cities but also in tier II towns. As per the retail sales numbers available on the Vahan portal, sales of electric two-wheelers surged to 6,15,365 units in CY 2022 from 1,51,685 units a year ago, registering a growth of over 305%.

However, supply chain disruptions, rising inflation, higher vehicle and fuel costs have resulted in subdued consumer sentiments. A persistent inflation and weak rural economy are major factors that have been weighing on demand for conventional two-wheelers. The two-wheeler segment also faced some challenges with the roll out of new emission norms from 1 April 2023. The industry is set to implement the BS-VI Stage II norms, which will require vehicles to meet more stringent emission norms, bringing it at par with Euro 6 standards. To comply with these norms, the vehicles will need to have an onboard self-diagnostic device OBD2. This device will constantly monitor the catalytic converter, oxygen sensors, among other things, to keep a close watch on emissions and will entail steep price increases. The price hikes are expected to put a further squeeze on the two-wheeler segment, especially the entry-level motorcycle category, which makes up almost a third of the entire domestic two-wheeler space. Further, a major chunk of entry-level two-wheeler consumers shifted towards EVs as fuel prices skyrocketed and concerns mounting over the running cost of petrol and diesel vehicles.

Indian passenger vehicles sector

The PV segment recorded robust sales of 3.9 Mn units in fiscal 2023 as against 3.1 Mn units in fiscal 2022, registering a growth of 27%, according to the Society of Indian Automobile Manufacturers (SIAM). Growth was driven by pent-up consumer demand, improved semiconductor chip supply, new launches and product upgrades from OEMs. However, weakness in rural demand continues, as high food inflation and increased financing cost is impacting the rural market.

Having witnessed a strong comeback from the COVID-led downturn, the passenger vehicle industry is setting out on a journey with hopes for sustained growth momentum in 2023 and embracing clean technology amid the challenges of rising interest rates and cost increases due to new emission and safety norms. The industry is bracing to meet the stringent second phase of BS-VI emission norms from April 2023.

However, a slower recovery in rural sales and further price hikes by OEMs could act as possible headwinds for the sector.

Indian consumer durables sector

The demand for a wide range of consumer durable products is steadily increasing, driven by rising disposable incomes and evolving preferences for technologically advanced products. Bolstered by premiumisation trends, pent-up demand and favourable policy initiatives, Indias consumer electronics sector is likely to witness stupendous growth in the coming years as companies seek to expand capacity and roll out new-age smart products.

In the last two fiscals, pandemic-led disruptions had impacted consumer sentiment and offtake for consumer durable products. Although the sector is seen recovering from the slowdown caused by COVID-19, it still faces challenges such as rise in input costs, inflationary pressures, shortage of semiconductors, supply chain disruptions and geopolitical crisis in India and around the world. Despite this, the industry anticipates increased business opportunities and huge demand for appliances in the coming years. Measures to strengthen infrastructure development, improve rural incomes and reduce personal income tax rates undertaken in the Union Budget 2023 will result in higher disposable incomes and drive consumption. Further, increase in capital expenditure outlay in line with initiatives including ‘Make in India and ‘Atmanirbhar Bharat and thrust on domestic manufacturing through Production-Linked Incentive (PLI) schemes will augment the industry growth.

Growth Drivers

Increased penetration and intensity of aesthetic products

India has surpassed China as the worlds most populous nation. As of 2022, Indias population stood at 1.4 billion, and the number is expected to continue to rise till 2050. Growing population and rising urbanisation has been leading to lifestyle changes and higher spending propensity. This is reflected in growing demand for branded consumer durable appliances and aesthetically superior products which is likely to translate into strong growth of the Indian decorative aesthetics market.

Regulatory support

Government initiatives such as higher infrastructure investments, clean energy reforms, production-linked incentive schemes to boost manufacturing – are all expected to increase investments in the automobile and consumer appliances sector. These factors, in turn, will lead to higher growth of the decorative aesthetics market.

Technology advancement

The Indian decorative aesthetics industry is witnessing a paradigm shift to technologically superior products which include 3D appliques, digital dials/screens in automobiles, touch-based navigation in cars (optical plastics/cover glass), IMD/IML parts and lens mask assembly, among others.

Therefore, new and technologically advanced product launches is seen as a product differentiator for automobile

OEMs and consumer appliance companies.

Strong growth in underlying application segments

As mentioned by CRISIL, the decorative aesthetics industry in India is headed for high growth at an estimated CAGR of 20% during fiscal years FY 2023-26. Growth will be driven by rapid demand growth in the underlying application segments like automobile and consumer durables industry. SJS expects to outperform the underlying industry growth in the future and a visible shift towards premium aesthetic products.

Growing advent of electric vehicles

The electric vehicle industry in India is seen growing steadily with 100% FDI possible, new manufacturing hubs, higher incentives, and improving charging infrastructure. EVs have increasingly become a preferred mode of transportation over internal combustion engine (ICE) vehicles due to enhanced energy security, reduced reliance on crude oil, better air quality, and lower greenhouse gas emissions. EV models typically have better technology and product features such as more connected features, larger number of screens, lens mask assembly, 3D lux badges, etc. which is likely to benefit Indian aesthetic players.


SJS Enterprises is amongst the leading players in the Indian decorative aesthetics industry with the widest range of products across both traditional and premium segments.

The Company is a unique blend of strong manufacturing and design capabilities, expert workforce, and long-standing customer relationships. The Company provides decorative aesthetic products to automobile, consumer appliances, medical devices, farm equipment, and sanitary ware manufacturers both in India and overseas.

The Company serves its customers with a diverse range of products including:

Decals and body graphics

2D and 3D appliques / dials

3D lux badges & domes


Aluminium badges

In-mould label or decoration parts (IML/IMD)

Lens mask assembly

Optical plastics/Cover glass

Chrome-plated, printed and painted injection moulded plastic parts The Company also offers a range of aftermarket accessories for 2Ws and PVs under the brand name ‘Transform.

Business Strengths Vast portfolio

The Companys product portfolio includes an entire gamut of traditional and premium aesthetic products as well as aftermarket accessories that serves diverse industries including two-wheelers, passenger vehicles, commercial vehicles, consumer durables, farm equipment, medical devices, and sanitary ware. Continuous innovation and product development enables the Company to keep up with the evolving trends and stay ahead.

Manufacturing and supply chain competencies

The manufacturing infrastructure of SJS includes two facilities, one state-of-the-art facility situated in Bengaluru and other in Pune spread across a built up area of 2,35,000 and 68,350 sq. ft. respectively. Its strong manufacturing capabilities enable SJS to produce high-precision, quality products for customers. SJS has the scale and capability to manage 6,700 SKUs and supplied more than 136 Mn parts to 175+ customer locations across 22 countries during fiscal 2023, a feat achieved by very few players in the industry. Its robust supply chain network along with low-weight, transport-friendly products, and a centralised delivery system enables the Company to meet timely deliveries of products.

The Bengaluru facilitys capacity is fungible, enabling it to interchange capacity and product mix and de-risk the business model. This facility is LEED Gold certified (Leadership in Energy and Environment Design) by the US Green Building Council. All our manufacturing units conform with the global regulatory, quality, and manufacturing standards viz. ISO 9001, TS 16949, IATF ISO 14001, and OHSAS 18001. Consistent investments are made in better technologies and systems to improve processes, develop new generation products, fiscal 2022. optimise costs, and enhance efficiencies.

Innovation and new product development

Innovation and new product development are the cornerstones of success for the Company. Its unique R&D fiscal 2023, on a margin of 15. and design capabilities facilitate production of new-age, premium products that cater to evolving customer needs. The Company has a dedicated in-house team of 90+ New Product

Development (NPD) personnel which has developed/entered

5-6 new product categories in the past 6 years, accounting for 9-10% of the Companys revenues in FY 2022-23 from 2-3% in FY 2018-19.

Long-standing customer relationships

The Companys robust capabilities, quality performance, price competitiveness and timely delivery along with a structured focus on premiumisation and customer specifications have made it a preferred partner for the worlds renowned and most esteemed brands. SJS has been associated with its 10 largest revenue contributors for an average of ~19 years which is a testament to its strong and trusted customer relationships.

Quality edge

Quality is pivotal to the Companys business given the visual and aesthetic nature of its products. The Company has a dedicated team of 90 people in quality assurance who monitor every aspect of production right from the quality of raw material, manufacturing processes, and the end products.

Also, the Bengaluru facility meets ISO class 7 dust-free clean room specifications for manufacturing high-precision products. The products manufactured for the automotive industry are subject to compliance with the restriction of certain hazardous substances (RoHS) and International Material Data System (IMDS) guidelines. Exotechs products are certified by the National Accreditation Board for Testing and Calibration Laboratories.

Strong financial position

The Company maintains a strong and de-leveraged balance sheet with total equity of 4,296.4 Mn and borrowings (current and non-current) of 203.7 Mn. As on 31 March 2023, the Companys cash and cash equivalents stood strong at

1,648.2 Mn.

Financial Performance

During fiscal 2023, consolidated revenue of the Company stood at 4,330.5 Mn compared to 3,698.6 Mn reported in fiscal 2022, registering a growth of 17.1%. Of the total revenue, 2Ws segment accounted for a share of 44.8% (42.6% in fiscal 2022), followed by the PV segment at 32.5% (29.8% in fiscal 2022) and consumer durables at 15.4% (19.6% in

Revenue from exports was at 319.6 Mn in fiscal 2023 as against 468.1Mnin

EBITDA of the Company stood at 1,167.8 Mn in fiscal 2023, on a healthy margin of 26.4%. The Profit after Tax (PAT) stood 5%. at 672.5Mnin

Key Financial Ratios Standalone Operation as per SEBI Listing Obligations and Disclosure Requirements (Amendment) Regulations, 2018


Fiscal 2023 Consolidated
Debtors Turnover 4.9x
Interest Coverage Ratio 40.5x
Current Ratio 3.4x
Debt Equity Ratio 0.1x
EBITDA Margin (%) 26.4%
Net Profit Margin (%) 15.5%
Return on Net Worth (RoNW) (%) 15.7%
Return on Capital Employed (ROCE) 33.3%

Operational Highlights FY 2022-23

Added marquee customers like:

– Alladio, a Mabe Group company and a leading manufacturer of consumer appliances in Latin America

– Atomberg Technologies and IFB Industries in consumer appliances

– Entered the FMCG segment with John Distilleries for speciality decals

– Litemed for medical equipment

Added new customers in EV segment such as Foxconn,

Benling India, Gravton Motors, Navbharat Edison Motors, BuymyEV, and TI India.

Continued growing business and building mega accounts by winning new orders from TVS Motors, Bajaj Auto, Honda

Motorcycle and Scooters India , Royal Enfield, M&M, Maruti Suzuki, Tata Motors, Whirlpool, Samsung, among others.

Exotech won first-ever export market order by cross-selling chrome-plated parts to Whirlpool in North America.

Secured businesses with existing customers and new marquee customers - Forayed into new country, Argentina and expanded footprint in North America (Ohio).

Appointed sales representative in Columbia, in addition to Brazil and Argentina, thereby covering key markets of

Latin America.

Focussing on developing futuristic products such as automotive display cover glass, illuminated logos and optical plastics among others.

In July 2023, SJS completed acquisition of 90.1% stake in Walter Pack Automotive Products India Private Limited (WPI), a subsidiary of Walter Pack Spain, for a total cash consideration of 2,393 Mn.


Macro-economic Risk

Global growth slowdown, supply chain disruptions, rising inflation, and geopolitical tensions may impact the end-user industries and business of the Company.


Easing of geopolitical concerns, recovery in economic activity and consumer demand with favourable government policies will spur economic growth. The Company consistently ensures sales from diverse customers and geographies to mitigate risks arising from unfavourable macroeconomic events in any particular geography.

Competition Risk

The Company faces competition from both organised as well as unorganised players. Failure to supply innovative and high-quality products may result in the loss of market share and profitability.


The Company leverages its rich expertise and best-in-class technology to produce innovative and differentiated products to mitigate competition and stay ahead in the market. The Company has the capability to handle 6,000+ SKUs and ensures delivery of quality products within the required time period.

Operational Risk

Failure in manufacturing or R&D operations or delay in new product launches may impact the business and revenues of the Company.


The Company adopts and follows all the health and safety measures at its plants to ensure seamless operations. Moreover, the New Product Development (NPD) team of the Company ensures consistent innovation and launch of new, premium products in line with the evolving trends to ensure business continuity.

Technology Risk

Inability of the Company to keep up with the evolving technology trends may impact the revenue and margins of the Company.


Consistent investments in modern technologies and processes have enabled SJS to create a robust innovative portfolio. Further, its acquisition of Exotech along with its expert design team has strengthened its technology edge. SJSs strong NPD team, has in the past 6 years, developed 5-6 new products contributing 9-10% of its revenue in fiscal 2023 and is aggressively working on new-generation products such as In-Moulded Electronics (IME) parts, cover glass, printed electronics, etc. The acquisition of WPI will further enhance the technology edge and enable SJS to build capabilities in complementary adjacent IMD, IML, IMF, and IME technologies which are new generation advanced technologies. The Companys strategy is to continuously innovate and stay ahead of the curve in terms of product offerings and new technologies.

Customer Risk

Loss of key customers due to unforeseen or adverse events may affect the Companys reputation and revenue growth.


The Companys vast product portfolio and superior quality and designs enable it to serve diverse customer requirements.

The average relationship with the top 10 customers is approximately 19 years which is a testament to its successful, long-standing relationships with customers across the world. Further, SJS insulates itself from customer concentration risk by foraying into new markets and end-segments and acquiring new customers.

Currency Risk

Being a major importer of raw materials and exporter of finished goods, SJS is vulnerable to adverse exchange rates and volatility in currency movements which may impact its margins and profitability.


Continuous monitoring of the movement in exchange rates insulates the Company from adverse fluctuations. Further, during the year, the Company did not enter into any hedging arrangements owing to the global economic turmoil. The Company imports some raw materials and export some of their products, hence it acts as natural hedge.

Crude Risk

Rapid increase in crude oil prices due to adverse macroeconomic events, heightened inflation and geopolitical tensions may impact the margins of the Company.


The Company undertakes VA/VE actions, energy conservation, waste reduction, and alternate sourcing to minimise the impact of increase in prices of input costs and raw materials.

It also approaches its customers to negotiate in order to get price increases, on a case-by-case basis, to minimise the impact of rising crude prices. Further, its long-standing relationships with suppliers ensure steady and uninterrupted supply of raw materials at competitive prices. The Company also has arrangements with alternate suppliers to combat sudden price fluctuation risks.

Talent Risk

Failure of the Company to retain key talent or attract skilled employees may impact the operations of the Company.


The Company has a conducive HR policy aimed at attracting and retaining the best talent in the industry. Regular skill development and employee engagement programmes are conducted to boost employee morale and productivity.

We also have an attractive ESOP policy to incentivise the performing employees and retain them for a longer tenure.


SJS is extremely optimistic about its growth prospects in the medium to long-term given the positive outlook in the automotive industry, particularly with the expected recovery in the 2W industry, growing premiumisation trend and customer preferences for new-age, aesthetically superior, technology products. Recovery in the consumer durables sector and export markets will further add momentum to its growth trajectory.

The Company continues to focus on its key strategic priorities which include increasing global presence; addition of new customers as well as building mega accounts with existing customers; and introduction of futuristic products and technologies for varied customer needs. Plans on the anvil also include expanding chrome-plating capacity post-acquisition of Exotech to meet the high customer demand pipeline. Despite the near-term challenges in the operating environment, SJS is well poised to capitalise on the burgeoning opportunities and clock a 20-25% CAGR growth in revenue for the next three years organically while maintaining best-in-class margins.


1. Organic growth - expected at ~20 - 25% CAGR for FY 2024-26, maintaining best in class margins a) Increasing global presence through exports

Increasing global presence by entering new geographies and enhancing exports is an important focus area for

SJS. It continually strives to enhance presence in existing geographies and enter newer markets by banking on its strong customer relationships. The Company is strengthening its sales force in the international markets of Turkey, Brazil, and Argentina and exploring similar opportunities in other countries. In FY 2022-23, the

Company appointed a sales representative in Columbia, thereby covering key markets of Latin America.

b) Growing mega accounts with key customers

Building mega accounts with key customers and increasing customer base by expanding the array of products and exploring cross-selling opportunities between SJS and Exotech is another important priority. During the year, the Company continued growing business with mega accounts by winning new orders from TVS Motors, Bajaj Auto, Honda, Royal Enfield, M&M, Maruti Suzuki, Tata Motors, Whirlpool, Samsung, among others. It also secured businesses with existing customers and new marquee customers across automotive and consumer appliances segment. On account of SJS strong relationship with Whirlpool, Exotech also won its first-ever export order for chrome-plated parts to Whirlpool in North America, thereby highlighting the cross-selling opportunities that lie between the two companies. With the acquisition of WPI, SJS will witness tremendous cross-selling opportunities owing to a wider product portfolio and increased customer base between SJS,

Exotech, and WPI.

c) Focus on innovation and new product development

Leveraging its strong in-house design and engineering capabilities, the Company focusses on developing new-age, premium products and technologies that are complex to manufacture and will increase its addressable market significantly. It intends to introduce Illuminated logos, In-Moulded Electronics (IME) parts, printed electronics, and smart surface technologies, among others. The acquisition of WPI is an important strategic step for SJS that will reinforce its IML capabilities and add IMD technology and 2k moulding capability. It will open new business opportunities in terms of offering innovative vehicle interior lighting and IME solutions for new generation of vehicles. Addition of these futuristic technology products will help strengthen its positioning as a one-stop aesthetic solutions provider to automotive and consumer appliances segments and will also increase the kit value of products.

d) Diversifying business

Another important strategy of the Company is diversifying into new business verticals. Supported by its strong domain expertise and innovative capabilities,

SJS is exploring opportunities in medical equipment and expanding presence in sanitaryware as well as other consumer appliances segments such as Smart TV and fans segments with new order wins in these categories.

2. Mergers & Acquisitions - evaluating opportunities and building an M&A pipeline to give an impetus to revenue growth over and above the organic growth of ~20-25% Growing via strategic inorganic opportunities

Having successfully integrated Exotech business and demonstrating credible business improvement, SJS is actively evaluating inorganic opportunities and building a pipeline of strategic mergers and acquisitions to enhance its market share and revenue growth. This will be supported by new product development, enhanced presence in consumer-related industries, and geographic expansion of business.

SJS has been able to successfully integrate the business in two years of the acquisition resulting in doubling of revenues at Exotech coupled with improvement in EBITDA margins. Exotech achieved over 35% YoY revenue growth in each year with FY 2022-23 revenue at 1,387.3 Mn. EBITDA margin increased by 300 basis points (bps) to 15.2% in FY 2022-23 from 12.2% in FY 2020-21 on the back of higher sales growth, softening in raw material prices, and operational efficiencies.

Following the successful integration of Exotech business,

SJS acquired 90.1% stake in Walter Pack Automotive Products India Private Limited (WPI) in April 2023. WPI, a subsidiary of Walter Pack Spain, is a leader in the design and development of high, value-added functional decorative parts in the Indian market. WPI caters primarily to the passenger vehicle and consumer electrical segments, which will further diversify SJS revenues and make it a leading supplier to the automotive and consumer segments in Asia.

WPI is one of the very few companies in India that is proficient in advanced IMD, IMF, IML and IME technologies, providing a strong technological advantage. WPIs technological capabilities perfectly complement SJS design to delivery expertise, providing customers with a complete one-stop shop solution. It will open new business opportunities, enabling SJS to offer innovative vehicle interior lighting and IME solutions for new generation of vehicles in the future. With this acquisition, SJS foresees a strong growth potential to acquire new customers and increase share of wallet with existing customers and increase in cross-selling opportunities between SJS, Exotech and WPI. Post this acquisition, SJS will become one of the significant players in interior aesthetics decoration for the PV segment.


Employees are the most valuable asset for SJS as the growth and success of the organisation depends on the contribution of its talented workforce. The Company believes its employees must have a sense of belonging and connection with the workplace in order to perform to their full potential. It intends to create a meritocratic environment that encourages learning and growth and empowers people to deliver the best outcomes.

The employees acquire best-in-class competencies and are systematically groomed to take on responsibilities through on-the-job mentoring, learning and development interventions, rewards and recognitions, and exposure to diverse role opportunities. SJS places a high value on employees and ensures to support and stand by them through thick and thin. It encourages diversity of thought, experience, and background at every level and is committed to hiring, developing, and retaining diverse talent.

During the year, the Company provided health and safety trainings such as hazard identification and risk management, and safety mock drills, among others. The Company also created significant opportunities to educate employees and boost their capabilities which provided tangible benefits at both personal and organisational levels. It conducted employee education program on ‘VDA 6.3 Process Auditor which is a requirement for process betterment. A total of 5 members attended and qualified the examination.

Learning and Development Dashboard

Total Training Hours in FY 2022-23


Total Safety Skill Development
Staff 2,273 478 1,795
Workers 2,225 688 1,537

As on 31 March 2023, the Companys employee strength stood at ~2,000 including factory labours and corporate employees. The staff attrition rate was reduced drastically to 10.4% in fiscal 2023, primarily due to effective knowledge sessions, employee satisfaction surveys, bonus and appraisal schemes, among others. In another significant achievement, the Company was awarded ‘Great Place to Work certification for the third successive year in FY 2022-23.


As a responsible corporate, SJS is committed to health, safety, and environmental concerns while balancing a sustainable growth objective. It strives to safeguard the environment by making its operations eco-friendly, optimising the use of natural resources, and reducing carbon footprint with robust policies to address climate change, biodiversity, and energy and water efficiency. At the same time, the Company to support communities and ensure fair working conditions and welfare of its employees.

Key environment conservation initiatives include the installation of solar panels at its factories, and sewage treatment plant for waste reduction, recycling and conservation of water; reduction of diesel usage; etc. Nearly 51.22% of wastewater was recycled through the onsite sewage treatment plant and

62.99% through the effluent treatment plant. During the year, SJS generated a significant portion of its power requirement for manufacturing through renewable solar energy and third party renewable energy sources. The rooftop solar power panels and solar park within the factory premises accounted for 24.15% of electricity requirement during FY 2022-23. Total installed capacity of solar plant was 1.9 MW, of which SJS generated 15,47,384 units of solar power during FY 2022-23 as compared with 19,23,149 units in FY 2021-22. The Company reduced 21,76,342 kg of carbon emissions through consumption of renewable power sources and further targets to reduce emissions by 5% in FY 2023-24. With the use of dedicated feeder, reliance on diesel consumption was almost reduced to zero. Diesel consumption for FY 2022-23 stood at 10,042 litres whereas consumption in FY 2021-22 was 92,099 litres.

The Bengaluru facility is LEED Gold certified (Leadership in

Energy and Environment Design) by the US Green Building

Council. It has effluent water treatment units to treat wastewater and reuse in operations. The facility undertakes various initiatives towards energy efficiency and using renewable energy (solar energy generating ~2MW) to reduce diesel usage and carbon footprint.


In its commitment to good corporate citizenship, SJS is determined to create a positive impact with its meaningful social welfare activities. Education and skill development, healthcare and sanitation, rural development, sports, and environment protection are the key focus areas for SJS. During the year, the Company spent 12.87 Mn towards CSR initiatives.

Key CSR initiatives undertaken during the year include:

Construction of RO water plant at the Agara Village;

Building of additional classrooms and school infrastructure of the Government school at Tathaguni and Banjarapalya;

Contribution to Kumarappa Institute of Gram Swaraj for education & skill development of brick lane workers;

Participation in garbage collection and waste management drive across 7 villages under the ‘Clean Village Initiative Campaign which benefited 3,000 families;

Construction of 20 beds at Community Health Centre, Government Hospital of Kaggalipura which has been benefiting nearly 50 patients every day;

Sponsoring para-athlete Mr. Manikandan for participating in international sports competitions;

Contribution to CBCI Society for Medical Education for medical treatment of needy patients;

Providing home meals to economically backward and needy people at railway stations, bus stands, beaches, orphanage centres, old-age homes as part of ‘Lets Feed the Needy programme;

Conducted free eye check-ups for 1,200 children across 13 government schools and distributed 117 spectacles to children with abnormal vision;

Distributed 800 school bags and 65 benches/round tables in 13 surrounding government schools;

Distributed e-learning kits in 7 government schools and computers to police station.


SJS has been strengthening its information technology initiatives to increase operational and cost efficiencies, enhance quality, and drive premiumisation. The IT department of the Company has developed a team capable of executing all aspects of a Dynamics 365 implementation – Functional,

Technical, and Infrastructure. This added capability will result in significant cost savings for the Company and will lead to implementation of ERP on demand according to its requirements and schedules.

The IT team brings more than 10 years of machine vision experience and capability in implementing turnkey Vision

Inspection projects. This project will help in automating quality checks and reduce quality inspection labour over a period of time, which is currently being done manually. It will also help identify requirements and choosing the right vendor and equipment for the job.

The in-house ERP capability allows for quick integration of acquired companies into the existing SJS ERP eco-system providing in-depth analysis of production, finance and inventory data to the Finance and Operations teams. The Company also deploys Artificial Intelligence (AI) & Machine

Learning to create capability of predicting the production rate based on a set of control parameters, by building a machine learning-based prediction model that will provide a production-rate landscape with its peaks and valleys representing high and low production.

Going forward, the Company intends to implement Material Resource Planning and Master Planning and scheduling that will keep SJSs inventory costs low and provide insights into production data to optimally utilise available resources. Plans on the anvil also include leveraging machine vision for early-stage wastage detection leading to lower CoPQ (cost of poor quality) and moving machine vision from standalone to assembly line. Automation in quality inspection will result in reduction of rejections and increase in savings.

In its efforts to fight against ransomware and malware, SJS has renewed its focus on tightening security practices and the security perimeter to strategically protect against and respond to attacks. Using early detection, prevention, and quick response, the Company has limited the overall exposure of the organisation to ransomware and other destructive attacks.


The Company has a robust internal control framework in place that covers various aspects of governance, compliance, audit, control, and reporting. These internal controls are responsible for adhering to the regulatory framework, preventing frauds and errors, safeguarding assets and finances, and ensuring the reliability of financial reporting. The Companys internal audit team periodically conducts an audit of internal control systems and shares the findings with the Companys management, who in turn, takes corrective actions to maintain the efficacy and effectiveness of the internal controls.


The Management Discussion and Analysis contains statements describing the Companys objectives, projections, estimates and expectations, which may be forward-looking in nature. These statements are made within the meaning of applicable laws and regulations and are based on informed judgements and estimates. There cannot be any guarantee of previous performance continuity as future performance also involves risks and uncertainties. These may include but are not limited to the general market, macroeconomic, interest rates movements, competitive pressures, technological and legislative developments, and other key factors that may affect the Companys business and financial performance.