Corporate Overview
Our Company was originally formed and registered as a partnership firm
under the Indian Partnership Act, 1932 in the name and style of "M/s. Universal
Foundry", pursuant to a deed of partnership dated September 1, 1971 which has been
registered with Registrar of Firms, Jaipur, Rajasthan dated April 1, 1972 with two
partners Shri Kishan Lal Gupta and Shri Vimal Chand Jain. The terms, conditions and
clauses of partnership firm was changed from time to time including admission and
retirement of partners. Our Company was incorporated as a Private Limited Company under
Part IX of Companies Act, 1956 with the name of "Universal Autofoundry Private
Limited" upon conversion of Universal Foundry vide Certificate of Incorporation dated
October 8, 2009, bearing registration No. 030038 issued by Registrar of Companies, Jaipur,
Rajasthan. Subsequently our Company was converted into a Public Limited Company and the
name of our Company was changed from "Universal Autofoundry Private Limited" to
"Universal Autofoundry Limited" in the Annual General Meeting by a special
resolution dated June 24, 2015. A fresh Certificate of Incorporation consequent upon
conversion into public limited company was issued to our Company on July 8, 2015, by the
Registrar of Companies, Jaipur, Rajasthan. Our company got listed on BSE SME Platform on
4th September 2015, we came up with an IPO of 3.24 cr. to purchase plant and machinery.
IPO fund is fully utilised and thereafter we started the production with new machinery. In
2022 we migrated from BSE SME platform to BSE mainboard . In
2023, We came up with fund raising process for expansion of business
through Preferential allotment of Equity Shares for Value of Rs. 25.68 cr which successful
completed in May 23 with trading approval.
ECONOMY OVERVIEW
ICRA (Investment Information and Credit Rating Agency) has a forecast
of a CAGR (compound annual growth rate) of around 6%-9% across automotive segment.
It also said in its report that the domestic automotive industry has
seen a healthy revival so far in 2022-23 aided by a recovery in economic activities and
increased mobility. The demand sentiments for most of the automotive segments, namely,
passenger vehicles, commercial vehicles, and tractors, have remained healthy, aiding in
improved offtake for industry participants.
MARKET SIZE
Indias Automotive Market was valued at USD 100 billion in 2021 and is
expected to reach USD 160 billion in 2027, registering a CAGR of 8.1% over the forecast
period (20222027). Export of the total number of automobiles increased from 4,134,047 in
2020-21 to 5,617,246 in 2021-22, registering a positive growth of 35.9%. India aims to
double its auto industry size to Rs. 15 lakh crores by end of year
2024.
Over the next decade, the automotive industry is likely to see
some significant transformations at a global level. Principal
transformations being the shift of growth in demand for automobiles from developed nations
to developing nations (mainly BRICS); a dramatic increase in the share of electronics in
automobiles, making them a "computer on wheels and connected to the Internet"; a
relentless pursuit of economies of scale and scope in design and engineering of
automobiles and components, while also pursuing low-cost manufacturing destinations.
INDIAN FOUNDRY INDUSTRY
The Indian foundry industry manufactures metal cast components for
applications in Auto, Tractor, Railways, Machine tools, Sanitary, Pipe Fittings, Defence,
Aerospace, Earth Moving, Textile, Cement, Electrical, Power machinery, Pumps / Valves,
Wind turbine generators etc. Currently, there are around 4,500 foundry units in the small,
medium and large-scale sector. Out of these, 1500 units have international quality
accreditation
A Vision Plan 2022 has been initiated by The Institute of Indian
Foundrymen (IIF) to recommend the needed initiatives for rapid growth, and emerge as a
leading supplier of quality castings in the global market by 2022. An implementing agency
for the India Foundry Mission (IFM) will have full authority to represent it, demonstrate
the pilots and implement recommendations, and monitor market growth.
MANPOWER
The total Manpower in Foundry Sector is approx. 500,000 Directly &
150,00,00 indirectly. The foundry sector is highly labour intensive & currently
generates employment for 2 Million directly & indirectly mainly from socially &
economically weaker sections of society. It has potential to generate additional
employment of 2 Million in next 10 years. ROLE IN MANUFACTURING SECTOR
Manufacturing has emerged as one of the high growth sectors in India.
Government aims to create 100 million new jobs in the sector by 2022. Since all
engineering &other sectors use metal castings in their manufacturing, the role of
foundry industry to support in the manufacturing work is very vital. It is not possible to
achieve the above goal without the sustainable corresponding growth of the foundry sector.
BUSINESS PERFORMANCE
HIGHLIGHTS
Your Company is in the business of manufacturing C.I Casting. During
financial year 2022-23, total sales registered a marginal increase of approx45%, Total
Sales being Rs. 16306.08Lakh in 2021-22 increased to Rs. 23711.85 Lakh during the
financial year. Profit margins have increased significantly.
MARKET PRESENCE
Companys market presence covers almost all the major cities of
India. It is proud moment to share that your Company is now having two manufacturing
facilities and two machining center through which whole India and
international market is being catered. Company is having strong market
hold throughout the India and for the uncovered areas Company has already made detailed
marketing plans to strengthen its presence there also. Your Company also has a strong
overseas market which covers Europe, ASIAN countries the most. Company is also expanding
its business in ferrous and non- ferrous market by capturing new customers and market .
OPPORTUNITIES AND THREATS OPPORTUNITIES
The Company mainly caters to requirement of commercial vehicle segment
of the automotive industry and tractor segment. The Company enjoys an unstinted confidence
from its valued customers for providing superior quality products. Indias economic
growth will present tremendous opportunities for growth in automobile and non-automobile
segment. The Company strives to create sustainable profitable growth by using superior
technology and maintaining product quality and offering wide range of products to
different segments, which will give us a competitive edge in the market. The Company has
got excellent potential for growth, both in domestic and export markets and intends to
expand its product base, to cater to other segments such as passenger car segment,
construction segment, Tractor segment, engineering segment, Railway segment and earth
movers segment.
THREATS
• The Company faces stiff competition with new foundries being
established with strong financial back up and with the players in the un-organized sector.
• Instability in the prices of raw materials, power, freight and
other input costs are perceived as a threat.
• Input cost including labour cost is increasing day by day
whereas customer wants price reduction on yearly basis, as a result profit margins are
reducing.
• The foundry industry is still regarded as a dirty industry with
a lack of commensurate returns which deters the youth from joining the industry.
• Dependency on related party companies.
In a globalising world, opportunities can spring up anywhere, anytime,
just as threats can come from any part or segment of global industry.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The Company has adequate internal control system, commensurate with the
size of its operations. Adequate records and documents are maintained as required by laws.
The Company strives to put several checks and balances in place to ensure that
confidentiality is maintained. The Audit Committee reviews adequacy and effectiveness of
the Companys internal control environment and monitors the implementation of audit
recommendations. The Audit Committee gives valuable suggestions from time to time for
improvement of the companys business processes, systems and internal controls. All
efforts are being made to make the internal control systems more effective.
HUMAN RESOURCES / INDUSTRIAL RELATIONS
Companys HR philosophy is to establish and build a high
performing organization, where each individual is motivated to perform to the fullest
capacity to contribute to developing and achieving individual excellence and departmental
objectives and continuously improve performance to realize the full potential of our
personnel. Company continues to maintain positive work environment and constructive
relationship with its employees with a continuing focus on productivity and efficiency.
Our Company is focused on building a high-performance culture with a growth mindset.
Developing and strengthening capabilities for all employees has remained an ongoing
priority.
Our vision: -"Universals vision is to pursue and consolidate
our position of leadership through passion, innovation and teamwork."
Our Mission:-Our mission is to maximize wealth creation for all the
stake-holders of the company through supply of cost effective products, services and
innovative solutions through integration of people, technology, processes and business
systems.
OUTLOOK AND CHALLENGES AHEAD
One of the main challenge bogging the industry down is lack of
resources for technology upgradation and access to quality manpower. Since a career in the
foundry industry is not typically sought out by aspiring youth entering the workforce,
attracting new talent has become a challenge. So, the perception on the foundry industry
has to change and the industry needs to be profitable to pay higher wages. Companies need
to upgrade the technology and make their foundries clean, non-polluting, and provide
worker-friendly environments. The government has to address this problem to make India
internationally competitive.
DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS
In accordance with the SEBI (Listing Obligations & Disclosure
Requirements) (Amendment) Regulations, 2018, the Company is required to give details of
significant changes (i.e. change of 25% or more as compared to the immediately previous
financial year) in key financial ratios forming part of Financials.
For & on behalf of the Board
Sd/-
Vimal Chand Jain Chairman
DIN:00295667 Jaipur,
30.05.2023
+91-9892691696
