Key takeaways of the meeting

The company has been working over the past year to expand its market share and product offerings especially in the fast growing field of electronics. The company has been successful in developing and securing the business for EGR controller for small diesel engines working closely with customer to meet forthcoming BS IV emission norms.

The company is jointly developing other technology oriented products like ECI for Electronic Fuel Injection (EFI), Integrated Starter Generator (ISG) for two wheelers and off road engines with its technical partners. ISG and EFI are two critical new technologies that will be disruptive to the industry and thanks to the constant focus on R&D by the company, the engineers along with technical partners are building the company's capabilities for the future.

The company has been identified for development of ECU for the EFI system jointly with its technical partners by one of the 2-wheler manufacturers for their popular model of motorcycle as well as by another US based engine manufacturer. Currently ECU export is predominantly for Kohler, USA.

The contribution from one new product will start from next fiscal and another from fiscal next to that.

Fly wheel magneto accounts for about 61% of revenue of the company in FY16. And the company's market share of total domestic fly wheel magneto market is about 17%.

The company will also supply Fly Wheel Magneto to BMW 2-wheelers manufactured by TVS Motors.

About 30% of the business of the company comes from scooters with balance largely from motorcycles. Scooters market witnessing strong growth than motorcycles and good scooter volumes from TVS motors have helped the company register strong revenue growth.

The company is in negotiation for major supplier contract for Honda's Gujarat plant. The company is also talking with Hero for supply to more models.

The company commands just 60% market share in the products it supplies to TVS Motors.

The company's decision to set up a plant in Indonesia is to cater to the TVS Motor's Indonesian plant. But with Indonesian operations of TVS Motors not progressing as desired, the company has taken an in principle decision to wind up the Indonesian subsidiary company i.e. PT Automotive Systems, incorporated to execute the Indonesian project. The main assets in the books of the subsidiary are land which is valued at Rs 5.55 crore as on March 31, 2016 and bank deposits of Rs 7.45 crore aggregating to Rs 13 crore as against an investment of Rs 12.08 crore. The value of land has appreciated significantly and the company has appointed a consultant to sell off this land parcel. Progress on selling of the land will happen and cash repatriation will happen within next year.

The company has successfully completed long term wage settlement at both Hosur and Rewari units and it is expected to be completed shortly at the Puducherry unit.

Next four years will be exciting with the company enhancing its product share as well as its market share.