As an evolving automotive component manufacturer we possess technical skills that arerelevant in this era of changing vehicular -technologies. Rasandik is strongly positionedwith profound capabilities in the all its business divisions especially in the toolingand electric vehicles segment.
It gives me immense pleasure to share my thoughts on the industry perspectives andoverall performance of the Company in the financial year 2018-19. Amid challengingbusiness landscape the Company continued to evolve backed by a strong core diversifiedofferings and technical expertise.
Our thoughtful strategies have paved the way for a sustainable future ahead.
The financial year 2018-19 had its share of uncertainty and volatility. The countryregistered a lower annual GDP of 6.8% as compared to last year. There was a slowdown inthe overall growth momentum owing to global trade tensions declining consumer confidencedepreciating rupee and higher crude oil prices particularly in the last quarter of thefinancial year. There was an evident slowdown in some of the large sectors of the economy.Persistently tight credit conditions caused by the challenges in the NBFC (Non-BankingFinancial Company) sector rising unemployment and low rural and urban income growth werekey contributors to the moderate growth.
On the positive side the year displayed steady growth in the capital goodsinfrastructure and construction sectors. As per IMF projections India's GDP growth isestimated at 7.3% in 2019 and 7.5% in 2020.
Currently India's automotive industry is at an inflection point and is witnessingtrends that are expected to transform the industry in a big way. Rapidly evolving customerneeds disruptive impact of technology dynamic regulatory environment changing mobilitypatterns and global interconnectedness are all impacting the way of doing business in theautomobile industry globally and in India.
Strong Government focus on encouraging automotive industry is an important drivingforce for India.
Through the Automotive Mission Plan 2026 it aims to develop India as a globalmanufacturing centre and build an innovative R&D hub. The Government initiated majorregulatory interventions such as adoption of BSVI norms in Delhi/NCR by 2020 and pan Indiaby 2020 for all new four-wheeler vehicles sold change in tax structure and adoption ofsafety standards among others.
In addition with increasing digital solutions disruptive trends are emerging in theform of electrified automated and shared cars. The Government has an ambitious target ofensuring that only electric vehicles are sold in the country within the next few years.The Ministry of Heavy Industries has shortlisted 11 cities in the country for introductionof electric vehicles (EVs) in their public transport systems under the Faster Adoption andManufacturing of (Hybrid) and Electric Vehicles in India (FAME) scheme.
Bright prospect for the automobile industry in the country augurs well for the autocomponent industry as well. The automobile industry is crucial for the economy as itaccounts for 7.1% of the country's GDP. As per Automotive Mission Plan (AMP) 2016-26 itscontribution to GDP is projected to increase to 12%. India is expected to emerge as theworld's third- largest passenger vehicle market by 2021. In this scenario the Indianautomotive industry (including component manufacturing) is expected to reach US$51.4-282.8billion by 2026. With policy support from the Government increasing investment ininfrastructure and strong capabilities the country is well-poised to gain momentum in thechanging mobility landscape.
As an evolving automotive component manufacturer we possess technical skills that arerelevant in this era of changing vehicular technologies. Rasandik is strongly positionedwith profound capabilities in the all its business divisions especially in the toolingand electric vehicles segment. We are amongst the leaders in manufacturing Laser TailorWelded Blanks (TWB) by using light-weight technology that results in optimised cost andhigher productivity. We have substantial capacities for press tool engineering solutionand components manufacturing with a diversified product range to meet the demand fromlarge OEMs in passenger cars tractors 2-wheeler and commercial vehicles. We are devisingsharp export strategies for our sheet metal business by collaborating with marketingconsultant Crescendo
Worldwide. This tie-up will drive exports for the Company in the near term.
We realise our responsibility towards reducing impact on the environment. Thereforethe Company introduced the concept of e-Auto and e-Rickshaw as a part of the futuristicapproach. We plan to launch unique 3KW e-auto rickshaws which is under testing phase andexpected to drive values in a phased manner in the next fiscal year. With world- classtechniques and capacities we are exploring opportunities in the Railways and heavyfabrication segment.
We delivered satisfactory performance amid unforeseen business challenges. TheCompany's net sales increased by 11.6% during the year to र 266.7 crores while EBIDTAstood at र 28.6 crores. Rasandik's performance is driven by the enthusiasm anddedication of its capable workforce. We have put in place a firm foundation with astrengthened portfolio marquee client base solid technology and disciplined execution.We are building on our strengths further by exploring right strategies at the right timeand capturing the fast-growing auto component segments.
Lastly I would like to thank all our stakeholders for their unwavering support andtrust in the organisation and look forward to taking our partnership further for.
Chairman & Managing Director.