Dear Stakeholders,
Dear Stakeholders,
Schaeffler India has had a remarkable journey in the year 2023. It has been a year of milestones where we have responded to challenging business environments with agility and resilience. I am proud to report that despite the challenges we faced, our business has continued to thrive and grow. The resilience and dedication of our team, coupled with our unwavering commitment to innovation and excellence, has propelled us forward even in the face of uncertainty.
Following the post-pandemic rapid growth years of 2021 and 2022, 2023 presented unique difficulties. The second half of this year saw the pandemic-induced chip shortages settling down. This resulted in automotive manufacturers being able to meet the high demand for automotives in general and SUVs in particular, resulting in a strong turnaround in the automotive segment. Our automotive technologies as well as automotive aftermarket business registered double-digit revenue growth. Our industrial business showed sustainable growth with revival in our key sectors and government policy support towards the infrastructure sector. Exports were under pressure, especially with the wind segment in Europe bearing the brunt of war and sanctions. However, the sector has now started registering an uptick and we continue to invest in this sector.
Once more, even when the world was slowing down, India’s progress kept moving forward. And we played our role as catalysts to support the same, propelling industries forward with innovative and sustainable solutions. Beyond numbers, our story is one of agility. Like I mentioned earlier, this was a year of milestones for us. The year started with the ground-breaking ceremony for our new greenfield facility in Hosur, a beacon of sustainable manufacturing in India. The Savli facility expanded with the future-forward production lines. The enhanced production capacity will support the growing market demand in the wind, heavy industries, and railway sectors. It also supports the country’s ‘Make In India’ call and we are proud to contribute towards the initiative.
Most importantly, we completed our first-ever acquisition in India and the first acquisition in the automotive aftermarket space with Koovers. I am very impressed by the motivated, and competent team we have at Koovers, particularly the Data Analytics, Customer Order management, and IT team, among others. We will work with the team to capitalise on the growth opportunities this business has to offer. I wish the team all the very best.
Another remarkable achievement that I would like to highlight is our foray into future mobility from one of the large players in the segment, thus taking our first step in India’s electrifying journey.
This year, Schaeffler India embraced digitalisation even further, transforming the way we work and interact with customers. We went beyond automating routine processes, building a digital ecosystem that streamlined operations, boosted efficiency, and enhanced customer experience. From automating the entire supplier payment process to creating an online platform for distributors to automating all HR processes, we have woven digital threads into the fabric of our business. On the production line, smart technologies are ensuring precision and quality control like never before. This digital metamorphosis is a testament to our agility, transparency, and intelligent collaboration to build the future of motion.
Sustainability remains at the heart of our every action. We continued to work on reducing our environmental footprint through the year, inching further towards becoming a carbon-neutral company. We have action fields defined covering the three ESG dimensions – Environment, Social, and Governance. I am happy to share that we have performed in this direction and achieved our targets for the year across areas of energy efficiency, usage of renewable energy, freshwater reduction, zero waste to landfill, accident rate and fostering a more equitable and representative environment for all. Our commitment extends beyond our factories, to the communities we call home, and are actively involved in CSR initiatives.
We are focused on integrating sustainability into our organisational culture and have implemented ESG targets in our performance measures. We understand that sustainability goals can be achieved together with a strong ecosystem, and we continue to prioritise sustainability in all aspects of our operations and strive for even greater successes in the future.
We continue to invest in talent development, nurturing a diverse and inclusive workforce, ready to lead us into the future. We championed gender equality, exceeding set targets and setting a benchmark for others to follow. I would also like to mention about the new leadership changes we saw during the year – we strengthened our leadership with the appointment of Mr. Aashish Bhatia to lead our Automotive Technologies business and Mr. Seshan Iyer to lead our Industrial business and Mr. Vinod Acharya to lead our Purchasing function. With their fresh perspective and proven expertise, I am confident that these leaders will help Schaeffler India to scale higher.
Looking ahead, we are excited about the opportunities that lie ahead of us. We will continue to invest in innovation, leveraging emerging technologies to drive efficiency, enhance customer experiences, and unlock new growth avenues. As we look ahead, the horizon pulsates with the promise of even greater strides. We stay focused on our strategic priorities and continue to invest in R&D, digitalisation, and strategic partnerships, fuelling innovation and solidifying our position as a leading motion technology company.
On behalf of the entire team, I want to express my gratitude to all our stakeholders for their continued confidence in Schaeffler India’s vision and strategy. Together, let us keep the wheels of progress turning, propelling India towards a brighter, more sustainable tomorrow. Thank you for being a part of our journey.
Harsha Kadam
Managing Director & CEO
