Annual Report 2019 OMAX AUTOS LIMITED w w w . o m a x a u t o . c o m TABLE OF CONTENTS Milestone 02 - 03 Corporate Information 04 - 05 Message form Chairman 06 Message form Managing Director 07 Financial Highlights 08 - 09 Innovomax 10 - 11 Leadership 12 - 13 Facilities and Process Capabilities 14 - 15 Technology Cell & Commercial tool room 16 - 17 Excellencia Awards 18 CSR Activities 19 Communication Forum 20 Goal Setting Interactive Process 21 - 22 Industry Segment 23 - 24 Our Products 25 Our Customers 26 A VERSATILE RANGE OF AUTOMOTIVE COMPONENTS A Versatile Range of Automotive Components One of the leading manufacturers of Automotive Components in India, OMAX Autos Limited specializes in sheet metal components, tubular components and machined components. Focussed on performance, OMAX is amongst the prime OEM (parts and assembly) suppliers in India. With its reputation for excellence, OMAX has expanded its reach by providing a wide gamut of Assemblies, Subassemblies, Frames, Bus Structure Assemblies, Tools Fixtures and SPM to industry segments. The range of products finds application in segments like Automotive (PC & CV), Railways & Heavy Fabrication. 01 OUR JOURNEY SO FAR 1983 1985 1986 1988 1989 1997 MILESTONES The year marked The first unit Omax Autos Established Diversified its Bagged the beginning of started in Limited went its second customer base ISO 9002 the name Dharuhera as public with unit Automax by roping in Certificate “Omax Autos an ancillary more than in Gurgaon Carrier Aircon from TUV Limited” supplier to 7500 Ltd. in Air of Germany. Hero MotoCorp shareholders. Conditioning for Sheet Metal Components. and Tubular Welded Components. 2006 2007 2008 2009 2010 2011 2012 SAP rolled out Automax, Established its Tied up with Commercial Started using Setup Eleventh in all Eight Gurgaon- Ninth Plant at IKEA for supply production pipe natural plant Plants across Plant merged Lucknow to of Metal started at gas from GAIL (Pant Nagar India. with Binola manufacture Houseware Lucknow India Plant) at Udham Plant chassis for Products. plant. Set Dharuhera Singh Nagar commercial Recognition up tenth and Manesar (Uttrakhand) to vehicles for granted for plant at Plants. A Major supply the Tata Motors. In-house R&D Bawal to step for power manufactured unit at Manesar Manufacture and fuel cost products to by DSIR. Home reduction and Ashok Leyland Furnishing contributing to and Setup products. Greener 2.5MW environment. Wind Power Project in Jaisalmer, Rajasthan 02 1999 2000 2001 2002 2003 2004 2005 Established its Set up the A New phase Established its Established Established its Established third unit- ultra modern of Kaizen Fourth plant at Its Fifth Sixth Plant at its Eighth Speedomax in paint shop activity Manesar with a Plant-Sprocket Bangalore having Plant at Binola, Sidhrawali. with latest various capital outlay of division in machining & Gurgaon for Tied up with technology Training & 200 million Dharuhera. sheet metal catering to Honda Siel Cars from ABB HR activities equipped with Bagged manufacturing export clients. India Ltd. and India Ltd. at started in modern Tool ISO/TS - 16949, facilities. New Holland Speedomax all plants. Room and R&D ISO 4001 & Established its Tractors Ltd. for Plant. centre with state OHSAS 18001 Seventh Plant - supply of Body of the art Certification Indital at and Axle parts. machinery. from UL India Dharuhera. for all Plants. 2013 2014 2015 2016 2017 2018 2019 Merged Railway Separation of Started the Started the Bawal Plant Expansion of Inauguration Component Railways inhouse in – house made re Railway of 2 Division with Division R&D centre, R&D centre operational Business manufacturing Binola Plant from Binola "Innovomax" “Innovomax” and sale initiated plants at (Automax) Plant to improve started. Lucknow / to use the upon existing Raebareli Road (U.P.) available products and resources develop new in better products to way. meet demands of futuristic automobile industry The inception and progress of Omax. A pioneer of complete automotive solutions pan India, OMAX Autos Limited was established in the year 1985. With its excellent infrastructure, highly motivated team of leaders and constant need for innovation, the company has grown in size and stature, and today, is the epitome of success. This is evident in its being one of the topmost OEM (Parts & Assembly) suppliers in the country and having a stronghold in various industry segments including Automotive (PC & CV), Railways and Heavy Fabrication. 03 CORPORATE INFORMATION Omax Autos, presently, has five manufacturing plants in India. These state of art facilities maintain high international standards. The unending passion for superlative performance has led to the use of world-class machinery and technology. The Company has also coming up with two state of art manufacturing units at Lucknow-Raebareli Road, Uttar Pradesh. Board of Directors Mr. Bharat Kaushal Chairman Mrs. Sakshi Kaura Joint Managing Director Mr. Jatender Kumar Mehta Managing Director Mrs. Novel S. Lavasa Independent Director Dr. Ramesh Chandra Vaish Independent Director Mr. Tavinder Singh Whole time Director Dr. Triloki Nath Kapoor Independent Director Mr. Devashish Mehta Joint Managing Director Mr. Deep Kapuria Independent Director Mr. Panja Pradeep Kumar Independent Director Mr. Ravinder Kumar Mehta Managing Director Members of the Audit Committee Dr. Ramesh Chandra Vaish Chairman Mr. Panja Pradeep Kumar Member Dr. Triloki Nath Kapoor Member Mr. Jatender Kumar Mehta Member Mrs. Novel S. Lavasa Member Mr. Deep Kapuria Member Mr. Devashish Mehta Member Company Secretary & Compliance Officer: Internal Auditors: Mr. Sanjeeb Kumar Subudhi M/s. H.M. & Associates, Chartered Accountants M/s. Singhi Chugh & Kumar, Chartered Accountants Statutory Auditors: M/s. N. Kochhar & Co., Chartered Accountants BGJC & Associates LLP Senior Management: Secretarial Auditor: Mr. Ghan Shyam Dass, Chief Financial Officer M/s. Chandrasekaran Associates, Mr. Deepak Bhasker, Group HR Head Company Secretaries 04 Registrar & Share Transfer Agent M/s Link Intime India Private Limited Our Bankers/Financiers Noble Heights, 1st Floor, Plot No. NH 2, LSC, C-1 Block, Near Savitri Market, • HDFC Bank Limited Janakpuri, New Delhi-110058 Tel: +91-11- 4141 0592/93/94; • ICICI Bank Limited Fax: +91-11-4141 0591 The Hongkong & Shanghai Banking • E-Mail: [email protected] • Corporation Limited Website: www.linkintime.co.in • Indian Bank • Yes Bank • Canara Bank • Bajaj Finance Limited • IndusInd Bank • Pradeshiya Industrial and Investment • Corporation of Uttar Pradesh Limited (PICUP) Registered & Manesar Tool Bangalore Plant: Corporate Office: Room: Plot No. 6, Bomassan- Plot No. B-26, Institutional Plot No. 6, Sector- 3, dra-Jigani Link Road, Area, Sector 32, Gurugram, IMT Manesar Gurgaon, Bomassandra, Banglore, Haryana - 122001 Haryana - 122050 Karnataka - 560099 Lucknow Plant: Binola Plant: Bawal Plant: Pant Nagar Plant: Tata Motors Vendor Park, Railway Division Delhi- Jaipur Plot No. 2, Sector-5, Plot No. 564, Near Nalanda Chinhat Industrial Area, Highway, Village & P.O. Binola Bawal, Distt. Rewari, Public School, Village-Deveria, Deva Road, Lucknow Gurugram, Haryana-123413 Haryana-123501 Kichha, Rudrapur, (U.P.)-226019 Udham Singh Nagar, Uttarakhand-263148 05 MEASSAGE FROM CHAIRMAN Dear Stakeholders, M/s Link Intime India Private Limited I feel privileged to communicate with you through this 36th Annual Report of the Company. Noble Heights, 1st Floor, Plot No. NH 2, LSC, C-1 Block, Near Savitri Market, In my last communication in 35th Annual Report, I had shared some of the strategies we had in our mind Janakpuri, New Delhi-110058 for the Company to grow in a sustainable way in coming years. I am pleased to share that all our efforts Tel: +91-11- 4141 0592/93/94; now taking shapes. I had shared that the management has a vision to double the turnover of the CV, PC Fax: +91-11-4141 0591 & Railway businesses in next 3-4 years. Due to continuous, sincere and untiring efforts of the E-Mail: [email protected] management, in 2018-19, in these three businesses we have achieved a turnover of Rs. 660 Cr. Website: www.linkintime.co.in compared to Rs. 492 Cr. last financial year, achieving a growth of around 34%; it’s a significant achievement. I hope, with your support, we will achieve doubling the turnover in these businesses in next 2-3 years. Shifting our focus to these higher margin businesses has also improved our profitability. The Company has improved its PBT from Rs. 57 Lacs in 2017-18 to Rs. 515 Lac in 2018-19. As part of our strategy, we have also consolidated business of 2W components for which we had to take some tough decisions during the year. This will also help us in cost rationalization and improve in profitability. I am pleased to share that as per our strategized expansion plan, we are coming up with two state of the art manufacturing plants in Uttar Pradesh. One would cater to the demand of our CV customer and the other would support our Railway business. We have already procured lands for these two units and commissioning of the plants are underway. We hope to start operations in these units, in next financial year. The management has always focused on keeping pace with the fast evolving technology. Company has its own in-house R&D Centers, which are effortlessly working on developing new products for our customers. We are in verge of developing some new products for our customers. In the same line, the management is contemplating to develop another R&D Centre in Pune, Maharashtra to cater to the product designing requirements of our prospective and existing customers. This would go a long way in keeping us relevant and valuable in ever-changing customer demand landscape. The management is very optimistic about the growth prospective of the Company. The global economy is taking headwinds lately. Also slowdown in domestic economy is visible. Auto Industry has slowed down significantly. We are expecting a negative growth this year.