Message From
Chairman

Industry Overview

Displaying resilience, the Indian automobile segment recovered well in FY 2024-25, achieving overall passenger vehicle sales of ~ 4.3 million units, showcasing a 2% growth over the previous year, reinforcing India’s position as the third-largest car market globally. Growth was mainly driven by stable economic conditions, rising consumer demand, premiumisation, supportive government policies, and technological advances supported by strong performance in the passenger vehicle and three-wheeler segments. Meanwhile, the growing demand for EVs has led to a 20% increase in EV sales over the previous year, accounting for nearly 2.5% of the 4.3 million cars sold in 2024.

The domestic auto component segment, leveraging a structurally favourable mix of end-user segments and geographies, also witnessed robust growth demand backed by rising domestic demand and strong export performance. Engine components contributed 26% while drive transmission and steering made up 11% of the total supply in FY 2024-25.

Growth was also witnessed in the tractor industry, fuelled by positive cash flow from the kharif harvest and favourable sowing conditions for the rabi season, driving demand for tractors.

The government’s increased infrastructure focus and strong agricultural sector growth are creating potential opportunities for the construction equipment and agricultural machinery sectors. Moreover, the government’s push for clean mobility and renewable energy through investments in electric vehicle (EV) charging infrastructure and subsidy extension under the FAME India Phase II scheme is increasing demand for environmentally friendly alternatives, driving sustainable progress.

Focussed Approach

Despite the crisis of lower demand in FY 2024-25, our resilience and adaptability to evolving market dynamics have enabled us to create new growth avenues. We focussed on diversifying our customer base, advancing gear technology, operational efficiency and optimising costs to improve our financial performance and drive growth during the fiscal year.

BGL remains committed to continuous innovation, staying at the forefront of automotive technology trends. We invested in the latest gear technologies by leveraging our robust engineering capabilities to meet growing domestic and global requirements including EV segment in FY 2024-25. We have focussed on streamlining new product development and streamlining our development team to handle more projects, aligned with the Company’s ambitious growth vision.

The past fiscal marked a significant milestone for your Company. We are proud to be the first gear manufacturer to supply ground bevel gears in India, setting a new industry benchmark. Additionally, we have expanded our infrastructure to manufacture high quality transmission ground gears, further strengthening our technology leadership and competitive edge.

I am delighted to share that we consolidated our position in existing customer segments and strengthened partnerships with key OEMs in FY 2024-25. Focussed on expanding customer reach, we gained traction in the EV and windmill segments through new order acquisitions and diversified into the recreational, hybrid and defence vehicle segments. To offset global tractor demand challenges, we have aggressively secured new orders from the domestic tractor segment. Furthermore, initiatives such as On Time in Full (OTIF) helped enhance customer satisfaction, solidifying our status as a preferred global supplier.

During the fiscal year, we also invested to adopt new technologies, improve production efficiencies, enhance automation and to facilitate our entry into the fast moving recreational vehicle segment.

Outlook

Looking ahead, we are excited about the various opportunities on the domestic and global front.

In coming years, we will focus on driving steady growth and operational excellence. This will be through expanding our market presence, adopting new technologies, enhancing efficiencies, optimising costs and fortifying our team capabilities.

We continue to diversify our customer base and strengthen relationships, aiming to secure significant sales orders annually. Additionally, we also plan to target with an aim to expand our customer base there.

We are also consistently advancing the development of next-generation products while sustaining our technology leadership. We remain focussed on developing a culture where things are ‘First Time Right’. We also plan to establish a world product development centre in FY 2026-27.

Cost optimisation will continue to be a key focus area. We will continue to explore new partnerships or joint ventures to reduce our material costs and maintain our ongoing efforts to reduce our fixed costs. Additionally, the initiation of the ACMA turnaround project will empower us to efficiently streamline our operations further. We are also in the process of implementing focussed HR practices to nurture a skilled and motivated workforce while hiring new talent for key roles.

As I conclude, I would like to take this opportunity to thank all our shareholders, customers, suppliers, business, employees and other stakeholders for your continued support and collaboration.

As we embark on our shared journey, here’s to achieving more milestones together, building resilience and creating opportunities for sustained growth and mutual progress.