Thread by @ValueEducator

Annual Report Highlights No : 6

#FiemIndustries FY 22 Annual Report Highlights

Like & Retweet for better reach !

1. Company overview
FIEM Industries Ltd was founded in 1989 by Mr J.K. Jain.The Company manufactures a wide
range of lighting and signalling equipment, both conventional and LED lighting, for the

automotive industry. It also manufactures rear-view mirrors and plastic molded products, and it’s main business is the motorcycle industry. The company also supplies vehicle lighting and rear-view mirrors to the passenger car,

commercial vehicle, off-highway and tractor segments. Two-wheelers mainly include motorcycles, mopeds, scooters and electric 2W. The country is the world's largest producer of
two-wheelers, followed by China.

2. Business segments
The company mainly has 2 business segments:

1. Automotive division

2. LED Luminaries division
The Automotive division consists of products which include Automotive Lighting and
Signalling Equipments,Rear view mirrors(RVM),Plastic Moulded parts and Others.

Automotive Lighting and Signalling Equipments
The Company manufactures a large range of LED and conventional Head Lamps, Tail
Lamps, Blinker Lamps, Fog Lamps, Warning Triangles and Interior Lamps, among others, for

two, three and four-wheelers. It is a leading player in innovation and new technology adoption,
based on its in-house R&D, technological expertise, design and development strengths and
world-class manufacturing

facility to capitalize on these new growth opportunities and provide the vehicles, especially the
2–wheelers, the bestin- class LED lighting solutions with the latest technology

RVM
The company’s second most selling product category is Rear View Mirror, which is being
supplied to almost all the OEM customers of the Company and for some of the company’s
key OEM customers, they are the sole supplier for their Rear View Mirror requirements

Plastic moulded parts
The Company manufactures and supplies standalone plastic parts such as finished parts for Twowheelers, like Front Fenders, Floor Panels, Side Covers, Rear Fenders, Handlebars,
Seat Bases and many others. Company has installed best-in-class injection moulding

machines across its 9 plants ranging from 50 tonnage to 1,400 tonnage, capable of making parts weighing 20 grams to 2.5 kilograms.

Others
The items in this category individually contribute less than 10% to the Company’s revenue pie and include fabricated items like sheet metal parts, moulds etc. Company has full-fledged
sheet metal fabrication facilities as well as mudguard rolling plants

for manufacturing front and
rear mudguards for motorcycles and mopeds

LED Luminaries division
LED Segment (non-automotive) represent products under two categories: (i) LED luminaires
for indoor and outdoor applications and (ii) integrated passenger information systems with
LED displays for trains and buses. During FY2021-22, the Net Sales of

LED Segment is Rs.
8.41 cr as compared to Rs. 10.96 cr in FY2020-21.This business segment has a very minor contribution to the
company revenues which is not even 1% and the major part comes from the automotive
division, hence the company is in a rundown mode in this division

where all assets in that division will be used for the automotive division and the rest of machines, the company is in
the process of selling them

3. Revenue split
FY 21

FY 22

4. Management
Mr J.K. Jain, 70,is the Chairman and Managing Director.He is involved in leading the
management team, advising on various aspects of business strategy and company expansion
and diversification plans. With over 40 years of experience in manufacturing automotive

lighting and signaling equipment, he has played a key role in the growth and diversification of
the business. He has received many awards and accolades in India and abroad, including the
Lifetime Achievement Award from the Indian Council for International Industry and Trade, the

Business Excellence Award from the Indian Institute of Industrial Intellectual Development
and the Outstanding Entrepreneurship Award from Enterprise Asia.

5. Manufacturing facilities
The company has 9 manufacturing facilities spread across India in the states of Haryana,Rajasthan,Tamil Nadu,Karnataka,Himachal Pradesh and Gujarat.These manufacturing facilities are equipped with the state-of-the-art technology and are located

close to the OEM customers which results in logistic cost savings,just-in-time delivery and
operational flexibility

6. Growth drivers for FIEM
1)Two-wheelers are not only a means of transportation for a large portion of the population,
but often also serve as a means of livelihood. COVID-19 has caused a shift in people's
preference for personal mobility over shared mobility due to

safety and hygiene concerns, and
this phenomenon has had a positive impact on the two-wheeler industry. further away
2)In our country, the motorcycle penetration rate is still lower than in many other countries,
about 110 per 1,000 people compared to 240 per 1,000 people in

Southeast Asian countries,
and there is still a large increase in motorcycle penetration. showing possibilities
3)Additionally, the company firmly believes that electric 2W is the future of the two-wheeler
industry.

The speed of change is really encouraging. While the competitive landscape among OEMs is taking on new forms,existing OEMs have a special focus on new players producing
only electric 2W through new industries and subsidiaries. The company also has plans for

large capital and large production capacity. The Electric 2W ecosystem is evolving rapidly. At
the national pace, it has gained unprecedented support and impetus from central and state
governments.

In addition to FAME II subsidies from the central government, many states also
offer subsidies/incentives for electric 2W such as 100% discount on road tax

7. Capex
The company has mentioned in it’s concalls that they are planning a capex of Rs 75-100 cr
for the next two,three years which depends upon any new opportunities in the market and any
new project which the company undertakes

In FY22,the company did a CAPEX of Rs 50-60 cr out of which Rs 30-40 cr will go into the Hosur plant in Tamil Nadu

Financials
The financial summary for the company in FY22 is as follows:
Revenues - Rs 1575 cr(vs Rs 1221 cr in FY21)
EBITDA margin - 12.42%(vs 11% in FY21)
PAT-Rs 95 cr( The plot for ROCE and ROE is shown in the below image.