BS-VI Transition Experience
In India this was definitely a phase of learning and implementation coupled with challenges regarding the supply chain of new components and disruption due to the pandemic. Rotex Automation fortunately has matured technology by virtue of supplying our hydrocarbon dosing system and solenoid valves to European and North American markets over the past several years. We also have well-established and reliable supply chain partners who supported us during the transition.
Challenges
Rotex Automation faced some issues related to imbalance of demand-supply but we had predicated it well and did not let our customers get impacted. These issues still exist and we are well-prepared to manage them. In certain areas we have created additional capacities with our suppliers. Our sales team is working closely with the customers and is well-backed by support teams at the manufacturing sites.
Opportunities
The industry managed the transition from BS-IV to BS-VI in a short time. Despite cost pressures some of our customers achieved the timelines by relying on the expensively packaged solution readily available in the matured market instead of developing it locally. They could not capitalize on indigenization and localization benefits available at disposition – for them it will be double the effort of development but we are sure they won’t mind. Meanwhile, the others whom we partnered with have benefited by our technology. Nonetheless the transition provided us an opportunity to develop new products for the urea dosing systems which is now in implementation phase. BS-VI has definitely opened up new markets for us and our customers and in the longer run the industry is poised to be benefited.
Current and Upcoming Financial Year
Like most, Rotex Automation is not an exception as the pandemic-driven disruption played its part in Q1, Q2 and FY21. Demand returned in Q3 and Q4 which is a good sign. Our export performance turned out to be the saviour as we expect to close the year not too far from the previous year’s numbers. The lean period during Q1 and Q2 provided us with an opportunity to focus on speeding up the new development projects. As it looks now, availability of the vaccine gives a sense of positive outlook and the geopolitical situation is playing its part. Currently we are overwhelmed with new enquiries. The next year looks promising; we are poised for significant growth at minimum + 30%. The trend is shifting towards new mobility areas of electrification and autonomous driving. Rotex Automation is partnering with customers in the development of battery thermal management systems and sensor and camera cleaning systems for the autonomous vehicles.