Looking Back at FY21
It was a difficult year for the global economy and the automotive industry. I would say it was a mixed bag for Timken India because of our diversification and serving many different market sectors. However, we are now experiencing a peak led by the inherent demand in the industry as well as the geopolitical changes brought about by the pandemic. Currently, it is a hockey stick.
Takeaways and Positives
It was indeed a very challenging but important year. I say important because it taught us great lessons in how to be resilient and perform under such adverse situations. We learned that we must be agile and always on our toes to react to such adversities. We have experienced the power of innovation and realised that using IoT, robotics and process automation on the shop floor is going to play a vital role going forward. We have learnt that nothing is impossible.
PLI Scheme, Scrappage Policy
Every change from the past policies is a welcome change. However, in this digitally connected world, India is lagging a bit because of so many anti-industry and anti-growth policies of the past. The government should take bold steps and do away with many of them. Taking half measures is not going to help anyone. What we need are big, bold steps to put the industry on a fast track to growth.
Plans for Current Year
In 2020 we continued to invest in our manufacturing capabilities and expand our capabilities in India and so are well-positioned to meet the growing demand. On a global level, Timken India is always on the lookout for potential acquisitions that fit our growth plans, but there’s nothing on the table for us in India at present.
FY 2022 Outlook We are witnessing strong growth in both domestic demand and exports. We see this demand continuing through 2022. Putting business and economic cycles aside, India is set for a solid run led by manufacturing and exports.