Value Accretion through Value Addition

148 Pages·2016·3.46 MB·English

ASAHI INDIA GLASS LIMITED
Value Accretion
through Value Addition
31st Annual Report 2015-16
Contents
Business Overview Statutory Reports Financial Statements
Chairman’s Message 1 Management Discussion & Analysis 25 Independent Auditors’ Report
71
(Standalone)
A Value-led Entity 3 Report of the Directors 31
AIS - Financials (Standalone) 76
Value accretion through 8 Report on Corporate Governance 53
value-added products Statement Related to Subsidiaries/ 101
Auditors’ Certificate on Corporate 70
Associate Companies/
Corporate Information 10 Governance
Joint Ventures
Our value-enabling geographical 11
Independent Auditors’ Report 102
network
(Consolidated)
Driving value through innovation 12
AIS - Financials (Consolidated) 106
Creating a green eco-system 14
Notice to Shareholders 127
for value accretion
Member’s Response Form / 139
Ten Years’ Financial Snapshot 17
Shareholders Referencer
(Standalone)
Q & A with MD & CEO 18
Steering value-accretive 20
holistic progress
Caution regarding Forward-Looking Statements
This Annual Report contains forward-looking statements, which may be identified by their use of words like ‘plans’, ‘expects’, ‘will’,
‘anticipates’, ‘believes’, ‘intends’, ‘projects’, ‘estimates’, or other words of similar meaning. All statements that address expectations or
projections about the future, including but not limited to statements about the Company’s strategy for growth, product development,
market position, expenditures and financial results, are forward-looking statements.
Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that
these assumptions and expectations are accurate or will be realized. The Company’s actual results, performances or achievements
could thus differ materially from those projected in any such forward-looking statements. The Company assumes no responsibility
to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or
events. The Company has sourced the industry information from the publicly available sources and has not verified those information
independently.
Asahi India Glass Limited
Chairman’s Message
Dear Shareholders, Without doubt, it was an exciting year for EBIDTA increased to ` 432.31 crores from
your Company, and in fact for the industry ` 343.23 crores, while Net Profit went up
From building strengths to creating value,
at large, as the Indian economy remained from ` 42.02 crores to ` 86.95 crores –
it has been a differentiated journey for us,
on the growth track, led by a decline in an indication of the value accretion we
at AIS. It has been a journey of driving
oil prices and increase in real income. have achieved in the past one year.
efficiencies today, while envisioning the
Positive government interventions and
needs of tomorrow. It has been a journey of
initiatives, backed by a low inflationary At the root of this value-centric performance
mapping success through good foresight,
environment, contributed significantly to was our re-energised focus on enhancing
visionary focus and a transformational
the resurgence in consumer confidence, our capacities and capabilities to deliver
approach, aligning AIS to global industry
which got reflected in increased consumer customer-oriented glass solutions etched
landscape.
spending. in tomorrow’s needs and aspirations.
The face of glass is transforming globally,
As we move forward with renewed
The automotive industry was a key creating new products that are more
confidence in our ability to scale our value
beneficiary of the revival in consumer durable, versatile and aesthetically
proposition at every step of this journey,
we do it with a sense of satisfaction at confidence, creating a positive growth appealing, and also more eco-friendly
our performance for the year gone by. scenario for your Company’s Automotive and economically viable. Keeping pace
Last year underlined the recovery of our Glass business. The Construction sector with this transformation, we are also
numbers and reflected the expanding also witnessed some positivity with continuously evolving to drive higher value
portfolio of our innovative products. The good demand for new value-added accretion for our expanding customer
year gone by stood testimony to the varieties of architectural glass. These base, as well as our other stakeholders.
strength of our value-accretive business positive economic indicators emerged
philosophy, while the exciting range of as the key drivers of growth for your During FY 2015-16, we pushed our value
our new technologically and aesthetically Company, which reported Net Sales at proposition through focussed efforts to
superior glass products showcased our ` 2207.37 crores during FY 2015-16, as improve operational and cost efficiencies.
prowess across the glass value chain. against ` 2096.58 crores in FY 2014-15. Leveraging the inherent strengths of our
Annual Report 2015-16 1
Business Overview Statutory Reports Financial Statements
At the root of this value-centric performance was our re-energised
focus on enhancing our capacities and capabilities to deliver customer-
oriented glass solutions etched in tomorrow’s needs and aspirations. The
face of glass is transforming globally, to create new products that are more
durable, versatile and aesthetically appealing, and also more eco-friendly and
economically viable.
business model, we further re-engineered industry is bright indeed, with the We shall further continue to augment
some of our systems and processes to consumer preference for luxury and fuel our value proposition with our service
make them more efficient and effective. efficient cars expected to push business excellence to enhance the consumer
With customer delight and value at the further in the coming years. The wide experience of our products. Empowered
centre of our growth charter, we raised and continued acceptance by our OEM by our leadership strength, we are
the bar even higher to deliver holistic customers to partner with AIS in their new confident of driving greater value for all
product and service offerings across our launches during FY 2015-16 underlines our stakeholders as we embark on the
business segments. In a year packed with the strength and value accretion by AIS. next phase of our growth odyssey.
possibilities, we brought in increased
diversification and higher efficiencies to In the Architectural segment, glass is fast During the year, Mr. K. Ayukawa, Nominee
ensure sustained growth. replacing concrete and other building Director of Maruti Suzuki India Limited
materials to add a more dynamic and (MSIL) resigned from the Board and
Today, as we stand at the cusp of a new
vibrant dimension to living and work Mr. T. Hasuike joined the AIS Board. I am
phase in our progressive agenda, we see
spaces. Your Company, with its portfolio sure his experience & expertise will add
ahead a huge opportunity, which we are
of designer products is ideally positioned immense value to our Company.
well positioned to leverage. Riding on
to capitalise on the growing demand for
the improved economic sentiment, the
glass in this segment. On this note, I would like to express
glass industry seems poised for good
my gratitude to all our stakeholders –
growth. The macro external environment
Our strong value-driven edge in these customers, employees, partners, vendors
in the developed regions is also showing
segments will continue to expand our and shareholders – for their collaborative
signs of positivity, triggering an improved
customer base to new markets, driven support to our value-accretion efforts.
demand potential.
by our strategic brand promotion
and marketing efforts. Our focus on
I am confident that our innovation
strengthening our consumer connect With best regards,
and efficiency led business strategy
through product innovations, coupled with
will enable us to make the most of the
opportunities that we see ahead across consumer insights and technologically
our business segments, particularly in empowering initiatives, will also create
the Automotive and Architectural glass more avenues for value accretive growth B.M. Labroo
segments. The outlook for the Automotive for your Company. Chairman
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Asahi India Glass Limited
AIS : A Value-led Entity
India’s leading integrated glass solutions Raising the qualitative value bar
company, Asahi India Glass Ltd. (AIS)
With the continuous improvement
is committed to drive continuous value
AIS commenced themes, increasing employee involvement
accretion across its businesses. A leading
and regular knowledge upgradation,
operations in 1987 and
player in the Indian glass industry,
AIS has further strengthened its TQM
AIS provides end-to-end glass solutions today has an extensive practices during the year. It has received
across the automotive and architectural
portfolio of innovative ISO 50001:2011 certificate conforming
glass value chains. A Joint Venture to the Energy Management System
between the Labroo family, Asahi Glass products and services, Standard. AIS also conforms to ISO
Co. Ltd., Japan (AGC) and Maruti Suzuki catering to institutional, 14001, TS 16949 and OHSAS 18001 for
India Limited (MSIL), AIS also has a Environment Management System, Quality
distributed and retail
growing presence in the consumer glass Management System & Occupational
and solar glass segments. requirements. Health & Safety Management respectively.
Annual Report 2015-16 3
Business Overview Statutory Reports Financial Statements
Building value
AIS’s value accretive growth is built on the SEE MORE
platform of its manufacturing prowess, This byline captures AIS’s culture:
which it continued to expand during the
It describes AIS’s products and services which
year with more value-added products,
delight customers by helping them see more in
providing an embracing customer
comfort, safety and security.
experience. AIS is already moving in Vision
this direction and believes that glass is a It expresses AIS’s corporate culture of merit and
futuristic product and capable of meeting transparency.
all requirements (present or future) of its
It defines the qualities of AIS’s people to want to
customers through value addition.
see, learn and do more, in depth and in detail.
To transcend the ordinary.
AIS is listed on the
National Stock Exchange
of India Ltd. (NSE) and “JIKKO” - Execution for Excellence.
Mission
BSE Limited (BSE). With major investments in place, the time is now to
reap the benefits by execution for excellence.
AIS is a leading supplier of glass to
the automotive industry since more
than 2 decades. Its diversified product
range makes it a preferred supplier of
the Original Equipment Manufacturers
(OEMs) in India.
All actions of AIS are driven by the following guiding
The Company enjoys the second largest principles:
production capacity in Float Glass, Creation of value for Shareholders
with products designed to suit every
Customer Satisfaction
architectural and building requirement.
The Company’s state-of-the-art Float Guiding Respect for Environment
Glass manufacturing unit is equipped Use of Facts
to handle production of the entire range Principles
Continuous Improvement
of this glass variety, including – float
glass (clear & tinted), high-quality Strengthening of Systems
heat reflective glass manufactured by
Upgradation of Human Potential through
superior coating technology, world class
education and training
environment-friendly copper & lead-free
Social Consciousness
mirror, and lacquered & frosted glass for
interior decoration.
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Asahi India Glass Limited
The first real
evidence of glass
manufacturing
by mankind dates
Product Showcase
back to 3,000 B.C.
Laminated Windshields
Tempered Glass for Sidelites
and Backlites
Defogger Glass
Glass Antenna
The new products developed during
Encapsulated Glass
the year includes solar acoustic
glasses, UV cut glasses, light Plug-in Window
Strategic weight glazing and better designs Solar Control Glass
with improved optical properties of
IR Cut Glass
Business windscreen and temperlites.
UV Cut Glass
Units (SBUs) Growing reach in aftermarket and Flush Fitting Glass
exports.
Rain Sensor Windshield
Heated Windshield
Glass with Assembly
Privacy Glass
Sunveil Green Glass
Automotive Glass 76.57%
Acoustic Windshield
The Automotive Glass segment has
IR Cut Glass
continuously mapped its journey from Market share in the Indian
value addition to value accretion through passenger car segment Sliding window assembly
innovative initiatives customised to the
transforming needs of auto manufacturers
globally.
AIS Auto SBU is a preferred choice of
major automotive companies including
Maruti Suzuki, Hyundai Motors,
Mahindra & Mahindra, Tata Motors,
Toyota Kirloksar, Honda Cars India,
Volkswagen India, Ford India, Skoda
Auto and Fiat India.
It has expanded its portfolio of
innovative glass products and
solutions benchmarked to international
standards of quality and versatility.
AIS Auto SBU has received Deming
(TQM) Application Prize and TPM
Excellence Award from Japan.
Annual Report 2015-16 5
Business Overview Statutory Reports Financial Statements
Architectural Glass Safety glass windows and Custom
AIS’s value-accretive Architectural Glass VUE - Customised benefit windows. Ecosense™ - High Performance
offerings are designed to transform the Its value excellence is underlined Energy Efficient Reflective Glass
exteriors and interiors of buildings with by high-end energy efficient glass AIS Opal Trendz - Patterned
creative glass solutions. products under the Ecosense range, Reflective Glass
designed to meet the evolving,
This SBU was formed through a AIS Krystal™ - Only Branded
management merger of Float & Glass globally-inspired architectural trends. Frosted Glass
Solutions (Processed Glass) SBUs. It has an extensive sales network AIS Décor™ - Lacquered Glass in
It provides end-to-end glass solutions comprising 4 zonal offices and 1100 Vibrant Colours for Interiors
distributors.
delivered through a powerful AIS Mirror™ - Distortion-Free
technological edge across the range It also markets a wide range of AGC Mirrors
of clear and tinted glass to value products in India as its distribution AIS Stronglas™ - Impact
added solar control, heat reflective partner. Resistant Glass
glass, frosted and lacquered glass,
AIS Securityglas™ - Burglar
tempered glass, laminated glass and Resistant Glass
insulated glass units. Product Showcase
AIS Acousticglas™ - Sound
It offers an innovative range AIS Clear™ - Clear Float Glass Resistant Glass
encompassing High Performance AIS Tinted™ - Heat Absorbing Glass AIS Valuglas
uPVC door and window solutions
AIS Supersilver™ - Heat Reflective AIS Securityplus
(under the umbrella of AIS VUE brand)
Glass
that includes Silent VUE - Noise AIS Disegno
AIS Opal™ - Value for money
cancelling windows, Guard VUE - AIS Swytchglas
Solar Control Glass
Burglar-resistant windows, EcoVUE - AIS Ceramic Printed Glass
AIS Sunshield
Energy saving windows, Safe VUE -
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Asahi India Glass Limited
Solar Glass
The Solar Glass SBU is the realisation of
the Company’s vision to drive enhanced
value that is sustainable and self-
sustaining. Given the receding fossil fuel
resources on this planet and the growing
need for renewable power generation
through alternate energy sources, this
SBU is focused on solar glass solutions
for the renewable energy markets.
This important consumer interface is
Value accretion through 4G
founded on the twin platforms of:
Solutions
GlasXperts: A retail initiative in the
These SBUs of AIS are driven by
Consumer Glass Architectural Glass segment that is efficiencies crafted to deliver customised,
designed to deliver aesthetic and eco-
consumer-centric offerings in an eco-
With customised solutions brought to the
friendly lifestyle solutions aligned to
system of operational excellence.
customer’s doorstep through in-depth
consumer aspirations. GlasXperts is
Powered by speed to market and
consultancy services, the Consumer Glass
an end-to-end glass solutions brand
technological edge, they are constantly
SBU is the value interface that connects
that brings an integrated approach &
augmenting customer value across the
the end consumers with our solutions
specialized knowledge to glass and
business chain - spanning consultation
across the Automotive and Architectural
window selection & installation for
services, as well as glass selection,
Glass SBUs.
homes, offices & commercial spaces.
design, manufacturing, glass processing,
The automotive and architectural glass
fabrication and installation.
Windshield Experts: India’s only
products are offered through Shield
Automotive Glass repair & replacement
Autoglass Ltd. and GX Glass Sales &
specialist, it provides quality and
Services Ltd. respectively.
efficient full-service offerings in the
After-market distribution of automotive areas of windshield glass repair, glass
safety glass and sealants is provided replacement, doorstep facility and
to dealers and retailers across India value-added services, spread across
by the associate partners, AIS 32 cities with 65 conveniently located
Distribution Services Ltd. (formerly service centres, providing the advantage
Asahi India Map Auto Glass Ltd.) and of being Faster, Safer & Better.
AIS Adhesives Ltd.
Annual Report 2015-16 7
Business Overview Statutory Reports Financial Statements
Value accretion through
value-added products
Water
Acoustic Head-up display
repellent glass
windshield for windshield
for side windows
Key Benefits Key Benefits Key Benefits
Significantly reduces noise and Provides better display clarity. Driving comfort during rains due
vibrations inside the car cabin. to better visibility through the
Allows the driver to stay focussed
side door glass.
Lowers noise in cabin results in on the road at the same time
enhanced experience to enjoy check dashboard information Enables safer driving experience.
music & conversations. (speed, fuel, navigation etc.).
Ensures that the water droplets
Reduces driver fatigue and offers Improves driver comfort and slide off and not leave any marks
better comfort for the driver and enhances safety. on the glass.
the passengers.
Long life of coating.
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