The decorative aesthetics company SJS Enterprises announced that it has witnessed a 15.5% YoY growth in revenues in FY22 to INR 3,69.85 crore with EBITDA at 26.4% and 14.7% PAT. The company also recorded exports worth INR 47 crore, almost double of what it achieved in FY19.
In an interaction with Mobility Outlook, Sanjay Thapar, Executive Director & CEO, SJS Enterprises, said that the company currently supplies its products to 140 locations across 20 countries.
K A Joseph, Managing Director, SJS Enterprises, said, “As the economic conditions improve, the picture for FY23 appears to be more optimistic than in the past two years. We believe that the only way to face the challenges is to accept the VUCA (Volatile, Uncertainty, Complex and Ambiguous) environment and be consistent in our approach across all aspects of business and operations.”
Thapar noted that during the pandemic years, the company’s performance remained strong, with a 30% EBITDA margin and PAT at 16%.
During FY21, when the market went down by 12%, the company managed to sustain a profit of 15%, YoY growth, he confirmed. The company is confident of achieving a 25% revenue CAGR over the next three years organically.
“This organic growth would be on the back of a positive outlook of the automobile industry and our strategy of enhancing our chrome plating capacity, increasing presence in exports market and developing new age products and technologies while strengthening relations with existing customers and building mega accounts,” he added.
Speaking on business expansions, he said that the company recently acquired the Pune based electro-plated products company Exotech. With this acquisition, it forayed into chrome plating and expanded its customer base to global manufacturers, including Volkswagen, one of the prominent customers of Exotech.
“We already supply to marquee global customers worldwide. Now that we have Exotech, certainly we are knocking hard on the doors of all these global OEMs to supply badges worldwide,” Thapar said.
The rationale for the acquisition was to add a new aesthetic dimension to the portfolio, the chrome plating business, which he claims to be a huge market.
Besides chrome plating, the company also produces optical plastic products, body decals, 3D Lux nameplates, aluminium badges, 2D and formed appliques and domes for the automotive industry.
Its client base in the automotive industry includes Ashok Leyland, Bajaj, Force, Maruti Suzuki, Mahindra & Mahindra, Honda 2-wheelers, Tata Motors, Hyundai and Royal Enfield, to name a few.
Manufacturing Plants
With the addition of the new business, SJS Enterprises also got hold of Exotech’s Ranjangaon facility in Pune. Anticipating a high demand in the chrome plating on plastics and painting on plastics segment, the company plans to invest in the expansion of this facility by the second half of FY23.
“We have the capacity until 2023. We will start investing towards the second half of this year in this new plant and it will take us about a year to expand the facility and create a 2x capacity,” Thapar confirmed.
Talking about the SJS plant, he said the company shifted its production facility to Bangalore in 2018. At present, the plant is running at its 50% capacity, the CEO stated.
Going forward, he anticipates the sales to double in the next three to four years. This will allow the company to operate the factory at its full potential, after which it will invest in the expansion of the Bangalore facility.