About
Ucal Ltd
UCAL Fuel Systems Limited engages in the manufacture and sale of carburetors, mechanical fuel pumps, and multipoint fuel injection parts to the auto industry in India. The company's products include 4 wheeler carburetors, fuel pumps, 2 wheeler carburetors, genset carburetors, oil pumps, throttle body assembly, delivery pipe assembly, air suction valves, fuel filters, electric throttle valves, and machined castings. It offers its products primarily to original equipment manufacturers. The company was incorporated in 1985 and is headquartered in Chennai, India.
During the year 1997-1998, the company commenced the commercial production of Two Wheeler carburetor to TVS Suzuki Limited, Oil pump to Maruti Udyog Limited and in the same year the company installed capacity increased namely, two wheeler carburetors from 240,000 Nos to 400,000 Nos and Fuel Pumps from 120,000 Nos to 180,000 Nos. During the year 1998-1999, the company successfully launched Maruti Omini carburetors and in the same year, the installed capacity of two wheeler carburetors was increased from 400,000 Nos to 740,000 Nos and four wheeler carburetors from 360,000 Nos to 420,000 Nos.
During the year 1998-1999, the company established third plant at Gurgaon, near Delhi and in the same year the company added a new product, namely Air suction Valve to its range. Air suction Valve a device used in four-stoke two wheelers manufactured by Hero Honda to meet emission norms. During the year1999-2000 the company commenced supplies of new model BS type carburetors for fitment to 4-stroke motorcycle 'FIERO' manufactured by TVS Suzuki Limited. During the year 2000-2001, the company commenced commercial production of Gurgaon plant and in the same year the company commenced supplies of new model of VM type carburetors for 4-stroke Yamaha Motor Crux motor -cycle and multi point fuel Injection parts such as Throttle Body and Delivery pipe Assembly to Mikuni Corporation, Japan. During the year the company supplied 100% of Hero Honda's requirement of Air Suction Valves (to meet emission norms) for producing 1 million motorcycles.
During year 2001-2002, the company launched three products namely, Carburetors and Air Suction Valve for 110cc Motorcycles, New model BS type Carburetor for 4 stroke model Motorcycle, and Throttle Body for Electric Throttle Valve. During the year, the company purchased two Wind Electronic Generator situated at Nagercoil and in the same year the company increased the capacity of Choke Opener from 60,000 Nos to 100,000 Nos.
During the year 2002-2003, the company increased the installed capacity of Piston Valves from 300,000 Nos to 420,000 Nos and Pressure Die Castings from 540 tons to 780 tons. During the year 2003-2004, the company further increased the installed capacities of Piston Valves from 420,000 to 500,000 and Pressure Die Castings from 780 tons to 1000 tons.
During the year 2004-2005, the company supplied VM model carburetor to the Rear engine and front engine model of three wheeler passenger carriers of Bajaj Auto Limited and also the company developed the ASDI system for stroke three wheelers of Bajaj Auto Limited in technical assistance agreement with Orbite Engine Company, Australia. During the year the company increased the installed capacities of Throttle body assembly from 640,000 Nos to 760,000 Nos, Delivery pipe assembly from 600,000 Nos to 760,000 Nos and Fuel filter from 500,000 Nos to 600,000 Nos.
During the year 2006-2007, the company set up a new plant at Maraimalai Nagar, and also commenced commercial production. During the year the company further increased the installed capacity of Throttle body assembly from 840,000 Nos to 1,000,000 Nos, Delivery pipe assembly from 840,000 Nos to 1,000,000 Nos and Fuel filter from 660,000 Nos to 720,000 Nos.
During the year 2008-2009, Ucal Machine Tools Ltd, the wholly owned subsidiary of the Company, amalgamated with the company.
Commercial production commenced at the Bawal facility on 28th February 2011 and at the Mahindra City facility on 27th June 2011. The Company introduced fully automated manufacturing lines at Bawal, completed first phase of construction plant in Chengalpattu and commenced operations on a small scale in 2012.
In 2015-16, the shareholding of M/s Carburettors Limited increased to 51.19% in UCAL Fuel Systems Limited(UFSL) and consequently, M/s Carburettors Limited became the Holding Company of UFSL.
During 2016-17, new facilities were enhanced in machining, assembly and testing processes. CNC machines which provide the flexibility to suit any new product / variant were used in creating the new facilities. With BS IV norms having come into effect from April 2017 the carburettor design had been enhanced to meet the BSIV requirement. To cater to this change in vehicle emission norms, facilities were added and improvements made in existing facilities.
Ucal Ltd
Chairman Speech
Dear Esteemed Shareholders,
I am pleased to address you at a pivotal juncture for UCAL. This year has been
transformative, highlighted by the change in our company's name from UCAL Fuel Systems
Limited to
UCAL Limited. This strategic shift aligns with our vision of expanding into new and
emerging business segments, setting the stage for robust growth ahead.
Global Economic Landscape
The global landscape has been rife with challenges, including heightened geopolitical
tensions exacerbated by the Russia-Ukraine conflict. Escalating supply constraints leading
to plant closures in the Eurozone, and surges in raw material, commodity, and fuel prices
have disrupted international trade and economic growth. The
International Monetary Fund (IMF) reports a deceleration in global GDP
growth from 3.1% in 2022 to 2.8% in 2023, further dropping to 2.1%. This gloomy outlook
has been worsened by ongoing hostilities between nations, impacting economies worldwide.
These global turbulences have affected UCAL, denting export sales for our major Auto OEM
customers and affecting our export margins.
Indian Economic Resilience
In contrast, the Indian economy has displayed remarkable resilience, achieving a GDP
growth of 6.8%.
This positions India among the world's fastest-growing economies.
Stimulated by policies, substantial budget allocations for development and
infrastructure, controlled gas pricing, and stable inflation, India's core sectors have
witnessed a resurgence in market demand, fostering a self-sustaining market economy.
Industry Overview
Within the Indian Automobile sector, a key consumer segment for us, overall sales have
surged by 20.36%.
Particularlyimpressive is the growth of the passenger car segment, including SUVs and
Commercial Vehicles, which has soared by 26.73%. This revival in market demand has been a
notable trend. This buoyancy has translated to strong domesticauto component sales, with
aftermarket segments experiencing significant growth.
At UCAL, this year has marked a strategic pivot to diversify our product portfolio. We
aimed to mitigate business risks associated with dependency on specific customer-product
clusters. Instead, our focus has broadened to encompass various new and emerging business
segments.
Guided by a robust blueprint for growth, we are expanding our presence across
high-potential business streams with a sustainability focus. This involves augmenting our
domain expertise and strengthening our R&D capabilities. India is emerging as a global
automotive hub, driven by favorable government policies, a skilled workforce, and a
burgeoning middle-class customer base. This evolution has led global OEMs and Auto Majors
to prioritize
India as their ‘China Plus One' and reshoring destination.
UCAL's Alignment with Industry Dynamics
At UCAL, we are positioning to align with the transformative shifts within the
automotive industry.
Leveraging our extensive industry experience, engineering prowess, and intrinsic
R&D capabilities, we are actively collaborating with Global
OEMs and Major Auto manufacturers on their critical projects.
Globally, the automotive industry is at a crossroads, with innovation and new
technologies steering a definitive transition toward sustainable mobility. At COP26, more
than
100 countries committed to have adopting zero-emission vehicles, albeit the complete
phasing out of fuel-based Internal Combustion Engines (ICE) is anticipated to take longer
than initially projected.
Advances in engine technologies have ushered in fuel-efficient, lightweight engines,
catering to the growing demand for passenger and commercial vehicles.
Staying at the forefront of technological advancement, UCAL is deeply engaged with OEMs
and Auto Majors in the design and manufacturing of cutting-edge fuel injection and control
systems, throttle and automotive pumps, all grounded in sustainability.
The Paradigm Shift: Vehicles
The automotive transitioning driven vehicles to software-driven ones. Automation,
AI-integrated connected cars, and on-board diagnostics demand a larger share of electronic
and software components in vehicle manufacturing. India has implemented the OBDII (On
Board
Diagnostics, Second Generation) regulatory standards, effective
April 1st, 2023, aligning with Euro VI Standards. These standards encompass diagnostic
features that monitor driver safety, vehicle efficiency, emission control, and various
in-vehicle functionalities.
UCAL's Expansion into Mechatronics emission Harnessingbody parts, our expertise in
mechatronics, UCAL is amplifying its presence in this rapidly growing, high-potential
segment within the automotive industry. A slew of new products are under development,
scheduled for launch in FY 2023-24. To facilitate this growth, we have established a
dedicated R&D team focused on electronics.
Sustainability-Driven Growth
In line with the UN Sustainable Development Goals - 2030, governments worldwide,
including
India, are formulating policies to accelerate greenhouse gas reduction to his and
transition to non-fuel energy sources. The Electric Vehicle (EV) ecosystem in India has
received a substantial boost, with the expansion of Battery Charging infrastructure along
National Highways.
Complementing thiselt thank you tois the Battery Swapping Policy, budget allocations
for non-fuel energy development, and plans to achieve 30% Electric
Vehicle penetration in the country by
2030.
UCAL's Exploration of Emerging Opportunities
rapidly growing EV segment, UCAL is developing products tailored for the EV and
alternate energy sector. This strategic move positions us for future growth. The
Government's Hydrogen
Fuel Policy, supported by a substantial five-year allocation, in the Alternate Energy
domain. UCAL is strategically poised to participate in this high-potentialsegment, aligned
with our sustainability growth strategy.
Seizing the Opportunity
While the evolving landscape presents challenges, it equally offers opportunities for
agile and innovation-led companies. UCAL is embracing this dynamic environment, intending
to explore novel avenues of growth. Our competencies will be harnessed to design products
and solutions in harmony with emerging sustainability as a - driven technologies, both
within the Auto and Non-Auto spheres.
Global Footprint Expansion
In partnership with our US step-down subsidiary, we secured an export fellow order for
high-precision machined parts from a leading US Engine manufacturer. This underlines our
commitment to expanding our global footprint.
Looking Forward
Moving forward, we remain steadfast in broadening our global presence with
research-driven products in the automotive segment.
Concurrently, we will explore opportunities in the advanced mechatronics space,
encompassing emerging domains like EVs, micro-mobility, and alternate energy. We are
committed to deepening our involvement in sustainability sectors, progressively deriving
revenues from decarbonization-focused products.
Acknowledgements
Our greatest strength lies in our dedicated workforce. Despite challenging
circumstances, they have demonstrated unwavering commitment and resilience, contributing
to UCAL's transformation into a robust and sustainable enterprise.
I am pleased to introduce Abhaya Shankar, who has taken the reins as Chief Executive
Officer of the Company, in addition Whole-time Director on the Board. I extend my
gratitude to him and the
Senior Management team for their dedication and efforts in positioning
UCAL as a growth engine prepared for the future.
A board members for their ongoing support and guidance. I also extend my gratitude to
our valued customers, suppliers, vendors, bankers, and government bodies for their
unwavering support across all our endeavors.
Last but certainly not least, I extend my sincere appreciation to you, our
shareholders. Your enduring support and trust in UCAL are instrumental as we stride
towards a promising future.
Warm regards,
New vistas Jayakar Krishnamurthy
Chairman & Managing Director
(DIN 00018987)
  Â
Ucal Ltd
Company History
UCAL Fuel Systems Limited engages in the manufacture and sale of carburetors, mechanical fuel pumps, and multipoint fuel injection parts to the auto industry in India. The company's products include 4 wheeler carburetors, fuel pumps, 2 wheeler carburetors, genset carburetors, oil pumps, throttle body assembly, delivery pipe assembly, air suction valves, fuel filters, electric throttle valves, and machined castings. It offers its products primarily to original equipment manufacturers. The company was incorporated in 1985 and is headquartered in Chennai, India.
During the year 1997-1998, the company commenced the commercial production of Two Wheeler carburetor to TVS Suzuki Limited, Oil pump to Maruti Udyog Limited and in the same year the company installed capacity increased namely, two wheeler carburetors from 240,000 Nos to 400,000 Nos and Fuel Pumps from 120,000 Nos to 180,000 Nos. During the year 1998-1999, the company successfully launched Maruti Omini carburetors and in the same year, the installed capacity of two wheeler carburetors was increased from 400,000 Nos to 740,000 Nos and four wheeler carburetors from 360,000 Nos to 420,000 Nos.
During the year 1998-1999, the company established third plant at Gurgaon, near Delhi and in the same year the company added a new product, namely Air suction Valve to its range. Air suction Valve a device used in four-stoke two wheelers manufactured by Hero Honda to meet emission norms. During the year1999-2000 the company commenced supplies of new model BS type carburetors for fitment to 4-stroke motorcycle 'FIERO' manufactured by TVS Suzuki Limited. During the year 2000-2001, the company commenced commercial production of Gurgaon plant and in the same year the company commenced supplies of new model of VM type carburetors for 4-stroke Yamaha Motor Crux motor -cycle and multi point fuel Injection parts such as Throttle Body and Delivery pipe Assembly to Mikuni Corporation, Japan. During the year the company supplied 100% of Hero Honda's requirement of Air Suction Valves (to meet emission norms) for producing 1 million motorcycles.
During year 2001-2002, the company launched three products namely, Carburetors and Air Suction Valve for 110cc Motorcycles, New model BS type Carburetor for 4 stroke model Motorcycle, and Throttle Body for Electric Throttle Valve. During the year, the company purchased two Wind Electronic Generator situated at Nagercoil and in the same year the company increased the capacity of Choke Opener from 60,000 Nos to 100,000 Nos.
During the year 2002-2003, the company increased the installed capacity of Piston Valves from 300,000 Nos to 420,000 Nos and Pressure Die Castings from 540 tons to 780 tons. During the year 2003-2004, the company further increased the installed capacities of Piston Valves from 420,000 to 500,000 and Pressure Die Castings from 780 tons to 1000 tons.
During the year 2004-2005, the company supplied VM model carburetor to the Rear engine and front engine model of three wheeler passenger carriers of Bajaj Auto Limited and also the company developed the ASDI system for stroke three wheelers of Bajaj Auto Limited in technical assistance agreement with Orbite Engine Company, Australia. During the year the company increased the installed capacities of Throttle body assembly from 640,000 Nos to 760,000 Nos, Delivery pipe assembly from 600,000 Nos to 760,000 Nos and Fuel filter from 500,000 Nos to 600,000 Nos.
During the year 2006-2007, the company set up a new plant at Maraimalai Nagar, and also commenced commercial production. During the year the company further increased the installed capacity of Throttle body assembly from 840,000 Nos to 1,000,000 Nos, Delivery pipe assembly from 840,000 Nos to 1,000,000 Nos and Fuel filter from 660,000 Nos to 720,000 Nos.
During the year 2008-2009, Ucal Machine Tools Ltd, the wholly owned subsidiary of the Company, amalgamated with the company.
Commercial production commenced at the Bawal facility on 28th February 2011 and at the Mahindra City facility on 27th June 2011. The Company introduced fully automated manufacturing lines at Bawal, completed first phase of construction plant in Chengalpattu and commenced operations on a small scale in 2012.
In 2015-16, the shareholding of M/s Carburettors Limited increased to 51.19% in UCAL Fuel Systems Limited(UFSL) and consequently, M/s Carburettors Limited became the Holding Company of UFSL.
During 2016-17, new facilities were enhanced in machining, assembly and testing processes. CNC machines which provide the flexibility to suit any new product / variant were used in creating the new facilities. With BS IV norms having come into effect from April 2017 the carburettor design had been enhanced to meet the BSIV requirement. To cater to this change in vehicle emission norms, facilities were added and improvements made in existing facilities.