annual-report-FY2021

124 COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS This growth was driven by: Ÿ Abundant rainfall: The rainfall during FY21 was 9%higher than Long Period Average (LPA) rainfall, with good temporal and spatial distribution. It is worth noting that in F21 we rd have had the 3 highest cumulative rainfall in 25 years. It was also the rst time since 1960 that India had two back-to-back above average monsoons. This also led to increase in reservoir levels. As a result, the country had two years of successive bumper crops, both during Rabi and Kharif season. Ÿ Good price realisation combined with timely procurement of crops, ensured liquidity and willingness of farmers to buy tractors Ÿ Increased Government spending on Agriculture and Rural Development, including increase in MGNREGA outlay, helped to boost the sentiments of farmers Ÿ F21 also witnessed an exodus of migrant labourers in light of the COVID-19 pandemic. Due to this reverse migration, states such as Punjab, which were dependent on migrant labour, saw a surge in demand for farm mechanisation products including tractors, rice transplanters, potato planters and super seeders Most manufacturers struggled to meet the demand despite close to full utilisation of their existing plant capacities, primarily due to limitations at supplier facilities. The year in focus witnessed a sharp rise in demand in the >40HP segment largely due to a signicant scaling up in Agri activities, while commercial activities came to a near halt, especially in the rst half of the year because of the pandemic induced lockdown. Inated demand from the Agri sector also resulted in increase in specic features such as four-wheel drive and power steering, to name a few. 3.2% 5.8% 28.0% 53.5% 9.5% 100.0% 17.4% 13.8% 6.7% 39.4% 49.3% 126.6% <20 20-30 30-40 40-50 >50 Total HP F21 Ind. Share F21 Volume Growth Over F20 1 2 3 4 5 S. No. YOUR COMPANY'S PERFORMANCE AUTOMOTIVE SECTOR 3.4% 6.5% 33.3% 48.7% 8.0% 100.0% F20 Ind. Share During the year under review, your Company in India is the 4 th Largest Passenger Vehicle Company 2 nd Largest Commercial Vehicle Company Largest Small Commercial Vehicle Company Your Company's share of the total Indian Auto Industry stood at 9.4%. For the year under review, your Company achieved overall volumes of 330,271 vehicles in the domestic market, a degrowth of 25.7%over the previous year.