Calcom Vision Ltd. — AGM Information 2024

Oct 1, 2024

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To The Department of Corporate Services/Listing BSE Limited P.J. Towers, Dalal Street, Fort Mumbai - 400001

October 01, 2024

(Scrip Code: 517236)

Dear Sir(s)/Madam(s)

Sub: Chairman’s speech delivered at the 39[th] Annual General Meeting (‘AGM’) of the Company

Please find enclosed herewith the Chairman’s speech, delivered at the 39[th] Annual General Meeting of the company held on September 30, 2024 through Video Conferencing.

This is for your information and records.

Thanking you,

Yours Truly

For Calcom Vision Limited

Rakhi Digitally signed by Rakhi Sharma Sharma Date: 2024.10.01 18:10:24 +05'30' Rakhi Sharma Company Secretary & Compliance Officer M. No. A72812

Encl.: A/a

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Chairman’s Speech

39[th] Annual General Meeting On 30[th] September, 2024

CALCOM VISION LIMITED

Dear Shareholders,

It is my privilege to welcome you all to the 39[th] Annual General Meeting of Calcom Vision Limited . Thank you for taking the time to join us today. Your unwavering support and trust in the company are truly appreciated and we look forward to maintaining a strong and lasting relationship with our valued shareholders.

The last year presented significant challenges due to major technological shifts and particularly due to substantial price erosion of greater than 40%. Because of this technological change, the top line of the Company has not grown relative to the quantity despite of having sold 4.35 Crore units in FY 2023-24 as compared to 2.56 Crore units in FY 2022-23. This contributed to uncertainties and market fluctuations. Despite these challenges, we remained committed to innovation and operational efficiency. Your company successfully weathered these turbulent times and has emerged stronger, with a clear vision for the future.

The Annual Report for the financial year 2023-24 containing the notice for this 39[th] AGM, the Director’s Report, and the Audited Financial Statements of your Company for the year ended 31st March, 2024 has been circulated to you. With your kind permission, I propose that the same be taken as read.

Now, with your permission, I would like to share your Company's performance in the fiscal year 2023-24, the Industry Outlook and Key Developments.

This year, we commenced the development of outdoor lighting products, which now represents a significant portion of our product portfolio. This marks the expansion into a new category, encompassing IP 65 and IP 66 battens, floodlights, and streetlights. Future of Outdoor Lightings is poised for growth, driven by technological advancements, increasing environmental concerns, and shifting aesthetic preferences.

We also expanded our Indoor Lighting segment that includes bulbs, battens, downlights, panels, smart lights, and more. This year, we developed a comprehensive roadmap for our new products. Recently, the company had also tied up with Flipkart India Private Limited, a leading global brand with a 48% market share in the Indian e-commerce industry, securing them as one of our valued customers for the supply of LED bulbs.

We have updated our automation system, as the previous system had become obsolete. The new system is expected to be fully operational by next month.

This year, we strengthened our management team by hiring Mr. Debasish Mukherjee as Chief Operating Officer, who joined us on March 4, 2024. With 37 years of extensive experience in various areas such as product, process, and quality management, as well as setting up manufacturing units, supplier management, and portfolio planning, Mr. Mukherjee brings invaluable expertise to our organization. He is currently overseeing R&D, Production and Quality functions.

During this Year, your Company also concluded business of EV Chargers and Solar Lights with Panasonic.

The Industry Outlook

The LED lighting market in India is projected to experience substantial growth, driven by increased adoption in residential, commercial, and public infrastructure sectors. Market size

is expected to continue expanding as LED technology has become more prevalent and affordable.

The Indian LED lighting market is projected to grow from USD 4.2 billion in 2023 to USD 23.2 billion by 2032, at a CAGR of 20.91%. This growth can be attributed to the advantages of LED lights over traditional lighting. While the Indian LED market is still in its early stages, it presents substantial growth opportunities due to its large market size, skilled workforce, favourable business environment and demographic benefits. These factors create a promising landscape for the LED industry to thrive in the coming decades. (*Source: IMARC)

Government Schemes and Policies

The Indian government has implemented measures to strengthen manufacturing capabilities in the country, such as imposing customs duties on certain products while eliminating duties on components.

These initiatives to enhance the ease of doing business have encouraged foreign manufacturers to establish more production facilities in India. As a result, the EMS/ODM market has seen significant growth, with electronics brands and OEMs increasingly pursuing collaborations and partnerships.

In FY22, Calcom had the privilege of being recognized under the Production Linked Incentive (PLI) Scheme. We are increasing our PLI from INR 10 Crores to INR 25 Crores. This enhanced investment will lead to improved turnover and margins, as well as greater incentives from the government. This year, under the PLI Scheme's mandate, we've allocated more than INR 3 Crs. towards capital upgradation.

Our Strategy

Our focus on Exports:

We are actively participating in international fairs to explore the European and US markets. These events provide valuable opportunities to showcase our products, engage with potential partners, and establish a strong presence in these key regions, driving growth and expanding our global reach.

Product Expansion:

We are strategically expanding into several new segments to drive revenue growth and enhance our market presence. This includes introducing street lights specifically tailored for the trade and professional segment, in collaboration with Panasonic and other key customers. We are also adding down lighters and other lighting solutions such as bulkhead lights to our portfolio. Additionally, our expansion efforts encompass solar lights and solar inverters, as well as EV chargers, reflecting our commitment to embracing emerging technologies and meeting evolving customer needs.

Cost Reductions:

We are diligently working to reduce material costs, which account for nearly 75%-80% of our total expenses, by implementing design changes and sourcing new vendors for various components. Additionally, we are expanding our solar power system capacity from 350 KVA

to 525 KVA. We had successfully installed the initial 350 KVA system, which generates an average of 1,500 units per day, resulting in daily savings of Rs. 10,000. The expansion to 525 KVA will involve an additional investment of approximately Rs. 35 lakhs. Furthermore, we are submitting an application for net billing to address the issue of surplus electricity generated on Sundays and holidays, which is currently wasted. This application aims to enable us to sell excess electricity to the grid, optimizing our energy usage and financial returns. Apart from this, we have replaced all induction motor based fans with BLDC Fans. Additionally, we have transitioned from diesel to PNG, a cleaner and more environmentally friendly fuel, resulting in both cost savings and reduced emissions.

Quality :

To ensure the highest quality of our products, we have integrated a 3D Automated Visual Inspection system into our manufacturing process, enabling precise inspection of electronic assemblies. At Calcom, we prioritize quality through ongoing training programs that emphasize its significance to our team members.

Our largest customer, Panasonic, has recognized us for having the lowest field returns and considers us their top vendor for LED bulbs.

Our vision extends beyond the realm of technology. We aim to lead in innovation and contribute positively to society. At Calcom, we are dedicated not only to illuminating homes but to brightening futures and making a meaningful impact on the world.

At the end, I want to express my sincere gratitude to our dedicated team, our customers & vendors, and loyal shareholders. Your unwavering support and trust have been instrumental in enabling us to navigate the challenges of the last year.

As we look to the future, I am confident that our strategic vision and collective efforts will lead us to new heights. Together, we will continue to pursue excellence, embrace innovation, and make a positive impact on the world .

Thank you once again for your commitment and belief in Calcom.

Thank you very much.

S K Malik Chairman & Managing Director

30[th] September, 2024