Lumax Industries Limited (517206) Earnings Call Transcript & Summary

Very good morning to our dear shareholders, our respected Board members, our partners, Stanley Electric, Japan and Thai Stanley, statutory auditors and my colleagues from the Lumax [indiscernible]. It is indeed a privilege today for me to welcome all of you at the 42nd Annual General Meeting of our company, Lumax Industries Limited. First, I would like to advise the company's Secretary to kindly confirm the presence of the quorum.

Sir, good morning. The requisite quorum for this Annual General Meeting is present at this meeting.

Thank you, Raajesh. As the company Secretary now confirms the presence of the requisite quorum. I call the meeting to order. Today, we have been blessed by our Chairman Emeritus's presence. And I would now like to invite him to give his [indiscernible], please.

Dear shareholders, a very warm welcome, and good morning to all of you. It gives me immense pleasure to welcome you all at the 42nd Annual General Meeting of Lumax Industries Limited. On my personal behalf and on behalf of the Board of Directors, I thank you all for joining us today. I would also like to especially welcome Mr. Apichart, Executive Chairman of the Thai Stanley Electric Public Company Limited, who will join the AGM through videoconferencing. For over a decade, India has been one of the most prominent and robust economy. India has emerged as one of the most preferred locations in the world of manufacturing, high-quality auto components and vehicles [indiscernible], narrowing it together over several established locations in the process. The ARPU industry is one of the primary economic pillars and also vital growth due to a strong backward and forward linkages. India is now the third largest automotive market in terms of essential power, delivers huge opportunities to growth. In view of this opportunity, it is imperative, we commit to creating a safe and healthy work environment for our employees. We put a lot of efforts into our holding company [indiscernible] and meeting our commitments to our clients, stakeholders and communities. We have been providing results successfully addressing the demands of our customers and gaining the trust of all our stakeholders. I would also like to extend a warm welcome to all my colleagues on the Board, the Lumax management team, the statutory auditors and all my shareholder [indiscernible], who are present today. Thank you for your continued guidance and confidence in the management of the company. I would also like in conclusion, thank you very much for your good wishes, which keeps me in good health. I will now hand over to Deepak, Chairman [indiscernible] of the company to carry forward the proceedings of the AGM.

Thank you very much. Thank you very much for your welcome and address. A very good morning to all of you once again. This 42nd Annual General Meeting is being conducted virtually through audiovisual means. And this is the fourth AGM consecutively through the ABBs. This meeting has been convened and is being conducted in accordance with circulars issued by MCA and SEBI which allows the companies to conduct the AGM through videoconferencing or other AV means till 30th September 2023. The company has taken on the steps to ensure that all the shareholders are able to attend and vote at this AGM. Your company is also tied up with NSDL to provide the facility for voting through remote e-voting and also for participating in this AGM through video conferencing facility and e-voting during this AGM. This AGM can be viewed by all the members from remote locations by logging into the e-voting website of the [indiscernible]. I would also, on my behalf, I would like to welcome our partners, Stanley, Japan. Matsu-san is locked in from there. And also Mr. Apichart, who is the Executive Chairperson of Thai Stanley, Electric Public Limited Company who has joined this AGM through videoconference. Thank you for your time and for your attendance. I would also now like to take this opportunity to introduce the members on the Board of the Directors of the company who have joined this meeting. I would first and foremost like to introduce Mr. Y. Matsushita, the Non-Executive Director and nominee of Stand Electric Corporation Japan, who is presently holding the position as President of Stanley, Indonesia. Thank you, Matsu-san for joining in today. Then I would like to introduce Mr. Raajesh Kumar Gupta, Executive Director of this company of Secretary, who is also associated in the company for more than 3 years now. Both of them are new joinees on to the Board, and we welcome to them. Now I would like to introduce myself and would then request other members to also introduce themselves. Myself, Deepak Jain, I'm the Chairman and Managing Director on the Board of the company, who has joined this AGM from Gurgaon, Head of authors of Lumax. I'm also the Chairman of Corporate Social Responsibility Committee and the Risk Management Committee and the member of the Audit Committee and the Share Transfer/Stakeholders Relationship Committee of the meeting. Now I would like to request all the Board members have joined this AGM through videoconferencing to introduce himself. Let me first invite all the executive directors to introduce themselves and the [indiscernible] I would now like to request Mr. Anmol Jain to introduce.

Good morning. This is Anmol Jain. I have joined this AGM from the corporate headquarters in Gurugram. I am the Joint Managing Director on the Board of your company. I'm also a member of the Corporate Social Responsibility Committee of Directors. Thank you very much.

Thank you, Anmol. We now request Mr. Aoki-san to introduce himself. He's associated with the company for more than 5 years now. Aoki-san, please go ahead.

I'm Tadayoshi Aoki. I have joined this AGM from Gurugram. I'm a Senior Executive Director of the Board of your company. I'm also a member of the audit committee and the Share Transfer/Stakeholders Relationship Committee of Director. Thank you.

Thank you, Aoki-san, and I now request Mr. Raajesh Kumar Gupta to kindly introduce themselves.

Good morning. I am Raajesh Kumar Gupta. I've joined this AGM from the corporate office of Lumax at Gurugram. I'm an Executive Director and Company Secretary from the Board of your company. I'm also a member of the Risk Management Committee of the Directors of the company.

Thank you, Raajesh. May I now request Matsushita-san, who is joining in from Indonesia to kindly introduce himself?

Good morning, everyone. I am Yoshitsugu Matsushita. I have joined this AGM from Indonesia. I am known Executive Director on Board of your company. Thank you very much.

Thank you, Matsu-san. And I must tell all the shareholders that Matsu-san has had a long innings as a strategic growth player from Stanley Japan, almost more than a decade, and we welcome Matsu-san on to the Board. Thank you. I would like to invite the independent directors to kindly introduce themselves. I will first call upon Mr. Avinash Gandhi to introduce himself.

I am Avinash Gandhi. I'm joining the meeting from San Francisco. I am an independent director on the Committee of Audit Committee, and Nomination and Remuneration Committee. I am also the Chairperson of the Risk Management Committee. Thank you.

Thank you very much, Gandhi-ji. You have been basically on this company Board for a second tenure and stalwart in the automotive industry, and we continue to learn from your guidance. I really appreciate that. May I now request Dhiraj-ji to kindly introduce himself?

I am Dhiraj Dhar Gupta. I have joined this AGM from New Delhi. I am an independent director on your Board of our company, and I am also a Chairman and Share Transfer/Stakeholder Relationship Committee and member of the Audit Committee, and Nomination and Remuneration Committee of Directors for your company. Thank you.

Thank you very much, Dhiraj-ji. May I now request Mr. Rattan Kapur to kindly introduce himself?

Good morning to everybody. I am Rattan Kapur. I'm an independent director on the Board of your company. And I'm also the Chairman of the Nomination and Remuneration Committee and also a member of the Audit Committee. Thank you very much.

Thank you, Rattan-ji. I may also do take the pleasure to inform that both, Mr. Rattan Kapur and Dhiraj-ji are stalwart in the auto component industry into the fraternity. And we keep on getting a very, very sync valuable guidance from the component industry. Thank you very much, sir. May I now request Mr. Rajeev Kapoor to kindly introduce himself?

Good morning. I am Rajeev Kapoor. I've joined this AGM from Faridabad. I'm an independent director on your Board, and I'm also Chairman of the Audit Committee of Directors. Thank you.

Thank you very much, Rajeev-ji. I must inform to the shareholders that Rajeev-ji has held various positions in the industry, including being the Chairperson and the Managing Directors of many OEMs. So we really look forward to his guidance and continued support. May I now request our Independent Leading Director, Ms. Ritika Modi, to kindly introduce herself?

Good morning. I'm Ritika Modi. I'm joining you from Delhi, and I'm an Independent Director on the Board of your company.

Thank you very much, Ritika. She's been associated with the company for more than [indiscernible] now. At first, she's an entrepreneur, [indiscernible]. May I request Mr. Vikrampati Singhania to kindly introduce himself?

Namaskar and good morning. I am Vikrampati Singhania. I have joined the AGM from New Delhi. I'm an Independent Director on the Board of your company.

Thank you, Vikram, and may I also take privilege to actually get your participation on the Board. Of course, Mr. Singhania comes from a very big pedigree from the Singhania JK Group. However, he does have a component business and very active in the Auto Component Manufacturing [ Resources Group ]. Thank you for your presence and your guidance. I would like to also give a leave of absence to Mr. T. Tanabe, Nominee Director of Stanley, who has expressed his inability to join this AGM. I sincerely thank Tanabe-san for his continued guidance and support. I would also like to welcome Mr. Vikas Mehra, Partner of SR Batliboi & Company LLP, the statutory auditors of your company, who have joined this AGM through videoconferencing. Thank you, Mr. Mehra and your team. I would also like to welcome Mr. Manish Gupta, Practicing Company Secretary, who has also given the secretarial audit report for the financial year ended 31st March 2023 and is also acting as a scrutinizer for e-voting at this AGM. From the Lumax management team, I would like to welcome Mr. Vishnu Johri, Chief Executive Officer; Mr. Ravi Teltia, Chief Financial Officer of the company, who have joined the AGM for the first time after their appointment. Both of the CXOs are now going to be taking responsibility of taking your company to new heights. Also, I would like to welcome Mr. Naval Khanna, Group Taxation Head; Mr. Sanjay Mehta, the Group CFO; Mr. Abhinav Gera, Group CHRO; Ms. Priyanka Sharma, Head, Corporate Communications; and Ms. Ankit Thakral from Corporate Finance and other members of the management team. Now let me proceed with the agenda of the AGM. The notice convening the AGM, the report of the Board of Directors with the relevant annexures along with the audited financial statements for the financial year ended 31st March 2023 was circulated to the members of the company in compliance with the relevant circulars of the MCA and SEBI for -- with your permission, I hereby take them as read. Since this AGM has been conducted through the AV means, the requirement of appointment of proxy and related compliances are not applicable. And hence, the company has received five representations under the Section 113 of the Companies Act 2013 for 45,23,771 shares, including Lumax and Stanley affiliates covering 45,23,766 shares. As required under the act, the Register of Contracts, Register of Members and Register of Directors and the KMPs and their shareholding are open for inspection on the e-voting portal of NSDL. The auditor reports on the annual financial statements of the company for the financial year 31st March 2023, does not contain any qualifications, observations, comments on financial transactions or matters which have any adverse impact on the functioning of the company. Therefore, the same is not required to be read at this AGM in compliance with the Section 145 of the Act. Now I would like to ask Mr. Raajesh Kumar Gupta to brief you about the e-voting precision.

Thank you, sir. Good morning to all. The remote e-voting for the shareholders were opened from Saturday, August 19, 2023, 9 AM to Monday, August 21, 2023, 5 PM. The members who have not cast their votes through remote e-voting can now pass their votes as the voting is open till the AGM is concluded. Mr. Manish Gupta, Practicing Company Secretary has been appointed as the scrutinizer for the e-voting process. All the shareholders who have joined this meeting have been placed on mute by default to ensure smooth functioning and transmission of the meeting proceedings. During the question-and-answer session, Chairman-sir shall announce the name of the speakers who have registered themselves as speakers for this meeting. The lines of the respective speaker shareholders shall be unmuted by the moderator when their name is called by Chairman-sir. Now I would like to [ appraise ] the members with the flow of AGM. Firstly, Chairman-sir will address the shareholders. Thereafter, we will move all the resolutions as set out in the AGM notice and same shall be put for e-voting. Thereafter, Chairman-sir shall invite the shareholders who have registered themselves to speak at this AGM. The shareholders can cast their vote during the course of the meeting. The combined results of the remote e-voting and the voting during this AGM, along with the scrutinizer's report, will be announced and will be made available on the website of the company and on the website of the NSDL and also on the website of the stock exchanges. Now I invite the Chairman-sir to address the shareholders. Chairman-sir?

Thank you, Raajesh, for clarifying the proceedings of the day. Dear shareholders, good morning once again to everyone. After a 2-year long break, FY '23 was the first full year without any impact from COVID. Consequently, aggregate, retail auto sales increased over the course of the year. Except for the tractors, all other categories experienced a double-digit growth. Many customers are also now clearly preferring SUVs over Sedans. And the sale numbers of the passenger cars are at an all-time high, surpassing the peak of the prepandemic year 2018-'19. While one set of challenges have come to an end with the decline of the pandemic, new challenges emerge as a result of it. We are currently experiencing a rapidly evolving mix of inflation, interest rates, geopolitical conflict, demand of volatility and supply chain disruptions, along with safety consultants. This requires us to make effort to improve our efficiencies and cultivate readiness for future developments. Business must be prepared to succeed in any possible future conditions created by the uncertainty of the present. The key is to remain adaptable, flexible, agile and most importantly, resilient. Despite the industry's instability, Lumax Industries, your company has outperformed the industry, witnessing stellar revenue growth of 32%. Even in the face of difficult external climate, our company continues to prioritize customers and provide quality products. Inspired by a guiding team of strong capabilities, stronger progress, we are determined to march towards an upward trajectory, harnessing our strengths and wholeheartedly embracing the transformative power of innovation. We are dedicated to providing extraordinary automotive lighting solutions that not only enhance safety, but also elevate the style and overall driving experience of our customers worldwide. We thank you for your presence today, which is indeed a testimony of your support for the company and reiterate our purpose, which is to deliver [ price ] and progress with positivity. Now let me give a quick update on the economy. India maintained the position as the world's fastest-growing major economy in '22-'23 and is anticipated to maintain this position throughout '23-'24 with a projected growth rate of 6% to 7%. The country's economic prospects are optimistic as investments are expected to lead a significant increase in the manufacturing output, bank lending and consumer spending. And in turn, we'll enhance our business confidence and encourage more private sector investments, thereby fueling further growth of the Indian economy. In the coming years, India is set to emerge as a more formidable and rapid evolving force. And this, in today's context, is more relevant because as we know, we are at the cusp of the G20 where all the world leaders would be coming in into India to discuss global events and moving forward. The Indian Automotive Industry has experienced a significant downturn in auto manufacturing and sales between the financial year 2018 till up to '21-'22. The automotive industry was one of the sectors, which was hit hardest by the strict lockdown measures as a kind of restricted mobility, so that the country could control the COVID-19 pandemic. Nevertheless, the India has managed to remain one of the most acknowledged markets for the automobile with domestic sales reaching 21.2 million in FY '22-'23. And in December '22, India surpassed Germany and Japan to become the third largest automobile market. The Indian auto component industry in tandem also was well positioned for growth. It has an optimistic outlook according to the Automotive Component Manufacturing Association, ACMA, and the component sector witnessed growth in 2023 despite supply side issues. According to the ACMA report, the component industry of India grew from USD 57.1 billion to USD 69.7 billion. This was from -- period from '19 to '23 shows a CAGR of 4.1%. However, in the last year itself, it was more than 33%. The export has also now increased from 15.2 billion to 20.1 billion for the same period with a CAGR of 5.7%. The factors responsible for this surge includes greater value addition to meet regulatory compliance, a recovery in the external markets and also a strong resilience in the domestic market. Just to give now an update on the automotive lighting industry. According to the research and markets, the automotive lighting market is anticipated to increase from 21.9 billion in 2022 to 28.5 billion in 2027 with a CAGR of 5.3%. The analysts predict that increased consumer demand for esthetically pleasing automotive lights, implementation of strict safety regulations as well as the additional basically rising purchasing of the EV vehicles are expected to open numerous profitable prospects for the supply of EV agnostic automotive lighting solutions. The growing demand for luxury cars and SUVs and the technological development in the adaptive front lighting technology are factors driving the substantial growth of the automotive lighting industries globally. Factors in India like a very, very strong customer demand, a change in the trends of consumers and a growing population will further stimulate the lighting industry in India. During the year under review, your company recorded a sale of INR 23 -- sorry, INR 2,320 crores, registering a growth of 32% from the last financial year. The consolidated act, profit after tax for the period stood at INR 103 crores, registering a growth of 153% during the year. The company also invested about INR 97 crores for capacity expansion of its manufacturing facilities. Your company continues to demonstrate consistent paying dividend, and your Board has recommended a dividend of INR 27 per equity share, that is 270% of the face value of equity share for the financial year '22-'23. I trust you will find this satisfactory and afford your approval today. I'm pleased to report that throughout the year in the review, our employee relations will remain positive at all sites despite volatile economic conditions, and in these booker times, I greatly appreciate and put on record, the dedicated efforts and contributions made by employees at all levels to maintain business continuity. I would also like to place on record our acknowledgment of the support extending to your company by our collaborators and strong partner for over 4 decades, Stanley Electric Japan and also, Thai Stanley Electric. Thank you very much for your guidance. We also would like to express our gratitude to esteemed customers who continue to report trust in your company and place the -- on record a sincere appreciation for our suppliers, the government officials, media and bankers for their continued support. Thank you very much for your patient hearing. And now I would like to turn to the official business of this meeting and request Mr. Raajesh Kumar Gupta, to kindly brief on the resolutions on a part of the notice of this AGM.

Thank you, sir. So dear shareholders, there are in total 6 agenda items in the AGM notice. Since the notice of the AGM has already been circulated to the members and the resolutions have been put to work through remote e-voting, I'm taking the resolutions as read. The resolutions are not required to be proposed or seconded for the benefit of the members attending this meeting. I would like to provide the brief contents of the items contained in the AGM notice. Item #1: To receive, consider and adopt the audited standalone financial statements of the company for the financial year ended 31st March 2023, together with the reports of the Board of Directors and Auditors thereon. And audited consolidated financial statements of the company for the financial year ended 31st March 2023 and we report all auditors thereon. Item #2: To declare dividend at the rate of INR 27 per equity share as recommended by the Board of Directors for financial year ended 31st March 2023. Item #3: To appoint a Director in place of Mr. Toru Tanabe, who retires by rotation and is eligible, offers himself for reappointment. Item #4: To appoint Mr. Raajesh Kumar Gupta as an Executive Director. Item #5: Appointment of Mr. Yoshitsugu Matsushita as Non-Executive Director. And Item #6: Ratification of remuneration of cost auditors for the financial year '23-'24. Now I hand over to proceedings to Chairman-sir.

Thank you very much, Raajesh. Now I would like to invite the members who have registered themselves as speakers, as per the list places performing. I will call upon the name of the speakers, and I request all the speakers to keep their question in brief and also please avoid any repetition. My urge is to make this video, visual meeting as effective as possible. I will also answer to the speaker questions after they have raised the queries. Yashpal-ji, please, wait a minute, let me complete, and then I'll invite you to speak. I will address first all the speakers post their queries to -- as per my list, I have 6 speakers with me. I will now like to invite Mr. Yashpal Chopra to kindly comment. Yashpal-ji, kindly unmute yourself.

Hello. Yes, myself Yashpal Chopra calling from Delhi. Am I audible, sir?

Yes, you are very much audible. Thank you.

Sir, if you can recall at the time, the person who is associated with the D.K. Jain Group for the last more than 4 decades. I was the shareholder of even -- I was the first company Laser Lamps, and then at that time, when the corporate office was at Lajwanti Garden and Mr. [ Jain ] was the company secretary, the keralite, a very nice person. So I have a great, great regard for our Chairman, Mr. D.K. San. I salute him that regard the vision he has and with that, he has contributed to the company, he deserves a lot of kudos. The second man who deserves this thing and my salute is at Chairman of our Stanley Group, because this is a long, long association that shows the relationship -- the power of relationship. This is a very, very big thing. I salute the Chairman of Stanley Indonesia, because he is also contributing a lot for the growth of our company. And so -- and our young man, Mr. Deepak Jain deserves kudos for just taking our company to the new heights. So this is very good. And Mr. Anmol Jain, he has been a gem for the company and so -- and the team, the team is quite long one. I cannot afford to read out those names at the moment. The time will be a little less. So I'm proud of all of them for the grand performance they have given for the last year, in spite of -- there was a hard loan growth in PBT, PAT, ROCE, EPS and the dividend, investor-friendly dividend of INR 27. That was in spite of so many hurdles, unfavorable economic condition called by Russian-Ukrainian war, disruption of the chain of supply and those frequent fear of those coronas, then tremors in the Turkey and Syria, then high cost of inflation, high cost of inputs and the liquidity crunch with the [indiscernible]. So in spite of all those factors, our company made a fantastic growth because of the great, great strategies of our management. Our share which was just at INR 1,400 at that time, that has risen to INR 2,345 that made the high, so achieving about INR 1,000 growth in a year. That is not a small thing. That is a very, very big thing. So I'm very, very proud of the strategies you are developing and all that, sir. Sir, when we just named Lumax, immediately, it lights our brain and say that this is the lighting of our all vehicles on the road, either it is 4-wheeler, 3-wheeler, 2-wheeler or tractor, so Lumax means lighting. So this is a very, very big thing and a matter of pride for us, for persons who are associated with the company, who are the shareholder of the company, sir. Sir, as regard to the share capital, our promoters are having 75% of the equity. That means -- and the public is holding only 23%, financial institutions are holding 1%, and foreign financial institutions are holding 1%. So that shows that investor can very well -- investors' confidence gets stronger and stronger that our promoter is holding such a big equity. So that means our company is in a very, very strong hand, and that is having a very bright future ahead, because our prime minister is a person with progressive and the positive mind. He is just announcing so many PLI scheme and other incentive for the upliftment of this production. And so this is a very, very big thing. And the coming time, definitely, it's hard for a bright forward company, because the auto industry is taking up, picking up, like anything because this you can say that Tata Motors, which was rolling below 100, that has crossed 650. So that is virtually the thing even to just see that [indiscernible] had touched INR 3,000. So that shows that the auto sector is going in leaps and bounds up. And with that, our company is also going to gain and gain and gain only. Sir, as the general [indiscernible] position of our company is around 40x of the capital that we are having. So do you not agree with me that the shareholder deserve bonus, or they should be given either buyback or split anything of the three, even the split means a mini bonus. So I will request our management to kindly consider that because our shareholders are associated with the company for such a long and long time, and they are blessing that company. They are wishing best for the company. So sir, before I conclude, I must thank the corporate governance under our Chairman-sir, and our CFO, our company secretary, and as well as I would like to thank even our more later, that even manager who has just managed to give me a chance to give the expression, let me express myself. So sir, before I close, I pray God for the positivity of the company. That positivity is the strength of our management, that positivity is the strength of our company, that positivity is strength of my investment. So best have luck to you and wishing you happy, happy greeting for the festival, which are coming ahead. So best of luck to you. And our D.K. Jain sir, long, long live, so this is my wishes for you because [indiscernible]. Okay. Thank you.

I will now basically invite Mr. Manjit Singh with a request, if you can kindly be brief and specific to any queries if he has. Mr. Manjit Singh, please? Okay. Mr. Manjit Singh is not there, I will go to the next name on my list, which is Mr. Rakesh Kumar. We are now inviting Mr. Rakesh Kumar.

Am I audible, sir? Manjit Singh, joined from Delhi.

Manjit Singh-ji, you are very much audible. Please go ahead. As I said, I hope I was audible with my request to be...

[Foreign Language] Thank you for the structure team of Lumax Industry. Thank you for the management team of Lumax Industry. Thank you, sir.

Thank you, Manjit-ji. I will address all your queries once all the speakers are finished. May I now invite Mr. Rakesh Kumar?

Hello, am I audible sir?

[Foreign Language]

[Foreign Language]

Thank you, Mr. Rakesh Kumar. May I now request Mr. Gagan Kumar?

Am I audible?

[Foreign Language]

Good morning, Mr. Chairman, Board of Directors and fellow shareholders. Myself, Gagan Kumar, I'm joining this meeting from Delhi. First of all, I would really like to congratulate our strong Board composition, which has a good mix of director and independent directors, sir. And I would like to welcome our new ED also here. That stock market are a barometer of the company. And in this regard, I see that our share prices around double -- are almost double from last year lower levels, sir. So thank you for your hard work that our investment is getting appreciated year-by-year. And with -- we are blessed with a dividend of 270%, I mean, tremendous, sir. Last, I would want to ask what is the status of our new plant at Chakan? And my second question is what are the key reasons of the good performance of our company? And my last question is that how much shares of our company is transferred into IEPF fund in last financial year? Last but not the least, I would like to thank our Group CFO, CFO and our Company Secretary, to maintaining certain high standard of corporate governance. Thank you so much.

Thank you, Mr. Gagan Kumar. May I now invite Mr. Jasbir Singh? Mr. Jasbir Singh, he's the fifth speaker. We have one more speaker after this as per the list.

Yes. Can you confirm if I'm audible and visible both?

You are audible and visible both. Thank you very much.

Appreciate your confirmation. Respected Chairman, Deepak, and Anmol, Board of Directors, representatives of Stanley operation. Very good morning to everyone attending this video call. Chairman, this has been an excellent year for our company, glad to see double-digit growth and impressive increase in profits. This is all due to our -- due to your guidance and support we witnessed and an all-round growth on all parameters. This is commendable and applauds to the management team in this regard. Thank you for considering and proposing a higher dividend of INR 27 per share, which works out to distribution of 1/3 of profits. My request is, since we have adequate reserves. Therefore, the distribution of dividend should be raised to say, 1 -- 50% of the profits which we make year-on-year in future. Mr. Chairman, all -- most of the questions have already been covered. I have just one question to ask and that pertains to the corporate social responsibility. Just witnessing devastating floods very recently in most of the states in India, what was our contribution for rehabilitation of effected people, if you can kind of give us some views on that. I appreciate everyone conducting this call and joining us to interact with you. Thank you very much.

Thank you very much, Mr. Singh. Now may I invite Mr. Ashok Kumar Jain as the last speaker of the day.

Am I audible sir?

[Foreign Language]

Yes. Good morning, Chairman sir, Extreme Board of Directors and my co-fellow shareholders. I Ashok Jain, VPID #3001181024-2590, speaking from Delhi. First of all, I wish congratulate to our Chairman sir Mr. Deepak Jain and his entire team for the great performance of the company. This is 25-year-old D.K. Jain group company. Promoter holding 75% has made companies earning a lot. There is a big reserve fund with the company. Sir, as earlier spoken by Mr. Chopra, I also support the company declare a bonus or split the shares. Secondly, I thanks to the company secretary and moderator giving me a chance to speak on VC portal to view my views, my queries, sir. Coming time is a very good time for the company. Future is very variant for the company. And what is the next, our CapEx plan, our statutory plan for next 2 years. [Foreign Language] guide to the shareholders. And last, I support [all the] [indiscernible] and thanks to the Board and sector department to join the VC portal. Thank you.

Well, thank you very much to all the speaker shareholders today. I'll try and now respond to the queries which have been raised and also worked in all upon a few of our colleagues to address it accordingly. If I were to bucket them down, there were basically three buckets. One was on the value and how to enhance value of the stock? Be it through bonus, be it through split or through higher dividend payouts. Rest assured that the company will continue to perform as one of the value systems, is to create value for all the stakeholders of the company. We have noted all your suggestions at an appropriate time, we will basically do the needful to make sure that our stock is not only efficient but also rightly [indiscernible]. And I do appreciate all your support. The second basically point was on a particular thing on the IDPF and I would like to just basically inform that we had just about in '14, '15, around 7,000 shares and in '15, '16, 3,000 number of shares only at IDPF. There were certain queries regarding the R&D, the order book, the new plants, LEDs, and I would now like to invite the Joint Managing Director, Mr. Anmol Jain, to just address on these points. Anmol, please go ahead.

Thank you. So number one on the order book. I think the company enjoys a very healthy order book of almost INR 2,200 crores. As mentioned before, almost 85% of this order book will get executed in the revenues by FY '25. And most of the order book, almost 85% are of LED lamps. So we do expect the LED contribution from the current level of 35% to also go up in the forthcoming years. Number 2, the question on the plant capacity utilization as well as the new Chakan plant status. So the new Chakan plant, as mentioned before, will be one of the best lighting facilities. That is our endeavor within the country. We will make a world-class facility. We should start SOP in quarter 3 of this financial year. And there is almost INR 175 crores investment, which will go in Phase 1 to install almost 0.5 million capacity, 0.5 million vehicle sets of passenger car capacity in Phase 1. All other plants are operating anywhere between 80% to 85% capacity utilization currently. And we do hope that this new plant will really take the company to the next growth trajectory over the next 3 years. So this is just some thoughts on the order book and the plant capacity utilizations.

Thank you, Anmol. I think there was only one more specific question, which Mr. Jasbir Singh had on the CSR, and I can assure you that we have actually been addressing the CSR. The first and most healthy sign is that whatever of the profit guidance, which is when we've been completing it year-by-year, rather at sometimes crossing the thresholds, and we will continue to support the country and the society with basically adequately resource allocation through our profit. So with this, I hope that I've been able to address all the queries raised by the speaker shareholders. I would like to also personally extend my sincere gratitude to all the speakers who participated in today's meeting. Mr. Yashpal Chopra, Mr. Manjit Singh, Mr. Rakesh Kumar, Mr. Gagan Kumar, Mr. Jasbir Singh and of course, Mr. Ashok Kumar Jain for your valuable questions and contributions have really enriched our discussion, and thank you for your long continuing support. I would like to also express my [ hearted ] appreciation to all the members of the company, the active cooperation and support throughout this meeting. And also your involvement and trust are the key driving forces behind all our endeavors. A special thank you goes out to the dedicated Board members and the Lumax management team who have joined us today. Your guidance and insights continue to be instrumental in shaping our path forward. I also would like to extend my thanks to each of you esteemed shareholders, for your unwavering trust and confidence in the management of the company. Your presence here today reaffirms our shared commitment to progress and positivity. In closing, I would also like to acknowledge the valuable support provided by our partners, Stanley Electric Japan and also Thai Stanley electric, the partnerships have played a significant role in the journey of success, and we look forward to continuing to partner together for stronger working force. For all our esteemed customers, customer-centricity is the key to our business philosophy to all our suppliers who help us basically achieve the customer-centricity. I would also like to place on record the support and guidance provided by all the government officials, the media representatives and of course, to our bankers and our statutory auditors, your continued support is deeply appreciated. The contributions also play a pivotal role in transparency and able to achieve our goals. Once again, I would like to thank you for your patient hearing and active participation. The e-voting process will remain open for the next 15 minutes and the combined results will be announced shortly. Thank you very much. And with this, I would like to now conclude the proceedings of this 42nd Annual General Meeting post the 15 minutes. Raajesh, if you have any [indiscernible], please basically. That's it -- thank you. Safe and healthy beginnings to everyone and also take this opportunity because we are entering a festive season, I take this opportunity to wish all of you are very, very prosperous and a safe festive season. Thank you very much.

Thank you, sir.