Uniparts India Limited has informed the Exchange about Investor Presentation
UNIPARTS INDIA LTD.
November 9, 2023
BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai – 400 001
National Stock Exchange of India Limited Exchange Plaza, C-1, Block G Bandra Kurla Complex Bandra (E), Mumbai – 400 051
Scrip Code: 543689
Symbol: UNIPARTS
Subject: Regulation 30: Presentation on Unaudited Financial Results of the Company for
the quarter and half year ended September 30, 2023
Dear Sir/Madam,
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached herewith a copy of the Presentation on Unaudited Financial Results of the Company for the quarter and half year ended September 30, 2023.
The same is also being uploaded on website of the Company at www.unipartsgroup.com.
You are requested to take the above on record.
Thanking You,
Yours faithfully,
For Uniparts India Limited
Jatin Mahajan Company Secretary and Compliance Officer
Encl: As above
Regd. Office: Gripwel House, Block-5, LSC, C 6 & 7, Vasant Kunj, New Delhi-110 070, India | Tel: +91 11 26137979 |Fax: +91 11 26133195 Corporate Office: 1st Floor, B 208, A1 & A2, Phase-II, Noida-201305, (U.P.), India Tel: +91 120 4581400 | Fax: +91 120 4581499 E-mail: info@unipartsgroup.com; website: www.unipartsgroup.com An ISO 9001:2008 & 14001:2004 Company CIN : L74899DL1994PLC061753
Globalfood security. Globalinfrastructure build-out.
Uniparts has built arobust global business catering to these long term trends
Uniparts India Limited | Q2 F Y2 4 Ea r n i n gs P re se nta t io n
Safe Harbor
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Uniparts India Ltd (the “Company”) solely for information purposes and do not constitute any offer, recommendation, or invitation to purchase or subscribe for any securities and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. This presentation does not constitute a prospectus, a statement in lieu of a prospectus, an offering circular, an information memorandum, an invitation or advertisement, or an offer document under the Companies Act, 2013, together with the rules thereunder, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 each as amended, or any other applicable law in India. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
Certain statements in this presentation concerning our future growth prospects are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The Risk and uncertainties relating to the statements include, but are not limited to, risks and uncertainties regarding fiscal policy, competition, inflationary pressures, and general economic conditions affecting demand/supply and price conditions in domestic and international markets. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company. There is no obligation on the Company or any of its directors, officers, employees, agents or advisers, or any of their respective affiliates, advisers, or representatives to update or revise any forward- looking statements, whether as a result of new information, future events or otherwise and none of them shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. Certain figures (including amounts, percentages, and numbers), as applicable, have been rounded off to the nearest number and may not depict the exact number. Further, past performance is not necessarily indicative of future results.
This Presentation has been prepared by the Company based on information and data that the Company considers reliable. This Presentation may not be all-inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. The Company does not make any promise to update/provide such a presentation along with results to be declared in the coming years. The information in this presentation has not been independently verified and has not been and will not be reviewed or approved by any statutory or regulatory authority or stock exchange in India. No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, or correctness of the information and opinions in this presentation. Further, nothing in this document should be construed as constituting legal, business, tax, or financial advice.
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Table of Content
Q2 FY24 Performance
04-09
Business Overview
10-24
Annexures
25-29
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Q2 FY24 PERFORMANCE
Management’s Message
“In the current phase of mixed external demand backdrop, we continue to focus on our operational endeavors, leverage our competitive strengths and strong financial profile to optimize the opportunities emerging in the rapidly changing and evolving operating environment.
Uniparts has built a resilient business model and is confident to withstand the short-term challenges and emerge as better positioned for future growth. We are focusing on utilizing current short lean period by investing for growth and ensuring readiness of our facilities and resources. Our focus and efforts are aligned with the medium-term business plan for achieving the targeted growth in coming years
Prioritization of food security, infrastructure build-out and modernization are trends which are likely to continue in the long term and we at Uniparts believe that we have a robust global business model to cater to these trends through our off highway focus, well positioned product offerings and marquee customer portfolio.”
Mr. Gurdeep Soni
Mr. Paramjit Singh Soni
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Operating Environment Update
North America: Ag equipment market demand is soft in the short term especially for smaller equipment. Construction machines market is doing well with infrastructure driven demand.
Europe: Demand from OEM customers is stable.
Aftermarket segment: As guided previously, inventory destocking at customer’s end continued through Q2. Destocking impact is expected to largely bottom out in Q3. End market demand is being watched for further trend signals.
Demand in Indian Domestic Tractor market witnessed slight softness in first half of the year. Festive period demand scenario would be key to second half performance.
UTV 3PL project is progressing well for pilot launch in H2 of the fiscal. Pilot product shipments commenced from India to US warehouse.
The new enquiries, engagements, conversions owing to the China+1 theme continue to be robust.
Focusing on utilizing current short lean patch by investing for growth and ensuring readiness of our facilities and resources.
Business strengthening the balance sheet further.
to generate higher
continues
than guided cashflow thereby
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Q2 FY24 Results
Revenue from operations
EBITDA & Margins(%)
3,598
-18.4%
22.6%
20.3%
-32.9%
18.6%
2,968
2,937
814
PAT & Margins(%)
12.5%
-37.5%
11.2%
14.7%
528
602
546
371
330
Q2FY23
Q1FY24
Q2 FY24
Q2FY23
Q1FY24
Q2FY24
Revenue from operations
EBITDA & Margins(%)
Q2FY23
Q1FY24 PAT & Margins(%)
Q2FY24
-16.4%
7,066
5,904
19.4%
-27.1%
22.3%
1,576
1,148
14.6%
1,033
-32.1%
11.9%
701
H1FY23
H1FY24
H1FY23
H1FY24
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H1FY24
All Figures in Rs Mn
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Q2 FY24 Results (Consolidated) Figures in INR Mn
Q2 FY24
Q1 FY24
Q2 FY23
Revenue from Operations Other Income Cost of materials consumed (including change in inventory) Gross Profit Margin (As % of Revenue from Ops)
3-Point Linkage Systems (3PL)
2,937 10 1,113 62%
2,968 9 1,153 61%
EBITDA EBITDA Margin(%)
Depreciation & Amortization Expense EBIT EBIT Margin(%)
Finance Cost PBT
Tax Expense PAT PAT Margin(%)
Basic EPS (Rs.)
546 19%
105 442 15%
11 431
101 330 11%
7.41
602 20%
99 502 17%
11 491
120 371 13%
8.35
3,598 18 1,233 65%
814 23%
99 716 20%
18 698
171 528 15%
11.94
YoY Change
-18.4%
-32.9%
-37.5%
Interim Dividend: Board has approved an interim dividend of INR 8 per share
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Revenue Overview
Product Verticals Product Verticals
Geographical Presence Geographical Presence
Market Presence Market Presence
Segment Presence Segment Presence
1.2%
0.9%
0.7%
49.8%
47.3%
3PL
PMP
PTO Fabrication Others
2.7%
5.0%
15.8%
22.4%
Americas
India
Rest of World
54.0%
Europe
Japan
12.7%
87.3%
OEM
AFM
35.8%
63.1%
Agriculture
CFM
Strong Margins based on Delivery Model
Diversified Revenue Base
Competitive Pricing
Note 1. Above break-ups are calculated as per finished goods sales (for period – H1-FY24) and are based on internal management reports
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BUSINESS OVERVIEW
Strategic Presence in OHV Segment
o Uniparts (‘UIL’ or the ‘Company’) is a leading supplier of systems and components for the off-highway vehicles (‘OHV’)
o UIL has market leadership in supplying key systems and
components like 3PL and PMP for OHVs globally: Complex, critical, and low volume high SKUs products
o The company has been a partner of choice for global leaders in the agriculture & construction, forestry, and mining (CFM) segments
Business Highlights
125+
Customers
16.7%
3PL Market Share*
25+
Global Presence
5.9%
Global PMP Market Share*
FY23 Financial Performance
3 Point Linkage
PMP
PTO
Hydraulic Cylinders
Fabrication
Rs 13.8 Bn
Agriculture and CFM
OEM and After market
Revenue
14.8%
PAT Margin
22.9%
EBITDA Margin
35.9%
ROCE
*Based on FY22 estimates
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Leading Global Supplier of Critical Components Solutions
3 Point Linkage – Revenue Contribution: 56%
Precision Machined Parts - Revenue Contribution: 40%
o Tractor specific designed and
validated system
o Allows for quick and easy
attachment and detachment of implements
o Allows for the balanced
operation of the implement, improves efficiency, and reduces operator fatigue
o High-quality and reliable components for use in construction machinery, equipment, and structures
o These parts are made to tight
tolerances and durability to withstand the tough operating environment of OHVs
Market leaders in small tractor (<70 HP) linkage system globally
Leading global supplier in fragmented market with manufacturing base in India and US and servicing all major geographies (Americas, Europe, Japan, India, ROW)
Precision Manufacturing
High No. of SKUs
Higher Complexities
Healthy Margins
Revenue contribution is based on FY23 finished goods sales
$1 billion + Market Size
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Additional Synergistic Offerings to Extend System Boundaries
Power Take Off (PTO)
Hydraulic Cylinders
Fabrication
o Large Addressable Market: Estimated Market
Size of $10 billion; Establish new customer base by addressing growing markets of UTVs etc
o More Value Per Vehicle: Leveraging
manufacturing expertise to diversify the product portfolio and move up the value chain
o Deepen wallet share: Extended offerings in adjacent areas on the same OHVs for existing customers by offering integrated system solutions
o Healthy Margin Profile
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Strengthened Customer Relationship
o Supplying to all 10 leading Global OHV OEMs in Agriculture and half of the
leading 10 players in the CFM Segment*
o Preferred component supplier for manufacturer of <70 HP Tractors
20+ Years
Long Standing Relationship with Several Key Customers
o Involved from the design stage for new products and launches providing
end-to-end solutions
*CFM global players outside China
Conceptualisation
Design
Prototyping
Testing
Development & Assembly
Customised & Packaging
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Global Delivery Model De-Risks Clients’ Supply Chain
Dual Shore Manufacturing
o Fully integrated engineering solutions provider o Manufacturing facilities in India and US o Well utilised capacities and modular additions
Multiple Delivery Options
o Global delivery model encompassing local deliveries,
Direct exports and warehouse sales
o Delivery facilitated as per customer requirements
Superior Customer Service
o Warehousing Sales: pre-sales services and customized
delivery
Reduced
Supply Chain Uncertainty
Timely
Support Services
Superior
Quality Controls
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Future Growth Drivers
3-Point Linkage Systems (3PL)
Leverage integrated precision engineering capabilities
Focus on higher value addition products and enhanced service offerings
Grow inorganically through strategic acquisitions and alliances
Enhance engineering, innovation and design competence
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Global Tailwinds to Support Future Growth
1
2
3
4
5
India: A Preferred Manufacturing Hub
o Indian GDP growth expected to be ~6-7% in FY2024; continuing to show strong resilience to external shocks o Strong private capex, consumptions and PLI schemes to benefit manufacturing sector
US $1 Trillion Infra Bill o This investments which will be made over a period of 8 years will boost the demand for construction equipments as the
Country aims to modernise aging Infrastructure assets
China +1 Strategy: India is the biggest beneficiary
o Supply chain disruptions led by pandemic and global uncertainties triggered global manufactures to look beyond China o Indian government spending on capital investments is now more than 20% of budget, highest in decades
Healthy Farm Income Globally will aid in Equipment Replacement
o Global farming sector incomes are healthy; Food security is key priority across the world. This will continue to support the
demand of high value agriculture equipments
Re-building to Continue
o Infrastructure modernization o Climatic vagaries and natural disasters o Geopolitical tensions
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Focus on ESG
o Utilizing natural day light by use of transparent roof
o
o
sheds at manufacturing facilities Traditional lights are being replaced by advanced LEDs Variable Frequency Drive (VFD) on compressors and motors for energy conservation
3-Point Linkage Systems (3PL)
o Promoting and supporting social causes : Spent 180 lacs in FY 23; Rs 100 lacs in FY22 and Rs 76 lacs in FY21
o Regularly organising blood donation camps at our
manufacturing locations
Energy Conservation
CSR
o Water treatment and recycling – Reusing 60%
o
to 90% water - Noida and Ludhiana facilities Use of Low-temperature evaporator (LTE) breakthrough technology at Ludhiana –enables up to 98% water re-use
Water Conservation
o o o o o
Returnable packaging solutions From Diesel Gensets to PNG Gensets From Oil/Diesel to Gas fired furnace From Oil fired furnace to electric heating Actively pursuing solar power options across India manufacturing locations
More Sustainable Energy and Material Usage
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Margin Accretive Growth and Healthy Cash Generations
o Revenue and Margins (%) fluctuate with commodity prices which are a pass-through o Value addition remains consistent and is reflected in EBITDA growth o Strong operating leverage and cashflow generation
EBITDA (INR Mn)
ROCE (%)
Cash generated from Operations (INR Mn)
3,132
2,717
1,639
1,278
18.8
13.3
35.9
29.8
2,527
1,729
1,527
849
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
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Key Financial Metrics - Historical
RoE and RoCE (%)
*Gross Borrowings (Rs Mn)
Debt / Equity
RoE (%)
RoCE (%)
14.1
14.0
18.8
17.8
29.8
26.8
27
35.9
2,375
0.55x
1,278
1,273
0.23x
0.19x
175
0.02x
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
**Working Capital Days
170
168
***Fixed Assets Turnover
Cash Flow from Operations (Rs Mn)
2.2x
2.3x
2,527
162
1.7x
1.7x
144.0x
1,730
1,528
849
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
*Gross Borrowings = Long Term Borrowings + Short Term Borrowings **Working Capital Days = (Inventory + Receivables – Payables) / Revenue from Ops x 365 ***Fixed Assets Turnover = Revenue from Ops / Gross Block (including right to use assets)
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Organisational Strengths
Senior Leadership Team with vast experience and expertise in OHV Industry
Senior Leadership Team located across key geographies and time zones (US, Europe, India)
300+ Engineers/Technical Diploma holders
50+ strong Business Development and Sales/Customer Service organization
~40% staff members working with Uniparts Group for 10+ years
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Historical Profit and Loss
Figures in INR Mn
Revenue from operations Other income Total income
3-Point Linkage Systems (3PL)
3-Point Linkage Systems (3PL)
Cost of materials consumed Changes in inventories of finished goods, work-in-progress, stock-in-trade and scrap Gross Profit Gross Profit Margin (%)
Employee benefits expense Other expenses Total expenses
EBITDA EBITDA Margin (%)
Depreciation and amortization expenses EBIT EBIT Margin (%)
Finance costs PBT PBT Margin (%)
Total tax expenses
PAT PAT Margin (%)
Other comprehensive income / (loss) for the period / year, net of tax Total Comprehensive Income
EPS attributable to owners of parent Basic EPS (in Rs.) Diluted EPS (in Rs.)
FY19
10,605 19 10,625
4,283 (560) 6,900 65%
2,166 3,405 9,295
1,329 13%
238 1,091 10%
171 920 9%
220
700 7%
(73) 627
16 16
FY20
9,072 316 9,388
3,323 (35) 6,101 65%
2,118 2,705 8,110
1,278 14%
354 924 10%
180 744 8%
116
628 7%
(144) 483
14 14
FY21
9,031 445 9,477
3,382 147 5,948 63%
1,854 2,454 7,838
1,639 17%
373 1,267 13%
81 1,186 13%
273
912 10%
24 936
21 21
FY22
12,274 36 12,310
5,013 (997) 8,295 67%
2,197 3,381 9,594
2,717 22%
366 2,350 19%
57 2,293 19%
605
1,688 14%
(34) 1,654
38 37
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FY23
13,660 162 13822
4,966 (91) 8,947 65%
2,396 3,418 5,814
3133 23%
390 2,743 20%
60 2,683 19%
633
2049 15%
(111) 1,938
46 45
22
Historical Balance Sheet
Figures in INR Mn
FY19
FY20
FY21
FY22
FY23
Figures in INR Mn
FY19
FY20
FY21
FY22
FY23
Assets Non-Current Assets Property, plant and equipment Right of use assets Capital work-in-progress Goodwill Other intangible assets Intangible assets under development Other financial assets Current tax assets (Net) Other non-current assets Total non-current assets
Current Assets Inventories Investments Trade receivables Cash and cash equivalents Other balances with banks Other financial assets Other current assets Total current assets Total Assets
3-Point Linkage Systems (3PL)
3-Point Linkage Systems (3PL)
2,481 - 59 602 24
30 51 127 27 3,401
3,675 - 1,485 79 72 15 436 5,762 9,168
2,070 662 93 598 68
6 50 112 4 3,665
3,529 - 1,283 169 0 2 393 5,377 9,042
2,002 578 23 590 54
- 44 113 22 3,427
2,062 532 22 618 35
- 47 148 26 3,491
2,037 656 71 660 16
1 62 59 33 3,595
3,391 13 1,675 108 - 39 280 5,506 8,933
4,419 - 1,942 140 - 39 280 6,821 10,312
4,530 250 1,553 387 0 33 221 6,978 10,573
Equity and Liabilities Equity Equity share capital Other equity Total equity
Liabilities Non-Current Liabilities Borrowings Lease liabilities Provisions Deferred tax liabilities (Net) Other non-current liabilities Total non-current liabilities
Current Liabilities Borrowings Lease liabilities Trade payables due to: Micro and small enterprises Other than micro and small enterprises Other liabilities Provisions Current tax payable Total current liabilities Total liabilities Total Equity and Liabilities
446 3,783 4,229
446 4,195 4,642
446 5,136 5,582
446 6,382 6,828
446 7,860 8,306
475 - 134 278 6 893
216 347 138 241 9 951
57 279 156 276 9 787
49 234 167 248 10 708
2,817 -
2,158 72
1,221 65
1,224 72
94 360 164 229 11 858
81 76
126 604 427 65 7 4,046 4,939 9,168
146 380 376 63 7 3,449 4,346 9,042
380 521 271 55 42 2,564 3,331 8,933
364 532 337 55 168 2,751 3,459 10,312
290 415 392 63 93 1,411 2,267 10,573
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Historical Cash Flow
Figures in INR Mn
FY19
FY20
FY21
FY22
FY23
3-Point Linkage Systems (3PL)
3-Point Linkage Systems (3PL)
Profit before tax Adjustments for: Depreciation and amortization expenses Interest expenses Interest on lease liabilities Interest income Deferred tax Other Items Operating profit before working capital changes Adjustments for changes in working capital : Cash generated from/(used in) operations
Less: Income tax (paid) / refunds Net cash flow from/ (used in) operating activities Net cash flow from/ (used in) investing activities Net cash flow from/ (used in) financing activities Net increase/(decrease) in cash and cash equivalent Cash and Cash Equivalents at the beginning of the period / year
Net increase/(decrease) in temporary overdraft Effects of exchange difference on cash and cash equivalent held in foreign currency Cash and Cash Equivalents as at the end of the period / year
920
744
1,186
2,293
2,682
238 148 - (5) 6 (102) 1,202 (1079) 122
(199) (63) (570) 757 110 91
(53) 2 151
354 136 - (12) (22) (200) 1,000 845 1,846
(117) 1,729 (538) (1194) (3) 151
18 3 170
373 54 18 (8) 11 (50) 1,594 207 1,801
(273) 1,528 (157) (1414) (44) 170
(26) 9 108
366 31 15 (9) (24) (74) 2,590 (1111) 1,478
(630) 849 (326) (493) 30 108
(6) 8 140
390 33 15 (14) (9) (87) 3,010 151 3,161
(633) 2,528 (536) (1,753) 239 140
(2) 10 387
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ANNEXURES
Group Structure
Uniparts India Ltd. (UIL)
100%
Gripwel Fasteners Pvt. Ltd. (GFPL)
Gripwel Conag Pvt. Ltd. (GCPL)
Uniparts India GmbH (UIG)
Uniparts USA Ltd. (UUL)
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100%
Uniparts Olsen In (UOI)
Leadership Team and Board
Visionary Board of Directors Visionary Board of Directors
Mr. Gurdeep Soni Promoter, Chairman & Managing Director
Mr. Paramjit Singh Soni Promoter, Executive Director and Vice Chairman
Mr. Herbert Coenen Non-Executive Director
Location: India
Location: USA
Location: Germany
• Masters degree in Management Studies from BITS Pilani
• Bachelors degree in Commerce from University of Delhi
• Diploma in Mechanical Engineering from the University
• 4 decades of experience in the Industry
• Over 3 decades of experience in the industry
•
In charge of the aftermarket business
•
In charge of OEM business, business growth and diversification plans of the Company
of Applied Science, Cologne
• 35 years of experience in the international OHV market,
•
In charge of business development, expansion and technology
Mr. Alok Nagory Independent Director
Ms. Celine George Independent Director
Mr. Sanjeev Kumar Chanana Independent Director
Mr. Sharat Krishan Mathur Independent Director
Ms. Shradha Suri Independent Director
Qualified and Professional Management Team Qualified and Professional Management Team
Mr. Sudhakar S Kolli
Group Chief Operating Officer
Location: USA
Mr. Rohit Maheshwari
Group Chief Financial Officer
Location: India
• An Engineer by qualification, done his MBA from USA
• A qualified Chartered Accountant
• Over 3 decades of experience in the areas including
management
• Over 27 years of experience in managing Finance,
Accounts, Fund Raising, Taxation and M&A
•
In charge of our overall operations, business development, and management.
•
In charge of Financial Planning, Accounting, Fund raising and Strategic projects
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Uniparts is exhibiting at Agritechnica 2023 (Hannover, Germany)
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For further information, please get in touch with:
Vivek Maheshwari vivek.maheshwari@unipartsgroup.com
Shrida Shah shrida@GoIndiaadvisors.com
Sheetal Khanduja sheetal@GoIndiaadvisors.com
Monali Jain monali@GoIndiaadvisors.com
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