Industry Monitor – Automotive Components April 2010

© Cygnus Business Consulting & Research Pvt. Ltd. 2010


MARKETING Autoline Industries' US subsidiary receives prestigious 2009 supplier of the year award, India TVS Motor unveils auto-clutch bike, India Honda bike unit to set up second plant, India Tatas open laser scouring facility in PCMC, India OPERATIONS Fehrer picks up 40% stake in Harita JV, India 'Share of Chinese auto-parts in Indian market to reach US$6.85bn', India Amtek Auto group firm to set up 2m tonne steel plant, India BorgWarner sets up Rs300m facility near Chennai, India Amtek Auto up 4% after Swiss Finance buys stake, India Bosch settles wage talks at Bangalore plant, India Ford Details PowerShift Dual-Clutch Auto Transmission, India M&M lets Renault take majority stake in JV, India TRW Automotive in pact with Xi'an Dong Fang Group to set up new plant , India Hyundai swings against counterfeiters in Delhi, India Hero Motors joins hands with Germany's ZF-Lemforder, India Tata may source auto parts from Bangladesh, India Shriram Pistons to invest Rs7.00bn in new plant, India UK engineering majors eye collaborations with companies from India, UK Sakthi Automotive sells German biz to MAT Holdings, Germany ZF & Hero Group to set up JV company, Germany

QPAC - Indian Auto Components Industry - October-December 2009
© Cygnus Business Consulting & Research Pvt. Ltd. 2010 1 Net Sales and Growth
54 56 58 60 62 64 66 OND08 OND09 0%

2% 4% 6% 8% 10% 12% Net Sales (LHS) Growth (RHS)

20 30 40 50 60 OND08 OND09 0 20 40 60 80 100 120 EBIDTA (LHS) OPM (RHS)

Net Profit and NPM
(3) 0 3 6 9 12 OND08 OND09 -5 0 5 10 15 20 Net Profit (LHS) NPM (RHS) Source: BSE India; Cygnus Research

The India is now becoming a major hub for auto components to global automobile makers, The major Indian auto component companies are expected to further provide a push to this opportunity by taking part in the forthcoming automobile, auto-component parts and technology parallel show Auto Mobil International (AMI) and AMITEC to open in the month of April in Leipzig, Germany. In the last year, the three largest European auto-component makers had set up facilities in Pune belt. The Italy-based leader in brake discs for automotive vehicles, Brembo, and Germanybased manufacturer of clamps,

plastic tubing systems and connectors for auto and non-auto industry, Norma group, set up their facilities at Chakan and Talegaon respectively in 2009. Recently, another German firm, ZF group, inaugurated its 100% Indian subsidiary at Chakan. Domestic auto component makers are also likely to face competition from foreign suppliers making a beeline for the country following increase in penetration by original equipment manufacturers (OEMs). During OND 09, the auto-component industry top line sales have been increased by 9% to Rs63263.26m due to the good performance of the automobile sector in the second half of 2009. The industries operational performance has been increased by 54% to Rs5559.02m against the previous year of same period. The Industry had shown good financial performance with Profit after tax at Rs1065.32m, in the pervious year of same period as the base was very low with Rs216.01m. Note: Following companies are considered for analysis: Amtek auto, Apollo tyres, Bharat forges, Ceat ltd, Exide industries, JK tyres, MRF ltd, Rico auto, Sundaram Clayton, Sona Koyo steering System, Sundram Fasteners.

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