Industry Profile: India has overtaken the United States to emerge as the second-largest casting producer, behind China last year. The production in the country stood at 11 Million tonnes, valued at 19 Billion U.S Dollars in 2017, behind China, which produces 40 million tonnes, registering a growth of four to five percent, exports recorded 2.7 billion dollars, and the industry employs about 2.5 million people. The continuously growing automobile industry is one of the big customers of the industry, and it also receives orders from offshore companies.
Aluminum castings contributed 15 percent of the total casting production. They added that the segment was likely to grow further as automobile manufacturers focused on reducing the weight of the vehicles, including engines and doors. South India, particularly Tamil Nadu and Karnataka, contributes 50 percent of India’s total production of castings.
Company Profile: The company was founded in 1985 and is based in Aurangabad, India. Endurance Technologies Limited, with its subsidiaries, manufactures and supplies automotive components to original equipment manufacturers in India and internationally. The company is the largest two-wheeler and three-wheeler automotive component manufacturer in India regarding aggregate revenue for FY2015 from its selected product segments. It offers aluminum die castings, such as high pressure, low pressure, and gravity die castings, as well as machining components; and suspension products, including hydraulic, mono, and oleo-pneumatic shock absorbers for scooters, motorcycles, three-wheelers, and quadricycles, as well as conventional and inverted front forks for motorcycles and scooters. The company also provides transmission products comprising clutch assemblies, cork and paper-based friction plates for motorcycles and three-wheelers, continuously variable transmission assemblies for scooters, and plastic components for automotive components applications. In addition, it provides brake systems, such as drum brake assemblies, free brake shoes, and tandem master cylinder sub-assemblies for three-wheelers; and disc brake assemblies, rotary discs, and brake pads for motorcycles, as well as offers aftermarket sales services.
They also have operations in Europe with highly automated manufacturing facilities in Italy and Germany. Tier one companies directly supply OEMs and are tier-one suppliers to OEMs for most of their products. According to the Aluminium Casters’ Association of India, they are the number one aluminum die-casting company in India in terms of actual output and installed capacity in FY2016.
Shareholding pattern: BSE Filing
Financials and ratios: [table id=210 /]
Future and prospectus: This is one of the large companies operating in the segment. But their life quite attached to the growth of the Automobile segment, which now is not good. Nevertheless, this company is excellent and good to hold in its portfolio.
