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Industry Monitor – Automotive Components

April 2010
© Cygnus Business Consulting & Research Pvt. Ltd. 2010
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INDUSTRY AT A GLANCE
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)
EBIDTA and OPM
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

INDUSTRY ANALYSIS
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 Germany-
based 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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