|
Bearing Industry in India can be divided into two segments - the organized sector and unorganized sector. The organized sector primarily caters to the original equipment manufacturers' (OEM) segment, which is predominantly automotive, railways and other industrial users. The unorganized sector primarily caters to the replacement market and continues to serve the very low-end market as well as forms the core of the counterfeit product in the market. With a renewed focus on quality & reliability, the replacement market is increasingly turning to the organized sector, a sector that was once the domain of the unorganized sector. The bearing industry in India is estimated to be around Rs 5000 crore.
The Bearing Industry as a whole reported a flattish performance as a whole for the quarter ended Mar’08, primarily on account of sharp rise in the input costs. The Aggregate Net Sales revenue of 6 companies for the quarter ended Mar’08 stood at Rs 712 crore which was 10% higher when compared with corresponding period last year. The Aggregate OPM decreased by 150 basis points to 17.4%. The Aggregate Operating Profit for the quarter under review stood at Rs 124 crore which was marginally higher by 2% when compared with corresponding period last year. The Aggregate PAT for the quarter under stood at Rs 79 crore which was 5% higher when compared with corresponding period last year.
NRB Bearings has inaugurated a new manufacturing facility at Pantnagar (Uttarakhand) during the month May’08. The modern manufacturing facility was completed in a record time of 8 months. The plant at Pantnagar is part of company’s strategy to be located in close proximity to companies’ customers. Furthermore the company also plans to be the most preferred bearing supplier to all its important customers.
With an initial investment of Rs 25 crores, the facility will manufacture Ball & Roller Bearings for the domestic market. The facility spread over 5 acres, will have a capacity of producing over 22 million Ball & Roller Bearings over the next 3 years.
The Bearings Industry as a whole reported a flattish performance for the quarter ended Mar’08, primarily on account rise in input costs especially steel. The Aggregate OPM of the companies for the quarter ended Mar’08 declined by 150 bps.
The current year is expected to be a challenging year for the Bearing Industry. On the one hand there is a muted performance seen in the Automobile sector, while on the other hand the industrial growth remains healthy, driven by new capacities in the manufacturing sector and the continued spending on infrastructure.
|