25 years has been a fascinating journey for all of us at Menon Bearings !
Acquiring & growing business continuously upgrading & assimilating newertechnologies & building long term relationships with marquee customers like CumminsTata Motors John Deere Honeywell Magna Allison Emerson Eaton Mahindra TAFEGabriel Brakes India and many others.
The auto industry is highly cyclical in nature. It is necessary that we mitigate therisks & diversify across a wider spectrum to enable us to maintain a sustainedmomentum & profitability in our business.
Since 2010 your company has consciously embarked on diversifying from Engine BearingsCrank Shaft Parts. Due to its innate engineering competence your company has beenconsistently successful in developing new parts supply to segments such as BrakesSteering Suspension Axles Transmissions Drive trains oil & gas industry etc.
Furthermore your company's business exposure is diversified & hedged acrossgeographies. MBL is globally positioned with exports of about 30% of its production to awide range of markets
. from USA to China France to Japan Brazil Mexico AfricaDubai Netherlands etc. Our office at Indianapolis USA has been catering to internationalOEMs & the market in the USA for more than two decades.
Apart from the cyclical nature of the auto engineering industry the ever evolvingemission norms are a major challenge to our industry. MBL has consistently succeeded inupgrading its technology & product portfolio to confirm to emission norms byprevoyantly taking the right steps in time. As a part of this mission MBL has beensuccessful in developing Lead Free Aluminium Alloy Parts to cater to future emissionnorms.
Your company's Aluminium Parts division Alkop continues to perform towardsconsolidating its position as a Technology Player in its segment. Though the businesspotential for Aluminium parts is large the market is scattered & distributed acrossvarious levels of technology & price points. In this market Alkop aims to be a nichemanufacturer. To augment its technology advantage as a total solutions provider indesigning developing & manufacturing high value added technology products Alkop hasinvested in a heavy duty tool room for making ultra-precision tools dies & fixturesin house. Alkop enjoys a major share of the parts it supplies to domestic and exportcustomers.
The period since November 2018 and especially the quarter January to March 2019 was achallenging period for the auto engineering industry as a whole. However owing to astrong diversified customer base & optimal product mix your company was able tominimize the impact of the slowdown. No single customer contributes more than 10% to 12%of the total sales.
As regards the impact of electric vehicles on your company it is understood thatElectric technology is still in the works. Charging infrastructure technology pricing ofthe products and a variety of other factors are still a challenge. The impact ofelectrification to whatever extent initially will be more pronounced in the PassengerCommute segments such as Cars two wheelers & three wheelers. Your company's exposuredirectly to these segments is less than 1% of the total sales. MBL is a leader in partssupply to heavy duty diesel parts like Mining equipment ( heavy trucks earth movingequipment ) Marine Engines Tractors LCV HCV Heavy duty generator sets industrialsegments etc.
Your company has continued its efforts in adding new Customers and at the same time isincreasing the wallet share of its current businesses. The company will leave no stoneunturned & make every endeavor to maintain sustained profitable growth.