25 years has been a fascinating journey for all of us at Menon Bearings !
Acquiring & growing business, continuously upgrading & assimilating newer
technologies & building long term relationships with marquee customers like Cummins,
Tata Motors, John Deere, Honeywell, Magna, Allison, Emerson, Eaton, Mahindra, TAFE,
Gabriel, Brakes India and many others.
The auto industry is highly cyclical in nature. It is necessary that we mitigate the
risks & diversify across a wider spectrum to enable us to maintain a sustained
momentum & profitability in our business.
Since 2010, your company has consciously embarked on diversifying from Engine Bearings
Crank Shaft Parts. Due to its innate engineering competence, your company has been
consistently successful in developing new parts supply to segments such as Brakes,
Steering, Suspension, Axles, Transmissions, Drive trains oil & gas industry etc.
Furthermore, your company's business exposure is diversified & hedged across
geographies. MBL is globally positioned, with exports of about 30% of its production to a
wide range of markets…. from USA to China, France to Japan, Brazil, Mexico, Africa,
Dubai, Netherlands etc. Our office at Indianapolis, USA has been catering to international
OEMs & the market in the USA for more than two decades.
Apart from the cyclical nature of the auto engineering industry, the ever evolving
emission norms are a major challenge to our industry. MBL has consistently succeeded in
upgrading its technology & product portfolio to confirm to emission norms by
prevoyantly taking the right steps in time. As a part of this mission, MBL has been
successful in developing Lead Free Aluminium Alloy Parts to cater to future emission
norms.
Your company's Aluminium Parts division Alkop continues to perform towards
consolidating its position as a Technology Player in its segment. Though the business
potential for Aluminium parts is large, the market is scattered & distributed across
various levels of technology & price points. In this market Alkop aims to be a niche
manufacturer. To augment its technology advantage as a total solutions provider in
designing developing & manufacturing high value added technology products, Alkop has
invested in a heavy duty tool room for making ultra-precision tools, dies & fixtures
in house. Alkop enjoys a major share of the parts it supplies to domestic and export
customers.
The period since November 2018 and especially the quarter January to March 2019 was a
challenging period for the auto engineering industry as a whole. However, owing to a
strong diversified customer base & optimal product mix, your company was able to
minimize 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 that
Electric technology is still in the works. Charging infrastructure, technology, pricing of
the products and a variety of other factors are still a challenge. The impact of
electrification, to whatever extent, initially will be more pronounced in the Passenger
Commute segments such as Cars, two wheelers & three wheelers. Your company's exposure
directly to these segments is less than 1% of the total sales. MBL is a leader in parts
supply to heavy duty diesel parts like Mining equipment ( heavy trucks, earth moving
equipment ), Marine Engines, Tractors, LCV, HCV, Heavy duty generator sets, industrial
segments etc.
Your company has continued its efforts in adding new Customers and at the same time is
increasing the wallet share of its current businesses. The company will leave no stone
unturned & make every endeavor to maintain sustained profitable growth.