Country of Origin: India |
Target Areas: Worldwide
A precision automotive products manufacturing Indian company, interested in divesting its majority shareholding and management control to potential foreign buyer / strategic partner in the business.
Mentioned below are some key points relating to the company and its operations.
• The Company, established in 2005, has evolved over the years as one of the prominent leaders in the precision automotive products in India.
•The Company is profitable and achieving sustainable EBIDTA (profit) in the range of 15 - 16% and which can be increased to 20% plus.Expected sales / turnover for Financial Year 2018-19 is 36 Million USD (approx).
• Diverse Product portfolio including various components that are part of rear axle and disc brake assembly.
• Product approval for 350+ components; single source supplier for various components.
• Revenues are growing at an CAGR of 29% from last 4 years.
• State of the art facility having a capacity of producing 8 million parts per annum.
• The Company has managed to grow its export and domestic business and is supplying to leading names in the automotive industry like Meritor, GKN, JCB, Tata Motors, Graziano, Spicer, Dana etc.
• The Company is ISO 14001:2004, ISO 9001:2008 and TS 16949:2009 certified organisation
Revenue 2018: USD 23,469,244
EBITDA 2018: USD 2,466,022
Asking Price: USD 60,000,000
Revenue Multiple 2018: 2.56
EBITDA Multiple 2018: 24.33
1) Diversified products base: Single source supplier for various components, having 350+ product approvals. Competencies in various product segments viz axles, gears, other transmission components.
2) Diversified customer base: Serves market leaders in automotive industry: mix of Tier 1 & OEM customers in domestic & international market. Serves blue chip customer base.
3) Quality of manufacturing facilities: An integrated forging & machining facility to provide high quality finished product. Efficient utility support systems such as 100% power & fuel back-up & effluent treatment plan solutions to meet government norms, etc. Rejection Rate < 1%.
4) Technology availability: High level of process optimization enabling less number of product changeovers. In-house quality & testing facilities. Online D Form software & other simulation software to provide customized designing & engineering solutions as per end-user requirements. ISO 14001:2015 & ISO 9001:2015 certified.
5)Strong market position: One of the largest integrated forged / machined components manufacturing facility for providing engineering solutions to automotive sector. Focus on products & solutions with high bar for approvals thereby ensuring barriers to entry.
6) Expansion: Potential to leverage existing customer base & infrastructure for future growth. Availability of surplus land admeasuring 25,000 square meters for future expansion. Opportunity to increase EBITDA margin to 20% + level.
7) Focus on exports: Strong global customer base with fortune 500 companies and other leading automotive companies into manufacturing of axles and transmission components. Catering to multiple geographies of customers. Increased exports revenue substantiate product quality & commitment in international market.
8) Investment in People & Processes: Senior & Middle level management has in-depth industry experience. Invested heavily in setting up robust & effective MIS for strong corporate governance reflecting professional nature of management.
9) Expected annual revenue by Financial Year 2023-24 is USD 140 million (approx.) (Financial model available)
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