The document discusses the auto components market in India. It states that the domestic auto components market is expected to reach $115 billion by 2021, growing at a CAGR of 10.5%. Exports are also expected to increase significantly, reaching $80-100 billion by 2026. Several major auto component companies like Schaeffler India and UNO Minda are investing heavily in India. The document also provides an overview of Timken India, an auto bearing manufacturer, discussing its history, global operations, competition, financial ratios, and reasons for investing in the company.

1. Presented by:
Prakhar Omar
PIBM, Pune
2017-19
prakharomar05@gmail.com
www.linkedin.com/in/prakhar-omar-b24158129
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2. AUTO COMPONENTS: INFORMATION
According to ACMA,
CAGR will be 10.5%
by 2019-20
CAGR

3. AUTO COMPONENTS: MARKET POTENTIAL
38.5 39
115
-30
20
70
120
FY 15 FY 16 FY 21E
Domestic Market Potential (US$ billion)
DOMESTIC MARKET:
 71% of total sales by 2021.
 Industry has scaled three times.
 Turnover of US$100 billion by 2020
 Strong exports US$80 to US$100 billion by 2026.
11.2 10.8
30
0
10
20
30
40
FY 15 FY 16 FY 21E
Export Market potential (US$ billion)
EXPORT MARKET:
 26% of the market by 2021.
 4th largest automobiles producer globally by 2020
 3rd largest in the world by 2025.
 2nd largest producer of steel for car in the world

4. AUTO COMPONENTS: INVESTMENT & INITIATIVES
 Schaeffler India - US$ 46.66 million
 Krishna Group, Minda Industries, Lumax Industries, Subros Ltd - US$ 233.31 million
 Setco - US$ 38.62 million
 UNO Minda - US$ 91.87 million
 Turnover of US$ 300 billion by the year 2026.
 Grow at a rate of CAGR 15% from its current revenue of US$ 74 billion.
 Contribution of auto industry in the country’s GDP will rise to 13 per cent
 More than 100 million jobs will be created in the economy
 Invest around US $80 billion.
 Electric cars are expected to get new green number plates.
 Shortlisted 11 cities in the country for introduction of electric vehicles (EVs)
 Become the third largest in the world by 2025
 Exports potential could be increased by up to four times to US$ 40 billion by 2020.

5. AUTO COMPONENTS: OTHER INFO.

6. Bargaining Power of
Buyers
 Low- High demand from car
manufacturers give them lesser
bargaining power
 Product differentiation is low.
Competitive Rivalry
 High- As government has already deregulated the sector.
 Increasing number of foreign firms (Ford, Volkswagen, etc.) are increasing their presence.
 Cheaper imports of components from China is increasing.
Threat of New Entrants
 Moderate- Given the concentration
of industry clusters in specific
strategic centers
 Foreign firms are increasing their
footprints in India.
Threat of Substitutes
 Low- As public transportation is
underdeveloped even in most cities
 Rapid growth in Indian economy
has changed travel patterns.
Bargaining Power of Suppliers
 Moderate- As there are a large number of steel and aluminum manufactures (key raw material)
 Some of them have their own units which give them linkage power.
AUTO COMPONENTS: MARKET POTENCIAL

7. TIMKEN: INFORMATION
 Incorporated in 1987 as Tata Timken Limited (TTL).
 Joint venture between Tata Iron and Steel Company (TISCO) and The Timken Company.
 In March 1992, Commercial production was started in Jamshedpur plant.
 TISCO and TIMKEN each held 40% equity stake in the company.
 In 1999, Timken acquired from Tata Steel its 40% stake in Tata Timken Limited.
 Timken now holds 75% equity stake and the remaining 25% is publicly held.
 In July 2, 1999, Company name was changed to Timken India Limited.
 The company has sales offices in Kolkata, Delhi, Bangalore, Pune and Jamshedpur.
 With more than 15,000 employees operating from 33 countries.
 Company applying knowledge of metallurgy, tribology and mechanical systems to improve the
reliability and efficiency of equipment, machinery and vehicles worldwide.

8. TIMKEN: GLOBAL CAPABILITY

9. TIMKEN: DIFFERENT

10. TIMKEN: COMPETITION
Name Last Price
Market Cap.
(Rs. cr.)
Sales
Turnover
Net Profit
Total
Assets
SKF India 1,895.65 9,731.88 2,631.41 243.89 1,810.03
Schaeffler Ind 5,260.85 8,742.10 1,918.72 238.02 1,695.32
Timken 698.25 4,818.14 1,056.18 97.20 626.28
NRB Bearings 170.80 1,655.44 708.70 51.04 582.57
Menon Bearings 107.15 600.47 122.92 19.24 82.10
Bimetal Bearing 468.50 179.20 143.84 5.00 164.10
NRB Industrial 23.50 56.94 39.60 -14.62 102.66

11. TIMKEN: RATIOS
Particular FY 2017 FY 2016 FY 2015
Current Ratio 2.36 2.99 3.1
Quick Ratio 1.55 1.88 1.88
Debt Equity 0.01 0.01 0.01
Net Profit (%) 8.7 8.27 8.34
ROA (%) 8.6 9.74 10.14
ROE (%) 16.93 18.96 19.66
Interest Cover 166.09 155.13 213.86

12. TIMKEN: WHY INVEST?

13. THANK
YOU