Thanks for the great collaboration @nirvana_laha and @T11 . Those were very insightful questions to the management and helps bring some more clarity to the story. Sorry for replying late as I have been occupied with family health issues.
I have done some digging on @nirvana_laha’s open questions. Here is what I found for a couple of them:
- Why can’t Sharda crack Maruti - It appears that Maruti has a JV with Futaba called FMI Automotive Components. The exhaust systems are supplied through this JV. Some relevant links on Maruti-Fatuba here and here
- Who are the 2 CV clients for the JV - The management has indicated that the top 2 are their customers in one of the concalls:
- If we go by CV market share data, the top 2 will be Tata and Mahindra. However, CV market share also includes LCV. If we just take MHCV market share, the top 2 are Tata and Ashok Leyland. I am trying to reach out to friends in the automobile industry to confirm this.
- Note that, in the concall snippet above, they mention that they supply to the joint venture of one of their customers. I believe this joint venture is Tata Cummins. @T11, is that correct ?
Overall, a turnaround in Eberspaecher JV and the continuing strong cash generation were the positives in the results for me. The key monitorables remain ramp up in Eberspaecher JV, foothold in sub-component exports market, ramp up in EV sales and judicious deployment of cash.
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