RACL Q3 Concall notes. Another good call.
-
Current factory details (Gajraula : 95% revenues from here) – Total 4 sub-plants
a. Chetak – Domestic, 3W, trucks etc – precision and cleanliness req lower (Oldest plant)
b. Tejas – Export 2W plant
c. FG storage
d. Forging plant – 50% forging is done in-house, rest through suppliers (2014)
e. Ojas – 2021 Plant
f. Shakti – New plant (Nov 2022)
g. Vacant plot about 1/3rd existing built up area size for future expansions -
Timeline of the company
a. 2004 – First exports order from Kubota Tractors Japan (1st Indian co exporting gears to Japan)
b. 2005 – Tier 2 supplier to BRP Rotax (First indirect European order)
c. 2008 – Single source for Vespa from Day 1 in India; USD 1 Cr revenue
d. 2009 – First direct transmission assembly order from BMW Husqvarna
e. 2010 – Orders from KTM and BMW started
f. 2011-13 – Invested USD 5mn for inhouse forging plants, advanced robotics, power honing technology (precision machining)
g. 2014 – KTM order for complete subassembly of 690cc gearbox
h. 2015 – Name change to RACL Geartech (New target market : luxury segment)
i. 2016 – Stops all aftermarkets business; fully OEM
j. 2017 – Exports becomes > 50% of top-line, overall sales was USD 20mn
k. 2019 – Full owned subsidiary in Germany
l. 2021 – Company enters PV segment thanks to ZF, invested EUR 4 mn for Ojas plant -
Product portfolio
a. Steering and axle shafts – supplies to ZF – helps in having a better turning radius for 4W
b. Axle shaft – Truck part, goes to Europe
c. Balancer shafts – ATVs and multi cylinder engine motorcycles (KTM Duke)
d. Starter motor torque limiters
e. Park lock wheels – for locking the wheels in park mode (Supplied to an EV customer in Europe)
f. E-mobility shafts
g. Foot rests -
Numbers and future
a. 470Cr guidance for FY24 (confirmed orders) and 365Cr for FY23
b. Shakti Plant will be operational mostly for post FY24 revenues
c. ZF sourcing 300mn USD from India right now and their target is to source 3bn USD from India by 2030 (RACL has a very strong relationship with ZF)
d. The journey from 500-1000Cr will be partly driven by the current projects which are still in infancy stage. They are also exploring opportunities in aerospace and defence industries for planning the next leg of growth.
Some photos of the product portfolio and RFQ to production process:
| Subscribe To Our Free Newsletter |
