Racl -Future growth(from conall @2024-july+sept)
1…TVS
=Recently the new electric scooter launched by TVS a couple of days back which is an extensive scooter, RACL is the single sole supplier for their entire rear axel assembly and many other things.
2…Super bike
=One more major super bike is being launched maybe in September for which the entire transmission is being supplied by RACL.
3…Cars
=Until FY2020, the company was zero is passenger car vehicle and last year it was 6% and this year it will be more than 10%. RACL is into passenger cars like BMW 7 series, Porsche, Mercedes AMG, BMW X7, Aston Martin. The kind of precautions and stringent requirements are a lot in these segments.
4…Yokes
Developing Yokes for motorcycle. The rear wheel will be driven by the propellers instead of a routine chain
=Bagged order from an European Two Wheeler manufacturer for supplying finishd forgings Yoke’s. This is a new business line. In past, RACL has never supplied parts till Forging stage
=At present none of the Yokes are used in Motorcycles in India. These are very high end Yokes being used in European 2 wheelers
5…ZF
=SOP for two new ZF business for started in June 2023. ZF dedicated plant running at 95% Utilisation. Project volume has peaked 2 years before anticipated projections
6…Company likely to win one big project in a new segment. Details to be known by next Qtr
7…Capex
=New Shakti plant was inaugurated in March 2023. The plant has been commissioned and commercial production has started for few projects
=Capex projection for FY-24 to 27 at 250 cr
= The company has projected capital expenditure of ~Rs.61 crore for FY24 (refers to the period from April 01, 2023 to March 31, 2024) for the purpose of creating capacities for existing products alongside new customers and modernization/upgradation of existing plant and machinery.
=No investment is made by the company unless the company gets a nomination letter from the customer
8…Intend to keep growing the company at > 20 pc CAGR for the foreseeable future
9…Others
=Received best supplier award for 100% Delivery by Kubota India in for CY 22
=Gajraula Plant is TISAX & ISO 27000 certified. Probably one of the first few in India for a company of our size.
=Moving from lose component manufacturer to highly precisioned oriented manufacturer.
-The more complex the part is, the more margin RACL is able to command
| Subscribe To Our Free Newsletter |
